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].

Core Insights - SBA Communications (SBAC) shares have increased by 9.3% over the past three months, significantly outperforming the industry average of 0.3% [1][7] - The company's extensive and geographically diverse wireless communication infrastructure positions it well to benefit from increased capital spending by wireless carriers for network expansion, driven by rising mobile data usage and accelerated 5G deployment [1][3] Revenue Stability and Growth - Long-term leases with tenants provide stable revenue streams, with a focus on portfolio expansion both domestically and internationally to capitalize on industry trends [2][4] - The Zacks Consensus Estimate for SBAC's 2025 Funds From Operations (FFO) per share has been slightly revised upward to $12.72 over the past two months, indicating positive analyst sentiment [2] Market Trends and Infrastructure Demand - The growth in mobile technology, particularly 4G and 5G networks, along with bandwidth-intensive applications, has led to increased mobile data usage globally, prompting wireless service providers to lease more antenna space on SBAC's towers [3][4] - The company’s resilient site-leasing business model, characterized by long-term leases with built-in rent escalators, supports high operating margins and attractiveness in the market [4] Expansion and Strategic Initiatives - SBA Communications is actively expanding its tower portfolio and pursuing growth opportunities in both domestic and select international markets with high growth potential [5] - Recent contracts include approximately 6,700 sites from Millicom for $925 million and an additional 18 communication sites for $10 million, expected to close by the end of Q3 2025 [5] Shareholder Value and Returns - The company has demonstrated a commitment to shareholder value through dividend increases and share buybacks, having raised its dividend five times in the last five years with a five-year annualized growth rate of 19.97% [8] - Following Q1 2025, SBAC repurchased 583,000 shares for a total of $122.9 million under its $1 billion stock repurchase plan, enhancing shareholder confidence [9]

Company Overview - SBA Communications shares have decreased by approximately 3.1% over the past month, underperforming the S&P 500 index [1] - Recent earnings report indicates that estimates have trended upward during the past month [2] VGM Scores - SBA Communications has an average Growth Score of C and a Momentum Score of B, while it received a D grade on the value side, placing it in the bottom 40% for this investment strategy [3] - The overall aggregate VGM Score for the stock is C, which is relevant for investors not focused on a single strategy [3] Outlook - The upward trend in estimates suggests a promising outlook for SBA Communications, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [4] Industry Performance - SBA Communications is part of the Zacks REIT and Equity Trust - Other industry, where SL Green (SLG) has gained 7.4% over the past month [5] - SL Green reported revenues of $144.52 million for the last quarter, reflecting a year-over-year increase of 12.7%, but its EPS was -$0.30 compared to $3.07 a year ago [5] - SL Green is expected to post earnings of $1.38 per share for the current quarter, which represents a year-over-year decline of 32.7% [6]

Core Viewpoint - SBA Communications (SBAC) has shown strong performance with a 12% increase in share price year to date, significantly outperforming the industry average of 0.9% [1] Financial Performance - In Q1 2025, SBA Communications reported adjusted funds from operations (AFFO) per share of $3.18, exceeding the Zacks Consensus Estimate of $3.12, although this represents a 3.3% decline from the same quarter last year [2] - The Zacks Consensus Estimate for 2025 FFO per share has been slightly revised upward to $12.72 [3] Market Trends and Growth Drivers - The growth in mobile technology, particularly 4G and 5G networks, along with increased mobile data usage, is driving demand for SBA Communications' infrastructure assets [4] - The company has a stable site-leasing business model, primarily generating revenue from long-term tower leases with built-in rent escalators, which supports high operating margins [5] - SBA Communications is expanding into both domestic and select international markets, acquiring 344 communication sites for $58 million and building 67 towers in Q1 2025 [6] Shareholder Value Initiatives - The company has demonstrated a commitment to shareholder value through dividend increases, with a recent quarterly cash dividend of $1.11 per share, marking a nearly 13% increase from the previous quarter [7] - Over the past five years, SBA Communications has increased its dividend five times, achieving a five-year annualized growth rate of 19.97% [7] - As of April 28, 2025, the company has $1.5 billion remaining under its stock buyback authorization, having repurchased 583,000 shares for $122.9 million in Q1 2025 [8][10]

