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Mar 31

SBA Q1 2025 Earnings Report

SBA Communications reported a solid start to 2025 with increased net income, a new share repurchase program, and raised full-year guidance.

Key Takeaways

SBA Communications posted strong financial results with $664 million in revenue and $189 million in net income, supported by higher U.S. carrier activity and solid international performance. The company authorized a new $1.5 billion stock buyback and increased its full-year 2025 outlook.

Net income rose to $189 million compared to $154.5 million a year ago.

EPS increased to $1.77, with AFFO per share reaching $3.18.

The company authorized a new $1.5 billion share repurchase program.

Raised full-year 2025 financial outlook across major metrics.

Total Revenue
$664M
Previous year: $658M
+1.0%
EPS
$1.77
Previous year: $1.42
+24.6%
Tower Cash Flow Margin
80.9%
Previous year: 81.1%
-0.2%
Adjusted EBITDA Margin
69%
Previous year: 71.2%
-3.1%
AFFO
$344M
Previous year: $357M
-3.8%
Cash and Equivalents
$636M
Previous year: $260M
+144.6%
Total Assets
$10.4B
Previous year: $10B
+4.5%

SBA

SBA

SBA Revenue by Segment

SBA Revenue by Geographic Location

Forward Guidance

SBA raised its full-year 2025 outlook, expecting improvements in revenues, AFFO, and Adjusted EBITDA due to solid leasing activity and new site acquisitions.

Positive Outlook

  • Raised total revenue guidance by $26 million to $2,716–$2,761 million.
  • Increased AFFO guidance by $8 million.
  • New $1.5 billion share repurchase authorization.
  • Maintains a strong balance sheet with over $600 million in cash.
  • Solid backlog and expected growth in U.S. and international markets.

Challenges Ahead

  • Challenging macroeconomic environment could affect customer spending.
  • High leverage ratio of 6.4x net debt to annualized Adjusted EBITDA.
  • Decline in international site leasing revenue year-over-year.
  • Exposure to foreign exchange fluctuations impacting financials.
  • Increased interest expenses compared to prior year.