SBA Communications (SBAC) Q1 2026 earnings summary

Executive summary

• Raised full-year 2026 outlook for all key metrics due to strong Q1 performance, robust international site leasing growth, and favorable FX rates.

• Q1 2026 total revenues were $703.4 million, up 5.9% year-over-year, led by international site leasing despite a decline in domestic site leasing and site development revenues.

• Net income for Q1 2026 was $184.9 million, down 15.2% year-over-year, primarily due to higher interest expense and asset impairment costs.

• Achieved industry-leading AFFO per share and year-over-year dividend growth, with a declared Q1 dividend of $1.25 per share.

• U.S. leasing activity driven by new collocations as carriers expand 5G and Fixed Wireless Access, while international demand remains healthy with strong lease-up of Millicom assets and new tower builds in Central America.

Financial highlights

• Company-wide Tower Cash Flow margin was approximately 80% in Q1 2026.

• Q1 2026 site leasing revenue rose 6.5% year-over-year to $656.1 million; site development revenue declined 1.6% to $47.3 million.

• U.S. added ~$10M in new lease and amendment billings year-over-year; international added ~$4M.

• Declared Q1 dividend of $1.25/share, up 13% from Q1 2025, representing ~41% of midpoint AFFO guidance.

• Ended quarter with ~$13B total debt and leverage at 6.6x net debt to Adjusted EBITDA.

Outlook and guidance

• Increased full-year 2026 guidance for site leasing revenue, Tower Cash Flow, Adjusted EBITDA, AFFO, and AFFO per share.

• Full year 2026 site leasing revenue expected between $2,649.0 million and $2,674.0 million, up $24 million from prior guidance.

• Expect steady U.S. leasing activity for the remainder of 2026, with backlog replenishing faster than usage.

• 2026 anticipated as peak year for international churn, with improvement expected in subsequent years.

• Guidance assumes only contracted acquisitions and no additional share repurchases or new debt, except for refinancing $1,165 million in tower securities.