SBA COMMUNICATIONS (SBAC) Company Report

CFO Marc Montagner emphasized long-term shareholder value through top-line growth via new 10-year MLA with Verizon and ongoing MLA with AT&T to streamline amendments and secure minimum growth rates.
2025 capital allocation: from $1.9 B EBITDA, after dividends, interest, taxes and CapEx, $700 M remains for M&A and share buybacks; deployed into a $1 B Millicom tower acquisition (7,000 sites at 11×) and $325 M of buybacks through October.
Network activity in 2025 saw increased densification and co-location, with T-Mobile ~85% deployed on 2.5 GHz, Verizon ~70% and AT&T ~50%, while CapEx as a percentage of revenue reached a trough of 14.5%, the lowest in two decades.
2026–27 headwinds include refinancing $12 B of debt at higher rates, US churn from Sprint (~~$50 M annually) and Brazil churn from Oi (~~$35 M), offset by a long-term AFFO per share growth target of mid- to high-single digit via escalators, lease-up and normalized churn, aided by an investment-grade rating.

Dec 9, 2025, 7:15 PM

Transcript

SBA Communications outlines growth strategy at UBS Global Media and Communications Conference

SBAC

M&A

Share Buyback

Debt Issuance

Top priorities are expanding the top line through new agreements and disciplined capital allocation, having deployed $1 billion in M&A (Millicom portfolio) and $325 million in share buybacks year-to-date.
DISH exposure is limited to $55 million of 2025 revenue and $110 million total contract value, with modest churn of $25 million annually from 2027–2028.
Carrier densification remains robust, with T-Mobile having deployed 85% of 2.5 GHz, Verizon 70%, and AT&T 50%, while 2025 CapEx troughs at 14.5% of revenue.
SBA faces three near-term headwinds—higher interest costs (refinancing ~$12 billion debt at ~5%), $50 million Sprint churn, and $35 million Oi churn—but expects mid- to high-single-digit AFFO/share growth under its “3 + 3 – 1” framework.
The company achieved an investment-grade corporate rating after sub-7x leverage, reducing borrowing costs by ~75 bps and enabling long-term bond issuance.

Dec 9, 2025, 7:15 PM

Transcript

SBA Communications outlines capital allocation and 5G deployment outlook

SBAC

Share Buyback

M&A

New Projects/Investments

SBA aims to drive long-term shareholder value by growing the top line and disciplined capital allocation, projecting $1.9 B EBITDA, funding $475 M dividends, $435 M interest, $50 M maintenance CapEx, and leaving ~$700 M for M&A or buybacks.
Year-to-date capital deployment includes $1 B M&A (Millicom Central America towers) and $325 M share repurchases, following $300 M M&A and $200 M buybacks in 2024.
Secured a 10-year MLA with Verizon to streamline site deployments and guarantee minimum growth, complementing the AT&T MLA through mid-2028.
Continued 5G densification drives co-locations: T-Mobile ~85% 2.5 GHz deployed, Verizon ~70%, AT&T ~50%; industry CapEx/revenue at a trough of ~14.5% in 2025 vs. >20% in 2022–23.
Near-term headwinds include debt refinancing to ~5% on $12 B of debt and churn (~$50 M from Sprint in the U.S. and ~$35 M in Brazil), with normalized mid-single-digit AFFO/share growth expected beyond 2027.

Dec 9, 2025, 7:15 PM

Transcript

SBA Communications discusses growth drivers and capital strategy

SBAC

Guidance Update

M&A

Debt Issuance

Lease-up momentum reached $9 M in Q1, $8 M in Q2 and $10 M in Q3, driven by a carrier’s coverage requirement ahead of 2Q 2026 and ongoing 5G capacity roll-outs.
5G use cases such as fixed wireless access (FWA) consume 20–25× more capacity than handset traffic, fueling network expansion and rural coverage growth, with satellite-to-cell entrants like SpaceX viewed as industry positives.
Entered master lease agreements (MLAs) with Verizon and AT&T to secure volume commitments, standardized pricing and a minimum growth floor, enhancing both cost control and scalability.
Closed the Millicom towers acquisition in Central America at 11× EBITDA, under a 15-year, USD-denominated lease with escalators and BTS commitments, targeting mid- to high-single-digit revenue growth.
Lowered net leverage target to 6.0–7.0×, pursuing investment-grade status; plans to refinance ABS notes in January 2026 and deploy ~$700 M of annual free cash flow toward dividends, buybacks and opportunistic M&A.

Dec 2, 2025, 3:50 PM

Transcript

SBA Communications outlines growth strategy at BofA 2025 Leveraged Finance Conference

SBAC

M&A

Debt Issuance

Share Buyback

Site development remains robust, with $9 M, $8 M, and $10 M of lease-up in Q1, Q2, and Q3 2025, driven by carriers’ 5G coverage requirements and rising fixed wireless access demand.
Signed long-term agreements with Verizon and AT&T, exchanging volume commitments for preferred pricing and establishing minimum growth floors to streamline future site additions.
Minimal exposure to DISH, representing approximately $55 M of annual lease revenue, with no expected service revenue in 2026 and limited churn through 2028.
Completed acquisition of Millicom’s tower portfolio across five Central American countries under 15-year USD leases with escalators paid at ~11× EBITDA, positioning SBA as the region’s largest tower operator.
Maintaining net leverage of 6–7×, initiating a shift to investment-grade status, planning to refinance ~$750 M of ABS into unsecured debt in early 2026, and generating ~$700 M of annual discretionary cash for share buybacks, M&A, or debt reduction.

