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    ATNI
    Earnings call· Jun 2026(Q2 FY26)

    ATN International Q2 FY26 earnings call ATNI

    Aug 6, 2026 Source

    Executive summary

    ATN International Q2 FY26 — Strong Margin Expansion and Deleveraging Post Tower Sale

    ATN International reported a quarter of solid execution, marked by significant adjusted EBITDA margin expansion and a strengthened balance sheet following the initial closing of its U.S. tower portfolio sale. The company is focused on operational discipline and leveraging government funding for fiber expansion in both its international and U.S. segments, while also committing to increased shareholder returns.

    Highlights

    5

    • Total adjusted EBITDA increased by nearly 9% to $49.7 million.

    • Adjusted EBITDA margin expanded by 170 basis points year-over-year to 27%.

    • Net leverage ratio significantly improved to 0.91x from 2.36x at year-end 2025.

    • Share repurchase authorization expanded to $30 million, alongside a 5.5% dividend increase.

    • Initial closing of U.S. tower portfolio sale generated $268 million in cash proceeds.

    Concerns

    3

    • Reduced construction revenues and the expected loss of a U.S. Virgin Islands subsidy impacted overall revenue growth.

    • The initial tower portfolio sale resulted in a $1 million net impact on adjusted EBITDA due to lost rents and increased costs.

    • Net cash from operating activities decreased by $6.3 million for the first six months compared to the prior year.

    Guidance & targets

    2
    CategoryTargetConfidence
    Adjusted EBITDA
    $183M to $193M
    high materiality
    High
    Capital Expenditures (net of reimbursable spending)
    $105M to $115M
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    International
    Steady year-over-year revenue growth and margin expansion. Revenue grew approximately 3% excluding the impact of the expected loss of government support in the U.S. Virgin Islands. Growth seen in most revenue categories, combined with operating efficiencies.
    Adjusted EBITDA: $35.5MAdjusted EBITDA margin: 36.9%Adjusted EBITDA margin expansion: 180 bpsFiber coverage (Guyana): >75% of households
    		$96M1.4%—$35.5M
    U.S.
    Revenue growth driven by carrier services and higher fixed business revenue, offsetting declines in construction revenue and tower sale impact. Revenue increased 4% year-over-year excluding these items, reflecting core business strengthening. Adjusted EBITDA increased 4.5% year-over-year.
    Adjusted EBITDA: $19MAdjusted EBITDA margin: 21.6%Adjusted EBITDA margin expansion: 50 bpsBEAD funding opportunity: ~$150M
    		$88M2%—$19M

    Operational metrics

    14
    Adjusted EBITDA
    $49.7Mup nearly 9% YoY
    Q2 FY26

    Growth came from both international and U.S. segments, reflecting revenue growth and operating efficiency benefits.

    Operating income (adjusted)
    $16.1M$15.9M improvement YoY
    Q2 FY26

    Excludes the $230M gain related to the initial closing of the U.S. tower portfolio sale and associated transaction-related charges of $6.3M. Driven by revenue growth and lower expenses.

    Net income attributable to ATN stockholders
    $167Mvs loss of $7M last year
    Q2 FY26

    Includes the $230M gain related to the initial closing of our U.S. tower portfolio sale.

    Cash, cash equivalents, and restricted cash
    $332M+$215M from year-end
    Q2 FY26

    Increased due to $268M cash proceeds from the initial closing of the tower sale, after using $68M to pay off CoBank revolver facility.

    Total debt
    $513M
    Q2 FY26

    Declined due to tower sale proceeds. Approximately 2/3 of outstanding debt sits at the subsidiary level and is non-recourse.

    Capital expenditures
    $38.3M$3.8M decrease YoY
    H1 FY26

    Managed on a full-year basis, with quarterly spending fluctuations.

    Reimbursable CapEx
    $27Mvs $46M last year
    H1 FY26

    Reflects variable timing of government programs.

    Quarterly cash dividend
    $0.295.5% increase
    Q2 FY26

    Underscores confidence in long-term outlook and commitment to returning capital to shareholders.

    Share repurchase authorization
    $30Mexpanded
    Q2 FY26

    Board authorized expansion of the program, reflecting confidence in the business and financial position.

    U.S. tower portfolio sale impact on adjusted EBITDA
    -$1M
    Q2 FY26

    Net impact from reduced revenues of approximately $0.5M from lost tower rents and a similar increase in costs. Expected to recur in remaining months of 2026.

    BEAD funding opportunity
    ~$150M
    FY26-FY27

    Expected to help reduce the cost of serving rural America and enable fiber expansion to historically uneconomical communities.

    International revenue growth (excl. USVI subsidy)
    3%
    Q2 FY26

    Excluding the impact of the expected loss of government support in the U.S. Virgin Islands.

    U.S. segment revenue growth (excl. construction/tower sale)
    4%
    Q2 FY26

    Excluding the decline in construction revenue and the impact of the initial closing of the tower portfolio sale.

