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SBAC’s results reflect growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.
Total quarterly revenues increased 10% year over year to $732.3 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $705.1 million.
SBAC’s Third Quarter in Detail
Site-leasing revenues rose 4.9% year over year to $656.4 million. Quarterly site-leasing revenues consisted of domestic site-leasing revenues of $470.3 million and international site-leasing revenues of $186.2 million. Domestic cash site-leasing revenues came in at $470.8 million, growing 1.5% year over year. International cash site-leasing revenues summed at $184 million, up 14.4% year over year.
Site development revenues surged significantly year over year to $75.9 million.
The site-leasing operating profit was $529.1 million, increasing 4.2% year over year. Moreover, 97.5% of SBAC’s total operating profit in the quarter came from site leasing.
The overall operating income declined marginally to $374.2 million.
Adjusted EBITDA totaled $493.3 million, up 4.4%, while the adjusted EBITDA margin decreased to 67.5% from 70.9% in the prior-year quarter.
The cost of site development increased significantly to $62.5 million, and interest expenses rose 25.5% year over year to $120.2 million.
SBAC’s Portfolio Activity
In the third quarter, SBAC acquired 447 communication sites, including Milicom’s 446 sites, for a total cash consideration of $142.8 million. The company also built 151 towers during this period. It owned or operated 44,581 communication sites as of Sept. 30, 2025, of which 17,409 were in the United States and its territories and 27,172 internationally.
SBA Communications also spent $8.9 million to purchase land and easements and extend lease terms. The total cash capital expenditure was $71.9 million in the reported quarter, of which $57.5 million represented discretionary, and $14.4 million was non-discretionary.
Following the quarter-end. SBAC closed on the 2020 sites related to the Millicom transaction for $217.4 million in cash.
As of Nov. 3, 2025, SBAC is under contract to buy 78 communication sites for a total consideration of $66.9 million in cash. It expects to complete the acquisition by the end of the first quarter of 2026.
In October 2025, SBAC closed on its previously agreed 365 towers and related operations in Canada for CAD$446 million.
SBAC’s Cash Flow & Liquidity
As of Sept. 30, 2025, SBAC had $0.5 billion in cash and cash equivalents, short-term restricted cash and short-term investments, up from $0.3 billion recorded as of June 30, 2025. SBAC ended the quarter with $12.3 billion in net debt and a net debt-to-annualized adjusted EBITDA of 6.2X.
As of Nov. 3, 2025, the company had $385 million outstanding under the $2 billion revolving credit facility.
During the third quarter, SBA Communications repurchased 748,000 shares of its Class A common stock for an aggregate amount of $154.1 million. Following the third quarter, the company further repurchased 210,000 shares of its Class A common stock for an aggregate amount of $40.2 million. After these repurchases, SBAC has $1.3 billion authorization under its stock repurchase plan as of Nov. 3, 2025.
In the third quarter, SBA Communications generated nearly $318 million of net cash from operating activities compared with the year-ago quarter’s $304.7 million.
SBAC’s Dividend
Concurrent with the earnings release, SBAC announced a cash dividend of $1.11 per share on its Class A common stock for the fourth quarter. The dividend will be paid out on Dec. 11 to shareholders of record as of Nov. 13, 2025.
2025 Guidance Revision by SBAC
SBAC now expects AFFO per share in the range of $12.76-$12.98 from the previously guided range of $12.65-$13.02. The Zacks Consensus Estimate is currently pegged at $12.80, which is within the guided range.
Further, adjusted EBITDA is expected within the $1,909-$1,919 million range.
Site-leasing revenues are projected between $2,568 and $2,578 million. Site-development revenues are expected between $240 million and $250 million.
SBAC’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Cousins Properties (CUZ - Free Report) reported third-quarter 2025 FFO per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.
CUZ experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2025 adjusted FFO per share of $1.12, which topped the Zacks Consensus Estimate of $1.04. However, the figure declined nearly 7% year over year.
Results reflected a rise in services and other revenues year over year. However, a decrease in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
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SBA Communications' Q3 AFFO Beats Estimates, Revenues Grow Y/Y
Key Takeaways
SBA Communications Corporation (SBAC - Free Report) reported third-quarter 2025 adjusted funds from operations (AFFO) per share of $3.30, beating the Zacks Consensus Estimate of $3.19. However, this compares unfavorably to the FFO of $3.32 in the prior-year period.
SBAC’s results reflect growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.
Total quarterly revenues increased 10% year over year to $732.3 million. Moreover, the figure surpassed the Zacks Consensus Estimate of $705.1 million.
