Sinclair, Inc. Q4 FY2025 earnings call

• 2025 was defined by disciplined execution, portfolio simplification, and positioning for stronger performance. Delivered strong financial results with total revenue $3.2 billion and adjusted EBITDA $483 million. • Progressed on strategic review of broadcast business, planning for Ventures separation, and expected $30 million annualized run rate synergies by H2 2026. Closed 15 partner station acquisitions, near completion of optimization by mid-year. • Strengthened balance sheet with debt refinancing, retiring notes, and establishing AR facility. Ended 2025 with total debt $4.4 billion, total liquidity ~$1.5 billion, cash $866 million. • In Ventures, generated $104 million cash distributions in 2025, ended with $465 million cash. Selective on new capital deployment. • Operational highlights: core advertising grew 14% in Q4, broadcast audiences strong with 48 of top 50 telecasts on broadcast, 96 of top 100 live sporting events. Subscriber trends showing stabilization. Engagement growth across podcasts and social platforms. Extending brands into live experiences. • 2026 expected to be strong for live sports with Winter Olympics, FIFA World Cup, and continued NFL/college football strength. Anticipated record political revenues in midterm cycle

For 2025, total revenue was $3.2 billion and adjusted EBITDA was $483 million. Fourth quarter total revenue was $836 million and adjusted EBITDA was $168 million. Core advertising grew 14% year over year in the fourth quarter. Ventures portfolio generated $104 million of cash distributions during the year and ended with $465 million in cash. Local media segment total revenue was $734 million, with distribution revenue $384 million and core advertising revenue $312 million. Tenant segment total revenue was $62 million with adjusted EBITDA $21 million. Fourth quarter total company revenue $836 million, adjusted EBITDA $168 million. Year-over-year, total company revenue declined due to political revenue shift, core advertising increased 14% as-reported, distribution revenue declined 1%, adjusted EBITDA declined. Local media segment revenue declined due to political revenue absence, core advertising increased 4% as-reported and 6% pro forma, distribution revenue declined, adjusted EBITDA declined. Tennis segment total revenue increased to $62 million, poor advertising revenue increased 20%, distribution revenue increased 10%, adjusted EBITDA improved 10%

• Total company 2026 guidance: total revenue $3.4 to $3.54 billion, including distribution revenue $1.72 to $1.79 billion, core advertising revenue $1.26 to $1.3 billion, political advertising revenue at least $333 million. • Adjusted EBITDA $700 to $740 million, CapEx $75 to $80 million, net interest expense $300 to $310 million, net cash tax payments $34 to $45 million. • Core advertising assumes stable trends with sports-heavy calendar and cautiousness on macro headwinds. • Political revenue expects record midterm performance. • Distribution revenue guidance assumes steady growth with subscriber churn moderation, considers partner station acquisitions already closed. • CapEx flat with 2025, focused on maintenance, resiliency, and high return tech investments

Q: Dan Kernos from Benchmark StoneX asked about M&A environment, timing of cap elimination, and net in out years.

A: Chris Ripley said having a large transaction like Nextartegna go through helps pave way for M&A, Sinclair is active in portfolio optimization and strategic review. Dan also asked about net in out years, Rob Rice-Ford said they have confidence in business, see churn improve from large MVPDs, and trends like rebundling and skinny bundles auger well.

Q: Aaron Watts from Deutsche Bank asked about core advertising in TV group, momentum, auto spend in 2025 and 2026.

A: Rob Rice-Ford said core advertising had healthy finish not due to crowd out, auto spend in 2025 was down mid-single digits due to tariffs and consumer confidence, 2026 has strong auto insight from NBCs but automotive is small part of portfolio. Chris Ripley added Q2 and Q3 had economic uncertainty but unwound in Q4, optimistic for Q2 and Q3. Aaron also asked about leverage and cash from Ventures for M&A, Chris Ripley said leverage not an issue in discussions, Sinclair has liquidity and could use Ventures resources for transformative transaction.

Q: David Karnofsky from JP Morgan asked about NFL and cost pass-through.

A: Chris Ripley said NFL renewals benefit incumbents, NBC's MBA deal example shows cost not fully absorbed by them, networks' streaming platforms help absorb costs, FCC proceedings and inquiries support equitable cost sharing.

Q: Benjamin Soft from Deutsche Bank asked about expense outperformance and JSA buy-ins.

A: Narendra Sahai said expense outperformance was across the board, about 70% of JSA/LMA synergies baked into guidance but affected by subscriber churn.

Q: Fernanda Lima from Morgan Stanley asked about interest in assets from potential M&A divestitures.

A: Chris Ripley said Sinclair would be interested in divested assets from Nextartegna deal, especially those creating duopoly opportunities, and has ongoing processes for station acquisitions}}```json {