Financial Data and Key Metrics Changes - Revenue increased by 12% to $1.7 billion, adjusted EBITDA grew by 15% to $628 million, and AFFO increased by 15% to $370 million [5][20][21] - Adjusted EBITDA margin was 36.7%, up 120 basis points year on year, reflecting improved margins across all business segments [21][22] Business Line Data and Key Metrics Changes - Global Records and Information Management (RIM) business achieved record revenue of $1.32 billion, up $73 million year on year, with organic storage revenue up 6% [23][24] - Data center revenue was $189 million, an increase of $37 million year on year, with organic storage rental growth of 26% [25][26] - Asset Lifecycle Management (ALM) revenue was $153 million, a 70% increase year on year, with 42% organic growth [28] Market Data and Key Metrics Changes - The data center market remains strong, with pricing trends showing renewal pricing spreads of 13-20% on cash and GAAP basis [26] - The company expects data center revenue growth in excess of 25% in 2026, driven by a strong leasing backlog [27][31] Company Strategy and Development Direction - The company is focused on driving double-digit revenue growth supported by strong cross-selling opportunities in fragmented markets [31][33] - The acquisition of CRC India is expected to enhance the company's digital product portfolio and capitalize on growth opportunities in India [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining double-digit revenue and profit growth, supported by strong customer relationships and operational execution [18][31] - The company is increasing its financial guidance for the year based on strong second-quarter performance and positive outlook [31][32] Other Important Information - The company invested $477 million in the second quarter, with $442 million allocated to growth CapEx [29] - The quarterly dividend declared is $0.785 per share, with a payout ratio of 63% [29] Q&A Session Summary Question: Data center signings came in lighter than expected; can you elaborate on the slowdown? - Management noted that while the market remains strong, customers have been prioritizing large campuses for AI, which has affected leasing activity [35][36] Question: Is the slowdown in data center leasing just timing? - Management indicated that the focus on large language models has shifted back to their core markets, which should improve leasing activity going forward [38][40] Question: Can you break down the ALM growth in the quarter? - ALM growth was balanced between enterprise and data center, with volume being the primary driver of growth [45][48] Question: What are the dynamics in the hyperscale decommissioning sector? - Management highlighted their competitive advantage in providing secure and flexible decommissioning services, which has led to recent wins [52][54] Question: Can you discuss the margin trajectory and flow-through? - Management confirmed a 47% flow-through margin, driven by strong performance in the global RIM and data center businesses [60][62] Question: Can you clarify the revenue from the treasury contract? - Management stated that only $1 million of revenue was recognized in Q2, with expectations for more significant revenue in 2026 [64][69] Question: What are the targets for megawatts this year? - The expected range for new lease signings is 30 to 80 megawatts, with year-to-date signings at about 6 megawatts [72][74] Question: How is the company positioned in the data center ecosystem? - Management emphasized their focus on AI inference and cloud infrastructure, highlighting strong demand in key markets [78][82] Question: Can you elaborate on the growth in the digital business? - The digital business is experiencing strong growth due to unique capabilities in managing unstructured data, with a projected run rate of over $540 million [87][88]

