SBA(US:SBAC)2025-11-03 21:31Financial Performance - Net income for Q3 2025 was $240.4 million, or $2.20 per share, compared to $255.9 million, or $2.40 per share in Q3 2024, reflecting a decrease of 6.1%[6] - Adjusted EBITDA for Q3 2025 was $493.3 million, a 4.4% increase from $472.6 million in Q3 2024[8] - The company reported a net income of $240,431 thousand for Q3 2025, down from $255,891 thousand in Q3 2024, with net income attributable to SBA Communications Corporation at $236,816 thousand[41] - Net income for the three months ended September 30, 2025, was $240,431,000, compared to $255,891,000 for the same period in 2024, reflecting a decrease of approximately 6.0%[46] - Net income decreased by 6.1% year over year, with an adjusted earnings per share decline of 8.1%[58] Revenue Growth - Site leasing revenue increased to $656.4 million, up 4.9% from $625.7 million in Q3 2024, while site development revenue surged by 81.2% to $75.9 million[8] - International site leasing revenue grew by 15.8% to $186.2 million, driven by strong demand and favorable foreign currency rates[11] - Total Site Leasing Revenue for 2024 is projected to be between $2,527 million and $2,578 million, with domestic revenue at $1,862 million to $1,876 million and international revenue at $665 million to $702 million[31] - Site leasing revenue for Q3 2025 reached $656,427 thousand, an increase from $625,697 thousand in Q3 2024, while total revenues for the nine months ended September 30, 2025, were $2,095,556 thousand compared to $1,985,934 thousand in the same period of 2024[41] - Total site leasing revenue increased by 4.9% year over year, with a foreign currency impact of 0.5%, resulting in a growth rate of 4.4% excluding currency effects[58] - International cash site leasing revenue grew by 14.4% year over year, with a foreign currency impact of 1.8%, leading to a growth rate of 12.6% excluding currency effects[58] Capital Expenditures and Investments - The company completed the acquisition of 447 communication sites for $142.8 million and built 151 towers in Q3 2025[15] - Total capital expenditures for the nine months ended September 30, 2025, amounted to $162,091,000, compared to $64,756,000 for the same period in 2024[47] - The company is actively pursuing acquisitions and new infrastructure builds to enhance its tower portfolio growth and long-term growth potential[33] Debt and Financial Position - Total debt at the end of Q3 2025 was $12.8 billion, with a net debt to annualized adjusted EBITDA leverage ratio of 6.2x[18] - The company’s total liabilities as of September 30, 2025, were $11,260,239,000, compared to $11,417,336,000 on December 31, 2024[44] - The company’s accumulated deficit as of September 30, 2025, was $(7,284,980,000), a slight improvement from $(7,326,189,000) on December 31, 2024[44] - Total secured debt amounts to $9,770,500, while total unsecured debt is $3,000,000, leading to a total debt of $12,770,500[73] - Net debt is calculated at $12,308,966 after accounting for cash and cash equivalents of $461,534[73] - The leverage ratio stands at 6.2x, indicating the company's debt relative to its annualized adjusted EBITDA of $1,973,208[73] - The secured leverage ratio is reported at 4.7x, reflecting the secured debt against the same annualized adjusted EBITDA[73] Shareholder Returns - The company repurchased 958 thousand shares for $194 million during the quarter, with an average price of $202.13 per share[5] - The company declared a quarterly cash dividend of $1.11 per share, payable on December 11, 2025[4] Operational Highlights - The company owned 44,581 sites as of September 30, 2025, an increase from 44,065 sites as of June 30, 2025, due to the acquisition of 447 international sites[48] - Segment revenue for Domestic Site Leasing was $470,251,000 for the three months ended September 30, 2025, up from $464,860,000 in 2024, representing a growth of 1.0%[50] - The company reported a segment operating profit margin of 85.1% for Domestic Site Leasing for the three months ended September 30, 2025, slightly down from 85.2% in 2024[50] - The Tower Cash Flow Margin for total site leasing was 80.4% in Q3 2025, down from 81.3% in Q3 2024[59] Future Outlook - The company updated its full year 2025 outlook, projecting site leasing revenue between $2,568.0 million and $2,578.0 million, reflecting a decrease of approximately $11.0 million due to transaction timing[27] - The company anticipates continued growth in the U.S. market, driven by ongoing network investments from customers and a strong capital allocation strategy[33] - The forecasted Tower Cash Flow for the full year 2025 is projected to be between $2,061.0 million and $2,071.0 million[60] - The forecasted Adjusted EBITDA for the full year 2025 is expected to range from $1,909.0 million to $1,919.0 million[65] - Funds from Operations (FFO) for Q3 2025 was $335.9 million, with an FFO per share of $3.13[68] - Adjusted Funds from Operations (AFFO) for Q3 2025 was $354.9 million, with an AFFO per share of $3.30[68]