Summary of Iron Mountain's Conference Call Company Overview - **Company**: Iron Mountain - **Industry**: Real Estate Investment Trusts (REITs), specifically focusing on data centers and asset lifecycle management Key Points Matterhorn Strategy - The Matterhorn strategy has successfully driven double-digit growth for Iron Mountain, achieving over 12% growth for the full year and exiting the year at about a 14% growth rate [5][6] - The company expects to guide for another record year of double-digit growth in early 2026 [6] Restructuring and Financial Health - The Matterhorn restructuring program is concluding, with no additional restructuring anticipated [7] - The company expects significant incremental free cash flow, which will be used for growth and reducing debt needs [7] Data Center Business - Iron Mountain operates approximately 450 megawatts of data center capacity, 98% of which is leased [12] - The company is under construction on about 200 megawatts, with two-thirds pre-leased [13] - Anticipates energizing 250 megawatts in the next 18 months and another 200 megawatts in 19 to 24 months [13] - Guidance for leasing between 30 and 80 megawatts this year, with expectations of over 60 megawatts [14] - The company has strong relationships with major hyperscalers and does not currently have exposure to NeoCloud players [20] Asset Lifecycle Management (ALM) Business - The ALM business has grown from $38 million in revenue in 2021 to an expected $600 million this year, with organic growth around 30% year-on-year [22] - The total addressable market (TAM) for ALM is estimated at $30 billion, with a mix of 60% enterprise and 40% hyperscale revenue [22][24] - The enterprise side has margins of 20%-30%, while hyperscale operates on a revenue share model with lower margins [36] Digital Business - The digital business has evolved from scanning to structuring unstructured data, with expected revenue of approximately $550 million this year [48] - The company is engaged in significant projects with the U.S. government, including the Department of Veterans Affairs and the Department of the Treasury [46][48] Capital Allocation and Financial Strategy - The company has reduced leverage to around 5.0 times and aims to maintain this level [50] - A dividend payout ratio target of low 60s% of AFFO is in place, with consistent dividend increases [50] - Capital investments are primarily focused on building pre-leased data centers, with expected revenue from the data center business to exceed $1 billion next year [52][53] Market Trends and Pricing - The company has been able to implement mid-single-digit price increases sustainably due to the value provided to clients [42][43] - The digital business is positioned to capitalize on the growing need for data structuring and analysis, particularly in government contracts [49] Additional Insights - The company has a robust pipeline for future growth, particularly in the data center and ALM sectors, with strong demand from hyperscalers and enterprise clients [12][22] - The market for asset lifecycle management is expected to continue growing, driven by trends in data center expansion and the need for secure data disposal [26][29]

Financial Performance - Iron Mountain reported Q1 2025 revenue of $1.593 billion, an increase of 8% year-over-year, or 9% excluding FX[38] - Adjusted EBITDA for Q1 2025 was $580 million, up 12% year-over-year, or 13% excluding FX, with a margin of 36.4%[38] - AFFO for Q1 2025 reached $348 million, an 8% increase year-over-year, or 10% excluding FX, with AFFO per share at $1.17, a 6% increase, or 9% excluding FX[38] - The company is increasing its full year 2025 revenue guidance to $6.74 billion - $6.89 billion, representing approximately 11% year-over-year growth[40] - The company is increasing its full year 2025 Adjusted EBITDA guidance to $2.505 billion - $2.555 billion, representing approximately 13% year-over-year growth[40] - The company is increasing its full year 2025 AFFO guidance to $1.480 billion - $1.510 billion, representing approximately 11% year-over-year growth[40] Business Segments and Strategy - Iron Mountain's total addressable market is over $150 billion[8] - The company's Matterhorn strategy focuses on accelerating enterprise growth through investments in large and growing global markets and leveraging its commercial platform[14] - Growth businesses, including Data Center, Digital Solutions, and ALM, are estimated to reach 28% of total revenue in 2025, up from 15% in 2021[21] - The company plans to invest approximately $1.8 billion in growth capital in 2025[41] - Iron Mountain has ample liquidity of $2.1 billion as of March 31, 2025 to support growth investments[41]