Uniti Group Reports Q4 Decline Amid Merger Plans

Uniti Group Inc. reported its fourth-quarter financial results, revealing a decline in funds from operations (FFO) to $77.9 million, compared to $85.7 million a year earlier, though adjusted FFO increased slightly to $91.9 million. The company's revenues rose to $293.3 million, although this fell short of analysts' estimates. Despite the mixed results, Uniti's net income for the year reached $93.4 million, bolstered by strong growth in its fiber segments and a significant ABS financing transaction aimed at strengthening its balance sheet ahead of its merger with Windstream planned for the second half of 2025. CEO Kenny Gunderman emphasized the company's strategic position to benefit from increasing demand for fiber infrastructure, particularly in the context of emerging technologies like Generative AI. The upcoming merger is expected to enhance Uniti's capabilities in the communications sector. Investors are closely monitoring FFO expectations and management's commentary following the earnings release to gauge future performance.