In our largest tower market, the U.S., carriers are in the middle stages of the 5G cycle, where they broadly completed their initial 5G coverage-oriented activity and are shifting toward capacity-oriented activity. We anticipate carriers will densify their networks not only to meet the capacity demands of 5G, but also to plan ahead for the 6G cycle. We are excited about the 800 megahertz of higher frequency spectrum that has been earmarked for 6G and believe its deployment will drive significant activity on ...

American Tower (NYSE:AMT) Q4 2025 Earnings call February 24, 2026 08:30 AM ET Company ParticipantsBatya Levi - Managing DirectorMichael Rollins - Managing DirectorNick Del Deo - Managing DirectorRichard Choe - Vice President of Equity ResearchRodney Smith - EVP, CFO, and TreasurerSpencer Kurn - SVP of Investor RelationsSteven Vondran - President and CEOConference Call ParticipantsBrandon Nispel - Director and Equity Research AnalystBrendan Lynch - Vice President and Equity Research AnalystDavid Barden - Res ...

Financial Data and Key Metrics Changes - For the full year 2025, attributable AFFO per share as adjusted grew by 8%, with over 13% growth in Q4 [3] - Consolidated property revenue increased approximately 4% year-over-year, with about 5% growth when excluding non-cash straight line and FX impacts [13] - Adjusted EBITDA grew approximately 5% year-over-year, with a 7% increase when excluding non-cash net straight line and FX impacts [13][20] - The company ended 2025 with a leverage ratio of 4.9x, back within the target range of 3-5x [14] Business Line Data and Key Metrics Changes - The data center business experienced approximately 14% revenue growth, driven by strong demand for hybrid and multi-cloud deployments [13][19] - Organic Tenant Billings Growth for 2026 is expected to be approximately 1%, with a 4% growth excluding DISH churn [15] - In the U.S. and Canada, Organic Tenant Billings Growth is anticipated to be approximately 0.5%, or 4.5% when excluding DISH churn [16] Market Data and Key Metrics Changes - In the U.S., carriers are transitioning from initial 5G coverage to capacity-oriented activities, with expectations of mid-single-digit organic growth in the U.S. portfolio [5] - Internationally, organic tenant billings growth is expected to be approximately 8.5% in Africa and APAC, with colocation and amendment growth of about 7% [16] - In Europe, organic tenant billings growth is projected at approximately 4%, with significant new build activity anticipated [16][81] Company Strategy and Development Direction - The company aims to drive durable revenue growth, focusing on mobile data consumption, 5G adoption, and AI applications [4] - Capital allocation will prioritize developed markets, with significant investments in tower markets and CoreSite [11][25] - The company is pursuing operational efficiency through cost management initiatives, targeting 200-300 basis points of cash EBITDA margin expansion by 2030 [10][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential driven by mobile data consumption and interconnection-rich data centers [26] - The company is optimistic about the prospects of a healthier customer base following DISH's default, which is expected to enhance future growth [6] - Management noted that while 2026 may see higher churn, they anticipate an acceleration in organic growth starting in 2027 [18] Other Important Information - The company repurchased approximately $365 million of common stock in 2025, the largest buyback since 2017, and continued repurchases in 2026 [14][25] - The company is involved in ongoing litigation with DISH to recover lease obligations, which could provide upside to future financials [44] Q&A Session Summary Question: Can you provide more color on the pacing of activity from carriers? - Management noted steady activity levels with a higher incidence of new colocations and a healthy amendment pipeline, expecting the majority of new leasing to come from amendments [29][33] Question: What is the amount owed by DISH? - Management indicated that DISH represents about 4% of U.S. revenue, approximately $200 million annually, and they plan to pursue litigation to recover this amount [44] Question: How should we think about M&A opportunities? - Management stated they are evaluating M&A opportunities but noted a disconnect between private and public multiples, which has kept them on the sidelines [47][48] Question: Can you elaborate on the cost reduction program? - Management highlighted ongoing cost management efforts and the addition of a COO to enhance efficiency, aiming for continued margin expansion [78] Question: What are the expectations for property growth in Europe? - Management expressed confidence in strong opportunities in Europe, particularly in Germany and Spain, with a record number of new builds expected [81]

Core Idea - CoreSite, an American Tower company, has announced that Maile Kaiser, its Chief Revenue Officer, has been selected for the 2026 CRN® Channel Chiefs list, recognizing her influence in shaping channel strategy and driving innovation in the IT sector [1] Company Summary - CoreSite provides interconnected data center solutions that support critical business and AI workloads, impacting everyday life [1] - The recognition of Maile Kaiser highlights the company's leadership in the IT vendor and distribution space [1] Industry Summary - The CRN® Channel Chiefs list is an annual recognition that celebrates executives who are influential in the IT channel, indicating the importance of strategic leadership in the technology industry [1]

