AMERICAN TOWER CORP (AMT) Q1 2026 Earnings Call Transcript
Neutral REIT - Industrial 87.69B USA
Next Earnings
2026-04-27
American Tower, one of the largest global REITs, is a leading independent owner, operator and developer of multitenant communications real estate with a portfolio of over 149,000 communications sites and a highly interconnected footprint of U.S. data center facilities.
American Tower delivered sturdy 2025 AFFO growth and reiterated a durable, capital-efficient plan, while DISH-related churn creates near-term headwinds and an earlier-than-expected path to 2027–2030 growth milestones.
⭐ Key Highlights
2025 AFFO growth
Attributable AFFO per share as adjusted grew ~8% in 2025, with over 13% growth in Q4.
2025 momentum across assets
Consolidated property revenue rose ~4% YoY ( ~5% excluding noncash straight-line and FX), driven by ~5% tenant billings growth and ~14% data center revenue growth.
DISH impact and guidance reset
DISH default removed from 2026 run-rate guidance; exposure ~4% of U.S. revenue (~$200M/year) through 2035–2036, with ongoing litigation and potential upside from collections.
2026 outlook and margins
2026 cash adjusted EBITDA margin guide at 66.8% (down ~20 bps y/y); AFFO growth ~1% (~5% ex-DISH churn, FX/refinancing excluded).
Capital allocation and flexibility
Balance sheet back within target 3–5x leverage at 4.9x; aggressive buybacks (~$365M in 2025; ~$53M in 2026 YTD) and ~$1.6B remaining authorization; capex focus on developed towers and CoreSite.
✔Positive Signals
- AFFO per share growth of ~8% for 2025 and continued low-leverage position (4.9x).
- Record stock buybacks in 2025 with ongoing repurchases in 2026.
- CoreSite AI-friendly demand and double-digit data center revenue growth.
- Capital allocation flexibility within the 3–5x leverage target, enabling buybacks, CapEx, and potential M&A.
- Operational efficiency program targeting 200–300 bps tower EBITDA margin expansion over 5 years.
✖Negative Signals
- DISH default removed from 2026 run-rate, introducing near-term churn and revenue headwinds.
- 2026 cash EBITDA margins slightly pressured by higher data center and services contributions and DISH churn (~50 bps impact).
- Churn in LatAm and U.S. adds to volatility and lowers organic growth in 2026.
- Arbitration with AT&T Mexico ongoing, introducing potential variability to growth assumptions.
- Longer lead times and competition in Europe and emerging markets delaying some growth.
📊Financial Results
- Consolidated property revenue grew ~4% YoY (≈5% excluding noncash straight-line and FX).
- Adjusted EBITDA grew ~5% YoY (≈7% ex noncash impacts).
- AFFO per share as adjusted grew ~8% YoY; ex-DISH normalization implies ~9% growth.
- Leverage ended the year at ~4.9x, within the target 3–5x range and enabling further shareholder-friendly actions.
- Fourth-quarter buybacks totaled ~$365M (largest quarterly), with ~$53M bought in early 2026.
🔮Future Guidance
- 2026 consolidated organic tenant billings growth of ~1% (≈4% excluding DISH churn).
- U.S. & Canada organic tenant billings ~0.5% (≈4.5% excluding DISH churn).
- Property revenue growth ~3% (cash FX-neutral ~5% excluding DISH churn).
- Cash adjusted EBITDA margins ~66.8% (down ~20 bps vs. 2025).
- AFFO per share growth ~1% (≈5% excluding DISH churn and FX/refinancing), with tailwinds from lower maintenance capex and buybacks.
💡Interesting Insights
- AI-enabled demand in CoreSite and inferencing workloads are increasingly binding demand for interconnection-rich data centers; management is actively curating partner mix due to rapid growth, signaling a potential upside if capacity constraints ease.
Detailed Analysis
AI-generated summary of AMERICAN TOWER CORP earnings call transcript.
American Tower posted 2025 results showing resilient organic growth and strong AFFO expansion, led by tower and data center demand, with strategic cost improvements and deliberate capital allocation returning leverage to the target range. The company highlighted 2026 guidance featuring modest consolidated organic tenant billings growth (0–1%), offset by higher churn from DISH and higher interest expense, while maintaining a path to industry-leading long-term AFFO per share growth through continued efficiency, a robust CoreSite pipeline, and selective capex in developed markets. Management emphasized AI-driven efficiency opportunities, a shift to capacity-driven 5G/DENSET networks, expansion in Europe, and a disciplined approach to capital allocation (dividend, buybacks, and CapEx) within a strengthened balance sheet.
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