Iron Mountain Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.54%.
Did IRM Beat Earnings? Q2 2025 Results
Iron Mountain posted a mixed second quarter, delivering revenue that cleared Wall Street's bar while adjusted earnings fell modestly short. The information management and storage REIT reported Q2 2025 revenue of $1.71 billion, up 11.6% year-over-year and ahead of the $1.68 billion consensus, while adjusted EPS of $0.48 missed the $0.50 estimate by 4.23%. The headline earnings gap was overshadowed by the broader story: Iron Mountain's growth businesses, spanning data centers, digital solutions, and asset lifecycle management, collectively expanded more than 30%, powering adjusted EBITDA up 15.4% to $628.39 million with margin expanding 120 basis points to 36.7%. AFFO per share reached $1.24, up 14.8% year-over-year, the metric investors watch most closely for REITs. The strong operational momentum prompted management to raise full-year 2025 guidance, lifting the revenue outlook to $6.79 billion to $6.94 billion and AFFO per share to $5.04 to $5.13, with data center revenue now expected to grow nearly 30% for the full year. Shares gained in pre-market trading following the report.
- Data center, digital, and ALM growth businesses collectively grew more than 30%
- Organic data center storage revenue growth of 26% YoY
- ALM organic revenue growth of 42% YoY
- Strong revenue management and records retention rate of 93.0%
- Record storage volume of 735.8M+ cubic feet
- Storage facility capacity utilization improved to 80.6%
- Improved operating leverage from continued improvement activities
- Strong data center renewal pricing: +13% cash, +20% GAAP mark-to-market
- Low data center churn of 0.5%
- Storage rental gross margin expansion of 140 bps YoY to 71.4%
“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.”
Iron Mountain CEO, on the earnings call
Forward Guidance & Outlook
Iron Mountain raised its full-year 2025 financial guidance driven by strong Q2 outperformance and positive outlook, along with recent changes in currency exchange rates. New guidance: Total revenue of $6,790M–$6,940M (previously $6,740M–$6,890M, ~12% YoY growth at midpoint), Adjusted EBITDA of $2,520M–$2,570M (previously $2,505M–$2,555M, ~14% YoY), AFFO of $1,505M–$1,530M (previously $1,480M–$1,510M, ~13% YoY), and AFFO per share of $5.04–$5.13 (previously $4.95–$5.05, ~12% YoY). For Q3 2025, the company expects revenue of approximately $1,750M (~12% YoY), Adjusted EBITDA of more than $650M (~14% YoY), AFFO of approximately $385M (~16% YoY), and AFFO per share of approximately $1.28 (~13% YoY). The company expects nearly 30% data center revenue growth in 2025, at least 25% data center revenue growth in 2026 from current backlog before any incremental new leasing, and an additional $200 million of growth contribution from current backlog in 2027 and beyond.
IRM YoY Financials
IRM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.