Iron Mountain Q4 AFFO Beat, Storage Rental & Service Revenues Rise

Core Insights - Iron Mountain Incorporated (IRM) reported fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $1.44, exceeding the Zacks Consensus Estimate of $1.39, with total revenues of $1.84 billion surpassing the estimate of $1.80 billion, reflecting year-over-year increases of 16.1% and 16.6% respectively [1][8] Revenue Details - Storage rental revenues increased by 12.7% year over year to $1.061 billion, exceeding the estimate of $1.057 billion [2] - Service revenues grew by 22.3% year over year to $781.9 million, higher than the estimate of $745.3 million [2] - Total revenues in the Global RIM business reached $1.373 billion, a 9.1% increase from the prior year, surpassing the estimate of $1.370 billion [2] - Global Data Center business revenues rose by 39.1% year over year to $236.7 million, exceeding the estimate of $230.1 million [3] - Corporate and Other business revenues increased by 52.9% year over year to $233.5 million, higher than the estimate of $216.5 million [3] Adjusted EBITDA - Adjusted EBITDA for the Global RIM business rose by 7.5% year over year to $622.4 million, surpassing the estimate of $621.8 million [4] - Global Data Center business reported adjusted EBITDA growth of 38.3% year over year, totaling $121.9 million, exceeding the estimate of $112.5 million [4] - Adjusted EBITDA for Corporate and Other experienced a decline of $39 million year over year, which was better than the estimated decrease of $44.2 million [4] Balance Sheet Position - As of the end of the fourth quarter, IRM had $158.5 million in cash and cash equivalents, down from $195.2 million as of September 30, 2025 [5] - The company reported net debt of $16.39 billion, an increase from $16.11 billion as of September 30, 2025, with a weighted average years to maturity of 4.6 years and a weighted average interest rate of 5.6% [5] 2026 Guidance - For 2026, IRM expects AFFO per share in the range of $5.69-$5.79, with the Zacks Consensus Estimate at the lower end of this range [6] - Revenues are projected to be between $7.625 billion and $7.775 billion, while adjusted EBITDA is anticipated to be between $2.875 billion and $2.925 billion [6]