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    IRM
    Earnings call· Dec 2025(Q4 FY25)

    IRON MOUNTAIN Q4 FY25 earnings call IRM

    Feb 12, 2026 Source

    Executive summary

    Iron Mountain Q4 FY25 — Record Performance Driven by Data Center, ALM, and Digital Growth

    Iron Mountain delivered a record fourth quarter and full year 2025, marking its fifth consecutive year of double-digit growth across key financial metrics. This strong performance was fueled by robust expansion in data center, Asset Lifecycle Management, and digital solutions, complemented by a resilient physical storage business. The company enters 2026 with significant momentum, projecting continued double-digit top and bottom-line growth, underpinned by a substantial data center pipeline and cross-selling opportunities.

    Highlights

    5

    • Record Q4 revenue of $1.84 billion, up 17% year-over-year.

    • Adjusted EBITDA grew 17% to $705 million, achieving a record 38.3% margin.

    • AFFO increased 17% to $430 million, with AFFO per share up 16% to $1.44.

    • Data center revenue surged 39% in Q4, with 43 megawatts leased and a strong backlog supporting over 25% revenue growth in 2026.

    • Asset Lifecycle Management (ALM) revenue grew 56% organically in Q4, driven by hyperscale and enterprise businesses.

    Concerns

    2

    • Gross margin in Q4 was modestly down year-over-year due to a higher mix of lower-gross-margin services revenue.

    • The Treasury contract revenue for 2026 is conservatively projected at $45 million, with a ramp-up expected before reaching over $100 million annually in 2027.

    Guidance & targets

    25
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $7.625 billion to $7.775 billion
    high materiality
    High
    Full-year 2026 Adjusted EBITDA
    $2.875 billion to $2.925 billion
    high materiality
    High
    Full-year 2026 AFFO
    $1.705 billion to $1.735 billion
    high materiality
    High
    Full-year 2026 AFFO per share
    $5.69 to $5.79
    high materiality
    High
    Full-year 2026 Data Center revenue
    more than $1 billion
    high materiality
    High
    Full-year 2026 ALM revenue
    $850 million
    medium materiality
    High
    Full-year 2026 Treasury contract revenue
    $45 million
    medium materiality
    Medium
    Full-year 2027 Treasury contract revenue
    in excess of $100 million annually
    medium materiality
    High
    Full-year 2026 Growth Capital Expenditures
    $2.0 billion
    high materiality
    High
    Full-year 2026 Recurring Capital Expenditures
    $150 million
    medium materiality
    High
    Full-year 2026 FX benefit to revenue
    approximately $75 million
    low materiality
    High
    Full-year 2026 Acquisitions contribution to revenue
    approximately $45 million
    low materiality
    High
    Q1 2026 Revenue
    approximately $1.855 billion
    medium materiality
    High
    Q1 2026 Adjusted EBITDA
    approximately $685 million
    medium materiality
    High
    Q1 2026 AFFO
    approximately $415 million
    medium materiality
    High
    Q1 2026 AFFO per share
    approximately $1.39
    medium materiality
    High
    Full-year 2026 Net Lease Adjusted Leverage
    similar levels to year-end 2025
    medium materiality
    High
    Long-term revenue growth
    double-digit rate
    high materiality
    High
    EBITDA margin expansion
    further EBITDA margin expansion
    medium materiality
    High
    Dividend payout ratio target
    low 60s
    medium materiality
    High
    Data center megawatts leased
    over 100 megawatts
    high materiality
    High
    Data center revenue growth
    20%-plus growth
    high materiality
    High
    Physical storage business growth
    mid-single-digit rate
    medium materiality
    High
    2026 Revenue Target (Old)
    $7.3 billion
    medium materiality
    High
    2026 EBITDA Target (Old)
    $2.5 billion
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Global RIM
    Achieved record quarterly revenue. Storage revenue down slightly from Q3 due to stronger USD and lower data management revenue. Strong growth in digital business and core record management services.
    Storage revenue growth: 7% reported, 5% organicCore physical performance: 8% up year-on-yearGlobal RIM service revenue growth: 12% reported, 10% organic
    		$1.37 billion9%—45.3%
    Global Data Center
    Driven by lease commencements and positive pricing trends. Signed 43 megawatts of new leases in Q4.
    Lease commencements: 41 megawattsLeases renewed: 176 leases totaling 4 megawattsRenewal pricing spreads: 9% cash, 12% GAAP
    		$237 million39%—51.5%
    Asset Lifecycle Management (ALM)
    Exceeded projections, driven equally by hyperscale and enterprise businesses. Continued improvement in margins.
    Organic revenue growth: 56%Acquisitions contribution to revenue: $14 million
    		$190 million70%——

    Operational metrics

    23
    Adjusted EBITDA margin
    38.3%90 bps improvement YoY
    Q4 FY25

    Highest level ever reported for this metric.

