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    AMT
    Earnings call· Dec 2025(Q4 FY25)

    AMERICAN TOWER CORP /MA/ Q4 FY25 earnings call AMT

    Feb 24, 2026 Source

    Executive summary

    American Tower Q4 FY25 — Strong AFFO Growth Despite DISH Churn, Focus on Developed Markets & Efficiency

    American Tower delivered strong Q4 and full-year 2025 results, driven by robust leasing demand and operational efficiency, despite the significant impact of DISH's default. The company is prioritizing durable revenue growth in developed markets, continued operational efficiency, and disciplined capital allocation, aiming for industry-leading AFFO per share growth in subsequent years. Management is focused on leveraging secular mobile data and AI demand while optimizing its global portfolio and cost structure.

    Highlights

    5

    • Attributable AFFO per share as adjusted grew 8% for the full year, including over 13% growth in Q4 FY25.

    • Consolidated organic tenant billings growth is expected to be approximately 4% in 2026, excluding DISH churn.

    • Global tower cash EBITDA margins expanded over 300 basis points since 2022, with an expectation of another 200-300 basis points expansion over the next 5 years.

    • CoreSite achieved double-digit revenue growth of approximately 14% in FY25, driven by strong demand for hybrid/multi-cloud and AI-related use cases.

    • Leverage reduced to 4.9x, within the target range of 3-5x, and $365 million in share repurchases in Q4 FY25.

    Concerns

    4

    • DISH defaulted on payment obligations, negatively impacting 2026 outlook and resulting in approximately 4% DISH-related churn in U.S. & Canada organic tenant billings.

    • Consolidated organic tenant billings growth expected to be approximately 1% in 2026, down from prior expectations due to DISH and LatAm churn.

    • Latin America organic tenant billings expected to decline approximately 3% in 2026 due to elevated consolidation-related churn in Brazil.

    • Cash adjusted EBITDA margins expected to decline a modest 20 basis points year-over-year in 2026, primarily due to lower-margin data center and services contributions and DISH churn.

    Guidance & targets

    20
    CategoryTargetConfidence
    Consolidated organic tenant billings growth
    ~1%
    high materiality
    High
    Consolidated organic tenant billings growth (ex-DISH churn)
    ~4%
    high materiality
    High
    U.S. and Canada organic tenant billings growth
    ~0.5%
    medium materiality
    High
    U.S. and Canada organic tenant billings growth (ex-DISH churn)
    ~4.5%
    high materiality
    High
    Africa and APAC organic tenant billings growth
    ~8.5%
    medium materiality
    High
    Europe organic tenant billings growth
    ~4%
    medium materiality
    High
    LatAm organic tenant billings growth
    ~-3%
    medium materiality
    High
    Property revenue growth (ex-noncash straight-line & FX)
    ~3%
    high materiality
    High
    Property revenue growth (cash FX-neutral, normalized for DISH churn)
    ~5%
    high materiality
    High
    Adjusted EBITDA growth (ex-net straight-line & FX)
    ~2%
    high materiality
    High
    Cash adjusted EBITDA growth (normalized for DISH churn)
    ~5%
    high materiality
    High
    Cash adjusted EBITDA margins
    66.8%
    medium materiality
    High
    Attributable AFFO per share growth
    ~1%
    high materiality
    High
    Attributable AFFO per share growth (normalized for DISH churn, ex-FX & refinancing costs)
    ~5%
    high materiality
    High
    Dividend growth
    ~5%
    high materiality
    High
    Capital deployments
    $1.9B
    high materiality
    High
    Discretionary capital deployments
    $1.8B
    high materiality
    High
    New tower sites construction
    ~2,000
    medium materiality
    High
    Tower cash EBITDA margin expansion
    200-300 bps
    high materiality
    High
    LatAm organic growth acceleration
    commence in 2027
    medium materiality
    High

    Segment performance

    5
    SegmentRevenueYoYQoQMargin
    U.S. and Canada
    Expected to deliver durable, long-term, mid-single-digit organic growth. DISH default negatively impacts 2026 outlook, but long-term benefit from healthier customer base.
    Organic tenant billings growth (ex-DISH churn): ~4.5%Colocation and amendment growth: ~2.5%Escalations: ~3%DISH-related churn: ~4%Normal churn: ~1%
    		————
    Africa and APAC
    Expect faster organic growth than the U.S. as less mature portfolios lease up. 4G-related activity dominates, with increasing 5G rollouts in key metros.
    Organic tenant billings growth: ~8.5%Colocation and amendment growth: ~7%CPI-linked escalations: ~4%Churn: ~2.5%Organic growth H1: ~10%Organic growth H2: ~7%
    		————
    Europe
    5G progress lags the U.S., strong demand for new sites prompting new build activity. Main markets are Germany and Spain, with some new towers in France.
    Organic tenant billings growth: ~4%Colocation and amendment growth: ~3%CPI-linked escalations: ~2%Churn: ~1%New sites planned: >700
    		————
    Latin America (LatAm)
    Expected low single-digit organic growth through end of 2027 due to elevated consolidation-related churn in Brazil. Acceleration in organic growth expected to commence in 2027, one year earlier than previously. Higher 2026 churn driven by delayed 2025 churn and accelerated 2027 churn. Ongoing arbitration with AT&T Mexico.
    Organic tenant billings decline: ~3%Colocation and amendment contributions: ~2%CPI-linked escalations: ~4%Churn: ~8%Other run rate revenue headwinds: ~1%
    		————
    U.S. Data Center (CoreSite)
    Strong demand for hybrid and multi-cloud deployments and positive pricing actions. AI-related use cases driving increasing portion of new leasing. Cash margins expected to decline ~270 bps year-over-year in 2026 due to non-recurring benefits in 2025.
    Stabilized yields on new deployments: mid-teens or higher
    		—~14%——

