Sba Communications Stock Earnings Reports

SBA reported another quarter of positive financial and operational results driven by strong leasing demand (U.S. and international) and an 81% year-over-year services revenue increase. The company modestly raised its full-year outlook for new leasing activity and escalations and increased site development revenue guidance by $20 million. SBA completed the final closings on the Millicom Central America acquisition and sold its Canadian tower business, leaving the company with over 46,000 towers pro forma (up ~40% since 2020). A new long-term master lease agreement (MLA) with Verizon was announced, which includes minimum commitments (colocations and amendments) and is expected to provide predictable multi-year growth. SBA spent $153 million on share repurchases in the quarter ($325 million YTD) and has $1.3 billion remaining on its buyback authorization. Management is formally lowering its target leverage range to 6.0–7.0x net debt/adjusted EBITDA to pursue investment-grade ratings and reduce secured-debt share over time; Fitch has just assigned a BBB- rating. Net debt was $12.3 billion (6.2x leverage) with a 3.8% weighted average interest rate and ~3-year weighted maturity; ~96% of debt is effectively fixed. DISH-related revenue (~$55 million annualized) is expected to decline with ~$25 million of churn in 2027 and 2028. International markets have elevated churn due to carrier consolidation (notably Brazil), but management expects churn to decline over the coming years. Services demand and carrier densification/5G-related activity (including potential future spectrum auctions) remain key growth drivers. CEO succession announced: Mark DeRussy will retire year-end and Louis Friend will take over IR responsibilities.