    Total revenue growth (excl. construction/USVI subsidy)
    3%YoY
    Q2 FY26

    Excluding the impact of reduced construction revenues and the expected loss of the subsidy in the U.S. Virgin Islands.

    Industry KPIs

    2
    MetricValueDetails
    Share buyback capital returned$30MUSD
    Net debt EBITDA deleveraging path0.91xx

    Product announcements

    2
    ProductTypeDetails
    HFC network upgrade to fiberupdate
    Google subsea cablesmilestone

    Deals & partnerships

    3
    U.S. tower portfolio buyerSale of U.S. tower portfolio$268M cash proceeds (initial closing), up to $30M additional proceeds (subsequent closings)

    Initial closing on the U.S. tower portfolio sale generated $268 million in cash. Subsequent closings are expected over the next 10 months, with potential for up to an additional $30 million in proceeds from remaining sites.

    Spectrum licenses buyerSale of certain spectrum licensesup to $41M

    Entered into an agreement to sell certain spectrum licenses for up to $41 million, with the transaction expected to close in 2027.

    GoogleStrategic partnership for subsea cables

    Concluded a memorandum of understanding with Google to become a strategic partner to facilitate access to their new subsea cables in Bermuda, which are expected to go live in the second half of 2027.

    Risks & headwinds

    4
    Reduced construction revenuesQ2 FY26

    Impacted overall revenue growth

    Mitigation: Offset by growth in carrier services and higher fixed business revenue in U.S. segment.

    Loss of government subsidy in U.S. Virgin IslandsExpired end of 2025, impact in Q2 FY26

    Impacted international revenue growth (3% growth excluding this impact)

    Mitigation: Offset by growth in other international revenue categories and operating efficiencies.

    Impact of U.S. tower portfolio sale on adjusted EBITDAQ2 FY26, recurring in remaining months of 2026

    -$1M net impact

    Mitigation: Built into the full-year outlook; overall adjusted EBITDA still grew nearly 9%.

    Decrease in net cash from operating activitiesH1 FY26 YoY

    -$6.3M

    Mitigation: Primarily reflects movements related to the tower sale; overall liquidity significantly increased by tower sale proceeds.

    What to watch in Q3 FY26

    5

    U.S. Tower Portfolio Sale Proceeds

    Over the next 10 months
    Current$268M received from initial closing
    TargetUp to an additional $30M from remaining sites

    Why it matters

    Further strengthens liquidity and balance sheet, impacting capital allocation and financial flexibility.

    As previously announced, we continue to expect subsequent closings to occur over the next 10 months, with the potential for up to an additional $30 million in proceeds from remaining sites deferred at the initial closing.

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Focus and Operational Discipline

    CEO Naji Khoury's initial assessment highlights strong infrastructure assets and customer relationships, with a focus on improving and optimizing operations. The company's Q2 results reflect early benefits of operating discipline, execution, and profitable growth, evidenced by continued adjusted EBITDA margin expansion of 170 basis points year-over-year.

    02

    International Segment Growth Drivers

    The international segment, including Bermuda, Guyana, Cayman Islands, and U.S. Virgin Islands, offers stable platforms and growth opportunities. Guyana benefits from oil and gas-driven economic expansion, translating to stronger broadband demand and migration to postpaid mobile. Fiber expansion continues in the Cayman Islands, securing enterprise wins, while the U.S. Virgin Islands is evaluating HFC network upgrades to fiber.

    03

    U.S. Segment Expansion and Government Funding

    The U.S. segment, covering Alaska and the Southwest, is modernizing infrastructure and expanding customer reach. Growth is driven by fiber deployment and fixed wireless, leveraging government funding. Alaska focuses on combining government support with targeted investments to replace copper, with significant residential market opportunities. The Southwest is actively constructing fiber under grants, with approximately $150 million in BEAD funding expected later in 2026 and 2027.

    04

    Strengthened Liquidity and Deleveraging

    The initial closing of the U.S. tower portfolio sale generated $268 million in cash, significantly boosting liquidity. This allowed for the payoff of $68 million in CoBank revolver debt, increasing cash to $332 million and reducing total debt to $513 million. The net leverage ratio improved substantially to 0.91x from 2.36x at year-end 2025.

    05

    Capital Allocation and Shareholder Returns

    ATN demonstrated its commitment to shareholder value by increasing its quarterly cash dividend by 5.5% to $0.29 per share. The Board also expanded the share repurchase program authorization to $30 million, reflecting confidence in the business outlook and financial strength.

    06

    Strategic Partnerships and Future Infrastructure

    A memorandum of understanding was concluded with Google for strategic partnership to facilitate access to new subsea cables in Bermuda, expected to go live in the second half of 2027. This initiative aims to enhance connectivity and leverage advanced infrastructure.

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