Iron Mountain Stock Gains in Pre-Market on Q2 AFFO & Revenue Beat
Reflecting investors' positive sentiments, shares of the company gained around 3.60% during the pre-market hours of today's trading session. Iron Mountain's results reflect solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent.
Quarterly total revenues of $1.71 billion outpaced the Zacks Consensus Estimate of $1.68 billion. Moreover, the figure improved 11.6% year over year. IRM increased its full-year 2025 guidance.
According to William L. Meaney, president and CEO of Iron Mountain, 'We are pleased to report outstanding performance in the second quarter, resulting in record financial performance across all key metrics and above our expectations. Our team's successful execution of our strategy and commitment to delivering value for our customers, whilst leveraging our synergistic business model continues to drive industry leading growth and record results across each of our business segments.'
IRM's Q2 in Detail
Storage rental revenues were $1,010 million in the second quarter, up 9.8% year over year. We had estimated quarterly storage rental revenues of $1002.9 million.
Service revenues increased 14.2% from the prior-year quarter to $702 million. Our estimate was pegged at $677.2 million.
The Global RIM business revenues grew 5.9% year over year to $1323.8 million. Our estimate was pegged at $1320.7 million.
The Global Data Center business reported revenues of $189.4 million in the second quarter, rising 24% year over year. The figure exceeded our estimate pegged at $188.8 million.
Adjusted EBITDA rose 15.4% year over year to $628.4 million. The adjusted EBITDA margin expanded 120 basis points to 36.7%.
However, interest expenses increased 16.2% year over year to $205.1 million in the quarter.
IRM's Balance Sheet Position
IRM exited the second quarter with $218 million of cash and cash equivalents, up from $155.3 million as of March 31, 2025.
As of June 30, 2025, the company has net debt of $15.48 billion, up from $14.87 billion as of March 31, 2025, with a weighted average years to maturity of 4.5 years and a weighted average interest rate of 5.7%.
IRM's Dividend
Concurrently with the second-quarter earnings release, IRM announced a cash dividend of 78.5 cents per share for the third quarter of 2025. It will be paid out on Oct. 3 to its shareholders on record as of Sept. 15, 2025.
2025 Guidance Revision by IRM
Iron Mountain has raised its guidance for 2025.
It now expects AFFO per share between $5.04 and $5.13, up from the previous guided range of $4.95-$5.05. The Zacks Consensus Estimate is pegged at $5.01, which lies below the company's guided range.
Revenues are now estimated in the range of $6.79-$6.94 billion from the earlier range of $6.74-$6.89 billion, while adjusted EBITDA is anticipated between $2.52 and $2.57 billion from the previous range of $2.51-$2.56 billion. The Zacks Consensus Estimate for 2025 revenues is pegged at the lower end of the range at $6.79 billion.
IRM's Zacks Rank
Iron Mountain currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITs
Digital Realty Trust DLR reported a second-quarter 2025 core FFO per share of $1.87, beating the Zacks Consensus Estimate of $1.74. FFO also increased 13.3% year over year.
The quarterly results reflected steady leasing momentum with better rental rates amid rising demand. The company raised its 2025 core FFO guidance range.
Equinix Inc. EQIX reported a second-quarter 2025 adjusted FFO per share of $9.91, outpacing the Zacks Consensus Estimate of $9.19. Moreover, the figure improved 7.5% from the prior-year quarter.
Results reflected higher revenues led by strong demand for digital infrastructure and services. The company raised its 2025 AFFO per share guidance range.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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