Given the lumpiness of signings, what is the latest leasing target for full year 2026 and how are hyperscaler discussions progressing?

Management reiterated that they will meaningfully exceed the original 100 MW target for 2026. They are shifting focus to the energization schedule (325 MW over 24 months) as a better indicator due to the lumpy nature of large leases, with robust pipeline against these assets, including in Northern Virginia. “As we said in the last call, in terms of what we expect to happen in 2026 on the leasing side is we still say that we think we will meaningfully exceed obviously, our original guidance of 100 megawatts, which were already beyond.”

Can you provide details on the size of the Group ATF acquisition, anticipated operating synergies, and cross-selling opportunities?

Management stated Group ATF is a tuck-in acquisition, closed August 1, with high teens millions of annual revenue and expected ~$7 million contribution in H2. It has low 20s EBITDA margin, acquired at 5-7x multiple, and expected to synergize below 5x. It broadens ALM capabilities in France and Belgium, enabling cross-selling with existing customers. “So we just closed it. It closed right at the end of July, I think technically August 1. And it's not a huge deal. I mean I think like high teens millions of revenue annually.”

Is Iron Mountain's global scale now sufficient to unlock large global multinational ALM contracts, servicing them truly globally?

Management indicated they are "approaching that," noting they have the best platform in a fragmented market, particularly in Europe and North America. They cited a recent multi-geography win as an example where they were the only provider capable of delivering a secure and economic solution, while acknowledging ongoing build-out in Asia Pacific and the Middle East. “But just objectively, if you look at us versus any of the other alternatives for companies that are looking to operate on multiple geographies where they're sensitive to the security of these assets is we really do -- are the only ones that have the platform that can play in those key geographies.”

IRM

Iron Mountain (IRM) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Aug 5, 2026

Source: earnings call transcript

Executive summary

Iron Mountain Q2 FY26 — Record Performance Driven by Growth Businesses and Strong Data Center Leasing

Iron Mountain delivered record Q2 FY26 results, driven by exceptional performance in its data center, ALM, and digital businesses, which now comprise 35% of consolidated revenue. The company raised its full-year financial outlook, reflecting strong execution and continued momentum, particularly in data center leasing and ALM expansion, while maintaining a disciplined capital allocation strategy. Management highlighted the unique end-to-end solution offered to hyperscalers and the significant growth potential in the enterprise ALM market.

Highlights

Revenue increased 19% year-over-year to $2.03 billion, approximately $65 million ahead of projections.
Adjusted EBITDA grew 16% year-over-year to $727 million, exceeding projections by $12 million.
AFFO per share increased 16% year-over-year to $1.44, $0.04 ahead of projections.
Data Center business grew 39% in the quarter, with 30 megawatts leased in Q2 and an additional 75 megawatts in July, bringing year-to-date leasing to 110 megawatts.
Asset Life Cycle Management (ALM) revenue grew 88% year-over-year, exceeding projections by $45 million, with enterprise ALM growing over 60% organically.

Concerns

Foreign exchange rates contributed approximately $14 million less to revenue year-on-year than assumed in the outlook due to dollar strengthening.
Hyperscale decommissioning revenue included a $30 million timing benefit from projects hyperscalers accelerated into the quarter.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 Revenue	$7.94 billion to $8.01 billion high materiality	FY26	High
Full-year 2026 Adjusted EBITDA	$2.945 billion to $2.975 billion high materiality	FY26	High
Full-year 2026 AFFO	$1.76 billion to $1.78 billion high materiality	FY26	High
Full-year 2026 AFFO per share	$5.87 to $5.93 high materiality	FY26	High
Q3 2026 Revenue	approximately $1.98 billion medium materiality	Q3 · FY26	High
Q3 2026 Adjusted EBITDA	approximately $745 million medium materiality	Q3 · FY26	High
Q3 2026 AFFO	approximately $440 million medium materiality	Q3 · FY26	High
Q3 2026 AFFO per share	$1.47 medium materiality	Q3 · FY26	High
Full-year ALM revenue	approach $1 billion medium materiality	FY26	High
2027 IRS deal revenue	in excess of $100 million medium materiality	FY27	High
Full-year 2026 Data Center leasing	meaningfully exceed original 100 megawatts high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Global RIM Achieved a quarterly record for revenue, marking the third consecutive quarter with over $100 million of year-on-year revenue growth. Strong performance in both storage and services, driven by the Digital business. Organic growth: 7%Storage revenue growth (reported): 7%Storage revenue growth (organic): 5%Services revenue growth (reported): 11%Services revenue growth (organic): 9%Digital business growth: >25%Adjusted EBITDA margin: 43%	$1.4 billion	8% reported	—	$621 million Adjusted EBITDA
Global Data Center Strong revenue growth driven by lease commencements and positive pricing trends. Significant leasing activity in Q2 and July, with strong renewal pricing. New leases signed (Q2): 13 megawattsLease commencements (Q2): 25 megawattsRenewed leases (Q2): 189 leases totaling 4 megawattsRenewal pricing spread (cash): 12%Renewal pricing spread (GAAP): 14%Adjusted EBITDA growth: 41%Adjusted EBITDA margin: 52.2%Adjusted EBITDA margin (like-for-like power): up >100 bps sequentially	$263 million	39%	—	$137 million Adjusted EBITDA
Asset Life Cycle Management (ALM) Exceeded projections by over $45 million, driven by both enterprise and hyperscale decommissioning channels. Solid improvement in margins due to improved operating performance and acquisition synergies. Includes a $30 million timing benefit from accelerated hyperscaler projects. Organic revenue growth: 82%Enterprise ALM organic growth: >60%Data center decommissioning revenue growth: >100% YoY	$288 million	88%	—	—

