Wireless tower REIT SBA Communications' Q2 revenue beats estimates
SBAC•Outlook
- SBA sees 2026 site leasing revenue of $2.65 bln to $2.68 bln, slightly above prior view
- Company expects 2026 AFFO per share of $11.95 to $12.40, up from previous outlook
- SBA raises 2026 discretionary capital expenditure forecast to $455 mln to $475 mln
Overview
- U.S. wireless tower REIT's Q2 revenue rose and beat analyst expectations
- Adjusted FFO per share fell 3.8% yr/yr to $3.05
- Company declared quarterly dividend of $1.25 per share
Result drivers
- International growth - Co said international site leasing revenue rose 30.5% yr/yr, driven by increased new tower construction, especially in Central America for Millicom and others
- Domestic weakness - Domestic site leasing revenue and profit declined yr/yr as carrier activity in the U.S. remained steady but did not offset churn and lower new business
- Site development decline - Site development revenue fell 23.5% yr/yr
