American Tower(AMT) - 2025 Q1 - Quarterly Results

Financial Performance - Total revenue for Q1 2025 increased by 2.0% to $2,563 million, while total property revenue rose by 0.2% to$ 2,488 million[5][6]. - Net income decreased by 45.9% to $499 million, primarily due to foreign currency losses, with net income attributable to AMT common stockholders down 46.7% to$ 489 million[6][12]. - Adjusted EBITDA increased by 1.9% to $1,744 million, with an Adjusted EBITDA margin of 68.1%[5][6]. - Total operating revenues for Q1 2025 were$ 2,562.8 million, a 2.0% increase from $2,512.6 million in Q1 2024[72]. - Operating income increased to$ 1,254.1 million in Q1 2025, up 10.0% from $1,141.0 million in Q1 2024[72]. - Net income from continuing operations was$ 498.6 million in Q1 2025, a decrease of 40.0% compared to $830.0 million in Q1 2024[72]. - Basic net income per share from continuing operations was$ 1.05 in Q1 2025, down from $1.77 in Q1 2024[72]. - Nareit FFO attributable to common stockholders was$ 816.0 million in Q1 2025, down from $1,344.1 million in Q1 2024, indicating a decline of 39%[86]. - AFFO attributable to common stockholders for Q1 2025 was$ 1,290.2 million, slightly down from $1,303.1 million in Q1 2024[95]. - AFFO per share for Q1 2025 was$ 2.75, compared to $2.79 in Q1 2024, reflecting a decrease of 1.4%[95]. Revenue Outlook - The company raised the midpoints of its full year 2025 outlook for property revenue, Adjusted EBITDA, and AFFO attributable to AMT common stockholders by$ 50 million, $30 million, and$ 20 million, respectively, due to estimated positive foreign currency impacts[24]. - Total property revenue for 2025 is projected to be between $9,970 million and$ 10,120 million, reflecting a growth rate of 1.1% compared to the prior year[26]. - Net income is expected to range from $2,740 million to$ 2,840 million, representing a significant increase of 22.4% year-over-year[26]. - Adjusted EBITDA is forecasted to be between $6,885 million and$ 6,955 million, with a growth rate of 1.6% compared to the previous year[26]. - AFFO attributable to AMT common stockholders is projected to be between $4,850 million and$ 4,940 million, showing a slight decline of 0.8% year-over-year, but an adjusted growth of 5.0%[26]. - U.S. & Canada segment property revenue is estimated to be between $5,190 million and$ 5,250 million, with a growth rate of (0.5)%, impacted by a 4% decrease in non-cash straight-line revenue recognition[26]. - International property revenue is expected to be between $3,755 million and$ 3,825 million, with a growth rate of 0.8%, affected by nearly 5% from foreign currency exchange rate fluctuations[26]. - Data Centers segment property revenue is projected to be between $1,025 million and$ 1,045 million, reflecting a robust growth rate of 11.9%[26]. Capital Expenditures and Investments - Capital expenditures for Q1 2025 were approximately $340 million, with$ 38 million allocated for non-discretionary improvements[9]. - Capital expenditures for 2025 are expected to total between $1,635 million and$ 1,745 million, including $610 million for Data Centers segment development[32]. - The company acquired 242 communication sites for approximately$ 148 million, including 145 sites in the U.S. and 97 in Europe[10]. - The company completed the sale of its fiber assets in South Africa for approximately $137.7 million, resulting in a gain of about$ 53.6 million[12]. Debt and Leverage - The company's Net Leverage Ratio as of March 31, 2025, was 5.0x, with total debt at $36,862 million and cash and cash equivalents at$ 2,104 million[14][15]. - Net Debt stands at $34,045.4 million, with a Net Leverage Ratio calculated based on the quarter's annualized Adjusted EBITDA, which is critical for credit agency ratings[61]. - The company incurred interest expense of$ 325.3 million in Q1 2025, a decrease from $363.8 million in Q1 2024[72]. - Cash interest expense decreased to$ 311.5 million in Q1 2025 from $350.8 million in Q1 2024, showing a reduction of 11%[95]. Asset and Equity Changes - Total current assets increased to$ 3,506.1 million as of March 31, 2025, compared to $3,178.8 million on December 31, 2024, reflecting a growth of 10.3%[71]. - Total liabilities increased to$ 52,119.3 million as of March 31, 2025, compared to $51,428.7 million at the end of 2024, reflecting a rise of 1.3%[71]. - The company’s total equity rose to$ 9,936.3 million, up from $9,648.7 million, indicating a growth of 3.0%[71]. Operational Metrics - The Adjusted EBITDA Margin is a key performance measure, calculated as Adjusted EBITDA divided by total revenue, providing insight into operational profitability[54]. - Tenant Billings Growth is a critical metric, reflecting the increase in recurring Tenant Billings adjusted for foreign currency fluctuations, which is essential for assessing demand for the real estate portfolio[67]. - The company emphasizes the importance of organic growth in Tenant Billings, which is a measure of its ability to add tenancy and revenue to its assets[63]. - Total tenant billings growth was 2.0%, with organic tenant billings growth at 4.7%[76]. - The prior-year tenant billings were$ 1,864 million, with new site tenant billings contributing $10 million in the current period[76]. - The impact of foreign currency exchange on total tenant billings was a decrease of$ 53 million[76]. - The segment gross margin for the current period was $1,928 million, with a gross margin percentage of 70%[76]. - The gross margin for total property in Q1 2025 was$ 1,471.0 million, compared to $1,423.7 million in Q1 2024, representing an increase of 3.3%[96]. Conference and Communication - The company will host a conference call to discuss its financial results and outlook for 2025, providing further insights into its performance and strategies[37].