Core Insights - SBA Communications reported revenue of $698.98 million for the quarter ended June 2025, marking a year-over-year increase of 5.8% and exceeding the Zacks Consensus Estimate by 4.32% [1] - The earnings per share (EPS) for the same period was $3.17, compared to $1.51 a year ago, with an EPS surprise of 1.6% over the consensus estimate of $3.12 [1] Revenue Breakdown - Site Development revenue was $67.19 million, significantly higher than the estimated $44.19 million, reflecting a year-over-year increase of 97.5% [4] - International Site Leasing revenue reached $161.98 million, slightly below the estimated $157.61 million, showing a year-over-year decrease of 0.8% [4] - Domestic Site Leasing revenue was reported at $469.81 million, surpassing the average estimate of $462.11 million, with a year-over-year increase of 1.4% [4] - Total Site Leasing revenue amounted to $631.79 million, exceeding the two-analyst average estimate of $619.71 million, representing a year-over-year change of 0.9% [4] Profitability Metrics - Net Earnings Per Share (Diluted) was $2.09, slightly below the estimated $2.15 [4] - Segment operating profit for Site Leasing (Domestic + International) was $513.22 million, exceeding the average estimate of $505.28 million [4] - Segment operating profit for Site Development was reported at $13.67 million, significantly higher than the average estimate of $8.78 million [4] Stock Performance - Over the past month, shares of SBA Communications have returned -2.3%, while the Zacks S&P 500 composite has changed by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Company Performance - SBA Communications reported quarterly funds from operations (FFO) of $3.17 per share, exceeding the Zacks Consensus Estimate of $3.12 per share, but down from $3.29 per share a year ago, representing an FFO surprise of +1.60% [1] - The company posted revenues of $698.98 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.32%, compared to $660.48 million in the same quarter last year [2] - Over the last four quarters, SBA Communications has surpassed consensus FFO estimates three times and topped consensus revenue estimates three times [2] Stock Performance - SBA Communications shares have increased approximately 12.2% since the beginning of the year, outperforming the S&P 500's gain of 6.1% [3] - The current consensus FFO estimate for the upcoming quarter is $3.19 on revenues of $688.68 million, and for the current fiscal year, it is $12.75 on revenues of $2.74 billion [7] Industry Outlook - The REIT and Equity Trust - Other industry, to which SBA Communications belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook [8]

Financial Data and Key Metrics Changes - The company exceeded internal projections for the second quarter of 2025, leading to an increase in full-year guidance across all key metrics [6][17] - Domestic organic leasing revenue growth was 5% on a gross basis and 1% on a net basis, with $11 million of churn related to Sprint consolidation [17][18] - The company ended the quarter with $12.6 billion of total debt and $12.3 billion of net debt, with a leverage ratio of 6.3 times net debt to adjusted EBITDA [23] Business Line Data and Key Metrics Changes - The services business outperformed expectations, with a nearly 20% increase in full-year services revenue guidance, primarily driven by construction services [7][8] - International organic leasing revenue growth was 0.8% net, including 7.5% churn, while total international churn remained elevated due to ongoing carrier consolidation [19] Market Data and Key Metrics Changes - The U.S. market showed sustained activity levels, marking the sixth consecutive quarter of increased bookings, with carriers investing in wireless networks [6][7] - International markets continued to perform well, with new leases signed and ongoing densification, although challenges were noted in Brazil with one carrier customer [10][11] Company Strategy and Development Direction - The company is focused on expanding its presence in key markets while exiting subscale markets, as evidenced by the sale of its tower business in Canada [14][15] - The company plans to continue deploying capital towards share repurchases and debt reduction, maintaining a balanced approach to capital allocation [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about domestic organic growth opportunities due to initiatives from major customers and the growth of fixed wireless access subscribers [8][9] - The reinstatement of the FCC's Spectrum Auction Authority is seen as a positive development for network capacity and investment [9] Other Important Information - The company declared a quarterly dividend of $1.11 per share, representing a 13% increase over the previous year [24] - S&P upgraded the company's corporate credit rating to BBB investment grade, reflecting stable cash flows and anticipated revenue growth [21][22] Q&A Session Summary Question: Durability of demand drivers for FWA and densification - Management feels confident about the long-term demand drivers, including fixed wireless access and new spectrum auctions, which are expected to require continued investment in networks [28][29] Question: Activity levels and revenue timing - Management noted an increase in activity but acknowledged that new colocations may delay revenue recognition compared to amendments [35][36] Question: Drivers of services business growth - The growth in services is linked to increased leasing activity and construction work, particularly in rural areas [38][39] Question: Domestic activity slowdown in Q2 - Management indicated that the slowdown was mostly rounding and not indicative of a trend, with expectations for increased activity in the second half of the year [45][46] Question: AI application growth as a driver - Management sees AI applications as a potential driver of increased activity, although specifics are hard to quantify [52][53] Question: Canadian asset sale and scaling challenges - The company faced challenges in scaling its Canadian operations due to