American Tower(US:AMT)2025-10-28 20:10Financial Performance - Total revenues for the three months ended September 30, 2025, increased by 8% to $2,717.4 million compared to $2,522.3 million in the same period of 2024 [195]. - The Africa & Asia-Pacific property segment revenue grew by 23% to $370.8 million, driven by a $21.7 million increase from foreign currency translation [195][196]. - Europe property segment revenue increased by 14% to $243.6 million, with tenant billings growth of $49.7 million primarily from colocations and amendments [197]. - Services segment revenue surged by 93% to $101.1 million, mainly due to increased construction management and site application services [195][199]. - Total property revenue for the nine months ended September 30, 2025, rose by 2% to $7,631.9 million compared to $7,449.6 million in 2024 [195]. - U.S. & Canada property segment revenue slightly decreased by 1% to $3,924.2 million for the nine months ended September 30, 2025 [195]. - Data Centers segment revenue grew by 14% to $266.6 million for the three months ended September 30, 2025 [195]. - The company reported a gross margin of $1,473.3 million for the three months ended September 30, 2025, compared to $1,381.5 million in 2024, reflecting a growth in operational efficiency [242]. - For the nine months ended September 30, 2025, the total gross margin was $4,454.4 million, compared to $4,245.5 million for the same period in 2024, reflecting an increase of approximately 4.9% [243]. Income and Expenses - The net income for the three months ended September 30, 2025, was $912.6 million, a significant increase of 217% from a loss of $780.4 million in 2024 [228]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $5.3 billion, representing a 4% increase from $5.1 billion in 2024 [228]. - The income tax provision for the three months ended September 30, 2025, was $37.4 million, a decrease of 69% compared to $122.4 million in 2024 [219]. - The effective tax rate for the nine months ended September 30, 2025, was 13.8%, compared to 12.6% in 2024 [219]. - Total selling, general, administrative and development expense (SG&A) for the three months ended September 30, 2025, was $233.0 million, a 2% increase from the prior year [208]. - Depreciation, amortization, and accretion expense for the three months ended September 30, 2025, was $522.9 million, a 5% increase from the prior year [215]. - Total other expense for the three months ended September 30, 2025, was $283.3 million, a 52% decrease compared to the previous year [217]. Legal and Disputes - The company incurred approximately $19 million of reserves through the third quarter of 2025 related to a legal dispute with AT&T Mexico, expecting a total of $30 million for the full year [183]. - The Arbitration with AT&T Mexico is scheduled for a hearing in August 2026, with the company confident in the enforceability of the Master Lease Agreement [183]. Capital Expenditures and Investments - Total capital expenditures for the nine months ended September 30, 2025, were $1,128.8 million, with significant investments in discretionary capital projects and data center assets [254]. - The company expects total capital expenditures for 2025 to range between $1,620 million and $1,730 million, including approximately $600 million anticipated for data center assets [258]. - Capital improvement capital expenditures for the three months ended September 30, 2025, were $48.4 million, an increase of 32% from $36.8 million in 2024 [242]. - Significant investing activities included the construction of 1,309 communications sites globally, with approximately $378.4 million spent related to data center assets [254]. Debt and Liquidity - As of September 30, 2025, total liquidity amounted to $10,654.6 million, which includes $1,950.7 million in cash and cash equivalents [246]. - As of September 30, 2025, the company had total outstanding indebtedness of $37.5 billion, with a current portion of $2.4 billion [249]. - During the nine months ended September 30, 2025, the company made net borrowings of $405.0 million under the 2021 Credit Facility [246]. - The company repaid $3,206.2 million in senior notes during the nine months ended September 30, 2025, compared to $2,150.0 million in 2024 [259]. - The company plans to continue its international expansion efforts primarily through a combination of cash on hand, intercompany debt, and equity contributions [248]. Shareholder Distributions - The company has distributed approximately $22.9 billion to common stockholders, including a distribution of $1.70 per share, totaling $796.1 million, paid on October 20, 2025 [291][292]. - The company has no amounts remaining under the 2011 Buyback program and repurchased 151,133 shares for approximately $28.0 million under the 2017 Buyback program [287]. Foreign Currency and Interest Rates - For the nine months ended September 30, 2025, 31% of revenues and 39% of total operating expenses were denominated in foreign currencies [317]. - A 10% increase in current interest rates would result in an additional $8.8 million of interest expense for the nine months ended September 30, 2025 [316]. - An adverse change of 10% in foreign currency exchange rates for unsettled intercompany debt would result in $34.4 million of unrealized losses included in net income for the nine months ended September 30, 2025 [318]. Operational Metrics - Churn rate for tenant leases was approximately 2% of tenant billings during the nine months ended September 30, 2025 [187]. - The majority of tenant leases have initial non-cancellable terms of five to ten years, with periodic rent escalations averaging approximately 3% in the U.S. [185]. - The company has 30 operating data center facilities across 11 markets in the U.S., comprising approximately 3.6 million net rentable square feet [181]. - The company experienced a decrease in AFFO attributable to discontinued operations due to the sale of ATC TIPL, impacting overall performance for the nine months ended September 30, 2025 [239].