SBA COMMUNICATIONS (SBAC) Company Report

Solid 2025 performance with robust organic leasing, a 10-year master lease agreement with Verizon to drive long-term growth, the acquisition of 7,000 towers from Millicom in Central America, and achieving investment-grade ratings.
2026 U.S. leasing expected to see steady activity; 2026 marks the last major year of Sprint churn (~~$56 million) and accelerated DISH churn (~~$56 million), with U.S. organic leasing growth returning to 4–5% once churn normalizes.
Spectrum pipeline strengthened by FCC mandate to auction 800 MHz (including 100 MHz upper C-band by mid-2027); new 4.5–4.9 GHz and 7 GHz bands require network densification and set the stage for 6G.
International momentum in Brazil as FX stabilizes post-Oi consolidation, and Central America leadership via Millicom deal (11× multiple, USD contracts, 15-year leaseback and 2,500 build-to-suit commitments).
Capital strategy enhanced by upgrade to investment grade and new leverage target of 6–7×; 2026 AFFO/share guidance of ~$12 reflects churn and higher refinancing costs; >$1 billion of deployable capital through growth, dividends, and a $500 million share buyback in 2025.

2 days ago

Transcript

SBA Communications reports 2025 achievements and 2026 outlook at telecom conference

SBAC

M&A

SBA closed a 10-year master lease with Verizon that secures higher minimum co-location commitments and pricing certainty, acquired over 7,000 towers from Millicom in Central America and achieved two investment-grade ratings in late 2025.
U.S. leasing demand remains supported by fixed wireless access-driven densification; 2026 churn is expected at ~$56 M from Sprint, ~$55 M from DISH and ~$20 M from U.S. Cellular, marking a peak before a return to normalized churn levels.
Internationally, Brazil’s fundamentals are strong despite past FX headwinds and Oi consolidation churn accelerated into 2026; in Central America, scale and dollar-denominated contracts were enhanced by the Millicom tower acquisition, while sub-scale markets are being exited to focus on core regions.
Capital strategy centers on maintaining a 6–7× net debt/EBITDA leverage target (reduced from 7–7.5×) post-upgrade, enabling access to deeper financing markets, and prioritizing disciplined share repurchases over high-valued U.S. M&A.

2 days ago

Transcript

SBAC outlines 2025 highlights and 2026 outlook

SBAC

Guidance Update

Share Buyback

M&A

2025 highlights include a 10-year master lease agreement with Verizon, acquisition of over 7,000 towers in Central America from Millicom, and achieving investment grade ratings from two agencies.
2026 AFFO guidance of ~$12 /share reflects one-time churn (~$56 m from Sprint, ~$55 m from DISH) and financing headwinds, with high single-digit growth anticipated thereafter.
U.S. organic leasing expected at 4–5% long term, driven by 3% contractual escalators, 2–3% new leasing, and reduced churn, supported by fixed wireless access demand and upcoming high-band spectrum auctions (4.5–4.9 GHz, 7 GHz) by mid-2027.
Capital structure transition to a 6–7× net leverage target, leveraging investment grade status to access cheaper debt markets, while returning capital via the fastest-growing dividend and $500 m share buybacks in 2025.

2 days ago

Transcript

SBA Communications discusses 2026 growth trough and strategic initiatives

SBAC

Guidance Update

Legal Proceedings

Share Buyback

In 2026, domestic lease-up growth is expected to bottom at 2%, with normalized long-term growth of 4–5% driven by co-location densification and amendments.
SBA signed a 10-year master lease agreement with Verizon, securing minimum volume commitments and positioning Verizon as its most active new-revenue customer in 2026.
The company has filed a lawsuit against DISH after $56 million of annual rents stopped, with total contractual exposure of ~$100 million through 2028.
SBA acquired Millicom’s Central America towers for $1 billion at 11× EBITDA in 2025 and plans to allocate ~$650 million of annual free cash flow primarily to share buybacks amid high U.S. asset valuations.

Mar 3, 2026, 7:30 PM

Transcript

SBA Communications discusses 2026 growth outlook and strategic priorities

SBAC

Guidance Update

Legal Proceedings

Share Buyback

The U.S. tower industry is at a capex trough (<15% of carrier revenue) while underlying traffic continues growing at double-digit rates, with 6G rollouts in 2029–2030 expected to drive the next expansion phase.
SBA forecasts 2% domestic site-leasing growth in 2026 at the trough, rising to a 4–5% normalized rate via co-location densification and amendments; Verizon’s new MLA will offset T-Mobile’s slowdown, and AT&T remains steady under its 5-year agreement.
DISH has ceased payments on a $56 million annual lease commitment for 2026, leading SBA to assume full churn (total exposure ≈ $100 million through 2027–28) and file suit to enforce its contracts.
Internationally, Brazil faces peak churn from the Oi consolidation but offers long-term growth with 5G penetration below 50%; African operations in South Africa and Tanzania continue delivering double-digit ROIC with no current plans for new market entry.
With approximately $650 million of excess cash flow, SBA’s recent allocations include a $1 billion Millicom acquisition at 11× EBITDA and $200 million in buybacks; management plans to prioritize share repurchases over large U.S. tower M&A given rich valuations.

