Latest news with #SBAC
Yahoo
6 days ago
- Business
- Yahoo
SBA Communications Corp (SBAC) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue Growth: Domestic organic leasing revenue growth of 5% on a gross basis and 1% on a net basis year-over-year. International Organic Leasing Revenue Growth: 0.8% net growth on a constant currency basis, including 7.5% churn. Churn: $11 million of second-quarter churn related to Sprint consolidation; anticipated $50-$52 million for full year 2025. Site Acquisitions: Acquired 4,329 sites for approximately $563 million, primarily from Millicom in Guatemala and Panama. Debt and Leverage: Total debt of $12.6 billion, net debt of $12.3 billion, and leverage ratio of 6.3 times net debt to adjusted EBITDA. Interest Rate: Weighted average interest rate of 3.7% on outstanding debt, with 97% of debt at fixed rates. Share Repurchases: 799,000 shares repurchased for $172 million at an average price of $215.33 per share. Dividend: Quarterly dividend of $1.11 per share, representing a 13% increase over the previous year. Adjusted EBITDA: 85% denominated in US dollars. Cash Flow: Cash net interest coverage ratio of adjusted EBITDA to net cash interest expense at 4.3 times. Warning! GuruFocus has detected 6 Warning Signs with SBAC. Release Date: August 04, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points SBA Communications Corp (NASDAQ:SBAC) exceeded internal projections for the second quarter of 2025, leading to an increase in full-year guidance across all key metrics. The U.S. business showed positive momentum with six consecutive quarters of increased bookings, driven by carriers investing in wireless networks. The company reported a 20% increase in full-year services revenue guidance, primarily due to accelerated carrier installations in the U.S. International business performance was strong, with new leases and strategic tower builds contributing to growth. SBA Communications Corp (NASDAQ:SBAC) received an upgrade to a BBB investment-grade rating from S&P, highlighting the stability and predictability of its cash flows. Negative Points International churn increased by $5 million, primarily due to financial difficulties faced by a carrier customer in Brazil, Oi. The company is experiencing elevated levels of churn in certain international markets due to carrier reconsolidation. SBA Communications Corp (NASDAQ:SBAC) announced the sale of its Canadian tower business due to challenges in scaling the portfolio in that market. The company faces a significant headwind from rising interest rates, with upcoming debt maturities having low current interest rate coupons. There is uncertainty regarding the timing of revenue commencement from new leases, as the trend shifts towards more colocations, which typically take longer to generate revenue. Q & A Highlights Q: Can you discuss the durability of demand drivers like fixed wireless access and network densification through 2025 and 2026? Also, what are your thoughts on churn and rent reduction initiatives by customers? A: We feel confident about the long-term demand drivers, such as fixed wireless access, which is seeing significant subscriber growth. This will require sustained network investment. Regarding churn, there are no specific initiatives to lower rents materially. We aim to maintain a fair balance in pricing with our customers. Brendan Cavanagh, President & CEO Q: Could you elaborate on the timing of revenue from increased colocation activity? A: We are seeing more new colocations, which typically take longer to generate revenue compared to amendments. However, our full-year outlook remains unchanged, indicating higher contributions in the second half of the year. Brendan Cavanagh, President & CEO Q: What is driving the significant growth in your services business? A: The growth is driven by increased leasing activity and construction services, particularly in rural areas. We are also doing more services work on non-SBA sites, which strengthens our relationships with carrier customers. Brendan Cavanagh, President & CEO Q: Can you provide details on the Canadian asset sale and its implications for other markets where SBA has a smaller footprint? A: The Canadian market was challenging for us to scale. We decided to sell our assets there at a valuation higher than our public company valuation. This decision allows us to focus on markets where we can achieve scale. We continue to evaluate our position in other subscale markets. Brendan Cavanagh, President & CEO Q: How is the fixed wireless activity level evolving among your customers? A: The activity is broadening beyond the initial lead customer, with more carriers becoming active. This trend is expected to continue, driven by the need for network densification and fixed wireless access. Brendan Cavanagh, President & CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
6 days ago
- Business
- Globe and Mail
SBAC Earnings Jump on Strong Sales
Key Points Revenue (GAAP) reached $698.98 million, surpassing the analyst estimate by 4.1% (GAAP), driven by robust domestic leasing and higher site development activity. Adjusted Funds From Operations (AFFO) per share was $3.17 (non-GAAP), though down 3.6% year over year due to higher interest expenses. Full-year 2025 guidance for revenue, AFFO (non-GAAP), and Adjusted EBITDA (non-GAAP) was raised on strong backlogs and the early Millicom site acquisition closing. These 10 stocks could mint the next wave of millionaires › SBA Communications (NASDAQ:SBAC), a leading owner and operator of wireless communications towers, announced results for the second quarter on August 4, 2025. GAAP revenue was $698.98 million, above the expected $671.15 million (GAAP) and up 5.8% year over year. Diluted earnings per share (GAAP) were $2.09, above the $2.13 consensus (Non-GAAP) EPS estimate, but net income jumped 41.5% year over year. Adjusted Funds From Operations (AFFO) per share came in at $3.17, though declining from the prior year. Management raised financial guidance for full year 2025 across all key metrics, reflecting strong domestic demand, accelerated site acquisitions, and favorable leasing trends. The quarter showed solid progress in several business lines, despite margin pressures and increased interest costs. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS – Diluted (GAAP) $2.09 $2.13 $1.51 38.5 % Revenue $698.98 million $671.15 million $660.48 million 5.8% Adjusted EBITDA $475.5 million $467.1 million 1.8% AFFO per Share $3.17 $3.29 (3.6 %) Tower Cash Flow $511.2 million $503.9 million 1.4 % Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Understanding SBA Communications and Its Business Model SBA Communications owns, operates, and leases wireless tower infrastructure to mobile carriers and other wireless service providers. Its primary business is renting antenna space on its towers, a model that delivers stable, recurring revenue. Site leasing generates most of its operating profit, while the company also provides site development services, such as construction and network upgrades, to wireless carriers. In recent years, SBA Communications has focused on three major areas: expanding its international tower footprint, maximizing tower capacity by increasing colocation (multiple tenants per tower), and securing long-term control of the land under its towers. The company also closely follows wireless technology trends, like the rollout of 5G networks, as these drive demand for more tower space and additional equipment