American Tower Corporation Reports Second Quarter 2025 Financial Results

CONSOLIDATED HIGHLIGHTS(1)(2) Second Quarter 2025 Total revenue increased 3.2% to $2,627 million(3) Total property revenue increased 1.2% to $2,527 million(3) Net income decreased 58.1% to $381 million, primarily due to foreign currency losses in the current period(4)(5) Adjusted EBITDA increased 1.8% to $1,752 million(5) Net income attributable to AMT common stockholders decreased 59.3% to $367 million, primarily due to foreign currency losses(4)(5) AFFO attributable to AMT common stockholders decreased 6.7% to $1,218 million AFFO attributable to AMT common stockholders, as adjusted, increased 2.6% to $1,218 million(6) BOSTON--(BUSINESS WIRE)--American Tower Corporation (NYSE: AMT) today reported financial results for the quarter ended June 30, 2025. Steven Vondran, American Tower’s Chief Executive Officer, stated, “Demand for our high-quality global portfolio of telecommunications sites continued into the second quarter. In the U.S., broad-based midband upgrades, paired with accelerating densification activity, supported one of the highest quarters of U.S. Services revenue contributions on record. Growing demand for AI-ready interconnection solutions fueled double-digit growth at CoreSite. While we continue to manage through certain customer events, particularly in Latin America, international activity remains steady, with a solid cash flow conversion enhanced through cost and capital discipline. Backed by resilient mobile demand and the criticality of our assets, our business enters the second half of 2025 with continued momentum and strategic clarity. Our disciplined and long-term approach to maximizing shareholder value through our thoughtful capital allocation strategy, balance sheet strength, best-in-class operational execution, and, most importantly, compelling customer value proposition positions us to derive substantial value from a dynamic market and deliver durable, sustained returns.” CONSOLIDATED OPERATING RESULTS OVERVIEW(1)(2) American Tower generated the following operating results for the quarter ended June 30, 2025 (all comparative information is presented against the quarter ended June 30, 2024). ($ in millions, except per share amounts.) Q2 2025 Growth Rate Total revenue(3) $ 2,627 3.2% Total property revenue(3) $ 2,527 1.2% Total Tenant Billings Growth $ 97 5.2% Organic Tenant Billings Growth $ 87 4.7% Property Gross Margin(5) $ 1,887 0.9% Property Gross Margin % 74.7 % Net income(4)(5) $ 381 (58.1)% Net income attributable to AMT common stockholders(4)(5) $ 367 (59.3)% Net income attributable to AMT common stockholders per diluted share(4)(5) $ 0.78 (59.4)% Adjusted EBITDA(5) $ 1,752 1.8% Adjusted EBITDA Margin % 66.7 % Nareit Funds From Operations (FFO) attributable to AMT common stockholders(4)(5) $ 765 (43.4)% AFFO attributable to AMT common stockholders $ 1,218 (6.7)% AFFO attributable to AMT common stockholders per Share $ 2.60 (6.8)% AFFO attributable to AMT common stockholders, as adjusted(6) $ 1,218 2.6% AFFO attributable to AMT common stockholders per Share, as adjusted(6) $ 2.60 2.4% Cash provided by operating activities $ 1,282 (4.3)% Less: total cash capital expenditures(7) $ 313 (4.6)% Free Cash Flow $ 969 (4.1)% _______________ (1) On September 12, 2024, American Tower Corporation (the “Company” or “American Tower”) completed the sale of 100% of the equity interests in its operations in India (“ATC TIPL”) to Data Infrastructure Trust, an Infrastructure Investment Trust sponsored by an affiliate of Brookfield Asset Management (the “ATC TIPL Transaction”). The ATC TIPL Transaction qualified for presentation as discontinued operations. Prior to the divestiture and classification as discontinued operations, ATC TIPL’s operating results were included within the Asia-Pacific property segment. Accordingly, the operating results of ATC TIPL are reported as discontinued operations for all prior periods presented. Please refer to the footnotes and definitions in this release regarding treatment of discontinued operations. (2) Prior period results and associated growth rates for total revenue, total property revenue, total Tenant Billings Growth, Organic Tenant Billings Growth, Property Gross Margin, Adjusted EBITDA, AFFO attributable to AMT common stockholders, as adjusted, and AFFO attributable to AMT common stockholders per Share, as adjusted, exclude the impacts associated with discontinued operations related to the ATC TIPL Transaction. Net income, Net income attributable to AMT common stockholders, Net income attributable to AMT common stockholders per diluted share, Nareit Funds From Operations (FFO) attributable to AMT common stockholders, AFFO attributable to AMT common stockholders, AFFO attributable to AMT common