market dynamics and the decision to sell was based on realizing a better valuation [56][58] Question: Exposure to U.S. Cellular and DISH - Management indicated limited planned churn from U.S. Cellular and ongoing operations with DISH, with total revenues of $20 million and $55 million respectively [68][70] Question: Millicom Towers feedback - Initial feedback from carriers regarding the Millicom Towers acquisition has been positive, suggesting better-than-expected lease-up opportunities [74][75] Question: Use of proceeds from Canadian sale - Proceeds from the Canadian sale will be used flexibly for various purposes, including debt reduction and share buybacks [78][79] Question: Long-term AFFO per share growth rate - Management anticipates a mid to high single-digit growth rate for AFFO per share, contingent on interest rate normalization [105][106] Question: Investment grade debt considerations - Management is exploring the balance between maintaining flexibility and the potential benefits of moving to investment grade debt [112][113]

Financial Data and Key Metrics Changes - The company exceeded internal projections for Q2 2025, leading to an increase in full-year guidance across all key metrics, both in total and on a constant currency basis [5][6] - Domestic organic leasing revenue growth for Q2 was 5% on a gross basis and 1% on a net basis, with $11 million of churn related to Sprint consolidation [16][17] - International organic leasing revenue growth for Q2 was 0.8% net, including 7.5% churn [18] Business Line Data and Key Metrics Changes - The services business outperformed expectations, with full-year services revenue guidance increased by almost 20%, primarily driven by construction services [6][7] - The company added approximately 4,300 sites through the Millicom transaction, enhancing its strategic positioning in Central America [12] - The backlog remains healthy, indicating positive momentum for the remainder of the year and into 2026 [6][10] Market Data and Key Metrics Changes - The U.S. market showed improved activity levels, marking the sixth consecutive quarter of increased bookings [5][6] - International markets continue to perform well, with a growing number of new leases signed, although some markets face elevated churn levels [10][11] - The company anticipates increased international churn of $5 million primarily related to Oi in Brazil [11] Company Strategy and Development Direction - The company is focused on expanding its presence in key markets while exiting subscale markets, as evidenced by the sale of its Canadian tower business [14][52] - The reinstatement of the FCC's Spectrum Auction Authority is viewed as a positive development, expected to boost network capacity and support next-generation wireless technologies [8] - The company plans to continue deploying capital towards share repurchases and debt reduction, maintaining a balanced approach to capital allocation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about domestic organic growth opportunities due to initiatives from major customers and the growth of fixed wireless access subscribers [7][8] - The company is closely monitoring the situation with Oi in Brazil, which has filed for judicial reorganization, impacting revenue expectations [11] - Management believes that the demand drivers for fixed wireless access and densification will remain strong through 2025 and 2026 [29][30] Other Important Information - The company ended the quarter with $12.6 billion of total debt and a leverage ratio of 6.3 times net debt to adjusted EBITDA [22] - A quarterly dividend of $1.11 per share was declared, representing a 13% increase over the previous year [23] - The company received an upgrade to BBB investment grade from S&P, reflecting stable cash flows and anticipated revenue growth [20][21] Q&A Session Summary Question: Durability of demand drivers for FWA and densification - Management feels confident about the durability of demand drivers, including fixed wireless access and new spectrum bands being auctioned [29][30] Question: Activity levels and revenue timing - Management noted an increase in activity but acknowledged that new colocations may delay revenue recognition compared to amendments [34][36] Question: Domestic activity and bookings growth - The slight slowdown in Q2 was attributed to rounding, with expectations for increased activity and revenue in the second half of the year [42][44] Question: AI application growth as a driver - Management sees AI applications as a potential driver of increased activity, although specifics are hard to quantify [49][50] Question: Canadian asset sale and scaling challenges - The company decided to exit Canada due to challenges in growing its portfolio and realized a favorable valuation on the assets [52][54] Question: Fixed wireless activity among multiple customers - Management confirmed that activity has broadened among multiple customers, not just one [60][61] Question: Planned churn and revenue profile changes - No planned churn is expected, with total revenue from U.S. Cellular and DISH being manageable [64][66] Question: Feedback on Millicom Towers and lease-up assumptions - Initial feedback from carriers regarding Millicom Towers has been positive, suggesting better opportunities than anticipated [70][71] Question: Use of proceeds from Canadian sale - Proceeds from the Canadian sale will be used flexibly for various purposes, including debt reduction and share buybacks [74][75] Question: Sprint churn expectations - Management clarified that the total expected churn from Sprint is $50 million in 2026 and $20 million thereafter, not annual [82][83] Question: Domestic leasing outlook for 2026 - While it's premature to discuss 2026, management expects a higher run rate at the end of the year based on current trends [108][110]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Q2 2025 Performance Highlights](index=1&type=section&id=Q2%202025%20Performance%20Highlights) SBA Communications reported strong Q2 2025 financial and operating results, including