installations. Quarter Highlights: Growth Drivers and Strategic Moves In Q2 2025, site leasing remained the core of SBA Communications' business, accounting for 97.4% of segment operating profit. Domestic site leasing revenue grew to $469.8 million, up 1.4% from a year ago. International site leasing revenue was $162.0 million, a slight decrease on a reported (GAAP) basis, but up 4.0% when adjusting for foreign currency movements. The tower cash flow margin, a key indicator of profitability for tower operations, held steady at 81.0% (non-GAAP). The services segment, which includes site development, saw rapid growth as revenue nearly doubled to $67.2 million. This surge reflects increased carrier investment in network upgrades and new infrastructure. However, these projects have lower margins compared with core site leasing -- the spike in services revenue contributed to an overall decline in company-wide Adjusted EBITDA margin compared to Q2 2024. The company accelerated the integration of more than 4,300 newly acquired sites from the Millicom deal several months ahead of schedule. This brought the total tower count up to 44,065 as of June 30, 2025. It also advanced plans to sell its Canadian tower assets, entering into an agreement on July 21, 2025 to sell all 369 towers and related operations in Canada, with the transaction expected to close in Q4 2025, expecting this divestiture to be immediately beneficial to AFFO per share after closing, as stated by management in the earnings release. These actions demonstrate a strategy of growing internationally while exiting less efficient markets to focus on higher-return regions. Capital allocation remained active, with 799,000 shares repurchased and $1.45 billion authorized for future buybacks. Quarterly dividends held steady at $1.11 per share. The company maintained a high level of debt, with a net debt to adjusted EBITDA ratio of 6.5x, and net cash interest expense rose 23.2% year over year from Q2 2024 to $111.5 million. Management emphasized that the balance sheet remains strong. Strategic Business Areas and Their Impact Site leasing continues to dominate company profits, supported by the recurring nature of tower rental agreements with wireless carriers. This stability is underpinned by long-term contracts. SBA Communications closely monitors lease churn and seeks to add new tenants through strategic marketing and infrastructure upgrades. International expansion is a core strategy. While most new towers come from acquisition -- as with the Millicom deal -- the company also constructs new sites in regions where wireless networks are maturing. Diversifying across 13 countries insulates SBA Communications from market-specific risks and taps into growing demand for wireless infrastructure in developing regions. Maximizing tower capacity is another focus. By increasing the average number of tenants per tower, SBA Communications boosts revenue from existing assets with limited additional cost. About 75% of new U.S. leasing activity in Q1 2025 derived from colocations, which generate higher incremental revenue than simple contract amendments. Often prompted by requirements to meet 5G coverage mandates. The company also invests in long-term land control through ownership and long-term leases. This provides operational security, cost predictability, and margin protection well into the future. About 72% of tower sites are on land with over 20 years of control remaining as of December 31, 2024, and the company reported ongoing spending to extend lease terms where possible. Looking Ahead: Guidance and Market Trends Management raised its full-year 2025 financial outlook, expecting total revenue (GAAP) to reach $2.78–2.83 billion, AFFO per share (non-GAAP) of $12.65–13.02, and adjusted EBITDA of $1.91–1.93 billion. These increases reflect strong current leasing backlogs, robust site development, early benefits from the Millicom site acquisition, and positive foreign currency effects. The Canadian asset sale, which is still pending, is not yet included in the outlook. But overall commentary remains constructive for continued growth in the U.S. Key risks highlighted this period include margin pressures, flat-to-slow international organic growth due to carrier churn in markets like Brazil, and persistently high debt levels that heighten interest expenses. Nonetheless, strong domestic leasing demand, expanding service backlogs, and high levels of tower colocation suggest ongoing near-term growth. SBA Communications does pay a dividend, and the current quarterly dividend remains at $1.11 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,019%* — a market-crushing outperformance compared to 178% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of August 4, 2025
Yahoo
6 days ago
- Business
- Yahoo
SBA Communications Corporation Reports Second Quarter 2025 Results; Updates Full Year 2025 Outlook; and Declares Quarterly Cash Dividend
BOCA RATON, Fla., August 04, 2025--(BUSINESS WIRE)--SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended June 30, 2025. Highlights of the second quarter include: Net income of $225.7 million or $2.09 per share Industry-leading AFFO per share of $3.17 Closed on 4,323 sites from our previously announced deal with Millicom Repurchased 799 thousand shares throughout the quarter and subsequent to quarter end In addition, the Company announced today that its Board of Directors has declared a quarterly cash dividend of $1.11 per share of the Company's Class A Common Stock. The distribution is payable September 18, 2025 to the shareholders of record at the close of business on August 21, 2025. "Today we announce another very positive quarter of financial and operating results," commented Brendan Cavanagh, President and Chief Executive Officer. "Domestic activity remained very strong in the second quarter as our carrier customers continued to invest meaningfully in their wireless networks. New U.S. leasing business signed up during the quarter was ahead of our expectations and benefitted from continued high levels of new colocations. The results of our services business also reflect the significant level of network investment we are seeing, with construction volumes continuing to grow sequentially over the first quarter. Internationally, we also saw solid new leasing activity, and our company-wide total of new colocations executed during the quarter was the highest in nearly three years. In addition, we were able to close over 4,300 sites from our previously announced Millicom acquisition during the quarter, beginning the integration of these sites several months ahead of our prior projected timeframe. As a result of our strong leasing results, steady leasing and services backlogs, early Millicom closing, and favorable foreign currency movements, we have meaningfully increased our full year outlook across all key financial metrics. Our balance sheet remains strong with a quarter ending net debt to Adjusted EBITDA leverage ratio of 6.5x, and 6.3x adjusted on a pro forma basis for a full quarter of Adjusted EBITDA from the acquired Millicom assets, and only $80 million outstanding on our revolving credit facility. And lastly, as part of our ongoing portfolio review, we are announcing today that we have entered into an agreement to sell all of our Canadian tower assets. This divestiture will be immediately accretive to AFFO per share upon closing and is in alignment with our stated desire to optimize or otherwise exit subscale markets. I am very