Summary of SBA Communications (SBAC) FY Conference Call - May 13, 2025 Company Overview - **Company**: SBA Communications (SBAC) - **Industry**: Communications Infrastructure, specifically focused on tower business Key Points and Arguments Capital Allocation - **Priorities**: Capital allocation is the primary focus, with a strong emphasis on creating long-term value [2][3] - **Financial Metrics**: - EBITDA guidance for 2025 is approximately $1 billion [3] - Maintenance CapEx is projected at $50 million, growth CapEx at $250 million, and cash interest expense at $430 million [4] - Dividend payout is expected to be around $500 million, with total capital available for allocation in 2025 estimated at $650 million [4] - **Debt Management**: The company paid down $600 million of debt in 2023 and has executed share buybacks totaling $425 million in 2023 and $200 million in 2024 [5] Market Dynamics - **U.S. Tower Business**: The U.S. tower business is stable but cyclical, typically experiencing a ten-year cycle with new technology rollouts [10][12] - **Current Cycle**: The current cycle is characterized by a low level of new lease revenue, with a trough in Q4 2024, but signs of recovery are evident in Q1 2025 [14][15] - **Colocation Growth**: 75% of new lease revenue in Q1 2025 was tied to colocation, indicating a positive trend for the industry [16] Carrier Relationships - **MLA with AT&T**: The company has a Master Lease Agreement (MLA) with AT&T, allowing flexibility for 5G rollout [17] - **Carrier Deployment**: SBA's network is approximately 85% deployed on the 2.5 spectrum, with AT&T lagging behind at less than 50% deployment [19][20] International Operations - **Brazil Market**: Brazil accounts for 15% of revenues, with a significant presence (12,000 sites). The market is expected to face churn due to consolidation but has long-term growth potential [27][28] - **Millicom Acquisition**: The acquisition of 7,000 sites from Millicom is expected to close by September 1, 2025, with favorable contract terms [30][31] - **Central America and Africa**: The company is expanding in Central America and has a growing presence in Africa, particularly in South Africa and Tanzania [32][34] Financial Outlook - **EBITDA Margin**: The company aims to return to a 70% EBITDA margin post-Millicom acquisition, currently affected by churn and increased G&A costs [36][38] - **Dividend Growth**: The company has increased dividends by 15% and 13% in the past two years, with expectations for continued double-digit growth [45][46] - **Churn Management**: Non-Sprint churn is decreasing, approaching 1% of revenue, which is a positive indicator for future stability [23][24] M&A Environment - **M&A Challenges**: The U.S. market presents limited M&A opportunities due to high valuations driven by private equity [24][41] - **Public vs. Private Market Discrepancy**: There is a notable disconnect between public and private market valuations, with private equity able to leverage significantly more debt [63][65] Future Growth Potential - **Organic Growth**: The company anticipates mid-single-digit growth in the U.S. market, driven by escalators in contracts and new lease activities [68] Additional Important Insights - **Operational Efficiency**: The company is focused on maintaining operational efficiency while upgrading systems to enhance functionality [56][57] - **Densification Trends**: Densification is expected to continue as carriers seek to enhance network capacity in response to demand [60][61] - **Regulatory Environment**: The company is monitoring developments related to DISH Network, which currently contributes minimal revenue [48][49] This summary encapsulates the key insights and financial metrics discussed during the SBA Communications FY Conference Call, highlighting the company's strategic focus on capital allocation, market dynamics, and growth potential in both domestic and international markets.

