SBA Communications Q2 Earnings: Revenue Jumps 5.8% YoY, EPS Up 38.5%

SBA Communications reported Q2 2025 revenue of $698.98 million, up 5.8% YoY, and diluted EPS of $2.09, above the consensus estimate of $2.13. The company raised full-year guidance across all key metrics, driven by strong domestic demand, accelerated site acquisitions, and favorable leasing trends. Site leasing revenue grew 1.4% domestically and 4.0% internationally, while services revenue nearly doubled to $67.2 million, contributing to a decline in the company-wide Adjusted EBITDA margin.

SBA Communications Corporation (SBAC) has reported its Q2 2025 earnings, showcasing robust performance with revenue of $698.98 million, up 5.8% year-over-year (YoY), and diluted EPS of $2.09, exceeding the consensus estimate of $2.13. The company attributed its strong results to strong domestic demand, accelerated site acquisitions, and favorable leasing trends. Additionally, the company raised its full-year guidance across all key metrics.

Domestic site leasing revenue grew by 1.4% YoY, while international site leasing revenue increased by 4.0% YoY. Services revenue nearly doubled to $67.2 million, contributing to a decline in the company-wide Adjusted EBITDA margin. The company's Adjusted Funds From Operations (AFFO) per share decreased by 3.6% YoY to $3.17, primarily due to higher interest expenses.

SBA Communications also announced the acquisition of 4,329 sites for approximately $563 million, primarily from Millicom in Guatemala and Panama. This acquisition is expected to drive future growth and enhance the company's market position. The company's total debt stands at $12.6 billion, with a net debt of $12.3 billion and a leverage ratio of 6.3 times net debt to adjusted EBITDA.

Analysts remain optimistic about SBA Communications' prospects, citing the company's strategic positioning and ability to leverage market dynamics for sustained growth. The company's positive revisions in analyst forecasts signal confidence in its future performance. Despite challenges such as elevated international churn and rising interest rates, SBA Communications is well-positioned for continued growth, driven by favorable market conditions and strategic investments in network infrastructure.

References:
[1] https://www.ainvest.com/news/sba-communications-sbac-q2-2025-earnings-preview-upside-potential-network-expansion-drives-2508/
[2] https://finance.yahoo.com/news/sba-communications-corp-sbac-q2-070552539.html
[3] https://www.theglobeandmail.com/investing/markets/markets-news/Motley%20Fool/33872353/sbac-earnings-jump-on-strong-sales/