Core Viewpoint - Iron Mountain (IRM) reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.19 per share, and showing significant growth from $0.42 per share a year ago, indicating a positive earnings surprise of +4.20% [1] Financial Performance - The company achieved revenues of $1.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.10%, compared to $1.53 billion in the same quarter last year [2] - Over the last four quarters, Iron Mountain has exceeded consensus EPS estimates only once, and it has topped consensus revenue estimates two times [2] Stock Performance and Outlook - Iron Mountain shares have declined approximately 9.1% since the beginning of the year, contrasting with the S&P 500's gain of 7.1% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $1.28, with expected revenues of $1.74 billion, and for the current fiscal year, the estimate is $5.01 on revenues of $6.79 billion [7] Industry Context - The Business - Information Services industry, to which Iron Mountain belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook that can positively influence stock performance [8]

Financial Performance & Growth - Iron Mountain achieved record Q2 2025 results, exceeding expectations, with total revenues of $1.712 billion, a 12% year-over-year increase[39] - Adjusted EBITDA for Q2 2025 was $628 million, a 15% year-over-year increase, with an Adjusted EBITDA margin of 36.7%[39] - Adjusted Funds From Operations (AFFO) for Q2 2025 was $370 million, a 15% year-over-year increase, with AFFO per share at $1.24, also a 15% increase[39] - The company is increasing its full year 2025 revenue guidance to $6.79 billion - $6.94 billion, representing approximately 12% year-over-year growth[41] - Adjusted EBITDA for full year 2025 is guided to $2.52 billion - $2.57 billion, approximately 14% year-over-year growth[41] - AFFO for full year 2025 is guided to $1.505 billion - $1.530 billion, approximately 13% year-over-year growth, with AFFO per share of $5.04 - $5.13, a 12% increase[41] Business Segments - Global RIM (Records Management) segment is expected to generate ~$5.3 billion in revenue in 2025[28] - Data Center organic storage revenue increased by 26% year-over-year[39] - Asset Lifecycle Management (ALM) organic revenue growth was 42%, with reported growth of 70% year-over-year[39] Strategic Initiatives - Growth businesses (Data Center, Digital Solutions, ALM) are expected to account for 28% of total revenue in 2025, up from 15% in 2021[15, 45] - The company has a total addressable market of $165 billion[8, 45] - The company is expanding its data center capacity to approximately 1.3 GW from the current operating portfolio of 450 MW[9, 32]

Section I - Q2 Earnings Press Release [Q2 2025 Earnings Press Release](index=3&type=section&id=Q2%202025%20Earnings%20Press%20Release) Iron Mountain reported record Q2 2025 revenue ($1.7B) and Adjusted EBITDA ($628M), increasing full-year guidance despite a net loss Financial Performance Summary | Financial Metric | Three Months Ended 6/30/25 (in millions) | Y/Y % Change (Reported) | Year to Date 6/30/25 (in millions) | Y/Y % Change (Reported) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,712 million | 12% | $3,304 million | 10% | | **Net (Loss) Income** | $(43) million | n/a | $(27) million | (124)% | | **Adjusted EPS** | $0.48 | 14% | $0.92 | 8% | | **Adjusted EBITDA** | $628 million | 15% | $1,208 million | 14% | | **AFFO** | $370 million | 15% | $718 million | 11% | | **AFFO per share** | $1.24 | 15% | $2.41 | 11% | - Achieved **record quarterly revenue of $1.7 billion**, an increase of **11.6%** on a reported basis and **11.0%** on a constant currency basis[8](index=8&type=chunk) - **Net loss for Q2 was $(43.3) million**, compared to a **net income of $34.6 million** in Q2 2024, primarily driven by the impact of foreign exchange rate changes on intercompany balances[12](index=12&type=chunk) - The Board of Directors declared a **quarterly cash dividend of $0.785 per share** for the third quarter of 2025[14](index=14&type=chunk) Full-Year Financial Guidance | 2025 Guidance | New Guidance (in millions) | Previous Guidance (in millions) | Approximate Y/Y % Change (New) | | :--- | :--- | :--- | :--- | | **Total Revenue** | $6,790 - $6,940 M | $6,740 - $6,890 M | ~12% | | **Adjusted EBITDA** | $2,520 - $2,570 M | $2,505 - $2,555 M | ~14% | | **AFFO** | $1,505 - $1,530 M | $1,480 - $1,510 M | ~13% | | **AFFO Per Share** | $5.04 - $5.13 | $4.95 - $5.05 | ~12% | Section II - Financial Highlights and Organic Growth [Financial and Operating Highlights](index=6&type=section&id=Financial%20and%20Operating%20Highlights) Q2 2025 saw strong performance with $1.71B revenue, $628.4M Adjusted EBITDA, 9.2% organic storage rental growth, and high data center occupancy Financial Performance Summary | Financial Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,711,948 | $1,592,529 | $1,534,409 | | **Adjusted EBITDA** | $628,388 | $579,906 | $544,361 | | **Adjusted EBITDA Margin** | 36.7% | 36.4% | 35.5% | | **Adjusted EPS** | $0.48 (per share) | $0.43 (per share) | $0.42 (per share) | | **AFFO per Share** | $1.24 (per share) | $1.17 (per share) | $1.08 (per share) | Operating Metrics Overview | Operating Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Organic Storage Rental Revenue Growth** | 9.2% | 8.8% | 10.1% | | **Total Volume - Storage (in 000s cubic feet)** | 735,807 | 734,166 | 732,607 | | **Records Management Retention Rate** | 93.0% | 92.9% | 92.8% | | **Data Center Leased % - Total** | 96.3% | 96.1% | 93.5% | | **Data Center Kilowatts Leased - New/Expansion** | 2,325 (kW/MW) | 3,700 (kW/MW) | 66,493 (kW/MW) | [Organic Revenue Growth](index=7&type=section&id=Organic%20Revenue%20Growth) Q2 2025 total organic revenue grew 9.4%, driven by 9.2% storage rental and 9.7% service growth, with YTD growth at 8.8% Organic Revenue Growth Rates | Revenue Growth (Y/Y) | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **Total Organic Revenue Growth** | 9.4% | 8.8% | | **Organic Storage Rental Growth** | 9.2% | 9.0% | | **Organic Service Growth** | 9.7% | 8.4% | Section III - Operational Metrics [Global Storage Volume](index=8&type=section&id=Global%20Storage%20Volume) Global storage volume grew to 735.8 million cubic feet in Q2 2025, up from 734.2 million in Q1 and 732.6 million in Q2 2024 Global Storage Volume Breakdown | Volume (in 000s cubic feet) | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | **Global RIM** | 728,740 | 727,496 | 726,712 | | **Corporate and Other** | 7,067 | 6,671 | 5,895 | | **Total Volume - Storage** | 735,807 | 734,166 | 732,607 | [Quarterly Operating Performance](index=9&type=section&id=Quarterly%20Operating%20Performance) Q2 2025 consolidated revenue grew 11.6% YoY, led by Global Data Center (24.0%), Global RIM (5.9%), and Corporate/Other (51.6%) Quarterly Segment Performance | Segment Performance (Q2 2025) | Total Revenues (in 000s) | Y/Y % Change (Reported) | Adjusted EBITDA (in 000s) | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | | **Global RIM Business** | $1,323,798 | 5.9% | $586,303 | 44.3% | | **Global Data Center Business** | $189,401 | 24.0% | $96,266 | 50.8% | | **Corporate and Other** | $198,749 | 51.6% | $(54,181) | n/a | | **Total Consolidated** | $1,711,948 | 11.6% | $628,388 | 36.7% | [Year to Date Operating Performance](index=10&type=section&id=Year%20to%20Date%20Operating%20Performance) YTD 2025 consolidated revenue grew 9.7% to $3.3B, driven by Corporate/Other (42.6%) and Data Center (22.2%), with Adjusted EBITDA at $1.21B Year-to-Date Segment Performance | Segment Performance (YTD 2025) | Total Revenues (in 000s) | Y/Y % Change (Reported) | Adjusted EBITDA (in 000s) | Adjusted EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | | **Global RIM Business** | $2,579,740 | 4.8% | $1,142,617 | 44.3% | | **Global Data Center Business** | $362,598 | 22.2% | $187,082 | 51.6% | | **Corporate and Other** | $362,139 | 42.6% | $(121,405) | n/a | | **Total Consolidated** | $3,304,477 | 9.7% | $1,208,294 | 36.6% | Section IV - Balance Sheets, Statements of Operations and Reconciliations [Financial Statements