American Tower Q4 Beats Estimates with 66% EBITDA Margin, Guiding Below Consensus for 2026
American Tower reported Q4 2025 EPS of $2.63 and revenue of $2.74 billion, topping estimates, with adjusted EBITDA margin of 66% and liquidity of $11.1 billion. For 2026, it forecasts property revenue of $10.44–10.59 billion and AFFO of $10.78–10.95 per share, both below consensus.
1. Q4 2025 Results
American Tower posted Q4 2025 EPS of $2.63, a 13.4% year-over-year increase topping consensus of $2.53. Revenue grew 7.5% to $2.74 billion, adjusted EBITDA margin reached 66%, operating income rose to $1.16 billion, and total liquidity stood at $11.1 billion.
2. Regional Performance
In the U.S. and Canada, revenue reached $1.33 billion with a 79% operating margin, while Latin America contributed $438 million at 64%. Africa and Asia-Pacific generated $382 million at a 61% margin, and Europe posted $248 million at 54%, fueled by strong leasing demand in towers and data centers.
3. 2026 Guidance Misses
For 2026, management forecasted property revenue of $10.44–10.59 billion, implying about 2% growth and falling below the $10.959 billion consensus. It expects adjusted funds from operations of $10.78–10.95 per share versus $11.09 estimates, adjusted EBITDA of $7.09–7.16 billion, net income of $2.945–3.025 billion, and capital expenditures of $1.795–1.905 billion.
4. Growth Drivers and Capital Allocation
The company highlighted ongoing growth in mobile data usage, 5G deployments, and expanding hybrid-cloud and AI workloads as primary demand drivers. It plans to advance cost-efficiency initiatives and maintain disciplined capital allocation to support sustained long-term growth.