stockholders per Share, Cash provided by operating activities, total cash capital expenditures and Free Cash Flow include the impacts associated with discontinued operations related to the ATC TIPL Transaction. (3) Q2 2025 growth rates impacted by a decrease in non-cash straight-line revenue, which represented approximately $28.2 million in the current period as compared to approximately $74.1 million in the prior-year period. (4) Q2 2025 growth rates impacted by foreign currency losses of approximately $(484.0) million in the current period as compared to foreign currency losses of approximately $(21.7) million in the prior-year period. (5) Q2 2025 growth rates impacted by a decrease in non-cash straight-line revenue, net of non-cash straight-line expense, which represented approximately $18.8 million in the current period as compared to approximately $63.3 million in the prior period. (6) Represents AFFO attributable to AMT common stockholders from continuing operations adjusted for a full period of interest expense savings associated with the use of approximately $2.0 billion of proceeds from the ATC TIPL Transaction to pay down existing indebtedness under the 2021 Multicurrency Credit Facility (as defined below), at the applicable historical borrowing cost for the respective prior period. No additional adjustments are required related to the repayment of approximately $120 million under the Company’s unsecured term loan in India, as amended in January 2024 (the “India Term Loan”), as the historical interest expense associated with the India Term Loan is already considered as part of AFFO attributable to AMT common stockholders from discontinued operations when deriving AFFO attributable to AMT common stockholders from continued operations. (7) Q2 2025 cash capital expenditures include $8.3 million of finance lease and perpetual land easement payments reported in cash flows from financing activities in the condensed consolidated statements of cash flows. Please refer to “Non-GAAP and Defined Financial Measures” below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the “Unaudited Selected Consolidated Financial Information” below. CAPITAL ALLOCATION OVERVIEW Distributions – During the quarter ended June 30, 2025, the Company declared the following regular cash distributions to its common stockholders: Common Stock Distributions Q2 2025(1) Distributions per share $ 1.70 Aggregate amount (in millions) $ 796.0 Year-over-year per share growth 4.9 % _______________ (1) The distribution declared on May 15, 2025 was paid on July 11, 2025 to stockholders of record as of the close of business on June 13, 2025. Capital Expenditures – During the second quarter of 2025, total capital expenditures were approximately $313 million, of which $40 million was for non-discretionary capital improvements and corporate capital expenditures. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website. Acquisitions – During the second quarter of 2025, the Company spent approximately $185 million for acquisitions, primarily driven by the acquisition of a multi-tenant data center facility in Denver, Colorado, in which it previously leased space (“DE1”). The acquisition added incremental customer leases and operating spaces within DE1, and additional space and power capacity that the Company intends to develop within the data center. LEVERAGE AND FINANCING OVERVIEW Leverage – For the quarter ended June 30, 2025, the Company’s Net Leverage Ratio was 5.1x net debt (total debt less cash and cash equivalents) to second quarter 2025 annualized Adjusted EBITDA. Calculation of Net Leverage Ratio ($ in millions, totals may not add due to rounding.) As of June 30, 2025 Total debt $ 37,485 Less: Cash and cash equivalents 2,076 Net Debt $ 35,409 Divided By: Second quarter annualized Adjusted EBITDA(1) 7,007 Net Leverage Ratio 5.1x _______________ (1) Q2 2025 Adjusted EBITDA multiplied by four. Liquidity and Financing Activities – As of June 30, 2025, the Company had approximately $10.5 billion of total liquidity, consisting of approximately $2.1 billion in cash and cash equivalents plus the ability to borrow an aggregate of approximately $8.4 billion under its revolving credit facilities, net of any outstanding letters of credit. On April 3, 2025, the Company repaid €500.0 million aggregate principal amount of its 1.375% senior unsecured notes due April 4, 2025 upon their maturity. On May 30, 2025, the Company repaid $750.0 million aggregate principal amount of its 4.000% senior unsecured notes due June 1, 2025 upon their maturity. On May 30, 2025, the Company issued €500.0 million (approximately $567.4 million at the date of issuance) aggregate principal amount of 3.625% senior unsecured notes due 2032. The net proceeds of the offering were used to repay existing indebtedness under its $6.0 billion senior unsecured multicurrency revolving credit facility, as amended and restated in December 2021, as further amended (the “2021 Multicurrency Credit Facility”), and for general corporate purposes. On June 16, 2025, the Company repaid $525.0 million aggregate principal amount outstanding under its Secured Tower Revenue Notes, Series 2015-2, Class A, which were originally issued in 2015 (the “2015 Securitization”). Following such repayment, no notes were outstanding under the 2015 Securitization. FULL YEAR 2025 OUTLOOK The following full year 2025 estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of July 29, 2025. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking statements” included in this press release when considering this information. The Company’s outlook is based on the following average foreign currency exchange rates to 1.00 U.S. Dollar for July 29, 2025 through December 31, 2025: (a) 1,290 Argentinean Pesos; (b) 125.20 Bangladeshi Taka; (c) 5.70 Brazilian Reais; (d) 1.37 Canadian Dollars; (e) 940 Chilean Pesos; (f) 4,240 Colombian Pesos; (g) 0.88 Euros; (h) 11.10 Ghanaian Cedis; (i) 131 Kenyan Shillings; (j) 19.60 Mexican Pesos; (k) 1,650 Nigerian Naira; (l) 7,980 Paraguayan Guarani; (m) 3.65 Peruvian Soles; (n) 56.10 Philippine Pesos; (o) 18.00 South African Rand; (p) 3,690 Ugandan Shillings; and (q) 580 West African CFA Francs. The Company’s outlook reflects estimated positive impacts of foreign currency exchange rate fluctuations to total property revenue, Adjusted EBITDA, AFFO attributable and AFFO attributable per Share to AMT common stockholders of approximately $130 million, $80 million, $55 million and $0.12 per Share, respectively, relative to the Company’s prior 2025 outlook. The impact of foreign currency exchange rate fluctuations on net income metrics is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort. The Company’s 2024 results, for the purposes of the growth rates described below, are presented on a continuing operations basis, with the exception of Net Income, Net Income attributable to AMT common stockholders, AFFO attributable to AMT common stockholders and AFFO attributable to AMT common stockholders per Share. As a result of the estimated positive foreign currency exchange rate fluctuations described above, and core outperformance as it relates to property revenue and Adjusted EBITDA, the Company is raising the midpoints of its full year 2025 outlook for property revenue, Adjusted EBITDA, AFFO attributable to AMT common stockholders and AFFO attributable to AMT common stockholders per Share by $165 million, $120 million, $55 million and $0.12, respectively. The Company is reducing the midpoint for net income and net income attributable to AMT common stockholders by $400 million and $475 million, respectively, primarily due to unrealized foreign currency losses. Additional information pertaining to the impact of foreign currency and Secured Overnight Financing Rate fluctuations on the Company’s outlook has been provided in the supplemental disclosure package available on the Company’s website. 2025 Outlook: ($ in millions, except per share amounts.) Full Year 2025 Midpoint Growth Rates vs. Prior Year Midpoint Growth Rates vs. Prior Year, As Adjusted Total property revenue(1)(2) $ 10,135 to $ 10,285 2.8% N/A Net income 2,340 to 2,440 4.8% N/A Net income attributable to AMT common stockholders 2,300 to 2,400 4.2% N/A Adjusted EBITDA(3) 7,005 to 7,075 3.3% N/A AFFO attributable to AMT common stockholders 4,905 to 4,995 0.3% 6.2% AFFO attributable to AMT common stockholders per Share $ 10.46 to $ 10.65 0.2% 6.0% ______________ (1) Includes U.S. & Canada segment property revenue of $5,200 million to $5,260 million, international property revenue of $3,900 million to $3,970 million and Data Centers segment property revenue of $1,035 million to $1,055 million, reflecting midpoint growth rates of (0.3)%, 4.6% and 13.0%, respectively. The U.S. & Canada growth rate includes an estimated negative impact of approximately 3% associated with a decrease in non-cash straight-line revenue recognition. The international growth rate includes an estimated negative impact of approximately 1% from the translational effects of foreign currency exchange rate fluctuations. International property revenue reflects the Company’s Africa & APAC, Europe and Latin America segments. Data Centers segment property revenue reflects revenue from the Company’s data center facilities and related assets. (2) Property revenue growth rate includes an estimated negative impact of approximately 2% associated with straight-line revenue recognition. (3) Adjusted EBITDA growth rate includes an estimated negative impact of approximately 3% associated with straight-line revenue recognition. 