    Services gross margin
    Up over 100 bpsUp 350 bps from Q3
    Q4 FY25

    Expanded year-over-year, driven by strong execution and operating leverage.

    Net lease adjusted leverage
    4.9x
    Q4 FY25

    Lowest leverage level achieved since prior to REIT conversion in 2014.

    Quarterly dividend per share
    $0.86410% higher than comparable Q4 last year
    Q4 FY25

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

    Cash interest
    $905 million
    FY26

    Estimate for full year, based on Q4 run rate and incremental borrowings.

    Cash taxes
    Up about $20 millionYoY
    FY26

    Conservative estimate due to phenomenal growth in services, particularly ALM.

    Total addressable market
    $170 billion
    Long-term

    Company is still in early phases of growth journey.

    Fortune 1000 customers using ALM
    360Up from 270 in prior year
    FY25

    Significant room to grow within existing customers.

    Customers buying from more than one business unit
    5%
    Current

    Indicates significant cross-selling opportunity.

    Adjusted EBITDA
    $2.6 billion15% YoY growth
    FY25

    Full year result.

    ALM revenue growth
    63%YoY
    FY25

    Total ALM revenue growth.

    Revenue increase
    $262 millionYoY increase
    Q4 FY25

    Q4 revenue increase.

    Total storage revenue
    $1.06 billionUp $119 million or 13% YoY
    Q4 FY25

    Q4 result.

    Total service revenue
    $782 millionUp $143 million or 22% YoY
    Q4 FY25

    Q4 result.

    AFFO per share outperformance
    $0.05Ahead of projection
    Q4 FY25

    Q4 AFFO per share was $1.44, $0.05 ahead of projection.

    Adjusted EBITDA increase
    $338 millionYoY
    FY25

    Full year Adjusted EBITDA increased to $2.57 billion.

    Global RIM revenue increase
    $115 millionYoY
    Q4 FY25

    Global RIM revenue was $1.37 billion.

    Global RIM adjusted EBITDA increase
    $43 millionYoY
    Q4 FY25

    Global RIM adjusted EBITDA was $622 million.

    Data Center revenue increase
    $67 millionYoY
    Q4 FY25

    Data Center revenue was $237 million.

    Data Center adjusted EBITDA increase
    $34 millionYoY
    Q4 FY25

    Data Center adjusted EBITDA was $122 million.

    ALM revenue increase
    $78 millionYoY
    Q4 FY25

    ALM revenue was $190 million.

    Matterhorn restructuring plan
    Ended
    Last year

    No restructuring charges in 2026 plan.

    Q4 FY25 cash interest
    $207 million
    Q4 FY25

    Used as a run rate for FY26 estimate.

    Industry KPIs

    4
    MetricValueDetails
    Signed not commenced backlogExpected to drive more than 25% revenue growth
    Bookings leasing volume signed43 megawattsMW
    Cash re leasing spread on renewals9%%
    Power pipeline secured vs advanced stage vs unde400 megawattsMW

    Orderbook & backlog

    1
    Data Center BacklogExpected to drive more than 25% revenue growthQ4 FY25

    Expected to drive 20%+ revenue growth in 2027 as well.

    Deals & partnerships

    11
    Leading global health care providerRecords Management Extensionmultiyear

    Secured a significant multiyear extension in North America, including a comprehensive suite of information governance solutions. Key factors were long-standing relationship, proven track record, global footprint, deep compliance expertise, and ability to deliver value.

    Major U.K. government departmentRecords Management Agreementmultiyear

    Selected Iron Mountain based on established relationship, proven reliability, understanding of regulatory requirements, and ability to drive operational efficiency.

    Leading global media and entertainment companyMedia and Archival Services Agreement

    Engaged Iron Mountain to securely store and preserve more than 1,600 high-value media assets across multiple geographies. Key advantages were global reach, technical expertise, and proven track record.

    Leading Asia financial services companyDigital Modernization Agreement (DXP)multiyear

    Building on an existing 10-year records management relationship, this software-only deal launches in 4 key markets with plans to expand across 16 additional markets, replacing legacy enterprise data management platform with DXP. Incorporates DXP's AI capabilities to extract metadata from over 500 million images and digital files.

    Major hyperscalerData Center Lease15-year

    Won a 15-year contract for 28 megawatts of capacity at the Northern Virginia campus, supporting the continued expansion of its cloud platform.

    Existing hyperscale customerData Center Lease10-year

    Leased the entire 36-megawatt Chicago site as part of a 10-year contract, transferring and expanding the customer's previous lease in London.

    Major hyperscalerData Center Lease

    Leased 2 megawatts in the Phoenix campus.

    Major hyperscalerData Center Lease

    Leased 600 kilowatts in the Madrid campus.

