SBA(US:SBAC)2026-02-27 17:59Site Leasing Business - The site leasing business contributed 97.9% of total segment operating profit for the year ended December 31, 2025[161]. - Site leasing revenues represented 91% of total revenue for the year ended December 31, 2025[177]. - The company expects core leasing revenue to increase in 2026, driven by wireless carriers deploying unused spectrum and the full-year impact of towers acquired in 2025[169]. - Churn in domestic markets is expected to represent between $132.0 million and $136.0 million of cash site leasing revenue in 2026, primarily due to Sprint and EchoStar[170]. - Domestic site leasing revenues rose by $4.2 million, driven by organic growth and contributions from 66 acquired towers and 54 newly built towers since January 1, 2024[191]. - International site leasing revenues increased by $51.2 million on a constant currency basis, attributed to 7,266 acquired towers and organic growth[192]. - International site leasing segment operating profit increased by $20.7 million, supported by higher revenues and the ground lease purchase program[195]. - Domestic site leasing operating income decreased by $83.8 million, primarily due to increased costs and lower segment operating profit[202]. - International site leasing operating income decreased by $5.9 million for the year ended December 31, 2025, with a constant currency decrease of $24.8 million, primarily due to increased depreciation and amortization expenses[203]. Site Development - The site development segment accounted for approximately 9% of total revenues for the year ended December 31, 2025[182]. - Site development revenues surged by $91.6 million, reflecting increased carrier activity[193]. - Site development segment operating profit increased by $11.4 million, reflecting heightened carrier activity[196]. - Site development operating income increased by $12.1 million for the year ended December 31, 2025, driven by higher segment operating profit from increased carrier activity[204]. Financial Performance - Revenues for the year ended December 31, 2025, increased to $2,815,139, a 5.5% increase from $2,679,634 in 2024, with international site leasing revenues growing by $39.7 million[190]. - Net income increased by $305.8 million for the year ended December 31, 2025, totaling $1,054.5 million, with a constant currency increase of $52.2 million[212]. - Adjusted EBITDA increased by $17.8 million for the year ended December 31, 2025, totaling $1,912.1 million, with a constant currency increase of $25.9 million[219]. - Cash provided by operating activities was $1,291.3 million for the year ended December 31, 2025, compared to $1,334.9 million in the prior year[223]. - Cash used in investing activities decreased to $601.8 million for the year ended December 31, 2025, from $809.3 million in the prior year[222]. Capital Expenditures and Investments - The company plans to continue growing its asset portfolio through tower acquisitions and construction of new towers[173]. - The company closed an acquisition for land rights under approximately 3,900 communication sites in Guatemala for $109.0 million and is under contract to purchase 48 additional sites for $45.0 million[225]. - For 2026, the company expects non-discretionary cash capital expenditures of $67.0 million to $77.0 million and discretionary expenditures of $430.0 million to $450.0 million[226]. - Future cash capital expenditures are expected to include both discretionary and non-discretionary expenditures for new builds and maintenance[271]. Debt and Financing - The company has a Revolving Credit Facility with a maximum borrowing capacity of $2.0 billion, with an outstanding balance of $475.0 million as of December 31, 2025[237]. - The 2024 Term Loan has a principal balance of $2.3 billion, with $23.0 million repaid during 2025[241]. - As of December 31, 2025, the company had interest rate swap agreements on the 2024 Term Loan with a notional value of $2.0 billion, resulting in a fixed rate of 5.165% per annum[242]. - The company expects to service a total debt of $2.413 billion over the next twelve months, with significant payments due on various Tower Securities and Senior Notes[259]. - The company has met all debt covenants as of December 31, 2025, ensuring compliance with the mortgage loan agreement[255]. - The anticipated repayment dates for the Tower Securities range from January 2026 to October 2056, indicating a long-term financing strategy[247]. Interest and Taxation - Interest income decreased by $10.3 million for the year ended December 31, 2025, with a constant currency decrease of $10.1 million, attributed to lower interest-bearing deposits and a repaid loan[206]. - Interest expense increased by $68.1 million for the year ended December 31, 2025, due to a higher weighted-average interest rate on cash-interest bearing debt[207]. - The provision for income taxes increased by $163.6 million for the year ended December 31, 2025, totaling $187.6 million, primarily due to increased current taxes from the sale of Canadian towers[211]. Foreign Currency Exposure - Approximately 20.0% of revenues and 26.5% of total operating expenses for the year ended December 31, 2025, were denominated in foreign currencies[266]. - A hypothetical 10% adverse movement in the Brazilian Real would have caused revenues and operating income to decline by approximately 1.1% and 0.7%, respectively, for the year ended December 31, 2025[267]. - A change of 10% in the underlying exchange rates of unsettled intercompany debt would have resulted in approximately $91.8 million of unrealized gains or losses included in net income for the year ended December 31, 2025[268]. Risk Management - The company is exposed to interest rate risk related to refinancing debt at commercially reasonable rates and the impact of interest rate movements on variable portions of its loans[262]. - Higher interest rates are anticipated to impact the company's growth rate and future operating results, particularly affecting wireless service providers' capital expenditures[261]. - The company has a treasury lock agreement that fixed the three-year treasury rate at 3.3985% for $620 million related to the 2024-2C Tower Securities[249]. - The Risk Retention Tower Securities, totaling $376.3 million, are held by a wholly owned subsidiary to satisfy risk retention requirements[252].