SBA Communications (SBAC) Q2 2024 earnings summary

Executive summary

• Q2 2024 results showed stable site leasing revenue, strong operating margins, and net income of $159.5 million ($1.51 per share), with AFFO per share up 1.5% to $3.29 and a leverage ratio of 6.4x annualized Adjusted EBITDA.

• Total revenues were $660.5 million, down 2–2.7% year-over-year, mainly due to lower site development activity and currency losses.

• Dividend of $0.98 per share declared for Q2, a 15% increase over Q2 2023, payable September 18, 2024.

• U.S. new business execution remained steady, international leasing activity increased, and long-term demand drivers include mobile network consumption and 5G upgrades.

• Capital allocation remained balanced among portfolio expansion, share repurchases, dividends, and debt reduction.

Financial highlights

• Q2 2024 site leasing revenue was $626.5 million, nearly flat year-over-year; total revenue was $660.5 million, with site development revenue down 35% to $34.0 million.

• Adjusted EBITDA was $467.1 million (margin 71.3%), nearly flat year-over-year; AFFO per share was $3.29.

• Net income for Q2 2024 was $159.5 million, down from $202.0 million in Q2 2023, mainly due to currency losses and lower site development profit.

• Tower Cash Flow was $503.9 million with a margin of 81.1%.

• Dividend per share was $0.98 for Q2 2024; $213.5 million paid in dividends in the first half of 2024.

Outlook and guidance

• Full-year 2024 outlook: site leasing revenue of $2,507–$2,527 million, Adjusted EBITDA of $1,876–$1,896 million, AFFO of $1,410–$1,450 million, and AFFO per share of $13.06–$13.43.

• Guidance assumes only contracted acquisitions close in 2024; no additional share repurchases or new debt financings included.

• FX devaluation, especially the Brazilian real, is expected to negatively impact site leasing revenue by $19 million in 2024.

• 2024 non-discretionary capex projected at $51–$61 million, discretionary capex at $335–$355 million.

• FFO per share outlook increased by $0.09, excluding FX impacts, due to revised financial assumptions and lower projected cash taxes.