SBA Communications' Q3 AFFO Beats Estimates, Revenues Grow Y/Y

Core Insights - SBA Communications Corporation (SBAC) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $3.30, exceeding the Zacks Consensus Estimate of $3.19, but slightly down from $3.32 in the same quarter last year [1][9] - Total quarterly revenues increased by 10% year over year to $732.3 million, surpassing the Zacks Consensus Estimate of $705.1 million [2][9] Revenue Breakdown - Site-leasing revenues rose by 4.9% year over year to $656.4 million, with domestic site-leasing revenues at $470.3 million and international site-leasing revenues at $186.2 million [3] - Domestic cash site-leasing revenues grew by 1.5% year over year to $470.8 million, while international cash site-leasing revenues increased by 14.4% year over year to $184 million [3] - Site development revenues surged significantly year over year to $75.9 million [3] Profitability Metrics - Site-leasing operating profit was $529.1 million, up 4.2% year over year, contributing 97.5% to SBAC's total operating profit for the quarter [4] - Overall operating income slightly declined to $374.2 million [4] - Adjusted EBITDA totaled $493.3 million, reflecting a 4.4% increase, while the adjusted EBITDA margin decreased to 67.5% from 70.9% in the prior-year quarter [4] Cost and Expenses - The cost of site development increased significantly to $62.5 million, and interest expenses rose by 25.5% year over year to $120.2 million [5] Portfolio Activity - In the third quarter, SBAC acquired 447 communication sites for a total cash consideration of $142.8 million and built 151 new towers, expanding its portfolio to 44,581 sites [6][9] - SBAC also spent $8.9 million on land and easements, with total cash capital expenditure for the quarter at $71.9 million [7] Cash Flow and Liquidity - As of September 30, 2025, SBAC had $0.5 billion in cash and cash equivalents, up from $0.3 billion as of June 30, 2025, with net debt at $12.3 billion [10] - The company generated nearly $318 million of net cash from operating activities compared to $304.7 million in the year-ago quarter [12] Dividend Announcement - SBAC announced a cash dividend of $1.11 per share for the fourth quarter, payable on December 11 to shareholders of record as of November 13, 2025 [13] Guidance Revision - SBAC revised its AFFO per share guidance to a range of $12.76-$12.98 from the previous range of $12.65-$13.02, with adjusted EBITDA expected between $1,909 million and $1,919 million [14]