pleased with the progress we have made to date which will allow us to continue to focus our attention on growing and operating our key markets. Our team continues to execute very well, supporting our customers' significant network goals, and creating incremental value for our shareholders." Operating Results The table below details select financial results for the three months ended June 30, 2025 and comparisons to the prior year period. % Change excluding Q2 2025 Q2 2024 $ Change % Change FX (1) Consolidated ($ in millions, except per share amounts) Site leasing revenue $ 631.8 $ 626.5 $ 5.3 0.9 % 2.1 % Site development revenue 67.2 34.0 33.2 97.5 % 97.5 % Site leasing segment operating profit (2) 513.2 512.3 0.9 0.2 % 1.3 % Tower cash flow (1) 511.2 503.9 7.3 1.4 % 2.6 % Net cash interest expense 111.5 90.5 21.0 23.2 % 23.0 % Net income (3) 225.7 159.5 66.2 41.5 % (12.2 %) Earnings per share — diluted 2.09 1.51 0.58 38.5 % (12.3 %) Adjusted EBITDA (1) 475.5 467.1 8.4 1.8 % 2.9 % AFFO (1) 342.1 354.3 (12.2 ) (3.4 %) (1.9 %) AFFO per share (1) 3.17 3.29 (0.12 ) (3.6 %) (2.1 %) (1) See the reconciliations and other disclosures under "Non-GAAP Financial Measures" later in this press release. (2) Site leasing contributed 97.4% of the Company's total operating profit in the second quarter of 2025. (3) Net income includes a $30.4 million gain and $66.2 million loss, net of taxes, on the currency-related remeasurement of intercompany loans with foreign subsidiaries which are denominated in a currency other than the subsidiaries' functional currencies for the second quarter of 2025 and 2024, respectively. The table below details select financial results by segment for the three months ended June 30, 2025 and comparisons to the prior year period. % Change excluding Q2 2025 Q2 2024 $ Change % Change FX ($ in millions) Domestic site leasing revenue $ 469.8 $ 463.2 $ 6.6 1.4 % 1.4 % Domestic cash site leasing revenue (1) 467.4 457.4 10.0 2.2 % 2.2 % Domestic site leasing segment operating profit 400.4 397.7 2.7 0.7 % 0.7 % Domestic site leasing tower cash flow (1) 396.1 388.2 7.9 2.0 % 2.0 % Int'l site leasing revenue 162.0 163.3 (1.3 ) (0.8 %) 4.0 % Int'l cash site leasing revenue (1) 163.7 163.6 0.1 0.1 % 5.0 % Int'l site leasing segment operating profit 112.8 114.6 (1.8 ) (1.6 %) 3.3 % Int'l site leasing tower cash flow (1) 115.1 115.6 (0.5 ) (0.5 %) 4.5 % (1) See the reconciliations and other disclosures under "Non-GAAP Financial Measures" later in this press release. The table below details key margins for the three months ended June 30, 2025 and comparisons to the prior year period. Q2 2025 Q2 2024 Tower Cash Flow Margin (1) 81.0 % 81.1 % Adjusted EBITDA Margin (1) 68.1 % 71.3 % (1) See the reconciliations and other disclosures under "Non-GAAP Financial Measures" later in this press release. Investing Activities During the second quarter of 2025, SBA acquired 4,329 communication sites, including 4,323 sites from the previously announced Millicom transaction, for total cash consideration of $562.9 million. SBA also built 94 towers during the second quarter of 2025. As of June 30, 2025, SBA owned or operated 44,065 communication sites, 17,437 of which are located in the United States and its territories and 26,628 of which are located internationally. In addition, the Company spent $9.4 million to purchase land and easements and to extend lease terms. Total cash capital expenditures for the second quarter of 2025 were $645.1 million, consisting of $13.8 million of non-discretionary cash capital expenditures (tower maintenance and general corporate) and $631.3 million of discretionary cash capital expenditures (new tower builds, tower augmentations, acquisitions, and purchasing land and easements). As of the date of this press release, approximately 2,500 sites related to the Millicom transaction remain under contract for approximately $391.0 million in cash. In addition to the Millicom sites, the Company is under contract to purchase 13 communication sites for an aggregate consideration of $5.5 million in cash, which it expects to close by the end of the fourth quarter of 2025. On July 21, 2025, the Company entered into an agreement to sell all of its 369 towers and related operations in Canada for CAD$446.0 million. This transaction is expected to close during the fourth quarter of 2025. Given the uncertainty of the closing date, the Company has made no adjustment to its full year 2025 Outlook related to this transaction. Financing Activities and Liquidity SBA ended the second quarter of 2025 with $12.6 billion of total debt, $9.6 billion of total secured debt, $0.3 billion of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.3 billion of Net Debt. SBA's Net Debt and Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratios were 6.5x and 4.9x, respectively. As of the date of this press release, the Company had $35.0 million outstanding under its $2.0 billion Revolving Credit Facility. During the second quarter of 2025, the Company repurchased 618 thousand shares of its Class A common stock for $130.7 million at an average price per share of $211.63 under its $1.5 billion stock repurchase plan. Subsequent to the second quarter of 2025, the Company repurchased an additional 182 thousand shares of its Class A common stock for $41.4 million at an average price per share of $227.92. After these repurchases, the Company had $1.45 billion of authorization remaining under the plan. Shares repurchased were retired. In the second quarter of 2025, the Company declared and paid a cash dividend of $119.4 million. Outlook The Company is updating its full year 2025 Outlook for anticipated results. The 2025 Outlook provided is based on a number of assumptions that the Company believes are reasonable at the time of this press release. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in the Company's filings with the Securities and Exchange Commission. The Company's full year 2025 Outlook assumes the acquisitions of only those communication sites under contract which are expected to close in 2025 at the time of this press release. This includes an estimated closing date for the remaining sites under contract with Millicom of September 1, 2025; however, the ultimate closing is dependent upon regulatory approvals and other requirements and may differ from this date. The Company may spend additional capital in 2025 on acquiring revenue producing assets not yet identified or under contract, the impact of which is not reflected in the 2025 Outlook. The 2025 Outlook also does not contemplate any additional repurchases of the Company's stock or new debt financings during 2025, although the Company may ultimately spend capital to repurchase stock or issue new debt during the remainder of the year. The 2025 Outlook also does not contemplate any impact from the disposition of the Company's Canadian operations, which, if closed prior to year end, would impact full year results. The Company's 2025 Outlook assumes an average foreign currency exchange rate of 5.60 Brazilian Reais to 1.0 U.S. Dollar, 1.36 Canadian Dollars to 1.0 U.S. Dollar, 2,650 Tanzanian Shillings to 1.0 U.S. Dollar, and 17.90 South African Rand to 1.0 U.S. Dollar throughout the last two quarters of 2025. Change from Change from April 28, 2025 April 28, 2025 Outlook (in millions, except per share amounts) Full Year 2025 Outlook (6) Excluding FX (6) Site leasing revenue $ 2,565.0 to $ 2,590.0 $ 29.0 $ 21.0 Site development revenue $ 215.0 to $ 235.0 $ 35.0 $ 