American Tower 2025 Q2 Earnings Misses Targets as Net Income Falls 58%

American Tower (AMT), ranking 142nd by market capitalization, reported its fiscal 2025 Q2 earnings on Jul 28th, 2025. The company reported a revenue increase of 3.2% to $2.63 billion, surpassing expectations. However, net income saw a significant decline of 58.1%, mainly due to foreign currency losses. Despite this, American Tower raised its guidance for the full year, forecasting a stronger performance in the property revenue segment. The company remains optimistic about future prospects, supported by resilient mobile demand and strategic focus.

Revenue

American Tower saw a rise in total revenue, reaching $2.63 billion in 2025 Q2, up from $2.54 billion in 2024 Q2. The property segment generated $2.53 billion, while the services segment contributed $99.50 million, reflecting robust growth across its operations.

Earnings/Net Income

American Tower's EPS dropped 59.6% to $0.78 in 2025 Q2 from $1.93 in 2024 Q2, while net income decreased by 58.1% to $380.50 million. Overall, the earnings reflect a challenging quarter.

Post Earnings Price Action Review

The strategy of purchasing American Tower (AMT) shares after a revenue increase, as per the financial report, and holding for 30 days resulted in a -13.04% return, significantly underperforming the benchmark return of 88.74%. This resulted in an excess return of -101.78% and a CAGR of -2.77%, underscoring the strategy's poor performance. Despite no maximum drawdown, the Sharpe ratio stood at -0.11, indicating high risk and negative return relative to the risk-free rate. Overall, the strategy proved to be ineffective with considerable underperformance when compared to market benchmarks.

CEO Commentary

Steven Vondran, Chief Executive Officer of American Tower Corporation, highlighted that the demand for the company’s global portfolio of telecommunications sites remained strong in the second quarter. He noted that U.S. services revenue experienced one of its highest contributions on record due to midband upgrades and densification activities. Additionally, double-digit growth at CoreSite was driven by the demand for AI-ready interconnection solutions. Despite managing customer events in Latin America, international cash flow conversion stayed solid, supported by cost and capital discipline. Vondran expressed optimism about entering the second half of 2025 with sustained momentum and a clear strategic focus.

Guidance

American Tower Corporation anticipates continued momentum in the second half of 2025, driven by resilient mobile demand and the critical nature of its assets. The company emphasizes its disciplined capital allocation strategy and balance sheet strength, positioning itself to capitalize on market dynamics while delivering sustained returns. The leadership remains committed to maximizing shareholder value through best-in-class operational execution and maintaining a compelling customer value proposition amidst evolving market conditions.

Additional News

American Tower Corporation (AMT) announced a quarterly cash distribution of $1.70 per share on its common stock, reflecting a 4.9% increase from the previous year. This dividend will be paid on July 11, 2025, to stockholders of record as of June 13, 2025. In other developments, American Tower priced a senior unsecured notes offering, amounting to €500 million, with proceeds aimed at repaying existing debt and general corporate purposes. Additionally, CoreSite, a subsidiary of American Tower, released its 2025 State of the Data Center Report, highlighting a strong industry shift towards hybrid IT architectures and the critical role of AI in shaping IT infrastructure decisions.