SBA Communications Corp - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.20%.
Did SBAC Beat Earnings? Q4 2025 Results
SBA Communications delivered a mixed fourth quarter, missing Wall Street expectations on both the top and bottom lines as underlying operational pressures overshadowed a large one-time gain. GAAP diluted EPS came in at $3.47, falling 14.33% short of the $4.05 consensus estimate, while revenue of $719.58 million trailed forecasts by 0.86%, even as it grew 3.7% year-over-year. The headline EPS figure was heavily inflated by a $226.30 million gain from the sale of SBA's Canadian operations, which closed in October; strip that away, and the picture dims considerably, with AFFO per share declining 8.1% to $3.19 as net cash interest expense surged 30.4% and asset impairment and decommission costs ballooned to $81.60 million from $20.00 million a year ago. Domestically, site leasing revenue slipped 1.6% to $464.55 million, pressured by Sprint churn and an ongoing EchoStar revenue dispute that management has fully excluded from its 2026 guidance, which calls for AFFO per share of $11.84 to $12.29 on total revenues of $2.81 billion to $2.86 billion. The Board raised the quarterly dividend 13% to $1.25 per share, signaling confidence despite the near-term headwinds.
- Carrier customer investment in network densification and coverage expansion
- Deployment of new spectrum bands and 5G use cases including Fixed Wireless Access
- International site leasing revenue growth of 15.6% YoY driven by Millicom acquisition
- Gain of $226.3 million on sale of Canadian operations boosted net income
- Site leasing contributed 98.4% of total operating profit
“Today we are pleased to announce a solid finish to 2025, with positive fourth quarter financial and operating results. Globally, we continued to see our carrier customers invest in their networks, both densifying and expanding their coverage footprints. The deployment of new spectrum bands, compliance with regulatory requirements and the advancement of 5G use cases like Fixed Wireless Access all contributed to this investment and will continue to drive further organic growth across our portfolio.”
SBA Communications CEO, on the earnings call
Forward Guidance & Outlook
SBA Communications provided its initial full-year 2026 outlook: total revenues of $2,815M to $2,860M; site leasing revenue of $2,625M to $2,650M; site development revenue of $190M to $210M; Tower Cash Flow of $2,082M to $2,102M; Adjusted EBITDA of $1,912M to $1,932M; AFFO of $1,260M to $1,308M; AFFO per share of $11.84 to $12.29 (based on 106.4M diluted shares). Net cash interest expense is expected at $492M to $500M and non-discretionary capex at $67M to $77M. The outlook fully removes all contracted EchoStar revenue due to the ongoing payment dispute, though the company intends to pursue its legal rights. Assumptions include FX rates of 5.20 BRL/USD, 2,525 TZS/USD, and 16.40 ZAR/USD. The outlook does not include potential additional share repurchases or new debt financings beyond refinancing the 2021-1C Tower Securities.
SBAC YoY Financials
SBAC Revenue by Segment
SBAC Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.