Iron Mountain(US:IRM)2025-11-05 11:48Financial Performance - Iron Mountain achieved record quarterly revenue of $1.8 billion, an increase of 12.6% year-over-year, and 11.8% excluding foreign exchange effects[9]. - Net income for Q3 2025 was $86 million, compared to a net loss of $34 million in Q3 2024[11]. - Adjusted EBITDA reached $660 million, reflecting a 16% increase year-over-year[12]. - AFFO for the quarter was $393 million, or $1.32 per share, an 18% increase compared to Q3 2024[12]. - The company reiterated its full-year 2025 financial guidance, expecting total revenue of $6.79 billion to $6.94 billion, approximately a 12% year-over-year increase[15]. - Fourth quarter 2025 revenue is expected to increase approximately 14% on a reported basis[9]. - Year-to-date total revenues increased by 10.7%, or 10.8% excluding foreign exchange impacts[11]. - Total revenues for Q3 2025 were $1,754,093, reflecting a year-over-year growth of 12.6%[24]. - Year-to-date total revenues for 2025 were $5,058,570, up 10.7% from $4,568,630 in 2024[47]. - Year-to-date reported EPS for 2025 was $0.19, down 26.9% from $0.26 in 2024[59]. Revenue Breakdown - Storage Rental Revenue for Q3 2025 reached $1,032,897, a 10.4% increase from Q3 2024[24]. - Organic Storage Rental Revenue Growth was 9.4% in Q3 2025, compared to 9.3% in Q3 2024[25]. - Total Service Revenue for Q3 2025 was $721,196, up 2.7% from Q2 2025 and 16.0% from Q3 2024[64]. - Year-to-date (YTD) 2025 total storage rental revenue was $2,991,262, a 9.2% increase compared to YTD 2024[67]. - YTD 2025 total service revenue increased by 13.1% to $2,067,308 compared to YTD 2024[67]. Profitability Metrics - Adjusted EBITDA for Q3 2025 was $660,379, with an Adjusted EBITDA Margin of 37.6%[24]. - Net income attributable to Iron Mountain Incorporated for Q3 2025 was $84,290, a significant recovery from a loss of $(44,921) in Q2 2025[24]. - The company reported an Adjusted EPS of $0.54 for Q3 2025, up from $0.44 in Q3 2024[24]. - Storage Rental Gross Profit for Q3 2025 was $734,942, with a gross margin of 70.5%, down from 71.4% in Q2 2025[64]. - Service Gross Profit for Q3 2025 was $227,212, with a gross margin of 32.0%, down from 33.1% in Q2 2025[64]. Capital Expenditures and Investments - Total capital expenditures for Q3 2025 amounted to $513.5 million, representing a 7.7% increase from Q2 2025 and a 23.8% increase year-over-year[96]. - Year-to-date capital expenditures for 2025 reached $1.65 billion, a 39.6% increase compared to $1.18 billion in 2024[97]. - Data center growth capital expenditures in Q3 2025 were $376.8 million, a 22.0% increase from Q3 2024[96]. - The company plans to invest $225.2 million in total development activities in Q3 2025[96]. Customer and Market Insights - The company serves over 240,000 customers globally, including approximately 95% of the Fortune 1000[17]. - The churn rate for data center leases was 0.3% in Q3 2025, reflecting strong customer retention[76]. - The company signed 86 new/expansion leases in Q3 2025, generating a monthly recurring revenue (MRR) of $2,548[76]. Debt and Financial Ratios - The weighted average interest rate on the company's debt is 5.86%[86]. - The net debt to total enterprise value ratio stands at 34.9%[86]. - The company has a credit facility fixed charge coverage ratio of 2.5x[86]. - The TTM AFFO Payout Ratio was 61.7% in Q3 2025, indicating a stable dividend policy[24]. Operational Metrics - The Total Volume of Storage increased to 743,512 in Q3 2025, with a Storage Facility Capacity Utilization of 80.8%[25]. - The total data center portfolio capacity increased to 1,339.9 MW in Q3 2025, up from 917.8 MW in Q3 2024[81]. - The company has a total of 202.5 MW under development, with 124 MW pre-leased, indicating a 61.2% pre-leasing rate[96]. Strategic Focus - The company emphasizes organic revenue growth, which represents year-over-year growth excluding the impact of acquisitions and foreign currency fluctuations[125]. - The Global Records and Information Management segment operates in 61 countries, providing services such as records management and data management[109]. - The company is focused on integrating acquired businesses efficiently and transitioning to more sustainable energy sources[99]. - The company is investing in innovation and other discretionary capital expenditures to drive revenue growth and operational efficiencies[115].