SBA Communications (SBAC) Q2 2026 earnings summary

Executive summary

• Q2 2026 results met expectations, with total revenues of $715.3 million, up 2.3% year-over-year, driven by international site leasing growth offsetting domestic declines and lower site development revenue.

• Net income for Q2 2026 was $196.5 million, or $1.87 per share, down from $225.7 million in Q2 2025, primarily due to higher interest expense and lower gains on intercompany loan remeasurement.

• U.S. activity was driven by new co-locations and network densification, while international demand remained healthy, with $4 million in new lease and amendment billings, though churn was elevated due to carrier consolidations and bankruptcies.

• Integration of Millicom assets and expansion of new tower builds internationally, with 99–109 new towers constructed in the quarter, especially in Central America.

• Issued $3.5 billion in senior notes and secured a new $2.5 billion revolving credit facility, with S&P upgrading the credit rating to BBB.

Financial highlights

• Q2 2026 site leasing revenue was $663.9 million (domestic: $452.4–$452.5M, international: $211.4M), up 5.1% year-over-year; site development revenue was $51.4 million.

• Adjusted EBITDA for Q2 2026 was $483.8 million, up 1.8% year-over-year; AFFO per share was $3.05.

• Tower Cash Flow Margin was just under 80%, with a Q2 2026 value of 79.5%.

• Declared and paid a cash dividend of $132.7 million or $1.25 per share, a 13% increase year-over-year.

• Ended Q2 2026 with $12.8–$13 billion in total debt and $0.4–$0.57 billion in cash.

Outlook and guidance

• Full-year 2026 outlook for site leasing revenue, FFO, and FFO per share modestly increased, with site leasing revenue expected at $2,651–$2,676 million.

• Adjusted EBITDA guidance: $1,920–$1,940 million; AFFO: $1,270–$1,318 million; AFFO per share: $11.95–$12.40.

• Elevated churn anticipated through 2026, with domestic churn projected at $132–$136 million and international churn at $36–$40 million, mainly due to customer consolidation and bankruptcies.

• Discretionary capital expenditures expected at $455–$475 million; non-discretionary at $65–$75 million.

• Guidance changes reflect FX impacts and interest expense adjustments from recent financing.