Iron Mountain Reports Record Revenue and Q2 2025 Earnings

Iron Mountain reported Q2 2025 record revenue of $1.7 billion, a 11.6% YoY increase, and record quarterly Adjusted EBITDA of $628 million and Adjusted Funds From Operations of $370 million. The data center, digital, and asset lifecycle management businesses grew by over 30%. Despite a net loss of $43 million, Adjusted EBITDA and AFFO increased by 15% each. The company raised its full-year financial guidance.

Iron Mountain Incorporated (IRM) reported its second-quarter (Q2) 2025 financial results, showcasing robust growth across its data center, digital, and asset lifecycle management businesses. The company achieved record revenue of $1.7 billion, a 12% year-over-year (YoY) increase, and record quarterly Adjusted EBITDA of $628 million and Adjusted Funds From Operations (AFFO) of $370 million [1].

Despite a net loss of $43 million, the company's Adjusted EBITDA and AFFO increased by 15% each, driven by strong performance in its core segments. The data center, digital, and asset lifecycle management businesses grew by over 30%, reflecting the company's strategic focus on these high-growth areas [1].

Iron Mountain's stock responded positively in pre-market trading, rising 2.76% to $98.19, indicating investor optimism about the company's revenue performance and strategic initiatives. The company currently trades at a high P/E multiple of 229.8x, suggesting investors are pricing in significant future growth potential [1].

For the full year 2025, Iron Mountain projects revenue between $6.79 billion and $6.94 billion, representing a 12% growth. The company also anticipates adjusted EBITDA in the range of $2.52 billion to $2.57 billion, with AFFO expected to be between $1.505 billion and $1.530 billion. Notably, data center revenue is projected to grow by nearly 30%, with expectations of surpassing $1 billion in 2026 [1].

CEO Bill Meaney expressed confidence in sustaining double-digit revenue and profit growth, attributing the company's strong performance to its successful execution of strategic priorities and commitment to delivering value for customers. The company's global expansion and strategic acquisitions, such as CRC India, have strengthened its market position [1].

However, the company faces risks and challenges, including slower data center leasing due to a focus on large language model campuses, potential macroeconomic pressures affecting global operations, competition in the AI and digital services sectors, integration challenges from recent acquisitions, and regulatory compliance across multiple jurisdictions [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-iron-mountain-q2-2025-sees-revenue-growth-eps-miss-93CH-4173631