PART I – FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for the quarter ended March 31, 2025, including balance sheets, statements of operations, comprehensive income, shareholders' deficit, and cash flows, with total revenues of **$664.2 million** and net income of **$217.9 million** [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) The company's total assets decreased to **$10.44 billion** as of March 31, 2025, from **$11.42 billion** at year-end 2024, primarily due to reduced restricted cash, while total liabilities also decreased to **$14.01 billion** from **$14.68 billion**, mainly from long-term debt reduction, improving the total shareholders' deficit from **$(5.11) billion** to **$(4.97) billion** Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $933,316 | $1,978,720 | | **Total Assets** | $10,442,917 | $11,417,336 | | **Total Current Liabilities** | $1,343,016 | $1,797,936 | | **Total Long-term Debt, net** | $11,654,372 | $12,403,825 | | **Total Liabilities** | $14,008,000 | $14,675,206 | | **Total Shareholders' Deficit** | $(4,970,703) | $(5,109,938) | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the first quarter of 2025, total revenues slightly increased to **$664.2 million** from **$657.9 million** year-over-year, with net income attributable to the company significantly rising to **$220.7 million**, or **$2.04** per diluted share, compared to **$154.5 million**, or **$1.42** per diluted share, in the prior-year period, largely driven by higher 'Other income (expense), net' Q1 2025 vs Q1 2024 Statement of Operations (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Total Revenues** | $664,248 | $657,862 | | Site Leasing Revenue | $616,209 | $628,276 | | Site Development Revenue | $48,039 | $29,586 | | **Operating Income** | $334,910 | $323,358 | | **Net Income Attributable to SBA** | $220,732 | $154,543 | | **Diluted EPS** | $2.04 | $1.42 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was **$301.2 million** for Q1 2025, a slight increase from **$294.5 million** YoY, while investing activities provided **$238.3 million** in cash, a significant shift from an **$85.3 million** use of cash, driven by proceeds from asset sales, and financing activities used **$1.28 billion**, primarily for Tower Securities repayment Q1 2025 vs Q1 2024 Cash Flows (in thousands) | Cash Flow Category | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $301,175 | $294,453 | | **Net cash provided by (used in) investing activities** | $238,266 | $(85,310) | | **Net cash used in financing activities** | $(1,282,135) | $(191,412) | | **Net Change in Cash, Cash Equivalents, and Restricted Cash** | $(736,551) | $13,386 | [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, fair value measurements, acquisitions, debt structure, shareholder equity, segment performance, and derivatives, highlighting the acquisition of **344** towers, repayment of **$1.165 billion** in Tower Securities, and authorization of a new **$1.5 billion** share repurchase plan - The company sold all of its towers in the Philippines and Colombia during the first quarter of 2025, recording a loss of **$18.2 million** on the sale[51](index=51&type=chunk) - During Q1 2025, the company acquired **344** towers, including **321** sites from the Millicom transaction. Approximately **6,700** sites related to the Millicom deal remain under contract for about **$925.0 million**[46](index=46&type=chunk)[47](index=47&type=chunk) - On January 15, 2025, the company repaid the **$1.165 billion** aggregate principal amount of the 2019-1C Tower Securities[55](index=55&type=chunk)[63](index=63&type=chunk) - On April 27, 2025, the Board authorized a new **$1.5 billion** share repurchase plan, replacing the prior plan. The company paid a cash dividend of **$1.11** per share in Q1 2025[66](index=66&type=chunk)[69](index=69&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, business segments, and financial condition, noting that site leasing contributed **98.1%** of segment operating profit, total revenues grew **3.4%** on a constant currency basis driven by a **62.4%** increase in site development revenue, and Adjusted EBITDA decreased slightly to **$457.3 million** but increased **0.5%** on a constant currency basis, alongside details on liquidity, capital resources, and debt obligations [Business and Operations](index=22&type=section&id=Business%20and%20Operations) SBA is a leading independent owner and operator of wireless communications infrastructure, primarily focused on site leasing, which generated **98.1%** of total segment operating profit, while also providing ancillary site development services, and exited operations in the Philippines and Colombia during Q1 2025 - The site leasing business is the company's primary business line, contributing **98.1%** of total segment operating profit for Q1 2025[96](index=96&type=chunk) - As of March 31, 2025, the company owned **39,709** towers across the United States, South America, Central America, Canada, and Africa[96](index=96&type=chunk) - Approximately **72%** of tower structures are on land owned by the company, under perpetual easements, or on land with leasehold interests extending beyond **20** years[100](index=100&type=chunk) [Results of Operations](index=24&type=section&id=Results%20of%20Operations) Total revenues for Q1 2025 were **$664.2 million**, a **3.4%** increase on a constant currency basis compared to Q1 2024, driven by a **62.4%** increase in site development revenue, while operating income rose to **$334.9 million** from **$323.4 million** YoY, and net income increased