SBA Communications Corp - Class A
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.69%.
Did SBAC Beat Earnings? Q1 2026 Results
SBA Communications delivered a mixed first quarter for 2026, posting revenue that cleared Wall Street's bar while earnings fell just short, a combination that nonetheless left analysts focused on the company's strengthening international momentum. Total revenues climbed 5.9% year-over-year to $703.44 million, edging past the $694.86 million consensus by 1.23%, as international site leasing revenue surged 32.6% to $205.85 million. Diluted EPS of $1.74, however, missed the $1.74 consensus by a thin 0.28%, weighed down by a $29.90 million increase in net cash interest expense and a sharp decline in gains on intercompany loan remeasurement relative to the year-ago period. AFFO per share, the metric tower REITs live by, slipped 4.7% to $3.03. Despite the pressure on bottom-line metrics, management raised its full-year 2026 outlook, now guiding total revenue of $2.84 billion to $2.88 billion and AFFO per share of $11.93 to $12.38, citing favorable foreign exchange trends and building domestic leasing backlogs as the primary tailwinds driving the upgraded forecast.
- Steady global carrier activity with customers expanding and densifying networks
- Upgrading sites with new spectrum bands and technologies
- Increased domestic leasing backlogs during the quarter
- Strong international site leasing revenue growth of 32.6% (24.8% excluding FX)
- Favorable foreign exchange rate movements
- Company-wide Tower Cash Flow margin of approximately 80%
“We had a solid start to 2026, with positive first quarter financial and operating results. Carrier activity remained steady globally, as our customers continued to focus on expanding and densifying their networks, as well as upgrading sites with new spectrum bands and technologies. In addition, our domestic leasing backlogs increased during the quarter. These favorable results and positive movement in foreign exchange rates have allowed us to increase our full year outlook for each of our key financial metrics from the levels we provided in late February.”
SBA Communications CEO, on the earnings call
Forward Guidance & Outlook
SBA raised its full year 2026 outlook across all key metrics. Total revenue is now expected to be $2,839M to $2,884M (up $24M at midpoint from February outlook), with site leasing revenue of $2,649M to $2,674M and site development revenue of $190M to $210M. Tower Cash Flow is guided at $2,092M to $2,112M (up $10M), Adjusted EBITDA at $1,921M to $1,941M (up $9M), and AFFO at $1,269M to $1,317M (up $9M). AFFO per share is expected to be $11.93 to $12.38 (up $0.09). Net cash interest expense is guided at $492M to $500M, non-discretionary capex at $67M to $77M, and discretionary capex at $430M to $450M. The outlook assumes FX rates of 5.05 BRL/USD, 2,560 TZS/USD, and 16.40 ZAR/USD for the remaining three quarters. The outlook excludes any additional stock repurchases or new debt financings beyond the planned refinancing of the $1,165M 2021-1C Tower Securities at an assumed 5.25% fixed rate.
SBAC YoY Financials
SBAC Revenue by Segment
SBAC Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.