American Tower(US:AMT)2025-07-29 20:10markdown [PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Unaudited Consolidated and Condensed Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Consolidated%20and%20Condensed%20Consolidated%20Financial%20Statements) American Tower Corporation's unaudited consolidated financial statements show decreased net income from foreign currency losses, increased assets and debt, and stable cash flow [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $63.8 billion, liabilities to $53.3 billion, and equity to $10.5 billion Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$63,754.5** | **$61,077.4** | | Property and Equipment, net | $19,799.8 | $19,056.8 | | Goodwill | $12,245.5 | $11,768.1 | | **Total Liabilities** | **$53,275.6** | **$51,428.7** | | Long-Term Obligations | $35,193.7 | $32,808.8 | | **Total Equity** | **$10,478.9** | **$9,648.7** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Operating revenues slightly increased, but net income sharply declined due to foreign currency losses and absence of discontinued operations income Key Operating Results (in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Operating Revenues | $2,626.9 | $2,544.7 | $5,189.7 | $5,057.3 | | Operating Income | $1,197.7 | $1,156.2 | $2,451.8 | $2,297.2 | | Net Income Attributable to AMT | $366.8 | $900.3 | $855.5 | $1,817.7 | | Diluted EPS | $0.78 | $1.92 | $1.83 | $3.89 | - A significant driver for the decrease in net income was a foreign currency loss of **$484.0 million** in **Q2 2025**, compared to a gain of **$21.7 million** in **Q2 2024**[10](index=10&type=chunk) - Net income in **2024** included substantial income from discontinued operations (**$138.5 million** in **Q2** and **$230.2 million** in **H1**), which was absent in **2025** following the sale of the India business (**ATC TIPL**)[10](index=10&type=chunk) [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash from operations slightly decreased, with increased cash used for investing (acquisitions) and financing (debt management) Cash Flow Summary (in millions) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Cash provided by operating activities | $2,576.5 | $2,622.1 | | Cash used for investing activities | $(841.2) | $(525.3) | | Cash used for financing activities | $(1,750.5) | $(1,418.1) | | **Net increase in cash** | **$101.4** | **$525.2** | - Payments for acquisitions increased to **$332.3 million** in the first six months of **2025**, compared to **$55.0 million** in the same period of **2024**[14](index=14&type=chunk) - The company undertook significant financing activities, including **$1.56 billion** in proceeds from senior notes and **$3.63 billion** in borrowings under credit facilities, which were used for repayments of **$5.32 billion** in various obligations[14](index=14&type=chunk) [Notes to Consolidated and Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20and%20Condensed%20Consolidated%20Financial%20Statements) Accounting policies, segment changes, asset sales, debt management, and discontinued India operations are detailed - The company combined its Asia-Pacific (**APAC**) and Africa property segments into a new 'Africa & **APAC**' property segment in **Q4 2024**. Historical data has been restated[22](index=22&type=chunk)[132](index=132&type=chunk) - On **March 6, 2025**, the company sold its fiber assets in **South Africa** for **$137.7 million**, recognizing a gain of **$53.6 million**[23](index=23&type=chunk) - The sale of the India business (**ATC TIPL**) was completed on **September 12, 2024**. Its results are reported as discontinued operations. The company recognized a gain of **$46.4 million** in **2024** from the sale of **VIL shares** and **OCDs** related to this business[150](index=150&type=chunk)[152](index=152&type=chunk)[209](index=209&type=chunk) - During the first six months of **2025**, the company acquired **242** communications sites and other assets for an aggregate purchase price of **$353.8 million**[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Revenue growth in international and data center segments, FX impact on net income, strong liquidity, and capital expenditure projections are discussed [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Q2 2025 revenues grew from international and data centers, but net income and AFFO declined due to FX losses and discontinued operations Property Segment Revenue Growth (Q2 2025 vs Q2 2024) | Segment | Revenue (in millions) | % Change | | :--- | :--- | :--- | | U.S. & Canada | $1,307.1 | (1)% | | Africa & Asia-Pacific | $336.3 | 12% | | Europe | $232.7 | 15% | | Latin America | $389.4 | (13)% | | Data Centers | $261.9 | 13% | | **Total Property** | **$2,527.4** | **1%** | - The **U.S. & Canada** property segment revenue decline was primarily