significant net income, industry-leading AFFO per share, a major acquisition, and continued share repurchases Q2 2025 Key Financial Highlights | Metric | Value | | :----------------------- | :---------- | | Net income | $225.7 million | | Net income per share | $2.09 | | AFFO per share | $3.17 | | Millicom sites closed | 4,323 | | Shares repurchased | 799 thousand | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Brendan Cavanagh highlighted strong domestic and international leasing, exceeding expectations with record colocations, an early Millicom acquisition, and a favorable full-year outlook, alongside a strategic Canadian tower asset sale - Domestic activity remained very strong, with carrier customers investing meaningfully in wireless networks. New U.S. leasing business was ahead of expectations, benefiting from high levels of new colocations[4](index=4&type=chunk) - International new leasing activity was solid, contributing to the highest company-wide total of new colocations in nearly three years[4](index=4&type=chunk) - Over **4,300 sites** from the Millicom acquisition were closed, several months ahead of schedule, contributing to an increased full-year outlook across all key financial metrics due to strong leasing results, backlogs, early Millicom closing, and favorable foreign currency movements[4](index=4&type=chunk) - The company entered an agreement to sell all **369 Canadian tower assets**, a divestiture expected to be immediately accretive to AFFO per share and aligns with the strategy to optimize or exit subscale markets[4](index=4&type=chunk) [Dividend Declaration](index=1&type=section&id=Dividend%20Declaration) The Board declared a quarterly cash dividend of **$1.11 per share** of Class A Common Stock, payable September 18, 2025, to shareholders of record August 21, 2025 - Quarterly cash dividend declared: **$1.11 per share** of Class A Common Stock[3](index=3&type=chunk) - Payment Date: September 18, 2025. Record Date: August 21, 2025[3](index=3&type=chunk) [Operating Results](index=2&type=section&id=Operating%20Results) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) SBA Communications reported mixed Q2 2025 consolidated financial results, with significant site development revenue growth, slight declines in site leasing and AFFO, but substantial net income and EPS increases due to a currency gain Consolidated Financial Results (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change ($M) | % Change | % Change excluding FX | | :--------------------------------- | :----------- | :----------- | :------------ | :--------- | :-------------------- | | Site leasing revenue | $631.8 | $626.5 | $5.3 | 0.9% | 2.1% | | Site development revenue | $67.2 | $34.0 | $33.2 | 97.5% | 97.5% | | Site leasing segment operating profit | $513.2 | $512.3 | $0.9 | 0.2% | 1.3% | | Tower cash flow | $511.2 | $503.9 | $7.3 | 1.4% | 2.6% | | Net cash interest expense | $111.5 | $90.5 | $21.0 | 23.2% | 23.0% | | Net income | $225.7 | $159.5 | $66.2 | 41.5% | (12.2%) | | Earnings per share — diluted | $2.09 | $1.51 | $0.58 | 38.5% | (12.3%) | | Adjusted EBITDA | $475.5 | $467.1 | $8.4 | 1.8% | 2.9% | | AFFO | $342.1 | $354.3 | ($12.2) | (3.4%) | (1.9%) | | AFFO per share | $3.17 | $3.29 | ($0.12) | (3.6%) | (2.1%) | - Net income for Q2 2025 includes a **$30.4 million gain** from currency-related remeasurement of intercompany loans, compared to a **$66.2 million loss** from such remeasurement in Q2 2024[8](index=8&type=chunk) [Segment Performance (Domestic vs. International)](index=2&type=section&id=Segment%20Performance%20%28Domestic%20vs.%20International%29) Domestic site leasing revenue and cash site leasing revenue grew, while international revenue declined on a reported basis but increased significantly excluding foreign exchange impacts, with international operating profit and tower cash flow also growing ex-FX Segment Financial Results (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | $ Change ($M) | % Change | % Change excluding FX | | :--------------------------------- | :----------- | :----------- | :------------ | :--------- | :-------------------- | | Domestic site leasing revenue | $469.8 | $463.2 | $6.6 | 1.4% | 1.4% | | Domestic cash site leasing revenue | $467.4 | $457.4 | $10.0 | 2.2% | 2.2% | | Domestic site leasing segment operating profit | $400.4 | $397.7 | $2.7 | 0.7% | 0.7% | | Domestic site leasing tower cash flow | $396.1 | $388.2 | $7.9 | 2.0% | 2.0% | | Int'l site leasing revenue | $162.0 | $163.3 | ($1.3) | (0.8%) | 4.0% | | Int'l cash site leasing revenue | $163.7 | $163.6 | $0.1 | 0.1% | 5.0% | | Int'l site leasing segment operating profit | $112.8 | $114.6 | ($1.8) | (1.6%) | 3.3% | | Int'l site leasing tower cash flow | $115.1 | $115.6 | ($0.5) | (0.5%) | 4.5% | [Key Margins](index=2&type=section&id=Key%20Margins) Tower Cash Flow Margin remained stable, while Adjusted EBITDA Margin decreased in Q2 2025 compared to the prior year period Key Margins (Q2 2025 vs Q2 2024) | Margin | Q2 2025 | Q2 2024 | | :------------------ | :------ | :------ | | Tower Cash Flow Margin | 81.0% | 81.1% | | Adjusted EBITDA Margin | 68.1% | 71.3% | [Strategic and Investing Activities](index=3&type=section&id=Strategic%20and%20Investing%20Activities) [Acquisitions and Tower Builds](index=3&type=section&id=Acquisitions%20and%20Tower%20Builds) SBA significantly expanded its communication site portfolio in Q2 2025 by acquiring **4,329 sites** (mainly Millicom) and building **94 new towers**, now operating over **44,000 sites** globally - Acquired **4,329 communication sites** in Q2 2025, including **4,323 from the Millicom transaction**, for **$562.9 million** cash consideration[12](index=12&type=chunk) - Built **94 new towers** during Q2 2025[12](index=12&type=chunk) - As of June 30, 2025, SBA owned or operated **44,065 communication sites** (**17,437 in the U.S.