What were the key takeaways from Iron Mountain's earnings call?

What is Iron Mountain's gross profit margin?

What does Iron Mountain do and what are its main business segments?

What is the revenue and EPS growth rate for Iron Mountain year over year?

What is the market's earnings forecast for Iron Mountain next quarter?

What guidance did Iron Mountain's management provide for the next earnings period?

What were the key takeaways from Iron Mountain’s earnings call?

What factors drove the changes in Iron Mountain's revenue and profit?

- **Triple-digit growth**: 13% revenue, 16% EBITDA, 18% AFFO growth, all records. 
- **$714M Treasury win**: 5-year contract to digitize IRS records, ramping in 2026. 
- **Data center surge**: 33% YoY growth, 36MW lease in Chicago, 25%+ 2026 outlook. 
- **ALM explosion**: 65% YoY, 36% organic growth, cross-sold to 6 data centers. 
- **Dividend boost**: 10% hike to $1.32, 4th straight year of growth. 
- **Pipeline strength**: 450MW to energize, 250MW in next 18 months. 


**【CEO Summary Section】**
- **Record financial performance**: Q3 revenue of $1.8B (+13% YoY), Adjusted EBITDA of $660M (+16% YoY), and AFFO of $393M (+18% YoY). 
- **Growth drivers**: 
  - Physical storage: 5% organic growth, driven by volume and retention. 
  - Digital Solutions: 33% data center revenue growth, 36 megawatts leased in Q3. 
  - ALM: 65% YoY revenue growth, 36% organic growth, fueled by cross-selling and acquisitions (e.g., ACT Logistics). 
- **Strategic wins**: 
  - $714M 5-year Treasury digitization contract (ramps in 2026). 
  - 36MW hyperscale lease in Chicago, transferring from London. 
  - ALM deal with global financial services firm spanning 6 data centers. 
- **Dividend increase**: 10% hike to $1.32 per share, marking 4th consecutive year of growth. 

**【CFO Financial Commentary】**
- **Segment performance**: 
  - RIM: $1.34B revenue (+6% YoY), 44.7% EBITDA margin. 
  - Data Centers: $204M revenue (+33% YoY), 52.6% EBITDA margin. 
  - ALM: $169M revenue (+65% YoY), 36% organic growth. 
- **Key metrics**: 
  - AFFO per share: $1.32 (+17% YoY). 
  - Net lease-adjusted leverage: 5.0x. 
  - Q4 outlook: $1.8B revenue (+14% YoY), $690M EBITDA (+14% YoY). 
- **Capital allocation**: 
  - $472M growth CapEx, $42M recurring CapEx. 
  - EUR 1.2B debt offering at 4.75% coupon. 

**【Q&A Key Highlights】**
- **Treasury contract phasing**: Linear growth over 5 years, with seasonal peaks in 2026 tax season. 
- **ALM growth dynamics**: 36% organic growth driven by volume (enterprise decommissioning), not pricing. 
- **Data center pipeline**: 450MW to energize over 24 months, 250MW in next 18 months. 
- **CapEx strategy**: Build-to-suit for hyperscalers, no speculative mega-projects. 
- **Currency impact**: Q4 guidance includes 1% FX headwind. 
- **Storage mix impact**: Data center power pass-through lowers gross margin but boosts EBITDA. 


Iron Mountain Incorporated (IRM) Q3 2025 Earnings Call Transcript

- **Record Growth**: Q2 revenue up 12%, EBITDA 15%, AFFO 15%, with updated 2025 guidance for 12% revenue growth.
- **Segment Strength**: Data Center revenue +24%, ALM +70% YoY, Digital Solutions at $540M run rate.
- **Strategic Moves**: CRC India acquisition, hyperscale data center pipeline of 500MW, and AI-driven DXP platform wins.
- **Profitability**: 36.7% EBITDA margin, 47% incremental flow-through, and 50%+ Data Center margins.
- **Future Outlook**: 2026 Data Center revenue >$1B, ALM growth driven by enterprise and hyperscale decommissioning.