IRM operating KPIs by quarter

IRM operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Leased capacity Data Center	10 MW As it relates to leasing, we had a very good year of activity in 2024, our third consecutive year where we leased more than 100 megawatts, including 10 megawatts in the fourth quarter. Source: earnings call transcript	—	13 MW We leased 13 megawatts in the quarter, including a couple of larger enterprise deals with financial services firms. Source: earnings call transcript	43 MW With 43 megawatts leased in the fourth quarter, we entered 2026 with strong momentum in leasing and have great assets in prime markets. Source: earnings call transcript	~22 MW We leased approximately 22 megawatts in the first quarter and another 10 megawatts in April, positioning us at 32 megawatts leased year-to-date. Source: earnings call transcript	30 MW We leased [ 30 ] megawatts in the second quarter and another 75 megawatts in July, bringing our year-to-date leasing to 110 megawatts. Source: earnings call transcript	—
Capital expenditures Growth	$685M Capital expenditures in the fourth quarter were $721 million with $685 million of growth and $36 million of recurring. Source: earnings call transcript	$629M Capital expenditures in the first quarter were $657 million with $629 million of growth and $28 million of recurring. Source: earnings call transcript	$472M In terms of capital investments, we invested $472 million of growth CapEx and $42 million of recurring CapEx in the third quarter. Source: earnings call transcript	$525M In terms of capital investments, we invested $525 million of growth CapEx and $43 million of recurring CapEx in the fourth quarter. Source: earnings call transcript	$492M In terms of capital investments, in the first quarter, we invested $492 million of growth CapEx and $35 million of recurring CapEx. Source: earnings call transcript	$553M In terms of capital investments, in the second quarter, we invested $553 million of growth CapEx and $38 million of recurring CapEx. Source: earnings call transcript	+12.4%
Capital expenditures Recurring	$36M Capital expenditures in the fourth quarter were $721 million with $685 million of growth and $36 million of recurring. Source: earnings call transcript	$28M Capital expenditures in the first quarter were $657 million with $629 million of growth and $28 million of recurring. Source: earnings call transcript	$42M In terms of capital investments, we invested $472 million of growth CapEx and $42 million of recurring CapEx in the third quarter. Source: earnings call transcript	$43M In terms of capital investments, we invested $525 million of growth CapEx and $43 million of recurring CapEx in the fourth quarter. Source: earnings call transcript	$35M In terms of capital investments, in the first quarter, we invested $492 million of growth CapEx and $35 million of recurring CapEx. Source: earnings call transcript	$38M In terms of capital investments, in the second quarter, we invested $553 million of growth CapEx and $38 million of recurring CapEx. Source: earnings call transcript	+8.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Leasable capacity expected to energize 325 megawatts Q2 FY26

Expected over the next 24 months.

India future development capacity 100 megawatts Q2 FY26

Additional capacity in Mumbai.

Deals & partnerships

Group ATF Expands ALM capabilities and offering in France and Belgium. high teens millions of revenue annually

Closed right at the end of July / technically August 1. Consistent with strategy to add to ALM platform and deepen presence in key markets.

Leading global financial institution Deploy smart sort solution to process 10 million files as part of a building relocation.

Contract won in Records Management in the U.S.

Leading fintech company 3-year global managed services agreement to deliver intelligent intake management across 45 countries. 3 years

Contract won in Digital Solutions in the U.K.

Long-standing financial services customer Digitize 40 million images into DXP leveraging policy center solution to automate records retention and destruction.

Contract won in Digital Solutions in Australia, ensuring robust governance through a paperless environment.

Major global hyperscaler Leased 51 megawatts in Mumbai as part of a 10-year contract. 10 years

Signed in July, positioning Iron Mountain well in the rapidly growing India hyperscale data center market.