to **$217.9 million** from **$154.5 million** Revenue and Operating Profit by Segment - Q1 2025 vs Q1 2024 (in thousands) | Segment | Q1 2025 Revenue | Q1 2024 Revenue | Constant Currency % Change | | :--- | :--- | :--- | :--- | | Domestic site leasing | $460,994 | $461,499 | (0.1%) | | International site leasing | $155,215 | $166,777 | 2.7% | | Site development | $48,039 | $29,586 | 62.4% | | **Total** | **$664,248** | **$657,862** | **3.4%** | | **Segment** | **Q1 2025 Operating Profit** | **Q1 2024 Operating Profit** | **Constant Currency % Change** | | Domestic site leasing | $392,722 | $395,529 | (0.7%) | | International site leasing | $108,009 | $117,934 | 1.4% | | Site development | $9,851 | $6,408 | 53.7% | - Selling, general, and administrative (SG&A) expenses decreased by **$2.5 million**, primarily due to lower non-cash compensation expense[119](index=119&type=chunk) - Other income (expense), net, was a net income of **$32.2 million**, compared to a net expense of **$44.7 million** in the prior year, mainly due to a **$54.6 million** gain on the remeasurement of U.S. dollar denominated intercompany loans[126](index=126&type=chunk)[129](index=129&type=chunk) [Non-GAAP Financial Measures](index=28&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted EBITDA, a non-GAAP measure, to evaluate operational profitability, reporting **$457.3 million** for Q1 2025, an **$8.1 million** decrease from Q1 2024, though it increased by **$2.3 million** (**0.5%**) on a constant currency basis, attributed to growth in international and site development operating profits offset by higher cash SG&A and lower domestic site leasing profit Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net income** | $217,906 | $154,543 | | Adjustments (Non-cash items, interest, taxes, etc.) | $239,385 | $310,869 | | **Adjusted EBITDA** | **$457,291** | **$465,412** | - Adjusted EBITDA decreased by **$8.1 million** year-over-year. On a constant currency basis, it increased by **$2.3 million**, or **0.5%**[137](index=137&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated **$301.2 million** in cash from operations in Q1 2025 and expects to fund its 2025 capital expenditures, including up to **$1.275 billion** in discretionary spending, from cash on hand, operating cash flow, and borrowings, with key financing activities including repaying **$1.165 billion** of Tower Securities, authorizing a new **$1.5 billion** stock repurchase plan, and paying a quarterly dividend of **$1.11** per share - For 2025, the company expects non-discretionary cash capital expenditures of **$53.0 million** to **$63.0 million** and discretionary cash capital expenditures of **$1,255.0 million** to **$1,275.0 million**[144](index=144&type=chunk) - Financing activities in Q1 2025 included the repayment of **$1.165 billion** of Tower Securities and payment of **$122.3 million** in dividends[145](index=145&type=chunk)[147](index=147&type=chunk) - A new **$1.5 billion** stock repurchase plan was authorized on April 27, 2025, replacing the prior plan[146](index=146&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate risk from variable-rate debt and future refinancing needs, and foreign currency exchange rate risk from international operations, particularly in Brazil, where a hypothetical **1%** increase in variable interest rates would increase interest expense by approximately **1.4%**, and a **10%** adverse change in the Brazilian Real exchange rate would decrease revenues by about **1.2%** - The primary market risks are interest rate risk on variable-rate debt and refinancing, and foreign currency risk from international operations[167](index=167&type=chunk)[169](index=169&type=chunk) - A hypothetical **1%** increase in variable interest rates would increase interest expense by approximately **1.4%** for the quarter[168](index=168&type=chunk) - A hypothetical **10%** adverse movement in the Brazilian Real exchange rate would cause revenues to decline by approximately **1.2%**[170](index=170&type=chunk) - A **10%** change in exchange rates affecting unsettled intercompany debt could result in an unrealized gain or loss of approximately **$111.8 million**[172](index=172&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by the principal executive officer and principal financial officer, the company concluded that its disclosure controls and procedures were effective as of March 31, 2025 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[177](index=177&type=chunk) PART II – OTHER INFORMATION [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) This section discloses that during the first quarter of 2025, none of the company's officers or directors adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No officers or directors adopted or terminated any Rule 10b5-1 trading plans during the three months ended March 31, 2025[178](index=178&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications from the CEO and CFO pursuant to the Sarbanes-Oxley Act of 2002, as well as XBRL data files - The exhibits filed with the report include CEO and CFO certifications under Sections **302** and **906** of the Sarbanes-Oxley Act, and various XBRL documents[180](index=180&type=chunk) [SIGNATURES](index=39&type=section&id=SIGNATURES) The report is formally signed and authorized by the company's Chief Executive Officer, Brendan T. Cavanagh, and Chief Financial Officer, Marc Montagner, on May 1, 2025 - The report was signed on May 1, 2025, by Brendan T. Cavanagh (Chief Executive Officer) and Marc Montagner (Chief Financial Officer)[183](index=183&type=chunk)