** and **26,628 internationally**)[12](index=12&type=chunk) - Approximately **2,500 Millicom sites** remain under contract for **$391.0 million**, expected to close by September 1, 2025[13](index=13&type=chunk)[20](index=20&type=chunk) [Divestitures](index=3&type=section&id=Divestitures) SBA agreed to sell all **369 Canadian tower assets** for **CAD$446.0 million**, expected to close in Q4 2025, optimizing its portfolio by exiting a subscale market - Agreement to sell all **369 Canadian towers** and related operations for **CAD$446.0 million**[14](index=14&type=chunk) - Transaction expected to close during Q4 2025; no adjustment made to full year 2025 Outlook due to closing date uncertainty[14](index=14&type=chunk)[21](index=21&type=chunk) [Capital Expenditures](index=3&type=section&id=Capital%20Expenditures) Total cash capital expenditures for Q2 2025 were **$645.1 million**, primarily for discretionary investments in new builds, augmentations, and acquisitions, alongside non-discretionary maintenance and corporate spending Q2 2025 Cash Capital Expenditures | Category | Amount ($M) | | :--------------------------------- | :---------- | | Total cash capital expenditures | $645.1 | | Non-discretionary (maintenance, corporate) | $13.8 | | Discretionary (new builds, augmentations, acquisitions, land) | $631.3 | - Spent **$9.4 million** to purchase land and easements and extend lease terms[12](index=12&type=chunk) [Financing and Liquidity](index=3&type=section&id=Financing%20and%20Liquidity) [Debt and Leverage](index=3&type=section&id=Debt%20and%20Leverage) SBA maintained a strong Q2 2025 balance sheet with total debt of **$12.6 billion** and a Net Debt to Annualized Adjusted EBITDA Leverage Ratio of **6.5x** (**6.3x** pro forma with Millicom assets) Q2 2025 Debt and Leverage | Metric | Amount ($B) | | :--------------------------------- | :---------- | | Total debt | $12.6 | | Total secured debt | $9.6 | | Cash and cash equivalents, short-term restricted cash, and short-term investments | $0.3 | | Net Debt | $12.3 | | Net Debt to Annualized Adjusted EBITDA Leverage Ratio | 6.5x | | Net Secured Debt to Annualized Adjusted EBITDA Leverage Ratio | 4.9x | - Adjusted Net Debt to Annualized Adjusted EBITDA Leverage Ratio was **6.3x** on a pro forma basis for a full quarter of Adjusted EBITDA from acquired Millicom assets[4](index=4&type=chunk) - Only **$35.0 million** outstanding under the **$2.0 billion** Revolving Credit Facility as of the press release date[16](index=16&type=chunk) [Share Repurchases](index=3&type=section&id=Share%20Repurchases) The company repurchased **618 thousand shares** in Q2 2025 and **182 thousand shares** post-quarter, totaling **799 thousand shares**, with **$1.45 billion** remaining under the current authorization Share Repurchases | Period | Shares Repurchased | Amount ($M) | Average Price per Share | | :----------------------- | :----------------- | :---------- | :---------------------- | | Q2 2025 | 618 thousand | $130.7 | $211.63 | | Subsequent to Q2 2025 | 182 thousand | $41.4 | $227.92 | | Total (Q2 + subsequent) | 799 thousand | - | - | - **$1.45 billion** of authorization remained under the **$1.5 billion** stock repurchase plan after these repurchases[17](index=17&type=chunk) [Dividends](index=3&type=section&id=Dividends) In Q2 2025, the company declared and paid **$119.4 million** in cash dividends - Declared and paid a cash dividend of **$119.4 million** in Q2 2025[18](index=18&type=chunk) [Full Year 2025 Outlook](index=3&type=section&id=Full%20Year%202025%20Outlook) [Outlook Assumptions](index=3&type=section&id=Outlook%20Assumptions) The updated full year 2025 outlook assumes remaining Millicom site closings by September 1, 2025, excludes future acquisitions, repurchases, new debt, or Canadian disposition impacts, and incorporates specific foreign currency exchange rates - Assumes closing of remaining Millicom sites under contract by September 1, 2025, subject to regulatory approvals[20](index=20&type=chunk) - Does not reflect additional capital spending on unidentified revenue-producing assets, additional stock repurchases, or new debt financings in 2025[21](index=21&type=chunk) - Does not contemplate any impact from the disposition of Canadian operations if closed prior to year-end[21](index=21&type=chunk) Assumed Average Foreign Currency Exchange Rates (Q3-Q4 2025) | Currency | Rate (per 1.0 U.S. Dollar) | | :----------------------- | :-------------------------- | | Brazilian Reais | 5.60 | | Canadian Dollars | 1.36 | | Tanzanian Shillings | 2,650 | | South African Rand | 17.90 | [Updated Financial Guidance](index=4&type=section&id=Updated%20Financial%20Guidance) SBA Communications significantly increased its full year 2025 financial outlook across all key metrics, reflecting strong operational performance, early Millicom closing, and favorable foreign currency movements Full Year 2025 Outlook Update (vs. April 28, 2025 Outlook) | Metric | Full Year 2025 Outlook (Range) | Change from April 28, 2025 Outlook ($M) | Change from April 28, 2025 Outlook Excluding FX ($M) | | :--------------------------------- | :--------------------------------- | :---------------------------------------- | :---------------------------------------------------- | | Site leasing revenue | $2,565.0 to $2,590.0 | $29.0 | $21.0 | | Site development revenue | $215.0 to $235.0 | $35.0 | $35.0 | | Total revenues | $2,780.0 to $2,825.0 | $64.0 | $56.0 | | Tower Cash Flow | $2,058.0 to $2,083.0 | $15.0 | $10.0 | | Adjusted EBITDA | $1,908.0 to $1,928.0 | $17.0 | $12.0 | | Net cash interest expense | $435.0 to $441.0 | $5.0 | $5.0 | | Non-discretionary cash capital expenditures | $53.0 to $63.0 | — | — | | AFFO | $1,365.0 to $1,405.0 | $12.0 | $7.0 | | AFFO per share | $12.65 to $13.02 | $0.13 | $0.08 | | Discretionary cash capital expenditures | $1,255.0 to $1,275.0 | — | — | [Site Leasing Revenue Bridge](index=5&type=section&id=Site%20Leasing%20Revenue%20Bridge) The 2025 site leasing revenue outlook projects growth from new leases, amendments, and escalations, partially offset by churn, with non-organic revenue contributing significantly and foreign exchange having a negative impact 2024 Total Site Leasing Revenue to 2025 Outlook Bridge | Category | Consolidated ($M) | Domestic ($M) | International ($M) | | :-------------------------- | :------------------ | :-------------- | :------------------- | | 2024 Total Site Leasing Revenue | $2,527 | $1,862 | $665 | | (+) New Leases and Amendments | $51 to $57 | $35 to $39 | $16 to $18 | | (+) Escalations | $68 to $71 | $51 to $52 | $17 to $19 | | (-) Sprint Consolidation Churn | ($52) to ($50) | ($52) to ($50) | — | | (-) Regular Churn | ($58) to ($52) | ($22) to ($20) | ($36) to ($32) | | (+) Non-Organic Revenue | $73 to $73 | $7 to $7 | $66 to $66 | | (+ / -) Straight-line Revenue | ($8) to ($3) | ($11) to ($8) | $3 to $5 | | (+ / -) FX | ($18) to ($18) | — | ($18) to ($18) | | (+ / -) Other | ($18) to ($15) | ($2) to — | ($16) to ($15) | | 2025 Total Site Leasing Revenue | $2,565 to $2,590 | $1,868 to $1,882 | $697 to $708 | [Financial Statements](index=8&type=section&id=Financial%20Statements) [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements of operations show increased total revenues for Q2 and H1 2025, driven by site development growth, with net income attributable to SBA Communications Corporation also substantially increasing year-over-year Consolidated Statements of Operations (Key Figures) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | 6M 2025 ($K) | 6M 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | :----------- | :----------- | | Total revenues | $698,981 | $660,477 | $1,363,229 | $1,318,339 | | Operating income | $334,781 | $354,470 | $669,690 | $677,828 | | Net income | $225,694 | $159,452 | $443,598 | $313,994 | | Net income attributable to SBA Communications Corporation | $225,794 | $162,830 | $446,525 | $317,372 | | Diluted EPS | $2.09 | $1.51 | $4.14 | $2.93 | [Condensed Consolidated Balance Sheets](index=9&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The June 30, 2025, balance sheet shows decreased total assets and liabilities compared to December 31, 2024, with significant current asset reduction due to restricted cash and prepaid expenses, and an improved shareholders' deficit Condensed Consolidated Balance Sheets (Key Figures) | Metric | June 30, 2025 ($K) | December 31, 2024 ($K) | | :------------------------------------------ | :----------------- | :--------------------- | | Total assets | $10,766,387 | $11,417,336 | | Total current assets | $523,808 | $1,978,720 | | Total current liabilities | $1,429,705 | $1,797,936 | | Total long-term liabilities | $14,210,420 | $14,675,206 | | Total liabilities, redeemable noncontrolling interests, and shareholders' deficit | $10,766,387 | $11,417,336 | | Shareholders' deficit | ($4,938,895) | ($5,109,938) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q2 2025 saw decreased operating cash flows, significantly increased cash used in investing due to acquisitions, and reduced financing cash outflows, resulting in a net decrease in cash, cash equivalents, and restricted cash for the quarter Condensed Consolidated Statements of Cash Flows (Key Figures) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Net cash provided by operating activities | $368,098 | $425,593 | | Net cash used in investing activities | ($580,962) | ($121,208) | | Net cash used in financing activities | ($158,278) | ($276,523) | | Net change in cash, cash equivalents, and restricted cash | ($363,583) | $18,812 | | Cash, cash equivalents, and restricted cash, end of period | $300,523 | $283,144 | - Acquisitions accounted for **$589.2 million** in cash used in investing activities in Q2 2025, a substantial increase from **$41.6 million** in Q2 2024[42](index=42&type=chunk) [Supplemental Financial Information & Non-GAAP Reconciliations](index=11&type=section&id=Supplemental%20Financial%20Information%20%26%20Non-GAAP%20Reconciliations) [Communication Site Portfolio Summary](index=11&type=section&id=Communication%20Site%20Portfolio%20Summary) SBA's communication site portfolio significantly grew in Q2 2025, primarily via acquisitions, reaching **44,065 sites** globally Communication Site Portfolio Summary (Q2 2025) | Category | Domestic | International | Total | | :------------------------------------------ | :------- | :------------ | :---- | | Sites owned at March 31, 2025 | 17,447 | 22,262 | 39,709 | | Sites acquired during the second quarter | 5 | 4,324 | 4,329 | | Sites built during the second quarter | 10 | 84 | 94 | | Sites decommissioned/reclassified during the second quarter | (25) | (42) | (67) | | Sites owned at June 30, 2025 | 17,437 | 26,628 | 44,065 | [Segment Operating Profit and Margin](index=11&type=section&id=Segment%20Operating%20Profit%20and%20Margin) Domestic site leasing operating profit increased with high margins, while international operating profit and margin slightly declined; site development operating profit and margin both significantly increased Segment Operating Profit and Margin (Q2 2025 vs Q2 2024) | Segment | Q2 2025 Operating Profit ($K) | Q2 2024 Operating Profit ($K) | Q2 2025 Margin | Q2 2024 Margin | | :-------------------------- | :---------------------------- | :---------------------------- | :------------- | :------------- | | Domestic Site Leasing | $400,386 | $397,715 | 85.2% | 85.9% | | Int'l Site Leasing | $112,831 | $114,611 | 69.7% | 70.2% | | Site Development | $13,668 | $6,883 | 20.3% | 20.2% | [Non-GAAP Financial Measures Overview](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Overview) SBA Communications utilizes non-GAAP measures including Cash Site Leasing Revenue, Tower Cash Flow, Adjusted EBITDA, FFO, AFFO, Net Debt, and Constant Currency to enhance investor understanding of financial performance and operational comparisons - Non-GAAP measures are used to evaluate economic productivity, allocate resources, and assess performance by excluding impacts of capital structure and asset base[49](index=49&type=chunk) - FFO, AFFO, and AFFO per share are industry-standard metrics for REITs and communication site companies, providing insights into financial performance by adjusting for non-cash items and sustaining capital expenditures[49](index=49&type=chunk) - Non-GAAP Debt