SBAC’s Third Quarter in Detail
Site-leasing revenues rose 4.9% year over year to $656.4 million. Quarterly site-leasing revenues consisted of domestic site-leasing revenues of $470.3 million and international site-leasing revenues of $186.2 million. Domestic cash site-leasing revenues came in at $470.8 million, growing 1.5% year over year. International cash site-leasing revenues summed at $184 million, up 14.4% year over year.
Site development revenues surged significantly year over year to $75.9 million.
The site-leasing operating profit was $529.1 million, increasing 4.2% year over year. Moreover, 97.5% of SBAC’s total operating profit in the quarter came from site leasing.
The overall operating income declined marginally to $374.2 million.
Adjusted EBITDA totaled $493.3 million, up 4.4%, while the adjusted EBITDA margin decreased to 67.5% from 70.9% in the prior-year quarter.
The cost of site development increased significantly to $62.5 million, and interest expenses rose 25.5% year over year to $120.2 million.
SBAC’s Portfolio Activity
In the third quarter, SBAC acquired 447 communication sites, including Milicom’s 446 sites, for a total cash consideration of $142.8 million. The company also built 151 towers during this period. It owned or operated 44,581 communication sites as of Sept. 30, 2025, of which 17,409 were in the United States and its territories and 27,172 internationally.
SBA Communications also spent $8.9 million to purchase land and easements and extend lease terms. The total cash capital expenditure was $71.9 million in the reported quarter, of which $57.5 million represented discretionary, and $14.4 million was non-discretionary.
Following the quarter-end. SBAC closed on the 2020 sites related to the Millicom transaction for $217.4 million in cash.
As of Nov. 3, 2025, SBAC is under contract to buy 78 communication sites for a total consideration of $66.9 million in cash. It expects to complete the acquisition by the end of the first quarter of 2026.
In October 2025, SBAC closed on its previously agreed 365 towers and related operations in Canada for CAD$446 million.
SBAC’s Cash Flow & Liquidity
As of Sept. 30, 2025, SBAC had $0.5 billion in cash and cash equivalents, short-term restricted cash and short-term investments, up from $0.3 billion recorded as of June 30, 2025. SBAC ended the quarter with $12.3 billion in net debt and a net debt-to-annualized adjusted EBITDA of 6.2X.
As of Nov. 3, 2025, the company had $385 million outstanding under the $2 billion revolving credit facility.
During the third quarter, SBA Communications repurchased 748,000 shares of its Class A common stock for an aggregate amount of $154.1 million. Following the third quarter, the company further repurchased 210,000 shares of its Class A common stock for an aggregate amount of $40.2 million. After these repurchases, SBAC has $1.3 billion authorization under its stock repurchase plan as of Nov. 3, 2025.
In the third quarter, SBA Communications generated nearly $318 million of net cash from operating activities compared with the year-ago quarter’s $304.7 million.
SBAC’s Dividend
Concurrent with the earnings release, SBAC announced a cash dividend of $1.11 per share on its Class A common stock for the fourth quarter. The dividend will be paid out on Dec. 11 to shareholders of record as of Nov. 13, 2025.
2025 Guidance Revision by SBAC
SBAC now expects AFFO per share in the range of $12.76-$12.98 from the previously guided range of $12.65-$13.02. The Zacks Consensus Estimate is currently pegged at $12.80, which is within the guided range.
Further, adjusted EBITDA is expected within the $1,909-$1,919 million range.
Site-leasing revenues are projected between $2,568 and $2,578 million. Site-development revenues are expected between $240 million and $250 million.
SBAC’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SBA Communications Corporation Price, Consensus and EPS Surprise
SBA Communications Corporation price-consensus-eps-surprise-chart | SBA Communications Corporation Quote
Performance of Other REITs
Cousins Properties (CUZ - Free Report) reported third-quarter 2025 FFO per share of 69 cents, in line with the Zacks Consensus Estimate. The figure increased 3% on a year-over-year basis.
CUZ experienced healthy leasing activity in the quarter. However, the weighted average occupancy decreased, while interest expenses increased and marred the growth tempo. CUZ also raised its 2025 outlook for FFO per share.
Crown Castle Inc. (CCI - Free Report) reported third-quarter 2025 adjusted FFO per share of $1.12, which topped the Zacks Consensus Estimate of $1.04. However, the figure declined nearly 7% year over year.
Results reflected a rise in services and other revenues year over year. However, a decrease in site rental revenues affected the results to some extent. CCI increased its outlook for 2025.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.