35.0 Total revenues $ 2,780.0 to $ 2,825.0 $ 64.0 $ 56.0 Tower Cash Flow (1) $ 2,058.0 to $ 2,083.0 $ 15.0 $ 10.0 Adjusted EBITDA (1) $ 1,908.0 to $ 1,928.0 $ 17.0 $ 12.0 Net cash interest expense (2) $ 435.0 to $ 441.0 $ 5.0 $ 5.0 Non-discretionary cash capital expenditures (3) $ 53.0 to $ 63.0 $ — $ — AFFO (1) $ 1,365.0 to $ 1,405.0 $ 12.0 $ 7.0 AFFO per share (1) (4) $ 12.65 to $ 13.02 $ 0.13 $ 0.08 Discretionary cash capital expenditures (5) $ 1,255.0 to $ 1,275.0 $ — $ — (1) See the reconciliation of this non-GAAP financial measure presented below under "Non-GAAP Financial Measures." (2) Net cash interest expense is defined as interest expense less interest income. Net cash interest expense does not include amortization of deferred financing fees or non-cash interest expense. (3) Consists of tower maintenance and general corporate capital expenditures. (4) Outlook for AFFO per share is calculated by dividing the Company's outlook for AFFO by an assumed weighted average number of diluted common shares of 107.9 million. Outlook does not include the impact of any potential future repurchases of the Company's stock during 2025. (5) Consists of new tower builds, tower augmentations, communication site acquisitions and ground lease purchases. Does not include easements or payments to extend lease terms and expenditures for acquisitions of revenue producing assets not under contract at the date of this press release. (6) Changes from prior outlook are measured based on the midpoint of outlook ranges provided. Bridge of 2024 Total Site Leasing Revenue to 2025 Outlook The table below presents a bridge of the Company's 2024 Site Leasing Revenue to the Company's 2025 Outlook for 2025 Site Leasing Revenue by reportable segment. (in millions) Consolidated Domestic International 2024 Total Site Leasing Revenue $ 2,527 $ 1,862 $ 665 (+) New Leases and Amendments 51 to 57 35 to 39 16 to 18 (+) Escalations 68 to 71 51 to 52 17 to 19 (-) Sprint Consolidation Churn (52 ) to (50 ) (52 ) to (50 ) — to — (-) Regular Churn (58 ) to (52 ) (22 ) to (20 ) (36 ) to (32 ) (+) Non-Organic Revenue (1) 73 to 73 7 to 7 66 to 66 (+ / -) Straight-line Revenue (8 ) to (3 ) (11 ) to (8 ) 3 to 5 (+ / -) FX (18 ) to (18 ) — to — (18 ) to (18 ) (+ / -) Other (2) (18 ) to (15 ) (2 ) to — (16 ) to (15 ) 2025 Total Site Leasing Revenue $ 2,565 to $ 2,590 $ 1,868 to $ 1,882 $ 697 to $ 708 (1) Includes contributions from acquisitions and new infrastructure builds. (2) Includes pass-through reimbursable expenses, amortization of capital contributions for tower augmentations, managed and non-macro business and other miscellaneous items. Conference Call Information SBA Communications Corporation will host a conference call on Monday, August 4, 2025 at 5:00 PM (EDT) to discuss the quarterly results. The call may be accessed as follows: When: Monday, August 4, 2025 at 5:00 PM (EDT) Dial-in Number: (202) 735-3323 Access Code: 5683336 Conference Name: SBA Second quarter 2025 results Replay Available: August 5, 2025 at 12:01 AM to September 2, 2025 at 12:00 AM (TZ: Eastern) Replay Number: (888) 372-1321 Internet Access: Information Concerning Forward-Looking Statements This press release and the Company's earnings call include forward-looking statements, including statements regarding the Company's expectations or beliefs regarding (i) the execution of its growth strategies and the impacts to its financial performance, (ii) continued growth in the U.S. and the drivers of that growth, (iii) its capital allocation strategy, (iv) its outlook for financial and operational performance in 2025, the assumptions it made and the drivers contributing to its full year 2025 Outlook, (v) the timing of closing for currently pending acquisitions, including the Millicom acquisition and its anticipated revenue, tower cash flows and other anticipated benefits, (vi) tower portfolio growth and its long-term growth potential, (vii) asset purchases, share repurchases, and debt financings, (viii) its ability to return capital to shareholders, (ix) the strength of its balance sheet and ability to generate significant free cash flow, (x) its customers' ongoing network investments, (xi) international churn, and (xii) sale of its Canadian tower assets, including the timing of closing and impact to AFFO per share. The Company wishes to caution readers that these forward-looking statements may be affected by the risks and uncertainties in the Company's business as well as other important factors may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company. With respect to the Company's expectations regarding all of these statements, including its financial and operational guidance, such risk factors include, but are not limited to: (1) the impact of macro-economic conditions, including high interest rates, tariffs, inflation and financial market volatility on (a) the ability and willingness of wireless service providers to maintain or increase their capital expenditures, (b) the Company's business and results of operations, and on foreign currency exchange rates and (c) consumer discretionary income and demand for wireless services, (2) the timing of the closing of the Millicom acquisition and the Company's ability to recognize anticipated revenues, tower cash flows and other anticipated benefits under the Millicom transaction, (3) the economic climate for the wireless communications industry in general and the wireless communications infrastructure providers in the United States and in the Company's other international markets; (4) the Company's ability to accurately identify and manage any risks associated with its acquired sites, to effectively integrate such sites into its business and to achieve the anticipated financial results; (5) the Company's ability to secure and retain as many site leasing tenants as planned at anticipated lease rates; (6) the Company's ability to manage expenses and cash capital expenditures at anticipated levels; (7) the impact of continued consolidation among wireless service providers in the U.S. and internationally, on the Company's leasing revenue; (8) the Company's ability to successfully manage the risks associated with international operations, including risks associated with foreign currency exchange rates; (9) the Company's ability to secure and deliver anticipated services business at contemplated margins; (10) the Company's ability to acquire land underneath towers on terms that are accretive; (11) the Company's ability to obtain future financing at commercially reasonable rates or at all; (12) the Company's ability to achieve the new builds targets included in its anticipated annual portfolio growth goals, which will depend, among other things, on obtaining zoning and regulatory approvals, availability and cost of labor and supplies, and other factors beyond the Company's control that could affect the Company's ability to build additional towers in 2025; and (13) the Company's ability to meet its total portfolio growth, which will depend, in addition to the new build risks, on the Company's ability to identify and acquire sites at prices and upon terms that will provide accretive portfolio growth, competition from third parties for such acquisitions and our ability to negotiate the terms of, and acquire, these potential tower portfolios on terms that meet our internal return criteria. With respect to its expectations regarding the ability to close, and realize the benefits of, pending acquisitions, including the Millicom transaction, and