Iron Mountain(US:IRM)2026-02-12 11:50Financial Performance - Iron Mountain reported Q4 2025 revenue of $1.8 billion, a year-over-year increase of 16.6%, and full year revenue of $6.9 billion, reflecting a 12.2% growth [8]. - Q4 2025 net income was $93 million, down 12% from $106 million in Q4 2024; full year net income was $152 million, a decrease of 17% from $184 million in 2024 [10][11]. - Adjusted EBITDA for Q4 2025 was $705 million, a 16.6% increase from $605 million in Q4 2024; full year Adjusted EBITDA was $2.6 billion, up 15% from $2.2 billion [10][19]. - AFFO for Q4 2025 was $430 million, a 16.8% increase from $368 million in Q4 2024; full year AFFO was $1.54 billion, up 14.6% from $1.34 billion [19]. - The company reported a net income of $89,270 for Q4 2025, compared to a net loss of $(44,921) in Q2 2025 [24]. - Net income attributable to Iron Mountain Incorporated for Q4 2025 was $89,270, a decrease of 14.1% from $103,932 in Q4 2024 [46]. - The company reported a net income (loss) per share of $0.30 for Q4 2025, down from $0.35 in Q4 2024 [47]. - Full Year 2025 Reported EPS was $0.49, down 19.7% from Full Year 2024 [61]. Revenue Growth - Organic revenue growth for Q4 2025 was 14% year-over-year, while the full year growth was 10% [8]. - The company's growth businesses, including data center, digital, and asset lifecycle management, grew over 40% year-over-year in Q4 and more than 30% for the full year [8]. - Organic storage rental revenue growth was 10.9% in Q4 2025, while organic service revenue growth was 17.7% [25]. - Total revenues for Q4 2025 reached $1,843,167, representing a 16.6% increase year-over-year compared to $1,581,279 in Q4 2024 [46]. - Storage rental revenue for the full year 2025 was $4,052,510, up 10.1% from $3,682,259 in 2024 [48]. - Full Year 2025 Service Revenue amounted to $2,849,227, showing a 15.5% increase from Full Year 2024 [69]. Guidance and Projections - Iron Mountain issued guidance for 2026, projecting total revenue between $7.625 billion and $7.775 billion, representing approximately 12% year-over-year growth [15]. - The company expects Adjusted EBITDA for 2026 to be between $2.875 billion and $2.925 billion, indicating a growth of approximately 13% [15]. - Iron Mountain's AFFO per share for 2026 is projected to be between $5.69 and $5.79, reflecting an approximate 11% increase [15]. Capital Expenditures and Investments - Total growth capital expenditures for full year 2025 reached $2.07 billion, a 17.7% increase from 2024 [98]. - Data center growth capital expenditures in Q4 2025 were $417.16 million, reflecting a 10.7% increase from Q3 2025 [97]. - The company has a total of 190.5 MW under development, with 127.0 MW pre-leased, representing a 66.7% pre-leased rate [84]. - Total expected investment for data center expansion is $1.62 billion, with cumulative investment of $939.9 million [84]. Operational Metrics - Storage facility capacity utilization improved to 81.3% in Q4 2025, up from 79.6% in Q4 2024 [25]. - The total volume of storage reached 744,001 cubic feet in Q4 2025, showing consistent growth [25]. - The company added 1,237 buildings and 98,623 square feet to its global real estate portfolio by the end of 2025 [71]. - Data Center Operating Portfolio reached a total of 488.2 MW with a leased percentage of 96.9% [81]. - Total Data Center Portfolio capacity increased to 1,339.9 MW by Q4 2025, up from 1,279.9 MW in Q4 2024 [82]. Debt and Financial Ratios - Long-term debt, net of current portion, increased to $16,215,885 in 2025 from $13,003,977 in 2024 [44]. - The weighted average interest rate on total long-term debt is 5.54%, with a maturity date of March 18, 2030 [87]. - The company has a net debt of $16.39 billion, resulting in a net debt to total enterprise value ratio of 40.0% [88]. - The net lease-adjusted leverage ratio remained stable at 4.9x in Q4 2025 [24]. Profitability Metrics - Adjusted EPS for Q4 2025 reached $0.61, reflecting a 13.0% increase quarter-over-quarter and a 22.0% increase year-over-year [54]. - Storage Rental Gross Profit for Q4 2025 was $746,659, with a Gross Margin of 69.7%, down 80 basis points from Q3 2025 [66]. - Service Gross Profit for Q4 2025 increased to $274,008, with a Gross Margin of 35.5%, up 350 basis points from Q3 2025 [66]. Strategic Initiatives - The company plans to energize 400 megawatts of data center capacity over the next 24 months, contributing to its growth momentum [9]. - The company emphasizes the importance of executing its strategic growth plan, which includes investments in alternative technologies like artificial intelligence and expanding global operations [1].