Mar 3, 2026, 7:30 PM

Transcript

SBA COMMUNICATIONS outlines 2026 growth outlook and strategic priorities

SBAC

Guidance Update

Legal Proceedings

Share Buyback

Normalized domestic tower leasing growth is 4–5%, with 2026 at the trough (~4%) driven by low carrier CapEx, and re-acceleration expected with 6G rollout and fixed wireless access demand.
10-year MLA with Verizon secures minimum volume commitments and pricing certainty; AT&T remains steady under a 5-year agreement, with Verizon set to be the most active new revenue generator in 2026.
$56 million of contracted annual revenue with DISH is expected to fully churn in 2026, exposing SBA to ~$100 million through lease terms, prompting legal action to recover amounts.
Portfolio rationalization has led to exits from small markets (Philippines, Colombia, Argentina, Canada) and focused investments including a $1 billion Millicom deal in Central America (11× EBITDA); ~$650 million of annual excess cash prioritized for share buybacks over U.S. M&A.

Mar 3, 2026, 7:30 PM

Transcript

SBA Communications details 2026 capital allocation and growth outlook

SBAC

Share Buyback

Dividends

Management sees the stock undervalued, will continue share buybacks at accretive levels and grow the fastest‐growing dividend in the industry to capitalize on this disconnect.
Maintains a 6–7x net debt/EBITDA leverage target, finished Q4 2025 at 6.4x, and generates $1.3 billion of AFFO annually for reinvestment.
Pulled forward Sprint/T-Mobile, DISH/EchoStar, and Oi (Brazil) churn into 2026 to clear consolidation impacts; expects to revert to 4–5% long-term organic growth (3% escalators + 2–3% lease-ups – 1% churn) thereafter.
International markets offer a greater long-term organic growth runway than the U.S. post-consolidation, as network development there lags and demand for new towers increases.

Mar 3, 2026, 1:50 PM

Transcript

SBA Communications outlines strategic priorities and financial outlook at Citi 2026 Conference

SBAC

Share Buyback

Dividends

Legal Proceedings

SBA views its stock as undervalued vs. private‐market peers, has increased share repurchases and is the fastest‐growing dividend in the tower sector.
Maintains target leverage of 6–7× net debt/EBITDA, finished Q4 at 6.4×, and generates $1.3 billion of AFFO annually to fund new builds, buybacks, and dividends.
Front‐loaded consolidation‐related churn (Sprint/T-Mobile, DISH/EchoStar, Brazil’s Oi) in 2026—leaving only $15 million–$20 million of residual churn—aims to clear the backlog and normalize growth.
Long‐term U.S. organic leasing growth expected to be 4–5% (≈3% escalators + 2–3% new leasing − 1% normalized churn).
Has filed suit against DISH/EchoStar to enforce tower‐lease contracts after nonpayment, and is seeking FCC action to ensure vendor contract rights—any recoveries would be upside to guidance.

Mar 3, 2026, 1:50 PM

Transcript

SBA Communications updates 2026 guidance and capital allocation strategy

SBAC

Guidance Update

Share Buyback

M&A

Removed $56 million of DISH revenue from 2026 guidance after DISH stopped payments; exposure limited to ~$100 million through 2028 with ongoing litigation.
2026 new-lease revenue guidance of $35 million (flat vs. $37 million in 2025), with Verizon expected to drive most new bookings; long-term normalized top-line growth of 4–5% driven by 3% escalators, 2–3% new leases, and ~1% churn.
Generates $600–700 million of excess cash annually, spent in 2025 on $500 million of share buybacks (avg. $200/share); $1.1 billion remaining buyback authorization; $1 billion Millicom acquisition (7,000 towers) at high-single-digit returns; leverage at ~6.5× EBITDA.
Sold subscale assets (Philippines, Argentina, Colombia, Canada) and acquired 7,000 Central America towers under a 15-year U.S. $ contract; plans to refinance ~$2 billion of ABS and term loan in the investment-grade market at 5–5.25% to bring secured debt below 50%.
Raised dividend by ~13% to a 41% payout ratio, targeting double-digit dividend increases over the next few years to reach mid-50% payout.

Mar 2, 2026, 2:15 PM

Transcript

SBA Communications provides 2026 guidance update and capital allocation outlook

SBAC

Guidance Update

Share Buyback

Dividends

2026 guidance: new colocations & amendments expected at $35 million, flat YoY; $56 million of DISH lease revenue removed after payment stoppage, with total DISH exposure ~$100 million through 2028 and litigation ongoing.
Long-term U.S. revenue growth normalized at 4–5%, driven by 3% escalators, 2–3% new lease activity, and 1% churn, underpinning 85% gross margins and single-digit EBITDA growth.
Annual free cash generation of $600–700 million; 2025 share repurchases of $500 million at ~$200/share with $1.1 billion remaining authorization; dividend payout at 41%, targeting mid-50% via double-digit increases.
International portfolio optimized through sales in the Philippines, Argentina, Colombia and Canada; acquired 7,000 Central America towers from Millicom under a 15-year USD contract at high-single-digit returns; bullish on Brazil with 12,000 towers and ongoing 5G deployment.
Balance sheet at 6.5× net leverage (target <7×); plans to refinance ~$2 billion of ABS and term debt in the investment-grade market at 5–5.25%, reducing secured debt to <50%.

Mar 2, 2026, 2:15 PM

Transcript

Earnings Transcripts

Quarterly earnings call transcripts for SBA COMMUNICATIONS.

Q4 2025

Feb 26, 2026

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Q3 2025

Nov 3, 2025

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Q2 2025

Aug 4, 2025

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SBA COMMUNICATIONS (SBAC)

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