SBA Communications (SBAC) Q2 2025 earnings summary

Executive summary

• Q2 2025 net income reached $225.7 million ($2.09 per share), up 41.5% year-over-year, with industry-leading AFFO per share of $3.17 and Adjusted EBITDA of $475.5 million.

• Revenue for Q2 2025 rose 7.0% year-over-year to $699.0 million, driven by strong site development and stable site leasing growth.

• Closed on 4,323–4,673 sites from the Millicom deal, repurchased 799,000 shares, and declared a $1.11 per share dividend.

• Announced agreement to sell all Canadian tower assets for CAD $446 million, expected to be accretive to AFFO per share upon closing.

• S&P upgraded the corporate credit rating to BBB investment grade, enhancing access to investment-grade debt markets.

Financial highlights

• Q2 2025 site leasing revenue was $631.8–$632 million, up 0.9% year-over-year; site development revenue was $67.2 million, up 97.5%.

• Adjusted EBITDA was $475.5 million, up 1.8% year-over-year; AFFO per share for Q2 2025 was $3.15–$3.17.

• Net debt as of June 30, 2025, was $12.28–$12.6 billion, with a leverage ratio of 6.5x (6.3x pro forma for Millicom assets).

• Dividend payout for the first half of 2025 was $2.22 per share, totaling $241.7 million; quarterly dividend increased to $1.11 per share.

• Share repurchases totaled $130.7–$172 million in Q2 2025, with $1.45 billion remaining under the repurchase authorization.

Outlook and guidance

• Full-year 2025 revenue outlook raised to $2.78–$2.83 billion, with AFFO per share guidance of $12.65–$13.02.

• Adjusted EBITDA for 2025 expected at $1.91–$1.93 billion; Tower Cash Flow forecasted at $2.06–$2.08 billion.

• Core site leasing revenue in both domestic and international segments is expected to increase over 2024 levels on a currency-neutral basis.

• Guidance assumes closing of remaining Millicom sites and no impact from Canadian asset sale.

• Discretionary capital expenditures for 2025 are projected at $1.26–$1.28 billion.