and Reconciliations](index=11&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents core financial statements and GAAP to non-GAAP reconciliations, showing $20.2B assets, $14.8B long-term debt, Q2 net loss of $43.3M, and $628.4M Adjusted EBITDA Condensed Consolidated Balance Sheet Highlights | Balance Sheet Item (in 000s) | 6/30/2025 (in thousands) | 12/31/2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $1,897,248 | $1,691,222 | | **Property, Plant and Equipment, Net** | $8,774,723 | $7,631,599 | | **Total Assets** | $20,176,789 | $18,717,115 | | **Total Current Liabilities** | $2,998,772 | $3,087,275 | | **Long-term Debt, Net of Current Portion** | $14,818,175 | $13,003,977 | | **Total Liabilities** | $20,745,656 | $19,021,789 | Quarterly Condensed Consolidated Statements of Operations | Income Statement Item (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $1,711,948 | $1,534,409 | 11.6% | | **Operating Income (Loss)** | $259,896 | $230,294 | 12.9% | | **Interest Expense, Net** | $205,063 | $176,521 | 16.2% | | **Other Expense (Income), Net** | $81,877 | $5,833 | n/a | | **Net (Loss) Income** | $(43,340) | $34,621 | n/a | | **Net (Loss) Income Attributable to Iron Mountain** | $(44,921) | $35,783 | n/a | Year-to-Date Condensed Consolidated Statements of Operations | Income Statement Item (in 000s) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $3,304,477 | $3,011,272 | 9.7% | | **Operating Income (Loss)** | $514,190 | $475,917 | 8.0% | | **Net (Loss) Income** | $(27,107) | $111,646 | (124.3)% | | **Net (Loss) Income Attributable to Iron Mountain** | $(28,969) | $109,844 | (126.4)% | Reconciliation of Net Income to Adjusted EBITDA | Reconciliation (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Net (Loss) Income** | $(43,340) | $34,621 | $(27,107) | $111,646 | | **Add: Interest, Taxes, D&A** | $473,925 | $414,341 | $915,652 | $805,024 | | **Other Adjustments** | $197,803 | $83,399 | $219,749 | $146,546 | | **Adjusted EBITDA** | $628,388 | $544,361 | $1,208,294 | $1,063,216 | Adjusted Earnings Per Share Reconciliation | EPS Reconciliation | Q2 2025 (per share) | Q2 2024 (per share) | YTD 2025 (per share) | YTD 2024 (per share) | | :--- | :--- | :--- | :--- | :--- | | **Reported EPS - Fully Diluted** | $(0.15) | $0.12 | $(0.10) | $0.37 | | **Adjustments (per share)** | $0.63 | $0.30 | $1.02 | $0.48 | | **Adjusted EPS - Fully Diluted** | $0.48 | $0.42 | $0.92 | $0.85 | Reconciliation of Net Income to FFO and AFFO | Reconciliation (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Net (Loss) Income** | $(43,340) | $34,621 | n/a | | **FFO (Nareit)** | $62,115 | $139,654 | (55.5)% | | **FFO (Normalized)** | $258,005 | $231,021 | 11.7% | | **AFFO** | $369,744 | $320,901 | 15.2% | FFO and AFFO Per Share Data | Per Share Data | Q2 2025 (per share) | Q2 2024 (per share) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **FFO (Normalized) per Share** | $0.87 | $0.78 | 11.5% | | **AFFO Per Share** | $1.24 | $1.08 | 14.8% | Section V - Storage and Service Reconciliation [Quarterly Storage Rental and Service Business Detail](index=18&type=section&id=Quarterly%20Storage%20Rental%20and%20Service%20Business%20Detail) Q2 2025 Storage Rental gross margin expanded 140 bps to 71.4%, while Service gross margin contracted 120 bps to 33.1% due to rising costs Quarterly Storage Rental and Service Business Performance | Business Detail (Q2 2025) | Storage Rental (in thousands) | Service (in thousands) | | :--- | :--- | :--- | | **Total Revenue (in 000s)** | $1,009,989 | $701,959 | | **Gross Profit (in 000s)** | $727,960 | $229,151 | | **Gross Margin** | 71.4% | 33.1% | | **Y/Y Margin Change** | +140 bps | -120 bps | [Year to Date Storage and Service Business Detail](index=19&type=section&id=Year%20to%20Date%20Storage%20and%20Service%20Business%20Detail) YTD 2025 Storage Rental gross margin expanded 110 bps to 71.0%, while Service gross margin declined 150 bps to 32.8% YoY Year-to-Date Storage Rental and Service