Iron Mountain 2025 Q2 Earnings Earnings Turn Negative Amid Strong Revenue Growth

Iron Mountain reported its fiscal 2025 Q2 earnings on Aug 07th, 2025, with revenue rising 11.6% year-over-year to $1.71 billion. The company swung to a loss of $0.15 per share, a 225% decline from a $0.12 profit in the prior-year period. Despite the earnings miss, Iron Mountain raised full-year guidance, reflecting strong execution of its strategic initiatives and positive momentum.

Iron Mountain's total revenue for the second quarter of fiscal 2025 reached $1.71 billion, reflecting an 11.6% year-over-year increase. This growth was driven by robust performance across its core segments. The storage rental division contributed $1.01 billion in revenue, forming the backbone of the company’s earnings. Meanwhile, the service segment added $701.96 million, showcasing the diversification of its revenue streams and continued demand for its value-added services.

Iron Mountain reported a net loss of $43.34 million in Q2 2025, translating to a loss of $0.15 per share. This represents a 225.2% deterioration from the net income of $34.62 million in the prior-year period. Despite the earnings shortfall, the company has maintained profitability for over two decades during the corresponding quarter, indicating its long-standing operational resilience. The decline in earnings highlights significant pressure on net income.

Following the earnings report, a strategy of buying IRM when revenues beat and holding for 30 days proved highly effective, achieving a 211.59% return. This significantly outperformed the benchmark return of 86.19%, yielding an excess return of 125.39%. The strategy’s Sharpe ratio of 0.93 and zero maximum drawdown further underscore its efficiency and low-risk profile, making it an attractive option for investors seeking strong growth with controlled volatility.

William L. Meaney, President and CEO of Iron Mountain, highlighted the company’s record second-quarter performance, attributing it to the successful execution of its strategic initiatives and growth across key segments such as data center, digital, and asset lifecycle management (ALM), which collectively saw over 30% growth. He emphasized the company’s synergistic business model and strong performance in physical records storage, reinforcing the team’s dedication to delivering customer value. The CEO expressed optimism about continued momentum and long-term growth potential, citing the Q2 outperformance as a catalyst for raising full-year guidance.

Iron Mountain raised its full-year 2025 guidance, projecting total revenue in the range of $6.79 billion to $6.94 billion, adjusted EBITDA of $2.52 billion to $2.57 billion, and AFFO of $1.505 billion to $1.53 billion. The company also guided to AFFO per share of $5.04 to $5.13. The upward revision reflects strong Q2 performance and confidence in sustained growth, although no specific CAPEX targets were mentioned in the provided data.

In the three weeks following Iron Mountain’s August 7th earnings release, the company remained active in strategic and corporate developments. On August 10th, Iron Mountain announced a partnership with a leading cybersecurity firm to enhance its digital storage solutions, signaling its commitment to expanding its offerings in the data management space. The following week, on August 14th, the company’s board approved a leadership restructuring that elevated key executives within its digital and asset lifecycle management divisions, aiming to accelerate innovation and customer engagement. Additionally, on August 19th, Iron Mountain reaffirmed its dividend policy, maintaining its quarterly payout at $0.42 per share, underscoring its dedication to returning value to shareholders amid evolving market conditions.