the pending disposition of Canadian assets, these factors also include each party satisfactorily completing due diligence, the ability to receive required regulatory approval, the ability and willingness of each party to fulfill their respective closing conditions and their contractual obligations and, with respect to the Company's acquisitions, the amount and quality of due diligence that the Company is able to complete prior to closing of any acquisition and the availability of cash on hand or borrowing capacity under the Revolving Credit Facility to fund the consideration, its ability to accurately anticipate the future performance of the acquired towers and any challenges or costs associated with the integration of such towers. With respect to the repurchases under the Company's stock repurchase program, the amount of shares repurchased, if any, and the timing of such repurchases will depend on, among other things, the trading price of the Company's common stock, which may be positively or negatively impacted by the repurchase program, market and business conditions, the availability of stock, the Company's financial performance or determinations following the date of this announcement in order to use the Company's funds for other purposes. Furthermore, the Company's forward-looking statements and its 2025 outlook assumes that the Company continues to qualify for treatment as a REIT for U.S. federal income tax purposes and that the Company's business is currently operated in a manner that complies with the REIT rules and that it will be able to continue to comply with and conduct its business in accordance with such rules. In addition, these forward-looking statements and the information in this press release is qualified in its entirety by cautionary statements and risk factor disclosures contained in the Company's Securities and Exchange Commission filings, including the Company's most recently filed Annual Report on Form 10-K. This press release contains non-GAAP financial measures. Reconciliation of each of these non-GAAP financial measures and the other Regulation G information is presented below under "Non-GAAP Financial Measures." This press release will be available on our website at About SBA Communications Corporation SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. With a portfolio of more than 44,000 communications sites throughout the Americas and in Africa, SBA is listed on NASDAQ under the symbol SBAC. Our organization is part of the S&P 500 and one of the top Real Estate Investment Trusts (REITs) by market capitalization. For more information, please visit: CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) ... For the three months For the six months ended June 30, ended June 30, 2025 2024 2025 2024 Revenues: Site leasing $ 631,788 $ 626,457 $ 1,247,997 $ 1,254,733 Site development 67,193 34,020 115,232 63,606 Total revenues 698,981 660,477 1,363,229 1,318,339 Operating expenses: Cost of revenues (exclusive of depreciation, accretion, and amortization shown below): Cost of site leasing 118,571 114,131 234,049 228,944 Cost of site development 53,525 27,137 91,714 50,315 Selling, general, and administrative expenses (1) 71,022 62,376 137,241 131,074 Acquisition and new business initiatives related adjustments and expenses 5,887 6,574 13,266 13,991 Asset impairment and decommission costs 45,231 31,610 82,257 75,258 Depreciation, accretion, and amortization 69,964 64,179 135,012 140,929 Total operating expenses 364,200 306,007 693,539 640,511 Operating income 334,781 354,470 669,690 677,828 Other income (expense): Interest income 8,155 7,046 18,935 14,360 Interest expense (119,658 ) (97,530 ) (223,805 ) (193,921 ) Non-cash interest expense (1,233 ) (7,080 ) (9,581 ) (15,523 ) Amortization of deferred financing fees (5,415 ) (4,932 ) (10,849 ) (10,221 ) Loss from extinguishment of debt, net — — — (4,428 ) Other income (expense), net 44,123 (104,859 ) 76,286 (149,511 ) Total other expense, net (74,028 ) (207,355 ) (149,014 ) (359,244 ) Income before income taxes 260,753 147,115 520,676 318,584 (Provision) benefit for income taxes (35,059 ) 12,337 (77,078 ) (4,590 ) Net income 225,694 159,452 443,598 313,994 Net loss attributable to noncontrolling interests 100 3,378 2,927 3,378 Net income attributable to SBA Communications Corporation $ 225,794 $ 162,830 $ 446,525 $ 317,372 Net income per common share attributable to SBA Communications Corporation: Basic $ 2.10 $ 1.52 $ 4.15 $ 2.94 Diluted $ 2.09 $ 1.51 $ 4.14 $ 2.93 Weighted-average number of common shares Basic 107,531 107,462 107,637 107,782 Diluted 107,797 107,679 107,968 108,148 (1) Includes non-cash compensation of $20,839 and $17,872 for the three months ended June 30, 2025 and 2024, respectively, and $35,914 and $38,645 for the six months ended June 30, 2025 and 2024, respectively. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except par values) June 30, December 31, 2025 2024 ASSETS (unaudited) Current assets: Cash and cash equivalents $ 275,275 $ 189,841 Restricted cash 20,757 1,206,653 Accounts receivable, net 139,890 145,695 Costs and estimated earnings in excess of billings on uncompleted contracts 46,811 19,198 Prepaid expenses and other current assets 41,075 417,333 Total current assets 523,808 1,978,720 Property and equipment, net 3,258,183 2,792,084 Intangible assets, net 2,579,806 2,388,707 Operating lease right-of-use assets, net 2,419,435 2,292,459 Acquired and other right-of-use assets, net 1,343,508 1,308,269 Other assets 641,647 657,097 Total assets $ 10,766,387 $ 11,417,336 LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' DEFICIT Current Liabilities: Accounts payable $ 60,820 $ 59,549 Accrued expenses 86,085 81,977 Current maturities of long-term debt 772,181 1,187,913 Deferred revenue 125,371 127,308 Accrued interest 75,102 62,239 Current lease liabilities 289,465 261,017 Other current liabilities 20,681 17,933 Total current liabilities 1,429,705 1,797,936 Long-term liabilities: Long-term debt, net 11,739,364 12,403,825 Long-term lease liabilities 2,004,715 1,903,439 Other long-term liabilities 466,341 367,942 Total long-term liabilities 14,210,420 14,675,206 Redeemable noncontrolling interests 65,157 54,132 Shareholders' deficit: Preferred stock - par value $0.01, 30,000 shares authorized, no shares issued or outstanding — — Common stock - Class A, par value $0.01, 400,000 shares authorized, 107,487 shares and 107,561 shares issued and outstanding at June 30, 2025 and December 31, 2024, respectively 1,075 1,076 Additional paid-in capital 3,022,684 2,975,455 Accumulated deficit (7,251,106 ) (7,326,189 ) Accumulated other comprehensive loss, net (711,548 ) (760,280 ) Total shareholders' deficit (4,938,895 ) (5,109,938 ) Total liabilities, redeemable noncontrolling interests, and shareholders' deficit $ 10,766,387 $ 11,417,336 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (in thousands) For the three months ended June 30, 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 225,694 $ 159,452 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, accretion, and amortization 69,964 64,179 (Gain) loss on remeasurement of U.S. denominated intercompany loans (45,265 ) 101,494 Non-cash compensation expense 21,516 18,598 Non-cash asset impairment and decommission costs 42,994 25,948 Deferred and non-cash income tax provision (benefit) 26,185 (21,409 ) Other non-cash items reflected in the Statements of Operations 14,376 15,336 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts, net (31,125 ) 29,266 Prepaid expenses and other assets 1,076 (4,949 ) Operating lease right-of-use assets, net 30,373 35,351 Accounts payable and accrued expenses 2,159 (2,980 ) Accrued interest 40,445 25,426 Long-term lease liabilities (32,035 ) (35,968 ) Other liabilities 1,741 15,849 Net cash provided by operating activities 368,098 425,593 CASH FLOWS FROM INVESTING ACTIVITIES: Acquisitions (589,222 ) (41,617 ) Capital expenditures (55,865 ) (49,973 ) Proceeds from sale (purchase) of investments, net 64,069 (28,719 ) Other investing activities 56 (899 ) Net cash used in investing activities (580,962 ) (121,208 ) CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (repayments) under Revolving Credit Facility 80,000 (75,000 ) Repurchase and retirement of common stock (130,696 ) (93,862 ) Payment of dividends on common stock (119,365 ) (105,329 ) Proceeds related to taxes on net settlement of stock options and restricted stock units, net 12,475 3,950 Other financing activities (692 ) (6,282 ) Net cash used in financing activities (158,278 ) (276,523 ) Effect of exchange rate changes on cash, cash equivalents, and restricted cash 7,559 (9,050 ) NET CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (363,583 ) 18,812 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH: Beginning of period 664,106 264,332 End of period $ 300,523 $ 283,144 Selected Capital Expenditure Detail For the three For the six months ended months ended June 30, 2025 June 30, 2025 (in thousands) Construction and related costs $ 27,376 $ 47,151 Augmentation and tower upgrades 14,643 26,808 Non-discretionary capital expenditures: Tower maintenance 12,878 25,218 General corporate 968 2,861 Total non-discretionary capital expenditures 13,846 28,079 Total capital expenditures $ 55,865 $ 102,038 Communication Site Portfolio Summary Domestic International Total Sites owned at March 31, 2025 17,447 22,262 39,709 Sites acquired during the second quarter 5 4,324 4,329 Sites built during the second quarter 10 84 94 Sites decommissioned/reclassified during the second quarter (25 ) (42 ) (67 ) Sites owned at June 30, 2025 17,437 26,628 44,065 Segment Operating Profit and Segment Operating Profit Margin Domestic site leasing and International site leasing are the two segments within our site leasing business. Segment operating profit is a key business metric and one of our two measures of segment profitability. The calculation of Segment operating profit for each of our segments is set forth below. Domestic Site Leasing Int'l Site Leasing Site Development For the three months For the three months For the three months ended June 30, ended June 30, ended June 30, 2025 2024 2025 2024 2025 2024 (in thousands) Segment revenue $ 469,807 $ 463,204 $ 161,981 $ 163,253 $ 67,193 $ 34,020 Segment cost of revenues (excluding depreciation, accretion, and amort.) (69,421 ) (65,489 ) (49,150 ) (48,642 ) (53,525 ) (27,137 ) Segment operating profit $ 400,386 $ 397,715 $ 112,831 $ 114,611 $ 13,668 $ 6,883 Segment operating profit margin 85.2 % 85.9 % 69.7 % 70.2 % 20.3 % 20.2 % Non-GAAP Financial Measures The press release contains non-GAAP financial measures including (i) Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin; (ii) Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin; (iii) Funds from Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), and AFFO per share; (iv) Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio (collectively, our "Non-GAAP Debt Measures"); and (v) certain financial metrics after eliminating the impact of changes in foreign currency exchange rates (collectively, our "Constant Currency Measures"). We have included these non-GAAP financial measures because we believe that they provide investors additional tools in understanding our financial performance and condition. Specifically, we believe that: (1) Cash Site Leasing Revenue and Tower Cash Flow are useful indicators of the performance of our site leasing operations; (2) Adjusted EBITDA is useful to investors or other interested parties in evaluating our financial performance. Adjusted EBITDA is the primary measure used by management (1) to evaluate the economic productivity of our operations and (2) for purposes of making decisions about allocating resources to, and assessing the performance of, our operations. Management believes that Adjusted EBITDA helps investors or other interested parties meaningfully evaluate and compare the results of our operations (1) from period to period and (2) to our competitors, by excluding the impact of our capital structure (primarily interest charges from our outstanding debt) and asset base (primarily depreciation, amortization and accretion) from our financial results. Management also believes Adjusted EBITDA is frequently used by investors or other interested parties in the evaluation of REITs. In addition, Adjusted EBITDA is similar to the measure of current financial performance generally used in our debt covenant calculations. Adjusted EBITDA should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance; (3) FFO, AFFO and AFFO per share, which are metrics used by our public company peers in the communication site industry, provide investors useful indicators of the financial performance of our business and permit investors an additional tool to evaluate the performance of our business against those of our two principal competitors. FFO, AFFO, and AFFO per share are also used to address questions we receive from analysts and investors who routinely assess our operating performance on the basis of these performance measures, which are considered industry standards. We believe that FFO helps investors or other interested parties meaningfully evaluate financial performance by excluding the impact of our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs). We believe that AFFO and AFFO per share help investors or other interested parties meaningfully evaluate our financial performance as they include (1) the impact of our capital structure (primarily interest expense on our outstanding debt) and (2) sustaining capital expenditures and exclude the impact of (1) our asset base (primarily depreciation, amortization and accretion and asset impairment and decommission costs) and (2) certain non-cash items, including straight-lined revenues and expenses related to fixed escalations and rent free periods and the non-cash portion of our reported tax provision. GAAP requires rental revenues and expenses related to leases that contain specified rental increases over the life of the lease to be recognized evenly over the life of the lease. In accordance with GAAP, if payment terms call for fixed escalations, or rent free periods, the revenue or expense is recognized on a straight-lined basis over the fixed, non-cancelable term of the contract. We only use AFFO as a performance measure. AFFO should be considered only as a supplement to net income computed in accordance with GAAP as a measure of our performance and should not be considered as an alternative to cash flows from operations or as residual cash flow available for discretionary investment. We believe our definition of FFO is consistent with how that term is defined by the National Association of Real Estate Investment Trusts ("NAREIT") and that our definition and use of AFFO and AFFO per share is consistent with those reported by the other communication site companies; (4) Our Non-GAAP Debt Measures provide investors a more complete understanding of our net debt and leverage