due to a **$54.5 million** decrease in other revenue, mainly from lower straight-line accounting, partially offset by **$46.2 million** in tenant billings growth from colocations and amendments[180](index=180&type=chunk) - The **Latin America** property segment revenue decrease of **$59.3 million** was primarily driven by a **$35.0 million** negative impact from foreign currency translation and a **$37.7 million** increase in revenue reserves[182](index=182&type=chunk) - Adjusted **EBITDA** increased **2%** to **$1.75 billion** in **Q2 2025**, while **AFFO** attributable to common stockholders decreased **7%** to **$1.22 billion**, reflecting the impact of discontinued operations[210](index=210&type=chunk)[212](index=212&type=chunk) [Liquidity and Capital Resources](index=51&type=section&id=Liquidity%20and%20Capital%20Resources) Strong liquidity of $10.5 billion maintained, with significant debt repayments, new issuances, and $1.6-1.7 billion in 2025 capital expenditures projected Total Liquidity as of June 30, 2025 (in millions) | Component | Amount | | :--- | :--- | | Available under credit facilities, net | $8,398.9 | | Cash and cash equivalents | $2,076.0 | | **Total liquidity** | **$10,474.9** | - Significant debt repayments in **H1 2025** included the **2.950%**, **2.400%**, **1.375%**, and **4.000%** senior notes, as well as the **Series 2015-2 Secured Tower Revenue Notes**[229](index=229&type=chunk)[240](index=240&type=chunk) - The company issued **$1.6 billion** in new senior notes in **H1 2025**, including **$650M** of **4.900%** notes due **2030**, **$350M** of **5.350%** notes due **2035**, and **€500M** of **3.625%** notes due **2032**[229](index=229&type=chunk)[245](index=245&type=chunk)[246](index=246&type=chunk) - The company expects total capital expenditures for **2025** to be between **$1,615 million** and **$1,725 million**, including construction of **1,850 to 2,450** new sites and approximately **$600 million** for data center assets[238](index=238&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Interest rate risk on $2.57 billion variable debt and significant foreign currency risk on 30% of revenues and €7.5 billion EUR debt are discussed - As of **June 30, 2025**, variable rate debt totaled **$2.565 billion** (**$750.0M** + **$815.0M** + **$1.0B**). A **10% increase** in interest rates would increase **H1 2025** interest expense by **$6.9 million**[290](index=290&type=chunk) - The company is exposed to foreign currency risk, with **30% of revenues** and **38% of operating expenses** denominated in foreign currencies in **H1 2025**[291](index=291&type=chunk) - The company has **€7.5 billion** **EUR** denominated debt outstanding. An adverse **10% exchange rate change** on the portion not designated as a net investment hedge would result in a **$0.4 billion foreign currency loss**[292](index=292&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective, with no material changes to internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of **June 30, 2025**[294](index=294&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the quarter ended **June 30, 2025**[295](index=295&type=chunk) [PART II. OTHER INFORMATION](index=61&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) Various legal proceedings, including an arbitration, are ongoing, which management believes will not have a material adverse impact - A customer in **Latin America** has initiated arbitration proceedings against a subsidiary, challenging lease payment calculations and seeking rent abatement[297](index=297&type=chunk) - Management believes it has meritorious defenses and does not expect the outcome of current legal proceedings to have a material adverse impact on its financial condition[297](index=297&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors from the **2024 Form 10-K** were reported - No material changes to the risk factors from the **2024 Form 10-K** were reported[298](index=298&type=chunk) [Other Information](index=61&type=section&id=Item%205.%20Other%20Information) Several executive officers, including the CEO and CFO, entered pre-arranged stock trading plans under Rule 10b5-1 - **EVP Olivier Puech** entered a **Rule 10b5-1** trading plan on **April 30, 2025**[299](index=299&type=chunk) - **CEO Steven O. Vondran** entered a **Rule 10b5-1** trading plan on **May 6, 2025**[300](index=300&type=chunk) - **CFO Rodney M. Smith** entered a **Rule 10b5-1** trading plan on **May 22, 2025**[301](index=301&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include CEO and CFO certifications and XBRL data files - The exhibits include **CEO** and **CFO** certifications pursuant to **Section 302** of the **Sarbanes-Oxley Act** and **XBRL** filings[303](index=303&type=chunk) [Signatures](index=63&type=section&id=Signatures)