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    IRM
    Earnings call· Mar 2026(Q1 FY26)

    IRON MOUNTAIN Q1 FY26 earnings call IRM

    Apr 30, 2026 Source

    Executive summary

    Iron Mountain Q1 FY26 — Exceptional Growth Across All Key Metrics

    Iron Mountain delivered an exceptionally strong first quarter, driven by robust performance in its growth businesses and record organic expansion. The company raised its full-year financial outlook, reflecting confidence in sustained double-digit top and bottom-line growth, fueled by significant data center leasing activity and expanding digital and ALM solutions.

    Highlights

    5

    • Revenue, Adjusted EBITDA, and AFFO all grew 22% year-over-year, exceeding expectations.

    • Organic growth reached 17%, the highest rate in over 25 years.

    • Growth businesses (data, data center, ALM, and digital) grew over 50% in the quarter, now exceeding 30% of total revenue.

    • Data center leased approximately 22 megawatts in Q1 and an additional 10 megawatts in April, totaling 32 megawatts year-to-date.

    • Global RIM business achieved a quarterly record revenue of $1.4 billion, with 8% organic growth.

    Concerns

    2

    • Foreign Exchange Rate Fluctuations

    • Memory Supply Chain Shortages

    Guidance & targets

    15
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $7.825 billion to $7.925 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $2.925 billion to $2.965 billion
    high materiality
    High
    Full-year 2026 AFFO
    $1.735 billion to $1.755 billion
    high materiality
    High
    Full-year 2026 AFFO per share
    $5.79 to $5.86
    high materiality
    High
    Full-year 2026 ALM Revenue
    $950 million
    medium materiality
    High
    Full-year 2026 Capital Expenditure
    slightly down from last year
    medium materiality
    High
    Full-year 2026 Retained Cash Flow
    at least $300 million ahead of last year
    medium materiality
    High
    Q2 2026 Revenue
    approximately $1.965 billion
    medium materiality
    High
    Q2 2026 Adjusted EBITDA
    approximately $715 million
    medium materiality
    High
    Q2 2026 AFFO
    approximately $418 million
    medium materiality
    High
    Q2 2026 AFFO per share
    $1.40
    medium materiality
    High
    Full-year 2026 Data Center Leasing
    meaningfully above 100 MW
    high materiality
    High
    IRS Department of Treasury Contract Revenue
    $45 million
    medium materiality
    High
    IRS Department of Treasury Contract Revenue
    in excess of $100 million annually
    medium materiality
    High
    Payout Ratio
    low 60s percent
    low materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Global RIM
    Achieved a quarterly record revenue. Performance was driven by revenue management, consistent positive volume trends, and sustained strength in the service business, including $9 million from the Department of Treasury contract.
    Organic Growth: 8%Storage Revenue Growth (reported): 9%Storage Revenue Growth (organic): 6%Service Revenue Growth: >16%Service Revenue Organic Growth: >12%
    		$1.4 billion12%—44%
    Global Data Center
    Growth was driven by lease commencements, positive pricing trends, and customers ramping power faster than expected. Adjusted EBITDA margin was 30 basis points below last year on a reported basis, but up 120 basis points year-over-year when correcting for power pass-through.
    New Leases Signed: 22 MWCommenced Leases: 24 MWRenewed Leases: 193 leases totaling 7 MWRenewal Pricing Spreads (cash): 12%Renewal Pricing Spreads (GAAP): 14%Future Development Capacity (Northern Virginia): 195 MW
    		$255 million47%—52.1%
    Asset Life Cycle Management (ALM)
    Driven by strong organic growth in both data center decommissioning and the enterprise channel. Recent acquisitions (Premier Surplus and ACT Logistics) contributed $17 million in revenue. The team's execution led to significant margin improvement year-over-year.
    Organic Growth: $93 million or 77%Data Center Decommissioning Organic Growth: >100%Enterprise Channel Organic Growth: >45%Acquisitions Revenue Contribution: $17 million
    		$232 million92%——

    Operational metrics

    20
    Total Revenue
    $1.94 billionup $344 million YoY
    Q1 FY26

    Well ahead of prior projection.