position as they include the full principal amount of our debt which will be due at maturity and, to the extent that such measures are calculated on Net Debt are net of our cash and cash equivalents, short-term restricted cash, and short-term investments; and (5) Our Constant Currency Measures provide management and investors the ability to evaluate the performance of the business without the impact of foreign currency exchange rate fluctuations. In addition, Tower Cash Flow, Adjusted EBITDA, and our Non-GAAP Debt Measures are components of the calculations used by our lenders to determine compliance with certain covenants under our Senior Credit Agreement and indentures relating to our 2020 Senior Notes and 2021 Senior Notes. These non-GAAP financial measures are not intended to be an alternative to any of the financial measures provided in our results of operations or our balance sheet as determined in accordance with GAAP. Financial Metrics after Eliminating the Impact of Changes In Foreign Currency Exchange Rates We eliminate the impact of changes in foreign currency exchange rates for each of the financial metrics listed in the table below by dividing the current period's financial results by the average monthly exchange rates of the prior year period, and by eliminating the impact of the remeasurement of our intercompany loans. The table below provides the reconciliation of the reported growth rate year-over-year of each of such measures to the growth rate after eliminating the impact of changes in foreign currency exchange rates to such measure. Second quarter 2025 year Foreign Growth excluding over year currency foreign growth rate impact currency impact Total site leasing revenue 0.9% (1.2%) 2.1% Total cash site leasing revenue 1.6% (1.3%) 2.9% Int'l cash site leasing revenue 0.1% (4.9%) 5.0% Total site leasing segment operating profit 0.2% (1.1%) 1.3% Int'l site leasing segment operating profit (1.6%) (4.9%) 3.3% Total site leasing tower cash flow 1.4% (1.2%) 2.6% Int'l site leasing tower cash flow (0.5%) (5.0%) 4.5% Net cash interest expense 23.2% 0.2% 23.0% Net income 41.5% 53.7% (12.2%) Earnings per share — diluted 38.5% 50.8% (12.3%) Adjusted EBITDA 1.8% (1.1%) 2.9% AFFO (3.4%) (1.5%) (1.9%) AFFO per share (3.6%) (1.5%) (2.1%) Cash Site Leasing Revenue, Tower Cash Flow, and Tower Cash Flow Margin The table below sets forth the reconciliation of Cash Site Leasing Revenue and Tower Cash Flow to their most comparable GAAP measurement and Tower Cash Flow Margin, which is calculated by dividing Tower Cash Flow by Cash Site Leasing Revenue. Domestic Site Leasing Int'l Site Leasing Total Site Leasing For the three months For the three months For the three months ended June 30, ended June 30, ended June 30, 2025 2024 2025 2024 2025 2024 (in thousands) Site leasing revenue $ 469,807 $ 463,204 $ 161,981 $ 163,253 $ 631,788 $ 626,457 Non-cash straight-line leasing revenue (2,396 ) (5,774 ) 1,749 308 (647 ) (5,466 ) Cash site leasing revenue 467,411 457,430 163,730 163,561 631,141 620,991 Site leasing cost of revenues (excluding depreciation, accretion, and amortization) (69,421 ) (65,489 ) (49,150 ) (48,642 ) (118,571 ) (114,131 ) Non-cash straight-line ground lease expense (1,917 ) (3,701 ) 499 713 (1,418 ) (2,988 ) Tower Cash Flow $ 396,073 $ 388,240 $ 115,079 $ 115,632 $ 511,152 $ 503,872 Tower Cash Flow Margin 84.7 % 84.9 % 70.3 % 70.7 % 81.0 % 81.1 % Forecasted Tower Cash Flow for Full Year 2025 The table below sets forth the reconciliation of forecasted Tower Cash Flow set forth in the Outlook section to its most comparable GAAP measurement for the full year 2025: Full Year 2025 (in millions) Site leasing revenue $ 2,565.0 to $ 2,590.0 Non-cash straight-line leasing revenue (8.5 ) to (3.5 ) Cash site leasing revenue 2,556.5 to 2,586.5 Site leasing cost of revenues (excluding depreciation, accretion, and amortization) (490.0 ) to (500.0 ) Non-cash straight-line ground lease expense (8.5 ) to (3.5 ) Tower Cash Flow $ 2,058.0 to $ 2,083.0 Adjusted EBITDA, Annualized Adjusted EBITDA, and Adjusted EBITDA Margin The table below sets forth the reconciliation of Adjusted EBITDA to its most comparable GAAP measurement. For the three months ended June 30, 2025 2024 (in thousands) Net income $ 225,694 $ 159,452 Non-cash straight-line leasing revenue (647 ) (5,466 ) Non-cash straight-line ground lease expense (1,418 ) (2,988 ) Non-cash compensation 21,516 18,598 Other (income) expense, net (44,123 ) 104,859 Acquisition and new business initiatives related adjustments and expenses 5,887 6,574 Asset impairment and decommission costs 45,231 31,610 Interest income (8,155 ) (7,046 ) Total interest expense (1) 126,306 109,542 Depreciation, accretion, and amortization 69,964 64,179 Provision (benefit) for taxes (2) 35,229 (12,250 ) Adjusted EBITDA $ 475,484 $ 467,064 Annualized Adjusted EBITDA (3) $ 1,901,936 $ 1,868,256 (1) Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. (2) Includes franchise and gross receipts taxes reflected in the Statements of Operations in selling, general and administrative expenses. (3) Annualized Adjusted EBITDA is calculated as Adjusted EBITDA for the most recent quarter multiplied by four. The calculation of Adjusted EBITDA Margin is as follows: For the three months ended June 30, 2025 2024 (in thousands) Total revenues $ 698,981 $ 660,477 Non-cash straight-line leasing revenue (647 ) (5,466 ) Total revenues minus non-cash straight-line leasing revenue $ 698,334 $ 655,011 Adjusted EBITDA $ 475,484 $ 467,064 Adjusted EBITDA Margin 68.1 % 71.3 % Forecasted Adjusted EBITDA for Full Year 2025 The table below sets forth the reconciliation of the forecasted Adjusted EBITDA set forth in the Outlook section to its most comparable GAAP measurement for the full year 2025: Full Year 2025 (in millions) Net income $ 865.5 to $ 910.5 Non-cash straight-line leasing revenue (8.5 ) to (3.5 ) Non-cash straight-line ground lease expense (8.5 ) to (3.5 ) Non-cash compensation 77.5 to 72.5 Other income, net (56.0 ) to (56.0 ) Acquisition and new business initiatives related adjustments and expenses 26.5 to 21.5 Asset impairment and decommission costs 145.0 to 140.0 Interest income (31.0 ) to (27.0 ) Total interest expense (1) 505.0 to 495.0 Depreciation, accretion, and amortization 289.5 to 279.5 Provision for taxes (2) 103.0 to 99.0 Adjusted EBITDA $ 1,908.0 to $ 1,928.0 (1) Total interest expense includes interest expense, non-cash interest expense, and amortization of deferred financing fees. (2) Includes projections for franchise taxes and gross receipts taxes, which will be reflected in the Statement of Operations in Selling, general, and administrative expenses. Funds from Operations ("FFO"), Adjusted Funds from Operations ("AFFO"), and AFFO per share The tables below set forth the reconciliations of FFO, AFFO, and AFFO per share to their most comparable GAAP measurement. For the three months ended June 30, 2025 2024 (in thousands) ($ per share) (in thousands) ($ per share) Net income $ 225,694 $ 2.09 $ 159,452 $ 1.48 Real estate related depreciation, amortization, and accretion 68,250 0.63 62,213 0.58 Asset impairment and decommission costs 45,231 0.42 31,610 0.29 FFO $ 339,175 $ 3.14 $ 253,275 $ 2.35 Adjustments to FFO: Non-cash straight-line leasing revenue (647 ) (0.01 ) (5,466 ) (0.05 ) Non-cash straight-line ground lease expense (1,418 ) (0.01 ) (2,988 ) (0.03 ) Non-cash compensation 21,516 0.20 18,598 0.17 Adjustment for non-cash portion of tax provision (benefit) 27,211 0.25 (21,409 ) (0.20 ) Non-real estate related depreciation, amortization, and accretion 1,714 0.02 1,966 0.02 Amortization of deferred financing costs and debt discounts and non-cash interest expense 6,648 0.06 12,012 0.11 Other (income) expense, net (44,123 ) (0.40 ) 104,859 0.98 Acquisition and new business initiatives related adjustments and expenses 5,887 0.05 6,574 0.06 Non-discretionary cash capital expenditures (13,846 ) (0.13 ) (13,094 ) (0.12 ) AFFO $ 342,117 $ 3.17 $ 354,327 $ 3.29 Adjustments for joint venture partner interest (1,715 ) (0.02 ) (1,251 ) (0.01 ) AFFO attributable to SBA Communications Corporation $ 340,402 $ 3.15 $ 353,076 $ 3.28 Diluted weighted average number of common shares 107,797 107,679 Forecasted AFFO for the Full Year 2025 The tables below set forth the reconciliations of the forecasted AFFO and AFFO per share set forth in the Outlook section to their most comparable GAAP measurements for the full year 2025: (in millions, except per share amounts) Full Year 2025 (in millions) ($ per share) Net income $ 865.5 to $ 910.5 $ 8.02 to $ 8.44 Real estate related depreciation, amortization, and accretion 278.5 to 273.5 2.58 to 2.53 Asset impairment and decommission costs 145.0 to 140.0 1.34 to 1.30 FFO $ 1,289.0 to $ 1,324.0 $ 11.94 to $ 12.27 Adjustments to FFO: Non-cash straight-line leasing revenue (8.5 ) to (3.5 ) (0.08 ) to (0.03 ) Non-cash straight-line ground lease expense (8.5 ) to (3.5 ) (0.08 ) to (0.03 ) Non-cash compensation 77.5 to 72.5 0.72 to 0.67 Adjustment for non-cash portion of tax provision 64.0 to 64.0 0.59 to 0.59 Non-real estate related depreciation, amortization, and accretion 11.0 to 6.0 0.10 to 0.06 Amortization of deferred financing costs and debt discounts and non-cash interest expense 33.0 to 33.0 0.31 to 0.31 Other income, net (56.0 ) to (56.0 ) (0.52 ) to (0.52 ) Acquisition and new business initiatives related adjustments and expenses 26.5 to 21.5 0.25 to 0.20 Non-discretionary cash capital expenditures (63.0 ) to (53.0 ) (0.58 ) to (0.50 ) AFFO $ 1,365.0 to $ 1,405.0 $ 12.65 to $ 13.02 Adjustments for joint venture partner interest (7.0 ) to (7.0 ) (0.06 ) to (0.06 ) AFFO attributable to SBA Communications Corporation $ 1,358.0 to $ 1,398.0 $ 12.59 to $ 12.96 Diluted weighted average number of common shares (1) 107.9 to 107.9 (1) Our assumption for weighted average number of common shares does not contemplate any additional repurchases of the Company's stock during 2025. Net Debt, Net Secured Debt, Leverage Ratio, and Secured Leverage Ratio Net Debt is calculated using the notional principal amount of outstanding debt. Under GAAP policies, the notional principal amount of the Company's outstanding debt is not necessarily reflected on the face of the Company's financial statements. The Net Debt and Leverage calculations are as follows: June 30, 2025 (in thousands) 2020-1C Tower Securities $ 750,000 2020-2C Tower Securities 600,000 2021-1C Tower Securities 1,165,000 2021-2C Tower Securities 895,000 2021-3C Tower Securities 895,000 2022-1C Tower Securities 850,000 2024-1C Tower Securities 1,450,000 2024-2C Tower Securities 620,000 Revolving Credit Facility 80,000 2024 Term Loan 2,277,000 Total secured debt 9,582,000 2020 Senior Notes 1,500,000 2021 Senior Notes 1,500,000 Total unsecured debt 3,000,000 Total debt $ 12,582,000 Leverage Ratio Total debt $ 12,582,000 Less: Cash and cash equivalents, short-term restricted cash and short-term investments (297,583 ) Net debt $ 12,284,417 Divided by: Annualized Adjusted EBITDA (1) $ 1,901,936 Leverage Ratio (1) 6.5x Secured Leverage Ratio Total secured debt $ 9,582,000 Less: Cash and cash equivalents, short-term restricted cash and short-term investments (297,583 ) Net Secured Debt $ 9,284,417 Divided by: Annualized Adjusted EBITDA $ 1,901,936 Secured Leverage Ratio 4.9x (1) As further adjusted to reflect a full quarter of EBITDA from the acquired Millicom assets, Annualized Adjusted EBITDA would have been $1,938,592 and the Leverage Ratio would have been 6.3x. View source version on Contacts Mark DeRussy, CFACapital Markets561-226-9531 Maria Alexandra VelezVP, Corporate Affairs561-981-7352
Yahoo
16-07-2025
- Business
- Yahoo
UBS Raises SBA Communications (SBAC) Price Target to $285, Keeps 'Buy'
SBA Communications Corporation (NASDAQ:SBAC) is one of Goldman Sachs' top REIT stock picks. On July 8, 2025, UBS analyst Batya Levi reiterated a 'Buy' rating on SBA Communications (NASDAQ:SBAC), signaling continued confidence in the company's performance and growth outlook. The rating reflects a steady belief in SBAC's market position and long-term potential. hin255/ Alongside the reaffirmed stance, UBS raised its price target from $280 to $285—a modest 1.79% bump that reinforces bullish sentiment around SBAC's trajectory. The move offers an encouraging signal for investors, pointing to possible value appreciation in the months ahead. SBA Communications Corporation (NASDAQ:SBAC) is a leading infrastructure REIT that owns and operates over 39,000 wireless communication sites across the Americas and Africa. Its portfolio includes towers, rooftops, and distributed antenna systems that support mobile network expansion for top-tier carriers like T-Mobile and Millicom. While we acknowledge the potential of SBAC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: Goldman Sachs Healthcare Stocks: Top 10 Stock Picks and 11 Best Green Energy Penny Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
15-07-2025
- Business
- Yahoo
Here's What to Expect From SBA Communications' Next Earnings Report
With a market cap of around $25 billion, SBA Communications Corporation (SBAC), based in Boca Raton, Florida, is a leading independent owner and operator of wireless communications infrastructure, including towers, buildings, rooftops, distributed antenna systems (DAS), and small cells. SBAC is scheduled to report its Q2 earnings on Monday, Aug. 4. Ahead of the event, analysts expect the company to report an AFFO of $2.95 per share, down 10.3% from $3.29 per share in the same quarter of the previous year. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. Palantir Just Launched Warp Speed for Warships. Does That Make PLTR Stock a Buy? This Analyst Just Doubled His Price Target on AMD Stock How High Can Nvidia Stock Go as Jensen Huang Heads to China? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! For fiscal 2025, analysts expect SBAC to report an AFFO of $12.10 per share, down 9.5% from $13.37 in fiscal 2024. However, the AFFO is expected to rise 2.6% year-over-year to $12.42 per share in fiscal 2026. SBAC stock has risen 9.2% over the past 52 weeks, outperforming the Real Estate Select Sector SPDR Fund's (XLRE) 4.1% surge. Nevertheless, the stock has lagged behind the S&P 500 Index's ($SPX) 11.6% return during the same time frame. On Apr. 28, SBAC shares rose marginally following the release of its Q1 earnings. The company reported steady performance with revenue rising 1% year-over-year to $664.2 million, slightly beating the Street's estimates. Its AFFO per share was $3.18, down from $3.29 last year, but it successfully beat the Street's expectations by 7.1%. Wall Street analysts are cautiously optimsitic about SBAC's stock, with an overall "Moderate Buy" rating. Among 19 analysts covering the stock, nine recommend "Strong Buy," one suggests a 'Moderate Buy,' and nine suggest a 'Hold.' As of writing, the stock is trading below the average analyst price target of $253.28. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
