Fourth Quarter & Full Year 2024 Earnings Conference Call February 25, 2025 © 2025 ATC TRS V LLC. All rights reserved. | American Tower Confidential and Proprietary Agenda Introduction Adam Smith Senior Vice President, Investor Relations and FP&A Opening Remarks Steven Vondran President and Chief Executive Officer Financial Results Rod Smith Executive Vice President, Chief Financial Officer and Treasurer Q&A | American Tower Confidential and Proprietary 2 Forward-Looking Statements "Safe Harbor" Statement un ...

American Tower reported robust fourth-quarter earnings for 2024, surpassing analyst expectations despite macroeconomic challenges.American Tower (AMT), a leader in wireless communication infrastructure, announced its financial results for the fourth quarter of 2024 on February 25, 2025.The results indicated robust performance, with earnings per share and revenue exceeding expectations. Adjusted EPS reached $2.62, a significant rise from the estimated $1.75. Additionally, total revenue was reported at $2,548 ...

Financial Performance - Total revenue for Q4 2024 increased by 3.7% to $2,548 million, while full year revenue grew by 1.1% to $10,127 million[6]. - Net income for Q4 2024 surged by 9,151.9% to $1,231 million, and for the full year, it increased by 66.8% to $2,280 million[6]. - Adjusted EBITDA for Q4 2024 rose by 5.1% to $1,692 million, with a full year increase of 1.9% to $6,812 million[6]. - AFFO attributable to AMT common stockholders for Q4 2024 was $1,088 million, reflecting a 1.7% increase, while the full year AFFO grew by 7.0% to $4,934 million[6]. - Total operating revenues for Q4 2024 reached $2,547.6 million, a 3.7% increase from $2,456.1 million in Q4 2023[65]. - Operating income for the twelve months ended December 31, 2024, was $4,516.5 million, up 44.5% from $3,125.5 million in 2023[65]. - Net income attributable to American Tower Corporation common stockholders for the twelve months ended December 31, 2024, was $2,255.0 million, a 52.0% increase from $1,483.3 million in 2023[65]. - Cash provided by operating activities for the twelve months ended December 31, 2024, was $5,290.5 million, compared to $4,722.4 million in 2023, reflecting a 12.1% increase[66]. - Total segment revenues for the twelve months ended December 31, 2024, reached $10,127 million, a slight increase from $10,012 million in 2023, reflecting a revenue growth of 1.1%[76]. Capital Expenditures and Investments - Total capital expenditures for Q4 2024 were approximately $453 million, with full year expenditures around $1.6 billion[9]. - Capital expenditures for 2025 are projected to total between $1,635 million and $1,745 million, including $610 million for Data Centers segment development[27]. - The company plans to construct 1,950 to 2,550 communications sites globally as part of its capital expenditure strategy[27]. - Capital improvement capital expenditures for Q4 2024 were $69.4 million, consistent with $69.7 million in Q4 2023, indicating stable investment in property improvements[92]. Debt and Leverage - The net leverage ratio as of December 31, 2024, was 5.1x, with total debt reported at $36,502 million[12][13]. - The Net Leverage Ratio is calculated as net debt divided by the quarter's annualized Adjusted EBITDA, which is critical for credit agency ratings[54]. - The company utilized approximately $2.0 billion from the ATC TIPL Transaction to pay down existing indebtedness, contributing to interest expense savings[96]. Future Outlook - The company expects negative impacts from foreign currency fluctuations of approximately $229 million on total property revenue for 2025 compared to 2024[19]. - The company anticipates continued demand for connectivity despite a challenging macroeconomic environment, positioning itself for sustained growth[4]. - Total property revenue for 2025 is projected to be between $9,920 million and $10,070 million, reflecting a growth rate of 0.6% compared to the prior year[22]. - Net income is expected to range from $2,930 million to $3,020 million, representing a significant increase of 30.5% year-over-year[22]. - Adjusted EBITDA is forecasted to be between $6,855 million and $6,925 million, with a growth rate of 1.1% compared to the previous year[22]. - AFFO attributable to AMT common stockholders is projected to be between $4,830 million and $4,920 million, showing a decline of 1.2% year-over-year, but an adjusted growth of 4.6%[22]. Segment Performance - U.S. & Canada segment property revenue is estimated at $5,190 million to $5,250 million, with a growth rate of (0.5)%, while international property revenue is projected at $3,705 million to $3,775 million, reflecting a growth rate of (0.6)%[23]. - Data Centers segment property revenue is expected to be between $1,025 million and $1,045 million, with a strong growth rate of 11.9%[23]. - Total tenant billings growth for 2025 is anticipated to be ≥4.3% in the U.S. & Canada and ~7% internationally, averaging ~5.5% overall[25]. - Revenue growth in the U.S. & Canada segment was 0.2%, while Latin America experienced a decline of 3.3%[70]. - The U.S. & Canada segment generated revenues of $5,248 million, while Latin America contributed $1,718 million, reflecting a revenue growth of 0.6% and a decline of 4.5% respectively[76]. Operational Efficiency - The Company’s Adjusted EBITDA Margin is derived from dividing Adjusted EBITDA by total revenue, providing insight into operational profitability[47]. - The segment operating profit margin for the total property segment was 70% in 2024, compared to 69% in 2023, indicating improved operational efficiency[76]. - The segment operating profit for the current period was $1,754 million, with an operating profit margin of 69%, compared to $1,679 million and a margin of 68% in the prior year[73]. - The gross margin for the total property segment was $7,553 million, with a gross margin percentage of 70%[76]. Currency Impact - The company emphasizes the importance of foreign currency exchange impacts on its reported growth, affecting the underlying performance of its real estate business[44]. - The company reported a foreign currency exchange impact of $(56) million on total tenant billings, affecting overall revenue performance[72]. - The company reported a foreign currency exchange rate fluctuation gain of $539.7 million for the three months ended December 31, 2024, contrasting with a loss of $(377.7) million in the same period of 2023[96]. Goodwill and Impairments - The Company experienced a decline in goodwill from $12,083.5 million in 2023 to $11,768.1 million in 2024[64]. - The company reported a goodwill impairment charge of $80.0 million for the Spain reporting unit in 2023, contributing to a total impairment charge of approximately $68.6 million for Q4 2024[87]. Shareholder Returns - The company declared cash distributions of $1.62 per share for Q4 2024, totaling $757.1 million, with a full year distribution of $6.48 per share amounting to $3,027.3 million[8]. - The weighted average diluted shares outstanding is expected to remain at approximately 468,700 thousand shares, with AFFO per share projected between $10.31 and $10.50[30]. - The weighted average diluted shares outstanding increased to 468,418 thousand in Q4 2024 from 467,453 thousand in Q4 2023, reflecting changes in capital structure[92].