Business Performance | Business Detail (YTD 2025) | Storage Rental (in thousands) | Service (in thousands) | | :--- | :--- | :--- | | **Total Revenue (in 000s)** | $1,958,365 | $1,346,112 | | **Gross Profit (in 000s)** | $1,403,245 | $436,191 | | **Gross Margin** | 71.0% | 32.8% | | **Y/Y Margin Change** | +110 bps | -150 bps | Section VI - Real Estate Metrics [Global Real Estate Portfolio and Lease Obligations](index=20&type=section&id=Global%20Real%20Estate%20Portfolio%20and%20Lease%20Obligations) As of June 30, 2025, Iron Mountain's global real estate portfolio included 1,325 facilities (97.8M sq ft), 24.9% owned and 75.1% leased Global Real Estate Portfolio Summary | Portfolio Metric | As of 06/30/2025 | | :--- | :--- | | **Total Facilities** | 1,325 | | **Total Square Feet (in 000s)** | 97,811 | | **Owned Facilities (% of total)** | 17.9% | | **Owned Sq. Ft. (% of total)** | 24.9% | | **Leased Facilities (% of total)** | 82.1% | | **Leased Sq. Ft. (% of total)** | 75.1% | [Facility Lease Expirations](index=20&type=section&id=Facility%20Lease%20Expirations) The company maintains a long-term, staggered lease expiration profile with a 10.2-year WALE and 58.5% of leases expiring after 2033 - The weighted-average remaining operating lease obligation is **10.2 years**[72](index=72&type=chunk) - The lease expiration schedule is long-dated, with **58.5%** of total leased square footage expiring in 2034 and thereafter[71](index=71&type=chunk) Section VII - Data Center Customer and Portfolio Metrics [Data Center Customer Lease Expiration and Leasing Activity Summary](index=21&type=section&id=Data%20Center%20Customer%20Lease%20Expiration%20and%20Leasing%20Activity%20Summary) Data center business shows a strong 10.0-year WALE, with Q2 2025 seeing 2,325 kW new/expansion leases, 19.5% GAAP mark-to-market, and low 0.5% churn - The data center portfolio has a weighted average lease expiry (WALE) of **10.0 years**, with **58.0%** of total MW expiring after 2031[75](index=75&type=chunk) Data Center Leasing Activity Summary | Leasing Activity | Q2 2025 | YTD 2025 | | :--- | :--- | :--- | | **New/expansion leases signed (kW)** | 2,325 (kW/MW) | 6,025 (kW/MW) | | **Churn** | 0.5% | 0.8% | | **Cash Mark to Market** | 13.1% | 15.0% | | **GAAP Mark to Market** | 19.5% | 22.0% | [Data Center Operating Portfolio and Total Potential Capacity](index=22&type=section&id=Data%20Center%20Operating%20Portfolio%20and%20Total%20Potential%20Capacity) Q2 2025 operating data center portfolio reached 450.2 MW (96.3% leased), with total potential capacity expanding to 1,279.9 MW, signaling robust growth Data Center Operating Portfolio Status | Portfolio Status | Leasable MW (kW/MW) | Leased % by MW | | :--- | :--- | :--- | | **Stabilized** | 435.8 | 97.9% | | **Pre-Stabilized** | 14.4 | 50.1% | | **Total Data Center Properties** | 450.2 | 96.3% | Total Data Center Potential Capacity | Potential Capacity (MW) | Q2 2025 (kW/MW) | Q2 2024 (kW/MW) | | :--- | :--- | :--- | | **Operating Portfolio** | 450.2 | 265.7 | | **Under Construction** | 201.5 | 305.5 | | **Held for Development** | 628.2 | 346.6 | | **Total Data Center Portfolio** | 1,279.9 | 917.8 | [Data Center Expansion and Development Activity](index=23&type=section&id=Data%20Center%20Expansion%20and%20Development%20Activity) The company has a substantial data center development pipeline: 201.5 MW under construction (60.2% pre-leased) and 628.2 MW for future development Data Center Development Pipeline | Development Status | MW (kW/MW) | % Pre-Leased | | :--- | :--- | :--- | | **Total Expansion** | 15.5 | 8.3% | | **Total New Development** | 186.0 | 64.5% | | **Total Under Construction** | 201.5 | 60.2% | | **Held for Development** | 628.2 | n/a | Section VIII - Capitalization and Debt Maturity Profile [Capitalization](index=24&type=section&id=Capitalization) As of June 30, 2025, the company maintained a stable 5.0x Net Total Lease-Adjusted Leverage Ratio, $45.8B total enterprise value, 77% fixed-rate debt, and