Core Insights - AI stocks have gained significant attention due to the increasing demand for chips used in AI model and application development [1] - Infrastructure is essential for supporting AI hardware and data transmission, aligning with American Tower's strategy to build data centers for AI workloads [2] Company Overview - American Tower is one of the largest REITs globally, owning and operating over 149,000 multitenant communications sites and a network of U.S. data centers [3] - The company acquired CoreSite for $10.1 billion in 2021, adding 25 data centers across eight major U.S. markets to its portfolio [4] Strategic Developments - The acquisition of CoreSite was initially aimed at supporting 5G deployment, but the focus has shifted to developing data centers for AI applications [5] - CoreSite recently launched 400 Gbps (400G) Amazon Web Services (AWS) Direct Connect at its Chicago campus, enhancing its capability for high-bandwidth AI workloads [5] Market Applications - CoreSite's 400G connectivity is already being utilized by a leading cybersecurity firm for real-time threat analysis [6] - Financial firms are exploring 400G for high-speed trading and quantitative research, positioning American Tower's data centers as a potential asset for enhancing returns [7]

Core Insights - Women We Admire has announced The Top 50 Women Chief Revenue Officers of 2025, highlighting the importance of Chief Revenue Officers in modern organizations as they integrate various revenue-generating functions into a cohesive, data-driven strategy for growth [1] - The recognized leaders demonstrate a strong understanding of market dynamics and utilize both data and intuition to foster sustainable growth [1] Individual Recognitions - Maile Kaiser, Chief Revenue Officer of CoreSite, has over 25 years of experience in sales and management across various industries, focusing on revenue growth and strategy for data centers [2] - Tamara Adams, Chief Revenue Officer for Hexagon's Asset Lifecycle Intelligence division, has over two decades of experience in scaling software businesses and enhancing customer retention through AI and data-driven marketing [3] - Coker Powell, Executive Vice President and Chief Revenue Officer of The Leukemia & Lymphoma Society, has led initiatives that raised over $2.6 billion for health challenges, showcasing her impact in the philanthropic sector [4] Additional Honorees - The list includes notable figures such as Marji Karlin (NYC Health + Hospitals), Elizabeth Herbst-Brady (Condé Nast), and Teri Hatfield (Salesforce), among others, reflecting a diverse range of industries and expertise [6]

Financial Data and Key Metrics Changes - Total revenue grew nearly 8% year over year, driven by steady consolidated organic growth in the mid-single digits and strong contributions from U.S. services and CoreSite [18][19] - Adjusted EBITDA also grew nearly 8% year over year, complemented by 20 basis points of cash margin expansion [18] - Attributable AFFO per share as adjusted grew approximately 10% year over year, supported by robust EBITDA growth and disciplined management of below-the-line costs [18][20] Business Line Data and Key Metrics Changes - Consolidated property revenue grew nearly 6% year over year, with U.S. and Canada property revenue flat year over year but growing approximately 5% when excluding non-cash straight-line revenue and Sprint churn [19][20] - International property revenue grew approximately 12% year over year, and data center property revenue grew over 14%, driven by record retail new leasing and consistent pricing growth [19][20] Market Data and Key Metrics Changes - Mobile data consumption in the U.S. increased approximately 35% year over year, indicating a strong demand for mobile data and necessitating a doubling of overall network capacity over the next five years [10][11] - Approximately 75% of the company's towers have been upgraded with 5G equipment, with significant growth opportunities remaining as carriers complete their 5G rollouts [12] Company Strategy and Development Direction - The company focuses on four strategic priorities: optimizing long-term value creation, maximizing organic growth, expanding margins, and disciplined capital allocation [14][16] - The company is well-positioned to benefit from demand drivers across its tower and data center businesses, with a strong emphasis on operational excellence and cost efficiency [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the industry landscape, highlighting the benefits of carrier consolidation and the increasing demand for mobile data [9][10] - The company raised its full-year outlook across key financial metrics, supported by FX tailwinds, U.S. services outperformance, and net interest benefits [19][21] Other Important Information - The company has executed $28 million in share repurchases since the quarter-end and maintains a strong balance sheet with net leverage below five times [16][25] - The company expects to distribute approximately $3.2 billion to shareholders as a common dividend in 2025, subject to board approval [25] Q&A Session Summary Question: Services revenue performance and deployment expectations - Management noted a healthy pipeline of activity in services, indicating robust carrier activity and a positive outlook for 2026 [33][34] Question: Impact of new spectrum auctions on tower portfolio - Management expressed excitement about new spectrum bands coming to market, emphasizing that towers will be essential for deploying these higher frequency bands [36][37] Question: CoreSite pre-leasing share decline - Management clarified that the decline in pre-leasing was due to transitioning construction projects into service, not a slowdown in demand [41][43] Question: Cost optimization program details - Management highlighted ongoing efforts to improve cost efficiencies, with expectations for incremental improvements rather than a step function change [51][52] Question: EchoStar contract and future contributions - Management confirmed that EchoStar is current on payments and emphasized the importance of defending the contract through 2036 [69][70] Question: Capital allocation strategy - Management reiterated a disciplined approach to capital allocation, prioritizing dividends, internal CapEx, and evaluating M&A opportunities against share buybacks [71][74]