**【Management Opening Remarks】**
- Mark Rupe introduced the call, emphasizing forward-looking statements and the availability of reconciliations for non-GAAP measures on the Investor Relations website.

**【CEO Summary Section】**
- **Record Financial Performance**: Q2 revenue reached $1.7 billion (12% YoY growth), with adjusted EBITDA of $628 million (15% YoY) and AFFO of $370 million (15% YoY). Guidance was increased across all metrics.
- **Segment Growth**: 
  - **Data Center**: 24% revenue growth, 26% organic storage growth, and 46% EBITDA expansion.
  - **Digital Solutions**: Record revenue, with AI-powered DXP platform winning strategic partnerships (e.g., SaaS company's HR solution).
  - **ALM**: 70% YoY revenue growth (42% organic), driven by enterprise and data center decommissioning wins.
- **Strategic Acquisitions**: Acquisition of CRC India to capitalize on digital growth in India, adding $8 million to H2 results.
- **Customer Wins**: Notable wins in healthcare (U.K. and Norway), ALM (food company in France, consulting firm in Canada), and hyperscale data center decommissioning.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Total revenue: $1.71 billion (12% YoY, 11% constant currency).
  - Adjusted EBITDA margin: 36.7% (up 120bps YoY), with 47% incremental flow-through.
  - AFFO per share: $1.24 (15% YoY).
- **Segment Performance**: 
  - **Global RIM**: $1.32 billion revenue (6% organic storage growth, 5% service growth).
  - **Data Center**: $189 million revenue (26% organic growth), 760bps EBITDA margin expansion.
  - **ALM**: $153 million revenue (70% YoY, 42% organic), with 25% contribution from acquisitions.
- **Capital Deployment**: $477 million invested (94% growth CapEx), with strong balance sheet (5.0x net lease-adjusted leverage).
- **Updated Guidance**: 
  - Full-year revenue: $6.79B-$6.94B (12% midpoint growth).
  - Adjusted EBITDA: $2.52B-$2.57B (14% midpoint growth).
  - AFFO: $1.505B-$1.53B (13% midpoint growth).

**【Q&A Key Highlights】**
- **Data Center signings**: 2025 signings projected at 30-80MW (lighter than planned due to hyperscale focus on large language models). 2026 revenue expected >$1B with no additional leasing needed.
- **ALM growth**: Balanced between enterprise (high-margin annuity) and data center decommissioning, driven by volume and cross-selling.
- **Margins**: Global RIM EBITDA margin 44.3%, Data Center 50%+, ALM improving due to scale and pricing trends.
- **Treasury contract**: $140M initial award ramping into 2026; rebid for larger, longer-term contract pending government response.
- **Digital Solutions**: DXP AI agents for multistep workflows recognized by Gartner and Everest, positioning for sustained growth.


Iron Mountain Incorporated (IRM) Q2 2025 Earnings Call Transcript

- **Q1 Record Results**: $1.6B revenue (8% YoY), $580M EBITDA (12% YoY), with 20%+ growth in data center, digital, and ALM.
- **$140M Gov Contract**: U.S. Treasury deal highlights AI-driven digital solutions growth.
- **Data Center Strength**: 20% YoY revenue growth, 125 MW new leasing target for 2025.
- **ALM Expansion**: 44% YoY growth, 22% organic, with Premier Surplus acquisition.
- **Updated Guidance**: Full-year 2025 revenue up 11%, EBITDA up 13%.
- **Minimal Tariff Risk**: <5% data center construction costs exposed to tariffs.

