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Iron Mountain Incorporated IRM reported first-quarter adjusted funds from operations (AFFO) per share of $1.17, beating the Zacks Consensus Estimate of $1.16. This figure jumped 6.4% year over year.
Reflecting investors’ positive sentiments, shares of the company gained more than 1.66% during the initial hours of today’s trading session. Iron Mountain’s results reflect solid performances across all segments, including the storage, service, global RIM and data center business. However, higher interest expenses in the quarter undermined the performance to an extent.
Quarterly total revenues of $1.59 billion lagged the Zacks Consensus Estimate of $1.60 billion. However, the figure improved by 7.8% year over year.
According to William L. Meaney, president and CEO of Iron Mountain, “We are pleased with our strong start to 2025, delivering another record performance in Revenue, Adjusted EBITDA, and AFFO in the first quarter and above our expectations. Our team’s focus on providing solutions that meet our customers’ needs as part of our Matterhorn growth strategy continues to drive broad based strength across each of our business segments.”
IRM’s Q1 in Detail
Storage rental revenues were $948.4 million in the first quarter, up 7.2% year over year. We had estimated quarterly storage rental revenues of $943.8 million.
Service revenues increased 8.8% from the prior-year quarter to $644.2 million. Our estimate was pegged at $646.3 million.
The Global RIM business revenues grew 3.8% year over year to $1.26 billion. Our estimate was pegged at $1.27 billion.
The Global Data Center business reported revenues of $173.2 million in the first quarter, rising 20.3% year over year. The figure exceeded our estimate pegged at $169.7 million.
The adjusted EBITDA rose 11.8% year over year to $579.9 million. The adjusted EBITDA margin expanded 130 basis points to 36.4%.
However, interest expenses increased by 18.4% year over year to $194.7 million in the quarter.
IRM’s Balance-Sheet Position
IRM exited the first quarter with $155.3 million of cash and cash equivalents, down from $155.7 million as of Dec. 31, 2024.
As of March 31, 2025, the company has net debt of $14.87 billion, up from $13.68 billion as of Dec. 31, 2024, with weighted average years to maturity of 4.6 years and a weighted average interest rate of 5.7%.
IRM’s Dividend
Concurrently with the first-quarter earnings release, IRM announced a cash dividend of 78.5 cents per share for the second quarter of 2025. It will be paid out on July 3 to its shareholders on record as of June 16, 2025.