stable credit ratings Capitalization Details | Capitalization Metric | Value | | :--- | :--- | | **Net Total Lease-Adjusted Leverage Ratio** | 5.0x | | **Total Enterprise Value** | $45,769,848 (in thousands) | | **Net Debt to Total Enterprise Value** | 33.8% | | **Fixed Rate Debt** | 77% | | **Weighted Average Interest Rate** | 5.7% | | **Weighted Average Maturity** | 4.5 Years | - Credit ratings are stable, with S&P at **BB-** and Moody's at **Ba3**[90](index=90&type=chunk) [Debt Maturity Profile](index=24&type=section&id=Debt%20Maturity%20Profile) The company maintains a well-laddered debt maturity profile with a 4.5-year weighted average maturity and no significant near-term maturities - The debt maturity schedule is staggered, with the **largest maturities occurring in 2029 ($2.8B), 2030 ($3.0B), and 2031 ($1.9B)**[94](index=94&type=chunk) - The weighted average maturity of total long-term debt is **4.5 years**[90](index=90&type=chunk) Section IX - Capital Expenditures [Quarterly and Year to Date Capital Expenditures and Investments](index=25&type=section&id=Quarterly%20and%20Year%20to%20Date%20Capital%20Expenditures%20and%20Investments) YTD 2025 capital expenditures rose 48.2% to $1.13B, driven by a 53.1% surge in growth capex, with data center investments up 66.8% to $953M Year-to-Date Capital Expenditures | Capital Expenditures (in 000s) | YTD 2025 (in thousands) | YTD 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | | **Growth: Data Center** | $952,982 | $571,388 | 66.8% | | **Total Growth Capital Expenditures** | $1,070,567 | $699,046 | 53.1% | | **Total Recurring Capital Expenditures** | $62,877 | $65,713 | (4.3)% | | **Total Growth and Recurring Capital Expenditures** | $1,133,444 | $764,759 | 48.2% | Quarterly Capital Expenditures | Capital Expenditures (in 000s) | Q2 2025 (in thousands) | Q2 2024 (in thousands) | Y/Y % Change | | :--- | :--- | :--- | :--- | | **Total Growth Capital Expenditures** | $442,050 | $361,931 | 22.1% | | **Total Recurring Capital Expenditures** | $34,794 | $36,976 | (5.9)% | | **Total Growth and Recurring Capital Expenditures** | $476,844 | $398,906 | 19.5% | Section X - Appendix and Definitions [Appendix and Definitions](index=26&type=section&id=Appendix%20and%20Definitions) This section defines non-GAAP financial measures and key operational terms, including Adjusted EBITDA, FFO, AFFO, organic revenue growth, and outlines the company's business segments - **Adjusted EBITDA** is defined as net income adjusted for interest, taxes, depreciation, amortization, and other specific items like acquisition costs, restructuring, and stock-based compensation[103](index=103&type=chunk) - **AFFO** is defined as FFO (Normalized) adjusted for non-real estate depreciation, amortization of intangibles, non-cash rent, and other items, less recurring capital expenditures[107](index=107&type=chunk) - The company's business is organized into three segments: **Global Records and Information Management (Global RIM)**, **Global Data Center Business**, and **Corporate and Other** (which includes Fine Arts and asset lifecycle management)[110](index=110&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk)

Core Viewpoint - Iron Mountain Incorporated (IRM) is expected to report year-over-year growth in revenues and adjusted funds from operations (AFFO) per share for the second quarter of 2025, with results to be released on August 6 [1][10]. Financial Performance - In the last reported quarter, IRM delivered a surprise of 0.86% in AFFO per share, with solid performances across all segments, including storage, service, global RIM, and data center businesses, although higher interest expenses slightly undermined performance [2][4]. - Over the trailing four quarters, IRM's AFFO per share has consistently surpassed the Zacks Consensus Estimate, with an average beat of 1.97% [3]. Revenue Projections - The Zacks Consensus Estimate for total revenues in the upcoming quarter is $1.68 billion, indicating a 