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].

Core Viewpoint - The Federal Reserve's interest rate policies are impacting interest rate-sensitive sectors, particularly real estate, which has shown weak performance in 2025, with a gain of only 1.57% [1][2] Real Estate Sector Performance - Real estate's performance in 2025 is the fourth-worst among the S&P 500 sectors, only outperforming energy, consumer discretionary, and healthcare [1] - Housing starts are at a five-year low due to declining buyer demand, and office occupancy rates are struggling with a national vacancy rate nearing 20% [2] Iron Mountain Overview - Iron Mountain, a REIT founded in 1951, has transitioned from records management to colocation data center operations and is currently considered undervalued based on its fundamentals and long-term prospects [3][4] - The company serves 240,000 customers across 61 countries, including nearly 95% of Fortune 1000 companies, and has a customer retention rate of 98% [4][5] Financial Performance - In Q1, Iron Mountain reported a revenue increase of 20.58% from $5.10 billion to $6.15 billion and a net income increase of 18.55% from $2.91 billion to $3.45 billion [6] - Free cash flow decreased from $44.11 million in 2022 to negative $594.86 million in 2024 due to capital expenditures, while total assets grew by 15.98% from $16.14 billion to $18.72 billion [6][7] Data Center Market Growth - The global data center market is projected to grow at a CAGR of 11.2% from 2025 to 2030, increasing from $347.60 billion to $652.01 billion, primarily driven by AI and machine learning [8] - Iron Mountain has a significant presence in both North America and Asia Pacific, accommodating major clients like Microsoft, IBM, and Deloitte [9] Investment Sentiment - Institutional investors hold 83.89% of Iron Mountain's 295 million shares, with significant purchases noted in recent filings [10] - Analysts have assigned a Buy rating to Iron Mountain, with a 12-month price target of $121.71, indicating a potential upside of 22.12% from the current price of $99.67 [11] Stock Performance - Iron Mountain's shares are currently trading 23% lower than their one-year high but have increased by 27% from their one-year low [12] - The company has increased its dividend payout for nine consecutive years, currently yielding 3.20% [12]

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]

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the **Data Center** industry, with a focus on **NVIDIA (NVDA)** and its implications for AI adoption and computing power demand [1][2]. Core Insights - **NVIDIA's Outlook**: NVDA maintains a positive outlook on the rapid adoption of AI technologies, emphasizing that the demand for computing power is increasing as training and reasoning models evolve [1]. - **AI Adoption Risks**: There are concerns regarding the pace of AI adoption potentially not leading to the expected increase in data center leasing. Key risks include: 1. The anticipated volume of data center leasing may not materialize as expected. 2. The deployment of AI inferencing workloads in colocation facilities may be lower than anticipated. 3. A potential lull in leasing activity or continued efficiency gains could result in excess supply [2]. - **Performance Metrics**: In Q1, Microsoft processed over **100 trillion tokens**, marking a **five-fold increase** year-over-year, indicating a significant surge in inference demand driven by AI [7]. Infrastructure Development - **Early Phase of Build-Out**: The industry is still in the early stages of necessary infrastructure development for AI, similar to past infrastructure expansions for electricity and the internet [8]. - **Enterprise AI Deployment**: NVDA anticipates that AI will increasingly be integrated into enterprise environments due to data access control and latency concerns, as much data remains on-premises [8]. Technological Advancements - **Chip Performance Improvements**: NVDA expects continued enhancements in chip performance, with recent software optimizations improving the performance of the Blackwell chip by **1.5 times** in just one month [8]. - **Latency Importance**: As AI models become more complex, latency becomes crucial for performance, with NVDA's Grace Blackwell chip designed to significantly enhance inference performance [8]. Company Ratings and Recommendations - **Digital Realty Trust, Inc. (DLR)**: Rated **Underweight** with a closing price of **$169.58**. The price target is set at **$139**, based on a **20x multiple** of the 2026 AFFO estimate [44][51]. - **Equinix, Inc. (EQIX)**: Rated **Equal Weight** with a closing price of **$880.62**. The price target is set at **$837**, using a **21x multiple** of the 2026 AFFOps estimate [52][59]. - **Iron Mountain Inc. (IRM)**: Rated **Overweight** with a closing price of **$97.29**. The price target is set at **$121**, based on a **22x multiple** of the 2026E AFFO per share [61][68]. Additional Considerations - **Market Conditions**: Changes in macroeconomic conditions, such as fluctuations in the US dollar, energy costs, and interest rates, could significantly impact the earnings and valuations of the companies discussed [51][60][69]. - **AI's Role in Future Infrastructure**: There is a growing recognition of AI as a critical infrastructure component for industries and societies, which presents numerous opportunities for growth [8]. This summary encapsulates the key points from the conference call, highlighting the current state and future outlook of the data center industry, particularly in relation to AI advancements and the associated risks and opportunities.