SBA Communications (SBAC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $664.2 million, up 3.4% year-over-year, driven by site development growth and stable site leasing; net income rose to $217.9 million, up 41% from Q1 2024, with strong U.S. leasing and services activity and a growing backlog.

• Adjusted EBITDA was $457.3 million, down 1.7% year-over-year, but up 0.5% on a constant currency basis; AFFO per share reached $3.18, maintaining industry leadership despite a 3.3% year-over-year decline.

• Completed exits from the Philippines and Colombia, improving focus and resource allocation; acquired 344 sites, mainly from Millicom.

• Announced a new $1.5 billion share repurchase plan and continued industry-leading dividend growth, with a $1.11 per share dividend declared.

• U.S. carrier activity and leasing/service backlogs increased, supporting a positive outlook for 2025.

Financial highlights

• Increased full-year outlook for site leasing revenue, tower cash flow, adjusted EBITDA, AFFO, and AFFO per share compared to initial 2025 guidance.

• Domestic site leasing revenue was $461.0 million, flat year-over-year; international site leasing revenue was $155.2 million, down $11.6 million, but up 2.7% on a constant currency basis.

• Site development revenue increased 62.4% to $48.0 million due to higher carrier activity.

• First quarter domestic organic leasing revenue grew 5.2% gross and 1% net year-over-year, with 4.2% churn; international organic leasing revenue grew 1.6% net and 7.2% gross year-over-year, with 5.6% churn.

• Declared and paid a $1.11 per share dividend, up 13% year-over-year.

Outlook and guidance

• Raised full-year guidance for all key metrics due to strong Q1 results, early Millicom site closings, improved services outlook, and reduced share count from buybacks.

• Full-year 2025 site leasing revenue guidance raised to $2,536–$2,561 million; total revenues to $2,716–$2,761 million; adjusted EBITDA forecasted at $1,891–$1,911 million; AFFO at $1,353–$1,393 million, or $12.53–$12.90 per share.

• Guidance assumes closing of remaining Millicom sites by September 1, 2025, and no additional share repurchases or new debt in 2025.

• U.S. leasing activity and backlog expected to remain strong, with most new revenue from colocations.

• International churn expected to remain elevated in Brazil due to ongoing carrier consolidation, with growth expected to accelerate post-rationalization.