SBA Communications (SBAC) Earnings Call Transcript

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Thursday, February 26, 2026 astatine 5 p.m. ET

• Chief Executive Officer — Brendan Cavanagh

• Chief Financial Officer — Marc Montagner

Marc Montagner: Thank you, Louis. The 4th fourth was a coagulated decorativeness to the year. Results for the 4th were successful enactment with our estimates, adjacent with higher-than-forecasted atrocious indebtedness expenses related to EchoStar. In the 4th quarter, AFFO per stock was $3.19, with a currency dividend of $1.11 per share, an summation of 13% compared to the 4th fourth of 2024. Operationally, we added astir $10 cardinal of home caller leases and amendment billings. The bulk of the enactment continues to travel from caller colocations arsenic carriers some densify and grow their web footprint. Our work concern besides continues to execute well, expanding gross by 13% successful the 4th fourth compared to the 4th fourth of 2025 (sic) [ 2024 ].

This was mostly owed to construction-related projects focused connected web expansion. With respect to churn, we are getting person to the extremity of consolidation churn successful the U.S. with Sprint-related churn of astir $17 cardinal successful the quarter. Internationally, we proceed to spot steadfast demand, adding astir $6 cardinal of caller leases and amendment billings successful the 4th quarter. International churn continues to beryllium elevated, and we mislaid astir $8 cardinal of gross successful the 4th from bearer consolidation, bankruptcy restructuring and wireless operators web optimization. The squad has been moving astir the timepiece to integrate the recently acquired sites from Millicom successful Central America.

We're besides ramping up our caller physique programme successful the region, mounting up our concern for aboriginal occurrence arsenic a starring autarkic operation relation successful Central America. In the quarter, we deployed important superior to bargain backmost our shares, spending $213 cardinal to discontinue 1.1 cardinal shares astatine an mean terms of $191.07. In total, successful 2025, we spent $500 cardinal to repurchase 2.5 cardinal shares. And arsenic of today, we person $1.1 cardinal remaining connected our stock buyback authorization. We proceed to judge that stock buybacks play a important relation successful creating shareholder worth implicit time. Today's net property merchandise includes our archetypal 2026 outlook.

Domestically, our 2026 outlook reflects a akin level of caller gross maturation from bearer leasing enactment to what we experienced successful 2025. The outlook besides assumes a scope of $55 cardinal to $56 cardinal related to Sprint churn, which is somewhat higher than we estimated past quarter. The summation is owed to timing, and we present expect Sprint churn successful 2027 and beyond to beryllium little than the $20 cardinal antecedently provided. In addition, our churn outlook removes each aboriginal recurring gross from EchoStar. We'll proceed to prosecute ineligible rights to retrieve these revenues from EchoStar. For our planetary segment, our outlook reflects a afloat twelvemonth publication from the acquisition of sites from Millicom successful Central America.