    Constant Currency Revenue Growth
    19%YoY
    Q1 FY26

    Reported revenue growth was 22% YoY.

    Organic Revenue Growth
    17%YoY
    Q1 FY26

    Highest rate achieved in more than 25 years.

    FX Impact on Revenue
    $40 millionYoY
    Q1 FY26

    Contributed to revenue, but slightly below outlook due to dollar strengthening.

    Total Storage Revenue
    $1.1 billionup $146 million or 15% YoY
    Q1 FY26

    Part of consolidated revenue.

    Total Service Revenue
    $841 millionup $197 million or 31% YoY
    Q1 FY26

    Part of consolidated revenue.

    Adjusted EBITDA
    $708 millionup $128 million or 22% YoY
    Q1 FY26

    Exceeded projection by $23 million.

    Adjusted EBITDA Margin
    36.6%up 20 bps YoY
    Q1 FY26

    Impressive performance despite substantial growth in services revenue.

    AFFO
    $426 millionup $78 million or 22% YoY
    Q1 FY26

    Part of consolidated financial performance.

    AFFO per share
    $1.43up 22% YoY
    Q1 FY26

    Was $0.04 ahead of projection.

    Dividend per share
    $0.864
    Q1 FY26

    Declared by Board of Directors, to be paid in early July.

    Payout Ratio
    61%
    Trailing 4-quarter

    In line with target ratio of low 60s percent.

    Growth CapEx
    $492 million
    Q1 FY26

    Capital investments in the first quarter.

    Recurring CapEx
    $35 million
    Q1 FY26

    Capital investments in the first quarter.

    Net Lease Adjusted Leverage
    4.8xdown slightly from last quarter
    Q1 FY26 end

    Best performance on this metric since prior to REIT conversion in 2014.

    Growth Businesses Revenue
    >30%up >50% in Q1
    Q1 FY26

    Refers to data, data center, ALM, and digital businesses as a percentage of total revenue.

    Physical Record Storage Organic Rental Growth
    best quarterly growth in years
    Q1 FY26

    On track to deliver 38th consecutive year of organic storage rental growth.

    ALM Acquisitions Revenue Contribution
    $17 million
    Q1 FY26

    From Premier Surplus and ACT Logistics.

    ALM Deal Pricing (pre-synergy)
    mid- to upper single multiples of EBITDA
    Ongoing

    Pricing for ALM deals before synergies.

    ALM Deal Pricing (post-synergy)
    sub 5x EBITDA
    Ongoing

    Pricing for ALM deals after synergies.

    Industry KPIs

    3
    MetricValueDetails
    Bookings leasing volume signed32 megawattsMW
    Cash re leasing spread on renewals12%%
    Power pipeline secured vs advanced stage vs unde400 megawattsMW

    Deals & partnerships

    11
    GoogleAward

    Won Google Partner of the Year for media and entertainment, adding to the 2018 award for AI and machine learning.

    U.S. Federal GovernmentCertification

    Achieved FedRAMP high authorization for Insight, enabling pursuit of high-value mission-critical workloads.

    Canadian insurance companyCustomer contract

    Signed a new deal to deploy Smart Reveal solution, processing more than 1 million files currently stored with Iron Mountain.

    Global law firmCustomer contractmultiyear

    Signed a new multiyear agreement to deploy Smart Sort solution across 6 U.S. locations, processing over 2 million files and onboarding 60,000 cubic feet of physical storage.

    Brazilian clinical diagnostics firmCustomer contractmultiyear

    Won an important new multiyear agreement to process over 20 million medical records using Iron Mountain's DXP platform with AI capabilities, integrated with customer systems.

    U.S. health care centerCustomer contract

    Won a new contract to improve patient data visibility, including Smart Sort for over 600,000 medical records and digital solutions for nearly 12 million images.

