SBA Communications Corp - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did SBAC Beat Earnings? Q2 2025 Results
SBA Communications posted a mixed second quarter, with revenue clearing Wall Street's bar while earnings fell short. The tower REIT generated $698.98 million in total revenue, up 5.8% year-over-year and ahead of the $672.94 million consensus, driven in large part by a near-doubling of site development revenue to $67.19 million as wireless network construction activity accelerated. But earnings per diluted share of $2.09 missed the $2.26 estimate by 7.52%, weighed down by a 23.2% jump in net interest expense to $111.50 million reflecting debt taken on for acquisitions. The most significant strategic development was the early closing of 4,323 towers from the Millicom acquisition for $562.90 million, completing the transaction months ahead of schedule, while SBA also announced a deal to sell its 369 Canadian towers for CAD $446 million, exiting a market it entered in 2009 but deemed subscale. Management raised its full-year outlook, now guiding for total revenue of $2.78 billion to $2.83 billion and AFFO per share of $12.65 to $13.02, citing strong U.S. leasing demand and favorable currency movements.
- Strong domestic carrier investment in wireless networks driving new leasing activity
- High levels of new colocations, highest in nearly three years company-wide
- Site development/construction volumes growing sequentially over Q1 2025
- Early closing of 4,323 Millicom sites, several months ahead of schedule
- Favorable foreign currency movements
- $30.4 million FX gain on intercompany loan remeasurement vs $66.2 million loss in Q2 2024
“Today we announce another very positive quarter of financial and operating results. 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.”
SBA Communications CEO, on the earnings call
Forward Guidance & Outlook
SBA meaningfully raised its full year 2025 outlook across all key financial metrics. Site leasing revenue is now expected at $2,565–$2,590 million, site development revenue at $215–$235 million, total revenue at $2,780–$2,825 million, Tower Cash Flow at $2,058–$2,083 million, Adjusted EBITDA at $1,908–$1,928 million, AFFO at $1,365–$1,405 million, and AFFO per share at $12.65–$13.02. The increases (measured at midpoint) are driven by strong leasing results, growing services backlog, early Millicom closing, and favorable foreign currency movements. The outlook assumes the remaining ~2,500 Millicom sites close around September 1, 2025 and does not include any impact from the pending Canadian tower divestiture, additional stock repurchases, or new debt financings. FX assumptions include 5.60 BRL/USD, 1.36 CAD/USD, 2,650 TZS/USD, and 17.90 ZAR/USD for the last two quarters of 2025.
SBAC YoY Financials
SBAC Revenue by Segment
SBAC Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.