Iron Mountain (NYSE:IRM) 2025 Conference Summary Company Overview - **Company**: Iron Mountain - **Date**: September 09, 2025 - **Speaker**: Barry Hytinen, CFO Key Points Industry and Business Transformation - Iron Mountain has diversified into high-growth sectors such as Data Centers, Asset Lifecycle Management (ALM), and Digital Solutions, alongside its legacy Records and Information Management services [3][4] - The company serves a client base of 240,000 with a customer retention rate exceeding 99% [3] Growth Metrics - Digital Solutions business is currently at a run rate of over $500 million, growing at a 20% CAGR [4] - ALM revenue was $38 million in 2021, projected to reach approximately $575 million this year, with 40% organic growth and 70% total growth last quarter [4][5] - Data Center revenue is expected to approach $800 million this year, with significant margin improvements [9][10] Market Opportunities - The market for Asset Lifecycle Management is fragmented, with many small vendors, presenting consolidation opportunities [6] - Data center business has 450 megawatts of operational capacity, with 98% leased, and an additional 200 megawatts under construction [10] Revenue Growth Projections - The growth portfolio (Data Centers, Digital Solutions, ALM) is expected to account for 25-28% of total revenue, up from 8-9% six years ago [11] - Data Center business is projected to grow by approximately 25% next year based on existing backlog [12] Legacy Business Performance - The legacy Records and Information Management business has shown slight positive organic growth, attributed to high customer retention and ongoing consolidation of share [20][21] - Average box lifecycle is 15 years, with slight annual growth expected [20][24] Revenue Management Program - The revenue management program has been in place for nine years, yielding mid to high single-digit growth from pricing increases [25][26] - The program is expected to remain sustainable, with minimal elasticity observed in client volume despite pricing actions [28][32] Data Center Business Insights - Data Center business grew 26% organically in Q2, with guidance for nearly 30% growth in the second half of the year [33] - The company has a high visibility on revenue generation due to signed leases from previous years [34][35] Challenges and Adjustments - A reduction in data center signings was noted, attributed to a shift in demand towards inference rather than large-scale AI training deployments [42][44] - The company anticipates a turnaround in leasing activity in the second half of the year [44] Asset Lifecycle Management Performance - ALM revenue growth was 42% year-over-year organically, with three-quarters of growth driven by volume [46] - Pricing in the ALM sector is expected to remain consistent, benefiting from increased demand in the secondary market [47] Digital Solutions and Government Contracts - The company is awaiting a decision from the U.S. Treasury Department on a five-year contract, currently operating on a month-to-month agreement [48][49] - There are ongoing efforts to pitch smaller opportunities to the government, which could provide additional growth [51] Capital Expenditure Trends - Iron Mountain plans to spend around $2 billion in CapEx this year, primarily for data center growth initiatives [52] - Future CapEx is expected to stabilize or slightly increase, depending on leasing activity [54][55] Conclusion Iron Mountain is strategically positioned for growth across its diversified business segments, with strong revenue projections and a focus on leveraging existing client relationships. The company is navigating challenges in the data center market while maintaining a robust performance in its legacy business and emerging sectors.

Financial Data and Key Metrics Changes - The company achieved record revenue of $1,590,000,000, up 8% on a reported basis and 9% on a constant currency basis [13] - Adjusted EBITDA reached $580,000,000, an increase of $61,000,000 year on year, with an adjusted EBITDA margin of 36.4%, up 130 basis points year on year [14][15] - AFFO was $348,000,000, representing growth of 8% on a reported basis and 10% excluding foreign exchange [15] Business Line Data and Key Metrics Changes - The Global RIM business achieved first quarter revenue of $1,260,000,000, an increase of $46,000,000 year on year, driven by revenue management and digital solutions [16] - The data center business reported total revenue of $173,000,000, an increase of $29,000,000 year on year, with organic storage rental growth of 24% [19] - The asset lifecycle management (ALM) revenue was $121,000,000, an increase of $37,000,000 or 44% year over year, with organic growth of 22% [21] Market Data and Key Metrics Changes - The company continues to see strong demand for data center development across its global portfolio, with a pipeline expected to reach 1.3 gigawatts [6] - In the U.S., the company has a strong pipeline in Northern Virginia, Richmond, and Chicago, while in Europe, Amsterdam and Madrid are key markets [56] Company Strategy and Development Direction - The company is focused on driving double-digit revenue growth over many years, supported by strong cross-selling opportunities in fragmented markets [31] - The Matterhorn strategy emphasizes a single point of contact for customers to enhance cross-selling across various products and services [43][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the leasing target of 125 megawatts for the year, based on a strong pipeline and ongoing conversations with hyperscale customers [34] - The company raised its full-year guidance for total revenue to a range of $6,740,000,000 to $6,890,000,000, reflecting a positive outlook and recent changes in currency exchange rates [25] Other Important Information - The company has secured a significant contract with the Department of Treasury valued at approximately $140,000,000, expected to generate revenue in both 2025 and 2026 [4][26] - The company has less than 5% exposure to tariffs in its data center construction costs, with most costs not subject to tariffs [30] Q&A Session Summary Question: Market for leasing and confidence in achieving 125 megawatts - Management noted good leasing activity and expressed confidence in achieving the 125 megawatt target based on a strong pipeline and customer conversations [34] Question: Changes in demand for data centers - Management indicated no significant changes in demand from hyperscale customers across North America, Europe, and India, with strong pipeline visibility [41] Question: Sales strategy and initiatives - The Matterhorn strategy focuses on a single customer point of contact to enhance cross-selling and drive consistent double-digit growth [43][44] Question: Disaggregation of revenue increase - The increase in revenue guidance included approximately $165,000,000 from changes in foreign exchange rates and $10,000,000 from the Premier acquisition, with the remainder from operating performance [49] Question: Opportunities by region in data centers - Management highlighted strong pipelines in Northern Virginia, Richmond, Chicago, Amsterdam, and Mumbai, indicating robust demand across these regions [56] Question: ALM volume increase triggers - The increase in ALM volume was attributed to winning more business and growing enterprise accounts, rather than pricing changes [75]