Measures offer a complete understanding of net debt and leverage by including the full principal amount of debt and netting cash and equivalents[49](index=49&type=chunk) - Constant Currency Measures help evaluate business performance without the impact of foreign currency exchange rate fluctuations[49](index=49&type=chunk) [Impact of Foreign Currency Exchange Rates](index=13&type=section&id=Impact%20of%20Foreign%20Currency%20Exchange%20Rates) Foreign currency exchange rate changes significantly impacted reported Q2 2025 growth rates; growth rates excluding FX were generally higher, particularly for international site leasing metrics Q2 2025 Year-over-Year Growth Rates (with and without FX Impact) | Metric | Reported Growth Rate | Foreign Currency Impact | Growth Excluding Foreign Currency Impact | | :--------------------------------- | :------------------- | :---------------------- | :--------------------------------------- | | Total site leasing revenue | 0.9% | (1.2%) | 2.1% | | Total cash site leasing revenue | 1.6% | (1.3%) | 2.9% | | Int'l cash site leasing revenue | 0.1% | (4.9%) | 5.0% | | Total site leasing segment operating profit | 0.2% | (1.1%) | 1.3% | | Int'l site leasing segment operating profit | (1.6%) | (4.9%) | 3.3% | | Total site leasing tower cash flow | 1.4% | (1.2%) | 2.6% | | Int'l site leasing tower cash flow | (0.5%) | (5.0%) | 4.5% | | Net income | 41.5% | 53.7% | (12.2%) | | Earnings per share — diluted | 38.5% | 50.8% | (12.3%) | | Adjusted EBITDA | 1.8% | (1.1%) | 2.9% | | AFFO | (3.4%) | (1.5%) | (1.9%) | | AFFO per share | (3.6%) | (1.5%) | (2.1%) | [Cash Site Leasing Revenue & Tower Cash Flow Reconciliation](index=13&type=section&id=Cash%20Site%20Leasing%20Revenue%20%26%20Tower%20Cash%20Flow%20Reconciliation) Cash Site Leasing Revenue and Tower Cash Flow are reconciled from GAAP site leasing revenue by adjusting for non-cash items, both showing Q2 2025 growth with stable Tower Cash Flow Margins Cash Site Leasing Revenue and Tower Cash Flow (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Site leasing revenue | $631,788 | $626,457 | | Non-cash straight-line leasing revenue | ($647) | ($5,466) | | Cash site leasing revenue | $631,141 | $620,991 | | Site leasing cost of revenues (excl. D&A) | ($118,571) | ($114,131) | | Non-cash straight-line ground lease expense | ($1,418) | ($2,988) | | Tower Cash Flow | $511,152 | $503,872 | | Tower Cash Flow Margin | 81.0% | 81.1% | Forecasted Tower Cash Flow for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | | :------------------------------------------ | :------------------------- | | Site leasing revenue | $2,565.0 to $2,590.0 | | Non-cash straight-line leasing revenue | ($8.5) to ($3.5) | | Cash site leasing revenue | $2,556.5 to $2,586.5 | | Site leasing cost of revenues (excl. D&A) | ($490.0) to ($500.0) | | Non-cash straight-line ground lease expense | ($8.5) to ($3.5) | | Tower Cash Flow | $2,058.0 to $2,083.0 | [Adjusted EBITDA Reconciliation](index=14&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA, reconciled from net income, increased in Q2 2025 despite a margin decrease, with the full-year 2025 forecast also projecting an increase Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2024 ($K) | | :------------------------------------------ | :----------- | :----------- | | Net income | $225,694 | $159,452 | | Total interest expense | $126,306 | $109,542 | | Depreciation, accretion, and amortization | $69,964 | $64,179 | | Provision (benefit) for taxes | $35,229 | ($12,250) | | Adjusted EBITDA | $475,484 | $467,064 | | Annualized Adjusted EBITDA | $1,901,936 | $1,868,256 | | Adjusted EBITDA Margin | 68.1% | 71.3% | Forecasted Adjusted EBITDA for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | | :------------------------------------------ | :------------------------- | | Net income | $865.5 to $910.5 | | Total interest expense | $505.0 to $495.0 | | Depreciation, accretion, and amortization | $289.5 to $279.5 | | Provision for taxes | $103.0 to $99.0 | | Adjusted EBITDA | $1,908.0 to $1,928.0 | [FFO, AFFO, and AFFO per Share Reconciliation](index=16&type=section&id=FFO%2C%20AFFO%2C%20and%20AFFO%20per%20Share%20Reconciliation) FFO and AFFO, key REIT metrics, showed FFO increasing in Q2 2025 while AFFO and AFFO per share slightly declined; the full-year 2025 forecast projects increases for both FFO and AFFO FFO, AFFO, and AFFO per Share (Q2 2025 vs Q2 2024) | Metric | Q2 2025 ($K) | Q2 2025 ($/share) | Q2 2024 ($K) | Q2 2024 ($/share) | | :------------------------------------------ | :----------- | :---------------- | :----------- | :---------------- | | Net income | $225,694 | $2.09 | $159,452 | $1.48 | | FFO | $339,175 | $3.14 | $253,275 | $2.35 | | AFFO | $342,117 | $3.17 | $354,327 | $3.29 | Forecasted AFFO for Full Year 2025 | Metric | Full Year 2025 (Range, $M) | Full Year 2025 (Range, $/share) | | :------------------------------------------ | :------------------------- | :------------------------------ | | Net income | $865.5 to $910.5 | $8.02 to $8.44 | | FFO | $1,289.0 to $1,324.0 | $11.94 to $12.27 | | AFFO | $1,365.0 to $1,405.0 | $12.65 to $13.02 | [Net Debt and Leverage Ratios](index=18&type=section&id=Net%20Debt%20and%20Leverage%20Ratios) SBA's Net Debt and Leverage Ratios, calculated using notional principal, showed a Leverage Ratio of **6.5x** as of June 30, 2025, adjusting to **6.3x** pro forma with acquired Millicom assets' EBITDA Net Debt and Leverage Ratios (June 30, 2025) | Metric | Amount ($K) | | :------------------------------------------ | :----------- | | Total debt | $12,582,000 | | Less: Cash and cash equivalents, short-term restricted cash and short-term investments | ($297,583) | | Net debt | $12,284,417 | | Annualized Adjusted EBITDA | $1,901,936 | | Leverage Ratio | 6.5x | | Total secured debt | $9,582,000 | | Net Secured Debt | $9,284,417 | | Secured Leverage Ratio | 4.9x | - Leverage Ratio adjusted to **6.3x** when reflecting a full quarter of EBITDA from the acquired Millicom assets[67](index=67&type=chunk) [Forward-Looking Statements & Risks](index=5&type=section&id=Forward-Looking%20Statements%20%26%20Risks) [Information Concerning Forward-Looking Statements](index=5&type=section&id=Information%20Concerning%20Forward-Looking%20Statements) This press release contains forward-looking statements on growth strategies, financial performance, capital allocation, 2025 outlook, acquisitions, portfolio growth, shareholder returns, balance sheet strength, customer investments, and asset sales, all subject to material risks and uncertainties - Forward-looking statements cover growth strategies, financial performance, capital allocation, 2025 outlook, timing of pending acquisitions (including Millicom), tower portfolio growth, asset purchases, share repurchases, debt financings, ability to return capital, balance sheet strength, customer network investments, international churn, and the sale of Canadian tower assets[29](index=29&type=chunk) - Key risk factors include macroeconomic conditions (interest rates, inflation, market volatility), timing and integration of the Millicom acquisition, economic climate for the wireless industry, ability to secure and retain tenants, expense management, consolidation among wireless providers, international operations risks (including FX), services business performance, land acquisition terms, future financing, and ability to meet new build and portfolio growth targets[31](index=31&type=chunk) - Risks related to pending acquisitions and dispositions include due diligence completion, regulatory approvals, fulfillment of contractual obligations, and the ability to accurately anticipate future performance and integration costs[32](index=32&type=chunk) - The outlook assumes the company continues to qualify for REIT treatment for U.S. federal income tax purposes[32](index=32&type=chunk) [Company Information](index=7&type=section&id=Company%20Information) [About SBA Communications Corporation](index=7&type=section&id=About%20SBA%20Communications%20Corporation) SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure, with over **44,000 sites** across the Americas and Africa, listed on NASDAQ (SBAC), part of the S&P 500, and a top REIT by market capitalization - Leading independent owner and operator of wireless communications infrastructure (towers, buildings, rooftops, DAS, small cells)[34](index=34&type=chunk) - Portfolio of more than **44,000 communication sites** throughout the Americas and Africa[34](index=34&type=chunk) - Listed on NASDAQ (SBAC), part of the S&P 500, and a top REIT by market capitalization[34](index=34&type=chunk)

Group 1 - Analysts expect SBA Communications (SBAC) to report quarterly earnings of $3.12 per share, reflecting a year-over-year decline of 5.2% [1] - Revenue is anticipated to be $670.06 million, which represents a 1.5% increase from the same quarter last year [1] - There have been no revisions in the consensus EPS estimate over the last 30 days, indicating stability in analysts' forecasts [1] Group 2 - Analysts forecast 'Revenues- Site Development' to reach $44.19 million, indicating a year-over-year increase of 29.9% [3] - 'Revenues- International Site Leasing' is expected to be $157.61 million, showing a year-over-year decline of 3.5% [4] - 'Revenues- Domestic Site Leasing' is projected to be $462.11 million, reflecting a slight year-over-year decrease of 0.2% [4] - The average prediction for 'Revenues- Site Leasing' is $619.71 million, indicating a year-over-year decline of 1.1% [4] Group 3 - Analysts expect 'Sites owned - International' to total 22,303, compared to 22,283 a year ago [5] - 'Sites owned - Domestic' is projected to reach 17,455, slightly down from 17,461 year-over-year [5] - The consensus for 'Segment operating profit- Site Leasing (Domestic + International)' is $505.28 million, down from $512.33 million in the previous year [5] Group 4 - The estimated 'Segment operating profit- Site Development' is $8.78 million, an increase from $6.88 million reported in the same quarter last year [6] - 'Depreciation, accretion and amortization' is expected to be $69.30 million according to analysts [6] - SBA Communications shares have decreased by 4.1% over the past month, contrasting with a 3.4% increase in the Zacks S&P 500 composite [6]

Core Viewpoint - SBA Communications Corporation (SBAC) is expected to report second-quarter 2025 results on August 4, with anticipated revenue growth but a potential decline in adjusted funds from operations (AFFO) per share year over year [1][11]. Financial Performance - In the last reported quarter, SBAC achieved an AFFO per share of $3.18, exceeding the Zacks Consensus Estimate of $3.12, driven by improved site-development revenues, although higher costs and interest expenses negatively impacted performance [2][11]. - Over the past four quarters, SBAC's AFFO per share surpassed the Zacks Consensus Estimate three times, with an average beat of 1.14% [3]. Revenue Projections - For the second quarter, site-leasing revenues are estimated at $619.71 million, a decrease from $626.46 million in the same quarter last year [5]. - Site-development revenues are projected to grow by 29.9% year over year, with a consensus estimate of $44.19 million [6]. - Total quarterly revenues are expected to reach $670.06 million, reflecting a year-over-year growth of 1.45% [6][11]. Market Dynamics - The company may benefit from increased capital spending by wireless carriers for network expansion, driven by rising mobile data usage and accelerated 5G deployment [3][4]. - However, ongoing consolidation in the wireless industry, high debt levels, and elevated churn in certain markets may have adversely affected the company's performance [5][11]. Analyst Sentiment - Analysts' confidence in the company's activities during the quarter appears limited, with the Zacks Consensus Estimate for AFFO per share revised slightly upward to $3.12, indicating a year-over-year decline of 5.17% [7]. - The current Earnings ESP for SBAC is -0.03%, and it holds a Zacks Rank of 3, suggesting a lack of strong indicators for an earnings surprise this quarter [8][9].

