Iron Mountain (IRM) BofA Securities 2026 Information & Business Services Conference summary

Business growth and segment performance

• Core business now represents 70% of revenue, down from 90% six years ago, with over $1 billion in growth and improved margins.

• Data center revenue grew from $200 million to $800 million in recent years, with 98% of 490 MW leased and potential to more than double capacity.

• ALM business expanded from $38 million in 2021 to $633 million last year, guided to $850 million this year, with a TAM three times larger than records.

• Digital solutions business grew from $150 million to a $600 million annualized run rate, with high-teens to 20% growth and a major government contract boosting future growth.

• Cross-selling across segments is strong, leveraging a client base that includes 95% of the Fortune 1000.

AI and technology integration

• AI is a significant tailwind, driving both revenue and profit across all business lines.

• DXP platform uses AI for digitization, meta tagging, and automating manual processes, reducing client costs and increasing efficiency.

• AI adoption accelerates internal processes, including customer service, RFP responses, procurement, and HR training.

• AI-driven refresh cycles in IT gear increase ALM business volume and pricing.

• AI enables unlocking and monetizing dark data for clients, creating new digital projects and recurring revenue streams.

Market dynamics and pricing

• Core records business volume is stable to slightly up, with average inventory life of 15 years and strong pricing power, especially with large clients.

• Pricing in the core business has averaged 6% growth, with mid-single-digit increases guided for this year.

• Data center pricing is strong, with double-digit mark-to-market increases and long-term pre-leased contracts with investment-grade clients.

• ALM business benefits from high memory prices and a revenue share model, with 40-50% of ALM revenue from memory components.

• Digital solutions pricing is slightly up, with SaaS models and recurring revenue gaining traction.