Dec 2, 2025, 3:50 PM

Transcript

SBA Communications outlines 2026 outlook and investment-grade strategy at BofA conference

SBAC

M&A

Debt Issuance

Share Buyback

Announced a new net leverage target of 6.0–7.0x, aiming to secure an investment-grade rating by refinancing $1.9 billion of securitized debt into unsecured bonds and revolver borrowings in 2026.
Projected mid-single-digit organic revenue growth in the U.S. (3% escalator + 3% lease-up − 1% churn), with Central America and Brazil each expected to deliver mid- to high-single-digit growth beyond near-term churn.
Completed the Millicom towers acquisition across five Central American countries for 11× EBITDA, under 15-year U.S. dollar leases with escalators and BTS commitments, targeting mid-high single-digit growth in the region.
Generates approximately $700 million of annual excess free cash (after dividends, interest, and CapEx), with $325 million deployed in share buybacks YTD and continued focus on dividend increases and selective M&A.

Dec 2, 2025, 3:50 PM

Transcript

SBA Communications reports Q3 2025 results and updates financial policy

SBAC

Earnings

Share Buyback

Dividends

SBA modestly raised its full-year outlook for new leasing activity and site development revenue after strong Q3 performance; services revenue grew 81% YoY in Q3 2025.
Completed final closing of Central American assets from Millicom and accelerated sale of its Canadian tower business; now owns >46,000 towers, a 40% increase since 2020.
Repurchased $325 million of shares YTD (1.6 million shares) and spent $153 million in Q3 (776 k shares at $196.99 avg. price), with $1.3 billion remaining authorization.
Announced new financial policy targeting 6.0–7.0× net debt/EBITDA, secured first Fitch BBB– rating, and ended Q3 at 6.2× leverage.
Declared a $1.11/share quarterly dividend (13% YoY increase), representing 35% of full-year AFFO midpoint; Q3 payout was $119.1 million.

Nov 3, 2025, 10:00 PM

Transcript

SBA Communications reports Q3 2025 results

SBAC

Earnings

Guidance Update

Share Buyback

Delivered another quarter of positive results with industry-leading AFFO per share, strong U.S. and international leasing demand, and an 81% YoY increase in services revenue; raised full-year site development revenue outlook by $20 million.
Completed acquisition of remaining Central American assets from Millicom and sold Canadian tower business ahead of schedule; pro forma portfolio now exceeds 46,000 towers, a 40% increase since 2020.
Signed a new 10-year agreement with Verizon that includes a minimum commitment on colocations and amendments, providing predictable multi-year leasing growth.
Repurchased $325 million of stock for 1.6 million shares YTD, including $153 million for 776,000 shares in Q3 at an average price of $196.99; $1.3 billion remains under the current authorization.
Updated financial policy to target 6–7× net debt/EBITDA, positioning the company for investment-grade debt (Fitch BBB–); CFO Mark DeRussy to retire year-end.

Nov 3, 2025, 10:00 PM

Transcript

SBAC reports Q3 2025 results

SBAC

Earnings

M&A

Share Buyback

AFFO per share remained industry-leading; services revenue grew 81% YoY, prompting a $20 million full-year site development revenue outlook raise.
Completed final closing of Millicom’s Central American assets and an accelerated sale of Canadian towers; now owns >46,000 sites worldwide, up 40% since 2020.
Signed a long-term master leasing agreement with Verizon, including a 10-year minimum colocation commitment to support future leasing growth.
Spent $325 million year-to-date on buybacks (1.6 million shares) with $1.3 billion remaining; Q3 alone repurchased $153 million at $196.99 per share.
Adopted a new financial policy targeting 6–7× net debt/EBITDA and received a BBB- Fitch rating, paving the way for investment-grade debt issuance.

Nov 3, 2025, 10:00 PM

Transcript

SBA Communications reports Q3 2025 results

SBAC

Earnings

Guidance Update

Share Buyback

Achieved net income of $240.4 million ($2.20 diluted EPS) and AFFO per share of $3.30, with site leasing revenue up 4.9% to $656.4 million
Declared a quarterly cash dividend of $1.11 per share, payable December 11, 2025 to shareholders of record on November 13, 2025
Repurchased 958 thousand shares for $194 million (748 thousand for $154.1 million in Q3 and 210 thousand for $40.2 million post-quarter)
Updated full-year 2025 outlook to $2.568 billion–$2.578 billion in site leasing revenue and AFFO per share of $12.76–$12.98

Nov 3, 2025, 9:31 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for SBA COMMUNICATIONS.

Q3 2025

Nov 3, 2025

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Q2 2025

Aug 4, 2025

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Q1 2025

Apr 28, 2025

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SBA COMMUNICATIONS (SBAC)

Analyst Earnings Quarterly Reports

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Executives

Brendan T. Cavanagh

Donald E. Day

Joshua M. Koenig

Marc Montagner

Mark R. Ciarfella

Richard M. Cane

Board Members

Amy E. Wilson

George R. Krouse, Jr.

Jack Langer

Jay L. Johnson

Jeffrey A. Stoops

Kevin L. Beebe

Laurie Bowen

Mary S. Chan

Steven E. Bernstein

Analyst Coverage

Batya Levi

Michael Rollins

Ric Prentiss

Brendan Lynch

Eric Luebchow

James Schneider

Jonathan Atkin

Richard Choe

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David Barden

David Guarino

Matthew Niknam

Nicholas Del Deo

Aryeh Klein

Mike Funk

Nick Del Deo

Simon Flannery

Walter Piecyk

Ari Klein

Batya Levy

Jim Schneider

Jonathan Chaplin

Michael Funk

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