American Tower Stock Gains on Q1 AFFO Beat, Revenues Rise Y/Y

Core Viewpoint - American Tower Corporation (AMT) reported strong first-quarter results for 2025, with shares rising nearly 4% in response to better-than-expected performance metrics, despite a slight year-over-year decline in adjusted funds from operations (AFFO) per share [1][2]. Financial Performance - AMT's first-quarter 2025 adjusted funds from operations (AFFO) per share was $2.75, exceeding the Zacks Consensus Estimate of $2.60, but down 1.4% year over year [1][2]. - Total revenues for the quarter reached $2.56 billion, surpassing the Zacks Consensus Estimate of $2.51 billion, and reflecting a 2% increase from the prior-year quarter [2]. - Adjusted EBITDA was reported at $1.74 billion, a 1.9% increase from the previous year, with an adjusted EBITDA margin of 68.1% [4]. Revenue Breakdown - Property Operations generated revenues of $2.49 billion, with total operating profit at $1.77 billion and an operating profit margin of 71% [6]. - Revenues from the United States and Canada in the Property segment totaled $1.30 billion, down nearly 1% year over year, while international revenues were $946 million, also down slightly [6]. - Data Centers contributed $244 million to Property revenues, marking an 8.4% increase from the prior-year period [6]. - Service Operations revenues rose significantly to $74.6 million from $30.2 million in the prior-year quarter, with an operating profit margin of 45% [7]. Cash Flow and Liquidity - AMT generated $1.3 billion in cash from operating activities, a 0.9% increase year over year, with free cash flow rising 8.3% to $955 million [8]. - As of March 31, 2025, the company had total liquidity of $11.7 billion, including $2.1 billion in cash and cash equivalents and $9.6 billion available under revolving credit facilities [8]. Guidance and Outlook - AMT raised its 2025 guidance for total property revenues to a range of $9,970-$10,120 million, up from the previous range of $9,920-$10,070 million [9]. - Adjusted EBITDA guidance was revised to $6,885-$6,955 million, an increase from the prior range of $6,855-$6,925 million [9]. - The AFFO attributable to AMT common stockholders is now expected to be between $4,850-$4,940 million, up from the earlier expectations of $4,830-$4,920 million [9][10].