    Existing ALM decommissioning customerCustomer contract10-year

    Cross-sold and leased the entire 16-megawatt Miami site as part of a 10-year contract to support expansion of its cloud platform.

    Major global cloud playerCustomer contract

    Leased approximately 10 megawatts in Astegam to a new major global cloud player.

    Global advertising companyCustomer contractmultiyear

    Signed a new multiyear agreement to be the sole enterprise-wide ALM services partner, managing decommissioning and remarketing of IT assets across more than 30 countries.

    Existing data center customerCustomer contract

    Cross-sold to recycle and reuse 75,000 IT hardware items across the U.S., Europe, and APAC.

    Global technology leaderCustomer contractmultiyear

    Signed a multiyear agreement to securely decommission, sanitize, and remarket 60,000 drives.

    Risks & headwinds

    2
    Foreign Exchange Rate FluctuationsQ1 FY26

    FX rates contributed approximately $40 million less in revenue than assumed in the outlook.

    Memory Supply Chain ShortagesOngoing (expected to last a couple of years)

    Shortage of memory components impacting server renewal cycles.

    Mitigation: OEMs are requesting used memory harvested by Iron Mountain; uptick in servicing projects to harvest components from old servers for new builds.

    Q&A highlights

    7

    Are there any constraints on CapEx for data center growth, and how does the current CapEx plan align with data center expansion?

    Management stated there are no capital constraints for data center growth. With 400 MW of capacity energizing over the next 24 months and strong leasing activity, they expect to significantly exceed the 100 MW leasing guidance for the year. CapEx is expected to be slightly down from last year, as most construction is pre-leased.

    “we don't have any constraint on capital in terms of the growth of the data center side.”

    asked by Andrew Steinerman · answered by William Meaney

    2 min read5 chapters

    Detailed Narrative

    01

    Strong Q1 Performance & Outlook Raise

    Iron Mountain commenced 2026 with an exceptional first quarter, surpassing expectations with 22% year-over-year growth in revenue, adjusted EBITDA, and AFFO. Organic growth hit a 25-year high of 17%. This strong performance led management to increase its full-year financial outlook, raising revenue guidance by $175 million, adjusted EBITDA by $45 million, and AFFO by $25 million at the midpoint, signaling confidence in continued double-digit growth.

    02

    Data Center Momentum

    The data center business saw revenue increase 47% year-over-year, driven by lease commencements and faster customer power ramp-ups. The company leased 22 megawatts in Q1 and an additional 10 megawatts in April, bringing the year-to-date total to 32 megawatts. With 400 megawatts of available capacity energizing over the next 24 months, management expects to significantly exceed its original 100 MW leasing guidance for the year, with strong pricing and returns on new contracts.

    03

    ALM & Digital Solutions Growth

    Asset Life Cycle Management (ALM) revenue surged 92% year-over-year, with organic growth of 77%, fueled by over 100% organic growth in data center decommissioning and over 45% in the enterprise channel. Digital Solutions also achieved record Q1 revenue, growing over 20% year-over-year, driven by traditional projects and new contracts for its AI-powered DXP platform. The company raised its full-year ALM revenue outlook to $950 million, an increase of $100 million.

    04

    Government Business Expansion

    Iron Mountain is significantly expanding its government business globally, achieving its second-best public sector bookings in company history during Q1. This growth is bolstered by the FedRAMP high authorization for its Insight digital services suite, which opens up high-value mission-critical workloads across the federal landscape. The multi-year Department of Treasury contract contributed $9 million in Q1, with expectations of $45 million for 2026 and over $100 million annually from 2027.

    05

    Cross-Selling Success & Synergies

    The company highlighted successful cross-selling efforts, particularly in ALM and digital solutions. Examples include deploying Smart Reveal for a Canadian insurer, Smart Sort for a global law firm, and DXP for a Brazilian clinical diagnostics firm. An existing ALM customer expanded into a 16-megawatt data center lease in Miami, demonstrating the synergistic value of Iron Mountain's diverse service offerings and integrated customer relationships.

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