9.3% increase from the prior year's reported figure [8]. - Specific revenue estimates include storage rental revenues at $990.4 million (up from $919.8 million), service revenues at $685.4 million (up from $614.7 million), and global data center segment revenues at $189.7 million (up from $152.7 million) [7]. Market Dynamics - The demand for connectivity, interconnection, and colocation space is expected to drive data center leasing activity, positively impacting IRM's global data center segment performance [5][10]. - However, the company faces challenges from high costs associated with sales components, selling, general and administrative expenses due to international expansion, and rising interest expenses projected to increase by 9.4% year-over-year [4][6]. Analyst Sentiment - The Zacks Consensus Estimate for quarterly AFFO per share has decreased by one cent to $1.19 over the past three months, although this still reflects significant growth compared to the previous year [6]. - The current Earnings ESP for IRM is 0.00%, and it holds a Zacks Rank of 3, indicating that the model does not predict a surprise in AFFO per share for this quarter [11].

Core Viewpoint - Iron Mountain (IRM) is expected to report significant growth in quarterly earnings and revenues, with earnings per share projected at $1.19, a 183.3% increase year-over-year, and revenues forecasted at $1.68 billion, reflecting a 9.3% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate for the quarter has remained unchanged over the past 30 days, indicating analysts have not revised their projections [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 Projections - Analysts estimate 'Revenues- Storage Rental Revenue' to be $990.44 million, indicating a year-over-year increase of 7.7% [4]. - 'Revenues- Service Revenue' is expected to reach $685.41 million, reflecting an 11.5% increase from the same quarter last year [5]. - The 'Global Data Center Business- Total Revenues' is projected at $189.73 million, a 24.3% year-over-year increase, while 'Global Data Center Business- Storage Rental' is expected to be $187.35 million, showing a 27.1% increase [5]. - 'Global Data Center Business- Service' is forecasted to decline to $3.52 million, a decrease of 33.7% year-over-year [5]. Additional Revenue Insights - 'Corporate and Other- Total Revenues' is estimated at $174.64 million, suggesting a 33.2% increase year-over-year [6]. - 'Global RIM Business- Service' is projected to reach $522.28 million, reflecting a 5.7% increase from the previous year [6]. - 'Global RIM Business- Total Revenue' is expected to be $1.32 billion, indicating a 5.6% increase year-over-year [6]. - 'Corporate and Other- Service' is estimated at $159.30 million, a 38.4% increase from the prior year [7]. - 'Global RIM Business- Storage Rental' is projected to be $798.52 million, reflecting a 5.6% increase year-over-year [7]. - 'Corporate and Other- Storage Rental' is expected to reach $17.18 million, indicating a 7.4% increase from the previous year [8]. EBITDA Projections - The 'Global Data Center Business- Adjusted EBITDA' is projected to be $94.15 million, compared to $66.02 million reported in the same quarter last year [8]. Stock Performance - Over the past month, Iron Mountain shares have decreased by 3.3%, while the Zacks S&P 500 composite has increased by 2.3%. The company holds a Zacks Rank 2 (Buy), suggesting it is likely to outperform the overall market in the upcoming period [8].

With the Federal Reserve eyeing inflation and pausing cuts, interest rate-sensitive sectors have faced challenges. Real estate's 1.57% gain in 2025 has been the fourth-worst year-to-date performance of the S&P 500's 11 sectors, trailing only energy (0.55%), consumer discretionary (-2.18%), and healthcare (-2.41%). Much of that's a consequence of the Fed's aforementioned rate policy, but on a granular level, there are headwinds impacting subsets of the real estate sector. Housing starts are at a five-year lo ...

