American Tower Stock Declines Despite Revenue & AFFO Beat

Core Insights - American Tower Corporation (AMT) reported Q2 2025 adjusted funds from operations (AFFO) per share of $2.60, matching the Zacks Consensus Estimate and showing an increase from $2.54 in the prior year [1][8] - The stock experienced a decline of 4.09% in early trading due to significant foreign currency losses reported for the quarter [1][8] Financial Performance - Total revenues for Q2 were $2.63 billion, exceeding the Zacks Consensus Estimate of $2.59 billion and reflecting a 3.2% increase year-over-year [2][8] - Organic tenant billings grew by 4.7%, while total tenant billings increased by 5.2% [2] - Adjusted EBITDA was reported at $1.75 billion, up 1.8% from the previous year, with an adjusted EBITDA margin of 66.7% [4] Segment Analysis - Property Operations generated revenues of $2.53 billion, a 1.2% year-over-year increase, with total operating profit at $1.77 billion and an operating profit margin of 70% [6] - Revenues from the United States and Canada were $1.31 billion, showing a slight decline, while international revenues rose to $958 million [6] - Data Centers contributed $262 million to Property revenues, marking a 13.4% increase from the prior year [6] - Service Operations revenues reached $100 million, significantly up from $47 million in the previous year, with an operating profit margin of 45% [7] Cash Flow and Liquidity - Cash generated from operating activities was $1.28 billion, down 4.3% year-over-year, while free cash flow was $969 million, a decrease of 4.1% [8] - As of June 30, 2025, total liquidity stood at $10.5 billion, comprising $2.1 billion in cash and cash equivalents and $8.4 billion available under revolving credit facilities [8] Guidance Update - The company raised its 2025 guidance for total property revenues to a range of $10,135-$10,285 million, up from $9,970-$10,120 million [10] - Adjusted EBITDA guidance was revised to $7,005-$7,075 million, an increase from the previous range of $6,885-$6,955 million [10] - AFFO attributable to AMT common stockholders is now expected to be in the range of $4,905-$4,995 million, up from $4,850-$4,940 million [10][11]