Iron Mountain (IRM) investor relations material

Core business performance and growth

• Records management remains over 70% of the business, with steady value and growth supported by complementary services like digitization and asset lifecycle management.

• Growth portfolio (ALM, Data Centers, Digital) delivers over 20% growth, contributing to approximately 6% consolidated top-line growth.

• Pricing actions in records management yield mid to upper single-digit revenue growth, with volume growth between 20 and 100 basis points, especially in higher-growth markets like India.

• The physical storage business is highly sticky, with average retention of 15 years per box and consistent annuity-like cash flow.

Margins, earnings, and financial outlook

• Core RIM business achieves incremental margins of 70-80%+, while services within RIM have margins around 30%.

• Data Centers now reach 50%+ EBITDA margins, up 700 basis points year-over-year, and are expected to maintain this level.

• Digital Solutions margins are 20-30%; ALM margins range from 13-30% depending on the segment, with potential for further improvement.

• Blended margins across growth businesses are expected in the 40-49% range, with growth portfolio segments collectively expanding at 20%+.

• Renewal spreads in data centers remain strong, with 13-20% increases, and hyperscale returns are 10-11% cash on cash.

Data center strategy and market trends

• Recent customer focus shifted toward large AI/LLM campuses, but the company targets inference and cloud capacity, not hyperscale AI buildouts.

• Pipeline includes 175 MW in Northern Virginia, 200 MW in Richmond, 36 MW in Chicago, 30 MW in Amsterdam, and 75 MW in Madrid, totaling nearly 450 MW coming online in 12-36 months.

• Currently operating 400 MW, with plans to more than double capacity and achieve 25% top-line growth in data centers next year based on existing leases.

• Decision cycles for data center leases remain stable, though fewer customers are signing leases 3-5 years in advance.

• Power availability is a key constraint in growth markets, but power has been secured for major campuses.