Core Insights - Iron Mountain Incorporated (IRM) shares have increased by 20.9% over the past three months, significantly outperforming the industry average increase of 6.4% [1][8] - The company is expected to benefit from strong cash flows in its storage and records management business, alongside a focus on expanding its data center operations [1][4] - Analysts have a positive outlook on IRM, with the Zacks Consensus Estimate for 2025 adjusted funds from operations (AFFO) per share revised upward to $5.01 [2] Business Performance - Iron Mountain generates a steady stream of recurring revenues primarily from fixed periodic storage rental fees, which are typically earned on a monthly basis based on the volume of records stored [3] - The company is expanding its data center segment, with a strong pipeline totaling 1.3 GW expected to be fully developed, and management anticipates leasing 125 MW by 2025 [4] Growth Strategy - Iron Mountain employs an aggressive expansion strategy that includes acquisitions and developments to enhance organic growth in storage revenues [5] - The company is focusing on capital recycling by monetizing non-core assets and engaging in joint ventures and sale-leaseback transactions, which helps fund its development pipeline [5] Financial Position - The company maintains a healthy balance sheet with total liquidity of approximately $2.1 billion as of March 31, 2025, and a net lease-adjusted leverage of 5.0X, the lowest since its REIT conversion in 2014 [6] - Solid dividend payouts are a key attraction for REIT shareholders, with a five-year annualized dividend growth rate of 4.73%, indicating sustainability in the increased dividend [9]

Core Insights - Iron Mountain (IRM) has initiated a digital transformation project for the U.S. Department of Treasury, valued at approximately $140 million, awarded in late April 2025 [1][9] - The company is utilizing its proprietary intelligent digitization solution to meet the project's requirements, although this revenue is not included in its 2025 financial guidance [2] - A new Request for Quotations (RFQ) for a five-year digitization project has been issued by the U.S. Department of Treasury, which Iron Mountain aims to bid on [3][5] Company Strategy and Performance - Iron Mountain is confident in its ability to deliver a comprehensive solution for the new contract, leveraging its experience with previous government projects [4] - The ongoing and potential contracts are expected to enhance revenue growth and shareholder value, showcasing the company's execution strength [6][9] - The shift to a solution-based sales approach through Project Matterhorn has contributed to significant growth in digital solutions and asset lifecycle management [7] Market Position - Over the past three months, Iron Mountain's shares have increased by 16.1%, contrasting with a 0.9% decline in the industry [8] - Analysts maintain a positive outlook on Iron Mountain, reflected in the Zacks Consensus Estimate for its 2025 funds from operations (FFO) per share, which has slightly increased to $5.01 [8]

Core Insights - Iron Mountain Incorporated (IRM) shares have increased by 22.5% over the past three months, significantly outperforming the industry, which saw a decline of 1.5% [1][8] - The company is expected to benefit from strong cash flows in its storage and records management business, alongside a focus on the data center segment, which has shown robust growth [1][4] - Analysts have a positive outlook on IRM, with the Zacks Consensus Estimate for 2025 adjusted funds from operations (AFFO) per share revised upward to $4.93 [2] Revenue and Growth - Iron Mountain generates a steady stream of recurring revenues primarily from storage rental fees, with a retention rate of 92.9% in its records management business for Q1 2025 [3] - The data center segment achieved a revenue growth of 20.3% in Q1 2025, contributing to the company's diversification strategy [4][8] - The company is pursuing an aggressive expansion strategy that includes acquisitions and development projects to enhance organic growth in storage revenues [5] Financial Position - As of March 31, 2025, Iron Mountain had total liquidity of approximately $2.1 billion and a net lease-adjusted leverage of 5.0X, the lowest since its REIT conversion in 2014 [6] - The company raised its dividend by 10.6% in February 2025, reflecting strong AFFO growth and financial flexibility, with projections of 9.6% year-over-year AFFO growth for 2025 [9] Competitive Landscape - The company faces competition from other industry players, which may lead to pricing pressure and impact its growth prospects [10]