Iron Mountain's Q3 AFFO Beats, Revenues Improve Y/Y, Dividend Raised

Core Insights - Iron Mountain Incorporated (IRM) reported third-quarter adjusted funds from operations (AFFO) per share of $1.32, exceeding the Zacks Consensus Estimate of $1.29, marking a year-over-year increase of 16.8% [1][9] - Total quarterly revenues reached $1.75 billion, slightly below the Zacks Consensus Estimate of $1.76 billion, but reflecting a year-over-year improvement of 12.6% [2][9] Revenue Breakdown - Storage rental revenues amounted to $1.03 billion, up 10.4% year over year, with an estimated figure of $1.04 billion [3] - Service revenues increased by 16% from the prior-year quarter to $721.2 million, surpassing the estimate of $709.6 million [3] - Global RIM business revenues grew 6.2% year over year to $1.34 billion, slightly below the estimate of $1.36 billion [3] - Global Data Center business reported revenues of $204.1 million, rising 33.2% year over year, exceeding the estimate of $192.1 million [4] Profitability Metrics - Adjusted EBITDA rose 16.2% year over year to $660.4 million, with the adjusted EBITDA margin expanding by 110 basis points to 37.6% [4] - Interest expenses increased by 12.7% year over year to $209.7 million [4] Balance Sheet Position - As of September 30, 2025, the company had $195.2 million in cash and cash equivalents, down from $218 million as of June 30, 2025 [5] - Net debt increased to $16.11 billion from $15.48 billion, with a weighted average interest rate of 5.6% and an average maturity of 4.6 years [5] Dividend Announcement - IRM announced a cash dividend of 86.4 cents per share for the fourth quarter of 2025, representing a 10% increase over the previous dividend, payable on January 6, 2026 [6][9]