SBA Communications Corp. reported fourth‑quarter 2025 results on February 26, 2026, with site leasing revenue up 3.1% to $666.2 million and site development revenue up 12.7% to $53.4 million. Net income rose to $370.4 million, and earnings per share were $3.47, a 116% year‑over‑year increase. Adjusted EBITDA reached $486.0 million, while funds from operations fell to $340.4 million due to higher interest expense on newly issued debt and a $226.3 million gain from the sale of Canadian operations. The company also raised its quarterly cash dividend to $1.25 per share, a 13% increase from the prior quarter, payable March 27, 2026 to shareholders of record on March 13, 2026.
The earnings per share figure fell short of analyst consensus, which ranged from $3.25 to $3.79. The miss was driven by higher interest costs and a one‑time gain on the Canadian sale that boosted net income but did not translate into earnings per share, as the gain was not reflected in the EPS calculation. Additionally, the company incurred a higher bad‑debt expense related to the EchoStar dispute, which further pressured earnings relative to expectations.
Funds from operations, a key cash‑flow metric for tower operators, also missed consensus estimates of roughly $3.25 per share. The decline in AFFO was largely attributable to the same higher interest expense and the impact of the Canadian sale gain, which increased operating income but did not improve cash flow. The company’s management noted that the higher interest burden and the one‑time gain created a mismatch between operating income and cash‑flow generation, leading to the AFFO miss.
For 2026, SBA guided total revenue of $2.815 billion to $2.860 billion and site leasing revenue of $2.625 billion to $2.650 billion, reflecting the completion of the Millicom acquisition and the integration of 2,020 new sites in Central America. Site development revenue guidance was $190 million to $210 million, and full‑year AFFO was projected at $1.260 billion to $1.308 billion. The guidance excludes EchoStar revenue due to an ongoing dispute, which has already reduced the company’s revenue base and increased bad‑debt expense. SBA reiterated its target leverage of 6‑7x net debt/EBITDA and highlighted ongoing share‑repurchase activity as part of its capital‑return strategy.
The results underscore a mixed operating environment. International leasing growth remains strong, driven by the Millicom acquisition and Brazil expansion, while domestic leasing revenue declined 1.6% due to carrier consolidation and customer defaults. The company’s focus on USD‑denominated leases aims to mitigate foreign‑exchange risk, but higher interest costs and the EchoStar dispute have pressured profitability. Despite the earnings miss, the dividend increase and share‑repurchase program signal management’s confidence in long‑term cash‑flow generation and a commitment to returning capital to shareholders.
Market reaction to the earnings was mixed to negative. Investors focused on the EPS and AFFO misses, the lower guidance for total revenue, and the exclusion of EchoStar revenue, which together dampened enthusiasm. The dividend hike and share‑repurchase activity provided some offset, but the overall sentiment reflected caution about the company’s near‑term profitability and the impact of the EchoStar dispute on future cash flows.
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