2025 Outlook for Total Property revenue, at the midpoint, includes the following components(1): ($ in millions, totals may not add due to rounding.) U.S. & Canada Property(2) International Property(3) Data Centers Property(4) Total Property International pass-through revenue N/A $ 1,061 N/A $ 1,061 Straight-line revenue 48 32 7 87 _______________ (1) For additional discussion regarding these components, please refer to “Revenue Components” below. (2) U.S. & Canada property revenue includes revenue from all assets in the United States and Canada, other than data center facilities and related assets. (3) International property revenue reflects the Company’s Africa & APAC, Europe and Latin America segments. (4) Data Centers property revenue reflects revenue from the Company’s data center facilities and related assets. 2025 Outlook for Total Tenant Billings Growth, at the midpoint, includes the following components(1): (Totals may not add due to rounding.) U.S. & Canada Property International Property(2) Total Property Organic Tenant Billings ~4.3% >6% ~5% New Site Tenant Billings ~0% ~1% ~0.5% Total Tenant Billings Growth ~4.3% >7% ~5.5% _______________ (1) For additional discussion regarding the component growth rates, please refer to “Revenue Components” below. Tenant Billings Growth is not applicable to the Data Centers segment. For additional details related to the Data Centers segment, please refer to the supplemental disclosure package available on the Company’s website. (2) International property Tenant Billings Growth reflects the Company’s Africa & APAC, Europe and Latin America segments. Outlook for Capital Expenditures: ($ in millions, totals may not add due to rounding.) Full Year 2025 Discretionary capital projects(1) $ 865 to $ 895 Ground lease purchases 200 to 220 Start-up capital projects 65 to 85 Redevelopment 320 to 350 Capital improvement 155 to 165 Corporate 10 — 10 Total $ 1,615 to $ 1,725 _______________ (1) Includes the construction of 1,850 to 2,450 communications sites globally and $600 million of development spend in the Company’s Data Centers segment. Reconciliation of Outlook for Adjusted EBITDA to Net income: ($ in millions, totals may not add due to rounding.) Full Year 2025 Net income $ 2,340 to $ 2,440 Interest expense 1,385 to 1,365 Depreciation, amortization and accretion 2,040 to 2,050 Income tax provision 435 to 425 Stock-based compensation expense 170 — 170 Other, including other operating expenses, interest income, (gain) loss on retirement of long-term obligations and other (income) expense 635 to 625 Adjusted EBITDA $ 7,005 to $ 7,075 Reconciliation of Outlook for AFFO attributable to AMT common stockholders to Net income: ($ in millions, except share and per share data, totals may not add due to rounding.) Full Year 2025 Net income $ 2,340 to $ 2,440 Straight-line revenue (87 ) — (87 ) Straight-line expense 36 — 36 Depreciation, amortization and accretion 2,040 to 2,050 Stock-based compensation expense 170 — 170 Deferred portion of income tax and other income tax adjustments 156 — 156 Other, including other operating expense, amortization of deferred financing costs, debt discounts and premiums, (gain) loss on retirement of long-term obligations, other (income) expense and long-term deferred interest charges 804 to 794 Capital improvement capital expenditures (155 ) to (165 ) Corporate capital expenditures (10 ) — (10 ) Adjustments and distributions for unconsolidated affiliates and noncontrolling interests (389 ) — (389 ) AFFO attributable to AMT common stockholders $ 4,905 to $ 4,995 Divided by weighted average diluted shares outstanding (in thousands) 468,900 — 468,900 AFFO attributable to AMT common stockholders per Share $ 10.46 to $ 10.65 Reconciliation of Outlook for EBITDA to AFFO attributable to AMT common stockholders and AFFO attributable to American Tower Corporation common stockholders per Share: ($ in millions, except share and per share data, totals may not add due to rounding.) Full Year 2025 Adjusted EBITDA $ 7,005 to $ 7,075 Straight-line revenue (87 ) — (87 ) Straight-line expense 36 — 36 Cash interest expense (1,326 ) to (1,306 ) Interest income 110 — 110 Cash paid for income taxes (279 ) to (269 ) Capital improvement capital expenditures (155 ) to (165 ) Corporate capital expenditures (10 ) — (10 ) Adjustments and dividends from non-controlling interest (389 ) — (389 ) AFFO Attributable to Common Stockholders $ 4,905 to $ 4,995 Divided by weighted average shares outstanding 468,900 — 468,900 AFFO attributable to AMT common stockholders per Share $ 10.46 to $ 10.65 Conference Call InformationRead the full story here

American Tower Corporation Reports Second Quarter 2025 Financial Results

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