**【CEO Summary Section】**
- **Record Q1 Performance**: Achieved $1.6 billion revenue (8% YoY growth) and $580 million adjusted EBITDA (12% YoY growth). Growth businesses (data center, digital solutions, ALM) grew over 20%, while traditional records business also set records.
- **Strategic Wins**: Secured a $140 million U.S. Treasury contract leveraging DXP platform AI capabilities. Cross-selling success across solutions, with 25%+ of revenue from high-growth segments.
- **Data Center Momentum**: 20% YoY revenue growth, 24% organic storage growth, and 125 MW new leasing target for 2025. Hyperscale pipeline strong in North America, Europe, and India.
- **ALM Expansion**: 44% YoY revenue growth (22% organic), driven by enterprise and hyperscale wins. Acquired Premier Surplus to expand U.S. presence.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - $1.59 billion revenue (8% YoY, 9% constant currency)
  - $580 million EBITDA (12% YoY growth)
  - 36.4% EBITDA margin (130bps YoY expansion)
  - AFFO of $1.17 per share (6% YoY growth)
- **Segment Performance**: 
  - Global RIM: $1.26 billion revenue (3.6% margin expansion)
  - Data Center: $173 million revenue (48% EBITDA growth)
  - ALM: $121 million revenue (44% YoY growth)
- **Guidance Update**: Full-year 2025 revenue raised to $6.74-6.89 billion (11% growth), EBITDA to $2.505-2.555 billion (13% growth).
- **Tariff Exposure**: Minimal impact across businesses; <5% data center construction costs subject to tariffs.

**【Q&A Key Takeaways】**
- **Data Center Pipeline**: Confident in 125 MW new leasing target; hyperscale demand remains strong despite macro concerns.
- **ALM Growth Drivers**: Enterprise channel expansion (60% of ALM revenue) and cross-selling to 250k+ customers.
- **Government Digital Transformation**: $140M Treasury contract signals broader federal opportunity; pipeline expanding across agencies.
- **Tariff Mitigation**: Diversified ALM sales away from China; data center costs largely tariff-free.


Iron Mountain (IRM)-1 May 25-2025 Q1 Earnings call transcript

- **All-Time Highs in 2024**: $6.1B revenue (+12%), $2.2B EBITDA (+14%), $1.3B AFFO (+11%). Q4 growth rates exceed annual rates.
- **Project Matterhorn Exceeds Targets**: 11% CAGR vs 10% target, 25% growth portfolio share vs 15% in 2022.
- **Customer-Centric Culture Wins**: #1 customer satisfaction, 4-year Fortune 500 contract expansion.
- **2025 Growth Outlook**: >10% consolidated growth, 20%+ CAGR in digital/data center/ALM businesses.
- **Dividend Boost**: 10% quarterly dividend increase announced.

**【CEO Opening Remarks】**
- **Record 2024 Performance**: Full year revenue up 12% to $6.1B, Adjusted EBITDA +14% to $2.2B, AFFO +11% to $1.3B. Q4 revenue +11%, EBITDA +15%, AFFO +12%.
- **Project Matterhorn Success**: Exceeding 2022 growth targets with 11% CAGR (13% constant currency) vs 10% target. AFFO CAGR 9% (11% CC) vs 8% target.
- **Customer Satisfaction**: Ranked #1 in Wall Street Journal's U.S. listed companies customer satisfaction survey.
- **Growth Portfolio Momentum**: Digital solutions, data centers, ALM now 25% of revenue (vs 15% in 2022), growing >20% CAGR. Cross-selling to 250,000 customers (95% Fortune 1000) driving mid-high single-digit core growth.
- **Dividend Increase**: 10% quarterly dividend hike approved by Board.

**【Key Business Updates】**
- **Records Management**: +7% growth, 4-year Fortune 500 contract expansion including records, ALM and digital services.
- **Digital Solutions**: New customer wins leveraging end-to-end physical/digital solutions to streamline processes.
- **Data Centers**: Global scale and trust driving demand for secure, compliant infrastructure.
- **ALM**: Economic and environmental sustainability appeal driving adoption.

**【2025 Outlook】**
- Consolidated growth >10% driven by recurring revenue streams, macro demand for growth businesses, and cross-selling success.
- Growth portfolio (digital, data centers, ALM) >20% CAGR, now 25% of revenue.
- Core records management business growing mid-high single digits.
- Targeting >10% AFFO growth with improving operating leverage.

IRM

IRM fundamentals

Earnings Call

You can ask Aime