    Operational metrics

    24
    Attributable AFFO per share as adjusted growth
    8%YoY
    FY25

    Including over 13% growth in Q4 FY25.

    Adjusted EBITDA growth
    5%YoY
    FY25

    Approximately 7% excluding noncash net straight-line and FX impacts.

    Consolidated margin expansion
    20YoY
    FY25

    Driven by record services contribution and disciplined cost management.

    Attributable AFFO per share as adjusted growth (ex-refinancing & normalized FX)
    9%YoY
    FY25

    Excluding refinancing headwinds of approximately 1%.

    Leverage (Net Debt/Adjusted EBITDA)
    4.9xdown from prior
    FY25 end

    Within target range of 3 to 5x.

    Share repurchases
    $365Mlargest quarterly and annual since 2017
    Q4 FY25

    Common stock repurchases.

    Share repurchases
    $53M
    YTD 2026

    Common stock repurchases.

    Remaining share repurchase authorization
    $1.6B
    current

    Board authorized.

    Consolidated property revenue growth
    4%YoY
    FY25

    Approximately 5% when excluding noncash straight-line and FX impacts.

    Organic tenant billings growth
    5%YoY
    FY25

    Primary driver of property revenue growth.

    DISH revenue as % of consolidated property revenue
    2%
    FY25

    DISH represented approximately 2% of consolidated property revenue.

    DISH revenue as % of U.S. and Canada property revenue
    4%
    FY25

    DISH represented approximately 4% of U.S. and Canada property revenue.

    U.S. and Canada colocation and amendment contribution to organic tenant billings (ex-DISH)
    2.4%
    2026 guide

    Consistent with prior year ex-DISH.

    U.S. and Canada colocation and amendment contribution to organic tenant billings (incl-DISH)
    3.1-3.2%
    2025

    Included some activity from DISH.

    FX impact on 2026 property revenue growth
    1%incremental growth
    2026 guide

    Conservative relative to current spot rates.

    Noncash straight-line revenue headwind on 2026 GAAP property revenue
    2%
    2026 guide

    Represents an approximately 2% headwind to GAAP outlook.

    Tower cash EBITDA margins
    flatYoY
    2026 guide

    Absorbing ~60 bps of onetime pressure from DISH-related churn.

    Data center cash margins decline
    270YoY
    2026 guide

    Due to non-recurring property tax adjustments and legal settlements in 2025.

    Maintenance capital
    $180Mreduction of ~$15M
    2026 plan

    Due to acceleration of projects into 2025.

    Capital expenditure range
    $1.5B-$2B
    consistent investment

    Consistently investing in CapEx.

    Network upload capacity (typical)
    10%
    current

    Dedicated to upload, 90% to download.

    Network upload capacity (future AI potential)
    >20%
    future

    Potential shift due to AI upstreaming effects.

    U.S. carrier CapEx (initial 5G wave)
    >$40B
    initial 5G wave

    Came with an initial spike.

    U.S. carrier CapEx (steady state)
    mid-$30Bhigher than 4G cycle
    current steady state

    Moderation after initial 5G wave.

    Industry KPIs

    1
    MetricValueDetails
    Cash re leasing spread on renewalshigher

    Orderbook & backlog

    3
    New tower sites planned in Europe>7002026 plan

    Part of discretionary capital deployments.

    New tower sites construction (global)~2,0002026 plan

    Midpoint of outlook.

    CoreSite success-based investments>$700M2026 plan

    To replenish elevated levels of capacity sold.

    Deals & partnerships

    1
    AST SpaceMobiledivestiture

    Sold half of stake in AST Mobile. Maintained a Board seat to continue learning about the satellite business.

    Capital programs

    1
    Global Tower Portfolio Cost Efficiency Initiativesunderway
    Spent to date: 300 bps cash EBITDA margin expansion
    Start: 2022

    Benefit: 200-300 bps tower cash EBITDA margin expansion

    Focus on land expense management, global sourcing, standardizing repair/maintenance, and optimizing internal technology platforms. AI could offer incremental upside.