Group 1 - American Tower (NYSE:AMT) is recognized as a strong investment for the next three years, particularly due to its subsidiary CoreSite's recent developments [1] - CoreSite has launched its new data center facility, NY3, located in Secaucus, New Jersey, which enhances its data center capacity in the New York metropolitan area [1][2] - The NY3 facility adds over 138,000 square feet to CoreSite's existing footprint, bringing the total New York market footprint to more than 442,000 square feet across three facilities [2] Group 2 - The New York campus provides direct cloud connections to AWS and serves a diverse range of clients, including global financial services and educational institutions [3] - CoreSite's NY2 and NY3 facilities are equipped to support high-performance and AI-driven workloads with advanced liquid cooling solutions for improved thermal efficiency [3] - American Tower operates approximately 150,000 communications sites and maintains a highly interconnected network of data center facilities in the U.S. [4]

Core Insights - American Tower Corporation is focusing on transforming its business model from a passive tower operation to a more technical and integrated approach, including investments in data centers and satellite technology [3][4]. Company Strategy - The company has successfully acquired CoreSite in 2021, which is now a significant part of its capital plan, indicating a strategic shift towards data center operations [3]. - Investments in AST SpaceMobile highlight the company's commitment to integrating satellite technology with terrestrial networks, reflecting a trend towards convergence in telecommunications [4]. - The introduction of Power-as-a-Service in Africa demonstrates the company's innovative approach to addressing energy needs and enhancing operational efficiency [4]. Technological Development - The company is working on virtualized platforms that will transform tower operations into small data centers, emphasizing the importance of edge computing in its future strategy [4].

Summary of American Tower Conference Call Company Overview - **Company**: American Tower Corporation - **Event**: KeyBank Technology Leadership Forum - **Date**: August 11, 2025 Key Points Industry and Company Strategy - American Tower is transitioning from a passive tower business to a more technical role, focusing on data centers and satellite investments [4][5] - The acquisition of CoreSite in 2021 is a significant part of the capital plan, emphasizing the convergence of satellite and terrestrial networks [5][6] - The company is exploring "power as a service" in Africa, indicating a shift towards more integrated services [5] Data Centers and Edge Computing - The company is developing edge facilities, with a focus on the Raleigh data center, which aims to prove the concept of distributed computing [8][10] - Initial investments in small edge facilities did not meet expectations, leading to a reevaluation of strategies [12][13] - Power constraints in centralized locations are driving the need for distributed edge facilities, with Raleigh designed to accommodate modular power increments [14][15] AI and Technological Transformation - The company is in the early stages of AI adoption, focusing on improving productivity and harmonizing datasets from various acquisitions [27][28] - AI is seen as a game changer for operational efficiency, with a focus on orchestrating AI agents across use cases [30] Satellite and Tower Business - Investments in AST Space Mobile are viewed as complementary to the tower business, enhancing connectivity in underserved areas [32][34] - The company believes that towers will remain essential infrastructure, even with the rise of satellite technology [34][36] Spectrum Opportunities - The recent tax bill allows the FCC to auction spectrum, which is seen as a significant opportunity for American Tower [42][43] - Key spectrum bands of interest include upper C band and six gigahertz, which are crucial for future growth [46][48] - The company anticipates that the auction process will enhance capacity and drive new deployments [51][52] Future Outlook - The transition to 5G has been slower than expected, but the new tax incentives may accelerate carrier investments [56][57] - The integration of telecommunications and computing at the edge is expected to enhance user experiences and drive future growth [61] Additional Insights - The company is focusing on modular data center designs to meet the growing demand for power and efficiency [15][21] - There is a recognition of the need for shared resources in the community to support local tech companies [24] - The potential for AI to transform business operations is acknowledged, with ongoing efforts to leverage AI for better decision-making [28][30]