Iron Mountain 2025 Q2 Earnings Misses Targets as Net Income Plunges 225%

Iron Mountain (IRM) reported its fiscal 2025 Q2 earnings on Aug 06th, 2025. The results fell short of expectations, with the company recording a net loss of $-43.34 million, a 225.2% deterioration from the net income of $34.62 million in the same period last year. The company has raised 2025 guidance in response to strong operational performance and a positive outlook.

Iron Mountain's revenue surged 11.6% to $1.71 billion in 2025 Q2, up from $1.53 billion in 2024 Q2, driven by robust growth across its business segments. Specifically, Storage rental revenue totaled $1.01 billion, while Service revenue reached $701.96 million.

Iron Mountain swung to a loss of $0.15 per share in 2025 Q2 from a profit of $0.12 per share in 2024 Q2, reflecting a 225.0% negative change. The reported EPS was $-0.15, compared to $0.12 the previous year. The company has sustained profitability for more than 20 years in this quarter, despite the current loss, showing strong operational resilience.

Iron Mountain's stock has seen a steep decline recently, tumbling 8.17% during the latest trading day, 8.08% during the most recent full trading week, and 10.25% month-to-date.

A historical trading strategy of buying Iron Mountain shares after a revenue raise quarter-on-quarter on the earnings release date and holding for 30 days delivered strong returns over the past three years. This strategy achieved a 126.91% return, significantly outperforming the benchmark return of 49.40%. The excess return was 77.52%, indicating the strategy's ability to capitalize on IRM's positive earnings momentum. With a CAGR of 31.79% and a maximum drawdown of 0.00%, the strategy also showcased robust risk-adjusted returns and minimal downside risk.

William L. Meaney, President and CEO of Iron Mountain, highlighted the company’s record performance in Q2 2025, with strong growth across all business segments and results exceeding expectations. He attributed this success to the team’s strategic execution, customer value delivery, and the synergistic business model. The CEO emphasized the sustained momentum driven by the growth in both digital/data center and physical records storage businesses, expressing confidence in continued revenue and profit growth at current levels. Based on the outperformance and positive outlook, the leadership team increased full year 2025 guidance.

Iron Mountain raised its 2025 guidance, now forecasting total revenue of $6.79 billion to $6.94 billion (~12% Y/Y), Adjusted EBITDA of $2.52 billion to $2.57 billion (~14% Y/Y), and AFFO of $1.505 billion to $1.53 billion (~13% Y/Y). AFFO per share is expected to be $5.04 to $5.13 (~12% Y/Y), up from previous guidance.

Additional News
Iron Mountain declared a quarterly cash dividend of $0.785 per share of common stock for the third quarter of 2025. The dividend is payable on October 3, 2025, to shareholders of record at the close of business on September 15, 2025. The company also reported that its data center, digital, and asset lifecycle management (ALM) businesses collectively grew more than 30%. The impact of changes in exchange rates on intercompany balances led to a loss to Net Income of $43 million. Iron Mountain also achieved record quarterly Adjusted EBITDA of $628 million and record quarterly AFFO of $370 million, or $1.24 per share. Based on these strong operational results, the company increased its 2025 financial guidance.