    Risks & headwinds

    5
    DISH default on payment obligations2026 and beyond

    Approximately 4% of U.S. and Canada property revenue in FY25; approximately $200 million annually through 2035-2036.

    Mitigation: Removed 100% of DISH revenue from 2026 organic growth outlook; pursuing legal action to recover value of remaining lease obligations. Any collections would be incremental upside.

    Elevated consolidation-related churn in Brazil2026

    LatAm organic tenant billings expected to decline approximately 3% in 2026, with churn of approximately 8%.

    Mitigation: Expect market repair and acceleration of organic growth to commence in 2027, one year earlier than previously expected.

    Higher interest expense2026

    Offsetting tailwinds from lower maintenance capital and share repurchases in 2026.

    Mitigation: Debt is being refinanced at higher rates, but company has regained full financial flexibility with leverage in target range.

    Increasing contribution of lower-margin construction services2026

    Weighs on consolidated growth and margins in 2026.

    Mitigation: Offset by high conversion rates and cost savings initiatives in towers.

    Potential impact of AT&T Mexico arbitrationOngoing

    Outcome may impact organic growth.

    Mitigation: Company remains confident in its legal position.

    Q&A highlights

    6

    Inquired about the pacing of carrier activity, the mix of amendment vs. densification, and how 2026 leasing growth compares to 2025 ex-DISH.

    Management noted steady carrier activity, a higher incidence of new colocations, but still a healthy amendment pipeline. Some carriers are done with initial 5G overlays, shifting to densification. Rod Smith clarified that 2026 colo and amendment contribution (2.4%) is consistent with 2025 levels (ex-DISH), with a slightly higher pace in H1.

    “We are seeing a higher incidence of new colocations coming in, but we still have a pretty healthy amendment pipeline as well. And this is what we would expect to see at this point in the cycle.”

    asked by Batya Levi · answered by Steven Vondran

    2 min read8 chapters

    Detailed Narrative

    01

    Mobile Data Consumption & 5G/6G Demand

    Mobile data consumption is expected to double by 2030, driven by mobile customers, 5G adoption, and fixed wireless access. New AI applications are anticipated to further propel data consumption, requiring greater bandwidth, lower latency, and more uplink capacity. The company expects the deployment of 800 MHz of higher frequency spectrum for 6G to drive significant activity on towers.

    02

    U.S. Market Dynamics

    U.S. carriers are transitioning from initial 5G coverage to capacity-oriented activity, leading to network densification. This is expected to drive durable, long-term mid-single-digit organic growth for the U.S. portfolio. While DISH's default impacts 2026, the long-term benefit is a healthier, well-capitalized customer base investing more heavily in mobile networks.

    03

    International Market Trends

    European 5G progress lags the U.S., but strong demand is prompting new build activity with top-tier carriers. Emerging markets are dominated by 4G, with increasing 5G rollouts in key metros, offering significant growth runway. International tower portfolios are expected to deliver faster organic growth than the U.S. as less mature portfolios lease up.

    04

    CoreSite Data Center Performance

    CoreSite continues to see strong demand from hybrid and multi-cloud deployments, with AI-related use cases (inferencing, machine learning) driving an increasing portion of new leasing. The AI-ready platform accommodates high-density, interconnection-heavy workloads within its existing cost structure, supporting mid-teens or higher stabilized yields on new data center deployments.

    05

    Operational Efficiency Initiatives

    The company has achieved over 300 basis points of cash EBITDA margin expansion across its global tower portfolio since 2022. New initiatives target 200-300 basis points of additional expansion over the next 5 years, focusing on land expense management, global sourcing, standardizing repair/maintenance, and optimizing internal technology platforms. AI is also being explored for process automation and predictive maintenance.

    06

    Capital Allocation Strategy

    With leverage back in the 3-5x target range (4.9x at year-end), the company has significant flexibility. After funding the dividend, capital will be opportunistically assessed for internal CapEx, M&A, share repurchases, and further delevering. The majority of growth CapEx is directed towards developed tower markets and CoreSite, with a focus on accelerating growth and reducing volatility.

    07

    LatAm Market Repair

    Despite a projected 3% decline in organic tenant billings for 2026 due to elevated churn in Brazil, the company anticipates an earlier-than-expected market repair and acceleration of organic growth in 2027, one year ahead of previous expectations. This higher churn in 2026 is a combination of delayed 2025 churn and accelerated 2027 churn.

    08

    Historical Carrier CapEx

    The initial 5G deployment wave saw U.S. carrier CapEx exceed $40 billion, leading to record new business for tower companies. While current CapEx has moderated to the mid-$30 billion range, it remains higher than the steady state observed during the 4G cycle, indicating a consistent, albeit lower, level of investment.

    AI-generated summary of the company’s earnings call. Not investment advice.