Long-standing business services customer Multiyear global ALM program to manage their IT assets annually across North America, EMEA, and APAC. multiyear

Another example of a customer standardizing with Iron Mountain across the world, building on single vendor consolidation wins.

Australian government department 3-year agreement for the secured disposition of 100,000 IT assets annually. 3 years

Won due to proven scale, security standards, and local partnership strength.

[indiscernible] Cloud customer Decommission and remarket tens of thousands of IT assets and conduct on-site shredding of drives.

Selected in ALM decommissioning business in Europe due to market-leading position and global reach.

Leading financial institution Selected as their decommissioning partner across Canada.

Builds on existing exclusive partnership in the U.S.

Risks & headwinds

Foreign exchange impact on revenue Q2 FY26

$14 million less than assumed in outlook

Mitigation:Not explicitly stated, but management noted the dollar strengthened.

Timing benefit from accelerated hyperscaler projects Q2 FY26

$30 million

Mitigation:Not explicitly stated as a mitigation, but acknowledged as a pull-forward of revenue.

Lumpiness of large data center leases Ongoing

Not quantified, but acknowledged as inherent to large hyperscale deals.

Mitigation:Management is shifting focus to the energization schedule of capacity (325 MW over 24 months) as a more consistent indicator.

What to watch in Q3 FY26

Data Center Leasing Momentum

next quarter / FY26

Current 110 megawatts YTD (Q2 + July)

Target Continued strong leasing, meaningfully exceeding 100 MW original target

Why it matters

Sustained data center leasing is critical for converting the significant pipeline of leasable capacity into revenue and driving overall growth.

As we sit here today, after the strong leasing that we've had in the first half of the year will include in July, we have 325 megawatts that remain will be energized in the next 24 months.

Find out whether IRM delivers this. Inve re-checks your case every morning.

Q&A highlights

What does the data center leasing pipeline look like beyond July, and which campuses are seeing demand?

Management stated they have 325 megawatts of leasable capacity expected to energize over the next 24 months, with a strong pipeline in Richmond, Europe, and India. They feel good about the momentum and expect to meaningfully exceed their original 100 MW leasing target for 2026.

“As we sit here today, after the strong leasing that we've had in the first half of the year will include in July, we have 325 megawatts that remain will be energized in the next 24 months.”

asked by Eric Luebchow · answered by William Meaney

2 min read 6 chapters

Detailed narrative

Growth Business Momentum

Iron Mountain's data center, ALM, and digital businesses collectively grew over 50% in Q2, contributing 35% of consolidated revenue, an increase of 750 basis points year-over-year. This strong performance from growth businesses complements the consistent mid-single-digit growth delivered by the traditional physical storage business, underpinning the company's long-term double-digit revenue and earnings growth trajectory.

Data Center Expansion and Leasing Success

The data center business achieved 39% year-over-year growth. The company leased 30 megawatts in Q2 and an additional 75 megawatts in July, bringing year-to-date leasing to 110 megawatts. With strong industry demand, particularly for AI inference capacity, Iron Mountain is well-positioned with approximately 325 megawatts of leasable capacity expected to energize over the next 24 months, including significant pipeline in Richmond, Europe, and India.

ALM Strategic Focus and Market Opportunity

ALM revenue surged 88% year-over-year, driven by over 60% organic growth in the enterprise channel and over 100% growth in data center decommissioning. The enterprise channel, representing 75% of the $35 billion ALM market, is characterized by consistent, recurring client activity and strong operating leverage, with expected annual growth of 25%+.

The hyperscale decommissioning market is projected to double from $3 billion to $6 billion over the next 4-5 years.

Digital Solutions and DXP Platform Traction

The Digital Solutions business maintained strong momentum, achieving record quarterly revenue with continued double-digit organic growth. The AI-powered DXP platform is gaining significant traction, with the recurring nature of the digital business now accounting for over 45% of its revenue. Forrester recognized Iron Mountain's Incyte DXP as a top provider for genic AI functionality, data privacy, and platform breadth.

Strategic Acquisitions and Global Reach

Iron Mountain recently acquired Group ATF, expanding its ALM capabilities and offerings in key markets like France and Belgium. This acquisition aligns with the company's strategy to provide a complete global ALM solution, leveraging its established brand, client relationships, and logistics infrastructure to cross-sell services and deepen penetration among existing customers across multiple geographies.

Operational Excellence and Transformation Initiatives

The company is driving operational efficiencies through a broad transformation program focused on customer-focused growth, operational excellence, modernization, and AI integration. Initiatives include optimizing physical services, improving real estate footprint for transportation savings, enhancing procurement capabilities, and increasing efficiency in customer care, all contributing to margin improvement and capacity for future growth.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.