Core Leasing Revenue and Growth - Consolidated core leasing revenue increased from $2005 million in 2022 to $2163 million in 2023, and further to $2202 million in 2024[6] - Domestic core leasing revenue increased from $1602 million in 2022 to $1676 million in 2023, and further to $1720 million in 2024[9] - International core leasing revenue increased from $403 million in 2022 to $487 million in 2023, but decreased to $482 million in 2024[11] - Net organic growth for consolidated core leasing revenue was 46% in 2022, 42% in 2023, 23% in 2024, and 11% in 1Q25[6] - Net organic growth for domestic core leasing revenue was 45% in 2022, 44% in 2023, 22% in 2024, and 10% in 1Q25[9] - Net organic growth for international core leasing revenue was 53% in 2022, 37% in 2023, 25% in 2024, and 16% in 1Q25[11] Capital Allocation and ROIC - Total capital allocation was $22274 million in 2021, $21291 million in 2022, $8367 million in 2023, $11522 million in 2024, and $2319 million in 2025 YTD[14] - The leverage ratio decreased from 73x in 2021 to 69x in 2022, 63x in 2023, and 61x in 2024, then increased to 64x in 1Q25[14] - Return on Invested Capital (ROIC) was 107% in 2Q23, 108% in 3Q23, 108% in 4Q23, 103% in 1Q24, 103% in 2Q24, 102% in 3Q24, 106% in 4Q24, and 100% in 1Q25[14] Customer Concentration - In 1Q25, T-Mobile accounted for 362% of domestic site leasing revenue, AT&T Wireless accounted for 304%, and Verizon Wireless accounted for 204%[18] - In 1Q25, Telefonica accounted for 202% of international site leasing revenue, America Movil accounted for 189%, and TIM accounted for 156%[18] Site Portfolio - The company owned 39,311 sites at the end of 2023 and 39,749 sites at the end of 2024[19]

Core Insights - SBA Communications (SBAC) is well-positioned to benefit from the high capital spending by wireless carriers for network expansion due to the growth in mobile data usage [1][8] - The company has long-term leases with tenants that ensure stable revenues, and its portfolio expansion efforts both domestically and internationally are promising [1][9] Financial Performance - Analysts have a positive outlook on SBAC, with the Zacks Consensus Estimate for funds from operations (FFO) per share for 2025 and 2026 being $12.74 and $13.09, respectively [2] - Over the past six months, SBAC shares have increased by 18.3%, outperforming the industry average of 6.5% [3] Market Demand - The demand for SBA Communications' infrastructure is driven by advancements in mobile technology, including 4G and 5G networks, and the increasing use of bandwidth-intensive applications [4] - The rise in smartphone adoption and broadband demand is leading wireless service providers to deploy additional equipment, enhancing network coverage and capacity [4] Business Model - SBA Communications operates a resilient site-leasing business model, generating most of its revenues from long-term tower leases with built-in rent escalators [5] - The company benefits from high operating margins and continues to attract wireless service providers seeking additional antenna space [5] Revenue Growth Expectations - Management anticipates core leasing revenues to increase in 2025 compared to 2024 levels on a currency-neutral basis, driven by wireless carriers deploying unused spectrum and revenues from newly acquired and built towers [6] Expansion Initiatives - In Q1 2025, SBA Communications acquired 344 communication sites and built 67 towers, with plans for further expansion into high-growth domestic and international markets [9][10] - The company is under contract to acquire additional sites, including Milicom's 6,700 sites for $925 million, which will enhance its portfolio and leverage trends in mobile data usage [10] Dividend Policy - SBA Communications announced a quarterly cash dividend of $1.11 per share in February 2025, marking a nearly 13% increase from the previous quarter [11] - The company has increased its dividend five times in the last five years, with a five-year annualized dividend growth rate of 19.97%, indicating a commitment to sustainable dividend distribution [11]

Core Viewpoint - SBA Communications (SBAC) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine a company's fair value, leading to significant stock price movements based on these estimates [4]. Business Improvement Indicators - The upgrade in SBA Communications' rating reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - Over the past three months, the Zacks Consensus Estimate for SBA Communications has increased by 1%, with expected earnings of $12.74 per share for the fiscal year ending December 2025, unchanged from the previous year [8]. Zacks Rank System Overview - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - The upgrade of SBA Communications to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].