    Large financial institutionIT Asset Disposition (ITAD) Services

    Selected Iron Mountain to provide secure IT asset disposition services for end-of-life network equipment and telephones across over 2,000 branch locations in the U.S., representing a cross-sell from records management and digital solutions.

    Fortune 100 health care technology companyIT Asset Disposition (ITAD) Services

    Engaged Iron Mountain to manage secure recovery, audit, and compliant disposition of more than 11,000 employee devices. Unique capability to rapidly deploy comprehensive end-to-end ITAD logistics was a determining factor.

    Global IT infrastructure services providerData Center Decommissioning & Asset Remarketingmultiyear

    Engaged Iron Mountain to support initiatives for more than 30,000 deployed IT assets across North America. This multiyear deal builds on established records management and digital solutions relationship, displacing incumbent providers.

    Capital programs

    2
    Growth Capital Expendituresplanned
    Period spend: $2.0 billion

    Benefit: Accommodates pre-leasing over 100 megawatts of data center capacity

    Planned for 2026, slightly down from last year. More than $1.8 billion of this is for data centers.

    Recurring Capital Expendituresplanned
    Period spend: $150 million

    Planned for 2026, slightly down from last year.

    Risks & headwinds

    2
    Conservative outlook for Treasury contract revenueFY26

    $45 million for 2026

    Mitigation: Purely conservative and prudent based on ramp-up and outsourcing dynamics; fully expected to generate over $100 million annually in 2027 and beyond.

    Gross margin impact from services mixQ4 FY25

    Modestly down from last year

    Mitigation: Services gross margin expanded over 100 basis points year-over-year and 350 basis points from Q3, driven by strong execution and operating leverage.

    Q&A highlights

    8

    Inquire about the 100+ MW opportunity, specific markets tracking larger deals, and confidence in leasing activity.

    Management highlighted strong Q4 leasing momentum (40+ MW) and identified key markets for the 400 MW capacity energizing over the next 24 months, including Northern Virginia, Richmond, Madrid, London, and India. They noted increased interest from hyperscalers for cloud build-out and inference capacity.

    “We feel really good. The fact that we have 400 megawatts being energized in the next 24 months. And we see a lot of the folks that were focused on large language models in the last year are now going back to making sure they enough capacity for their cloud build-out and inference.”

    asked by Eric Luebchow · answered by William Meaney

    2 min read6 chapters

    Detailed Narrative

    01

    Data Center Momentum

    Iron Mountain's data center business is experiencing robust demand, with 43 megawatts leased in Q4 2025 and an expectation to lease over 100 megawatts in 2026. The company's land bank includes 400 megawatts of available capacity, with half expected to energize within the next 18 months, primarily in key markets like Northern Virginia, Richmond, Madrid, London, and India. This strong pipeline and current backlog are projected to drive over 25% revenue growth in 2026 and 20%+ growth in 2027.

    02

    Asset Lifecycle Management (ALM) Expansion

    The ALM business saw significant organic growth of 56% in Q4 2025, contributing to a 63% total increase for the full year. This growth is driven by both hyperscale and enterprise segments, with the number of Fortune 1000 customers utilizing ALM services increasing to 360 from 270 in the prior year. The company views ALM as a future multibillion-dollar business, with strong momentum from commercial wins and increased customer penetration.

    03

    Digital Solutions & DXP Growth

    Digital solutions achieved an all-time high revenue of over $500 million in 2025, marked by double-digit growth. The AI-powered DXP platform secured a record number of deals in Q4, with average deal values more than double the prior year. New project wins and recurring business, now over 40% of digital revenue, are expected to sustain strong growth in 2026.

    04

    Resilient Physical Storage Business

    The legacy physical storage business, a nearly $5 billion high-margin segment, achieved mid-single-digit revenue growth in 2025, marking its 37th consecutive year of organic storage rental revenue growth. This segment provides substantial cash flow, funding growth investments, and serves as a foundation for cross-selling to over 240,000 customers. The company remains committed to growing this business through innovation and revenue management strategies.

    05

    Operational Efficiency & Profitability

    Iron Mountain demonstrated strong operational execution in 2025, expanding profitability with adjusted EBITDA increasing 15% and margin improving 90 basis points at the enterprise level. The adjusted EBITDA margin reached a record 38.3% in Q4. The company expects further EBITDA margin expansion in 2026, driven by SG&A leverage and the adoption of AI tools to improve efficiency.

    06

    Treasury Contract & Government Opportunities

    The multiyear contract with the Department of Treasury recognized $6 million in Q4 2025 revenue, with a conservative outlook of $45 million for 2026 as the department ramps up outsourcing. The contract is expected to generate over $100 million annually from 2027 onwards. Iron Mountain's FedRAMP certification (moderate, with high pending) for its InSight SaaS platform positions it well for further federal government opportunities.

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