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Core Viewpoint - American Tower (AMT) is expected to report quarterly earnings of $2.31 per share, reflecting a slight increase of 0.9% year-over-year, while revenues are forecasted to decline by 10.1% to $2.5 billion [1]. Earnings Estimates - The consensus EPS estimate has been revised down by 0.2% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Estimates - Analysts predict 'Total operating revenues- Data Centers' will reach $236.01 million, a year-over-year increase of 9.8% [5]. - The estimate for 'Total operating revenues- Services' is $56.02 million, indicating a significant increase of 166.8% from the prior year [5]. - 'Total operating revenues- Total Property' is expected to be $2.47 billion, reflecting a decrease of 10.7% year-over-year [5]. Geographic Revenue Estimates - 'Geographic Revenues- Total International' is estimated at $936.03 million, down 25.1% from the previous year [6]. - 'Geographic Revenues- U.S. & Canada' is forecasted to be $1.30 billion, showing a slight decline of 0.3% [6]. - 'Geographic Revenues- Africa' is expected to reach $313.73 million, indicating a year-over-year increase of 6.7% [6]. - 'Geographic Revenues- Latin America' is projected at $419.21 million, down 3.6% from the prior year [7]. Organic Tenant Billings Growth - 'Organic Tenant Billings Growth - U.S. & Canada' is expected to be 4.1%, down from 5.1% in the same quarter last year [7]. - 'Organic Tenant Billings Growth - Total International' is projected at 4.5%, compared to 7.7% a year ago [7]. Ending Balance Estimates - The 'International - Ending Balance' is estimated to be 105,600, down from 180,377 year-over-year [8]. - The 'U.S. & Canada - Ending Balance' is projected at 41,857, slightly down from 42,453 in the same quarter last year [8]. - The total 'Ending Balance' is expected to be 185,303, compared to 222,830 a year ago [8]. Stock Performance - Over the past month, American Tower shares have returned +1.8%, while the Zacks S&P 500 composite has returned +2.6% [9]. - Based on its Zacks Rank 4 (Sell), AMT is likely to underperform the overall market in the upcoming period [9].

