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American Tower Corp (AMT) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid Global ...

In This Article:

  • Property Revenue: Slightly positive year-over-year growth, up approximately 3% excluding noncash straight-line revenue, with a 300 basis points FX headwind.

  • US and Canada Property Revenue: Declined approximately 1%, grew over 3.5% excluding noncash straight-line, with over 1% negative impact from Sprint churn.

  • International Property Revenue: Roughly flat year-over-year, with approximately 8% growth excluding FX impacts.

  • Data Center Business Revenue: Grew by approximately 9%.

  • Consolidated Organic Tenant Billings Growth: 4.7%, supported by solid demand across the global portfolio.

  • US and Canada Organic Tenant Billings Growth: 3.6%, approximately 5% excluding Sprint-related churn.

  • International Organic Tenant Billings Growth: 6.7%, a modest acceleration from Q4 2024.

  • Adjusted EBITDA: Grew 1.9%, over 5.5% excluding noncash straight-line impacts, with a 300 basis points FX headwind.

  • Cash Adjusted EBITDA Margin: Expanded nearly 70 basis points to 68.2%.

  • Attributable AFFO and AFFO per Share: Declined approximately 1% and over 1%, respectively, due to prior year contributions from the India business.

  • Revised Full Year Outlook: Raised expectations for property revenue, adjusted EBITDA, attributable AFFO, and AFFO per share by $50 million, $30 million, $20 million, and $0.04, respectively, due to updated FX assumptions.

  • Projected Attributable AFFO per Share: $10.44, nearly 5% growth year-over-year on an as-adjusted basis.

  • Capital Expenditures: Approximately $1.7 billion, including 2,250 newly constructed sites and roughly $610 million for data center development.

  • Liquidity: $11.7 billion, with low floating rate debt exposure.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • American Tower Corp (NYSE:AMT) exceeded initial expectations across property revenue, adjusted EBITDA, and attributable AFFO per share for the quarter.

  • The company experienced its fifth consecutive quarter of sequential increases in both application volumes and services revenue, with services revenue growing over 140% year-over-year.

  • CoreSite business posted impressive results, fueled by strong leasing and continued processing favorability, adding 11 megawatts of capacity.

  • AMT successfully closed the sale of its South African fiber business, marking a key step in reducing its international fiber footprint.

  • The company has a strong balance sheet with enhanced financial flexibility, including $11.7 billion in liquidity and low floating rate debt exposure.