SBAC · SBA Communications Corporation

SBA Communications reported solid Q1 2026 results driven by strong international site leasing revenue growth of 32.6% to $205.8 million, offsetting a 2.3% domestic decline to $450.3 million, yielding consolidated site leasing revenue up 6.5% to $656.1 million. Tower cash flow reached $519.0 million with a 79.8% margin, while Adjusted EBITDA grew 4.0% to $475.4 million. Net income fell 15.1% to $184.9 million due to higher net cash interest expense of $123.3 million, partly from EchoStar revenue removal. CEO Brendan Cavanagh highlighted steady global carrier activity, network densification, domestic leasing backlogs, and Central America builds under Millicom agreement. The company raised full year 2026 outlook across key metrics, including site leasing revenue to $2,649-$2,674 million (up $24 million midpoint from February), AFFO per share to $11.93-$12.38, supported by new leases, escalators, non-organic revenue, and FX tailwinds despite churn from Sprint consolidation, EchoStar, and regular sources. Balance sheet strength persisted with net debt to Adjusted EBITDA at 6.6x mid-target range post-EchoStar adjustment. Investing included $133 million for 10 sites and Guatemala land rights, 80 new towers, totaling $191.9 million capex. Dividend raised to $1.25 per share, representing ~41% of AFFO outlook, preserving capital for growth amid $1.1 billion remaining buyback authorization.