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Core Viewpoint - American Tower (AMT) is experiencing a mixed performance in the market, with a recent stock price of $184.13, reflecting a slight decline compared to the previous day, while upcoming earnings are anticipated to show a modest increase in EPS but a decrease in revenue [1][2]. Company Performance - AMT's stock price decreased by 0.67% in the latest market close, underperforming the S&P 500's gain of 0.72% [1]. - Over the past month, AMT shares have increased by 2.83%, which is lower than the Finance sector's gain of 3.24% but higher than the S&P 500's gain of 1.02% [1]. Upcoming Earnings - American Tower is set to announce its earnings on February 25, 2025, with an expected EPS of $2.33, representing a 1.75% increase from the same quarter last year [2]. - Revenue is forecasted to be $2.51 billion, indicating a 9.75% decrease compared to the previous year [2]. Analyst Estimates - Recent changes to analyst estimates for AMT reflect confidence in the company's business performance and profit potential [3]. - The Zacks Consensus EPS estimate has decreased by 0.12% over the past month, and AMT currently holds a Zacks Rank of 4 (Sell) [5]. Valuation Metrics - AMT is trading at a Forward P/E ratio of 17.79, which is higher than the industry average of 11.47, suggesting a premium valuation [6]. - The company has a PEG ratio of 1.19, compared to the industry average PEG ratio of 2.15, indicating a more favorable growth expectation relative to its price [7]. Industry Context - The REIT and Equity Trust - Other industry, which includes AMT, is ranked 158 in the Zacks Industry Rank, placing it in the bottom 38% of over 250 industries [8].

Group 1 - American Tower (AMT) stock closed at $183.63, reflecting a -1.77% change from the previous day, which is less than the S&P 500's loss of 0.47% [1] - Over the last month, American Tower's shares increased by 1.92%, underperforming the Finance sector's gain of 4.45% and slightly outperforming the S&P 500's gain of 1.67% [1] Group 2 - American Tower is expected to report earnings of $2.33 per share on February 25, 2025, indicating a year-over-year growth of 1.75%, with a projected quarterly revenue of $2.51 billion, down 9.75% from the previous year [2] - Recent shifts in analyst projections for American Tower are important for investors, as positive estimate revisions can indicate a favorable business outlook [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), indicates that American Tower currently holds a Zacks Rank of 4 (Sell), with a consensus EPS projection moving 0.15% lower in the past 30 days [5] - American Tower has a Forward P/E ratio of 17.94, which is a premium compared to the industry average Forward P/E of 11.51 [6] Group 4 - The company has a PEG ratio of 1.21, which is lower than the average PEG ratio of 2.22 for REIT and Equity Trust - Other stocks [7] - The REIT and Equity Trust - Other industry, part of the Finance sector, holds a Zacks Industry Rank of 160, placing it in the bottom 37% of over 250 industries [8]

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