PT Sarana Menara Nusantara (TOWR) Q1 2026 earnings summary

Executive summary

• One of Indonesia's largest independent digital infrastructure providers, operating 36,572 towers and nearly 238,000 km of fiber as of March 2026, serving all major telcos and ISPs under long-term contracts.

• Maintains a build-to-suit model with long-term, non-cancellable contracts, ensuring predictable cash flows and high asset utilization, with excess capacity leased to additional tenants.

• Strategic focus on expanding both tower and fiber assets, with significant growth in home connectivity and activations.

• Strong ESG credentials with inclusion in major indices and high ratings from MSCI and Sustainalytics.

• Maintained strong liquidity, with cash and cash equivalents at Rp2,274.0 billion as of March 31, 2026.

Financial highlights

• 1Q 2026 revenue rose 10.8% year-over-year to Rp3,555.8 billion; EBITDA increased 3.8% to Rp2,780.4 billion.

• Net income attributable to parent grew 17.2% year-over-year to Rp940.7 billion.

• Gross margin for 1Q 2026 was 64.9%, EBITDA margin 78.2%, and net income margin 26.5%.

• Total assets increased to Rp80,979.7 billion from Rp77,269.7 billion at year-end 2025.

• Non-tower revenue continues to outpace tower revenue growth, with a 35.5% CAGR for non-tower vs. 5.5% for tower (2018–1Q26).

Outlook and guidance

• 2026 growth expected to be driven mainly by the connectivity segment and expansion in fiber and home connectivity.

• Revenue target for 2026 is IDR 14 trillion, with EBITDA margin expected in the mid-70s%.

• Positioned to benefit from ongoing demand for high-speed internet and 5G, supported by Indonesia's young population and industry consolidation.

• Cautiously optimistic on tower and fiber demand as MNOs focus on quality and 5G rollout, though macroeconomic headwinds persist.

• The company plans to maintain a healthy capital structure and comply with all financial covenants.