SBA (SBAC) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 9:24 AM CDT 23 min read

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Date

Wednesday, April 29, 2026, astatine 5 p.m. ET

Call participants

• Chief Executive Officer — Brendan Cavanagh

• Chief Financial Officer — Marc Montagner

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Full Conference Call Transcript

Marc Montagner: Thank you, Louis. Given the coagulated commencement of the year, we are expanding our afloat twelvemonth outlook for each cardinal metrics, including tract leasing revenue, our currency flow, adjusted EBITDA, AFFO and AFFO per stock arsenic compared to our archetypal 2026 guidance. The superior drivers of these increases see outperformance during our archetypal quarter, precocious straight-line gross and favorable overseas currency rates. In the archetypal quarter, we proceed to run efficiently, controlling nonstop costs and achieving company-wide operation currency travel margins of astir 80%. In the U.S. we added astir $10 cardinal of quarterly caller lease and amendment billings year-over-year. The bulk of the enactment continues to travel from caller colocations arsenic bearer some densify and expanded web footprint.

With respect to churn, our anterior outlook for some Sprint and EchoStar-related churn for the twelvemonth remains unchanged. With respect to EchoStar, we proceed to litigate the substance successful national tribunal and judge powerfully successful our contractual rights. Internationally, we proceed to spot steadfast request for our infrastructure and we added astir $4 cardinal of quarterly caller lease and amendment billings year-over-year. International churn continues to beryllium elevated owed to bearer consolidation, bankruptcy, restructurings and wireless operator's web rationalizations. We judge 2026 volition beryllium the highest twelvemonth for planetary churn and expect betterment successful our churn complaint implicit the adjacent respective years. Moving to our equilibrium sheet.

In January, we paid disconnected $750 cardinal of ABS indebtedness with our revolving recognition facility, and our outlook assumes that we volition usage our escaped currency travel to wage down the existent outstanding magnitude connected our recognition installation implicit time. Consistent with our anterior outlook, we proceed to presume that a $1.2 cardinal November ABS maturity volition beryllium refinanced successful November astatine 5.25%. We besides proceed to beryllium committed to becoming an investment-grade issuer and expect making our inaugural investment-grade enslaved issuance astatine immoderate constituent successful 2026, babelike marketplace conditions. We ended the 4th with astir $13 cardinal of full debt.

Our existent leverage of 6.6x nett indebtedness to adjusted EBITDA remains adjacent humanities lows and wrong our people scope of 6 to 7x. During the archetypal quarter, we declared and paid currency dividend of $135.2 cardinal oregon $1.25 per share. And today, we announced that our Board of Directors declared our archetypal 4th dividend of $1.25 per share, payable connected June 17, 2026, to shareholders of grounds arsenic of the adjacent of concern connected May 22, 2026. This dividend represents an summation of astir 13% implicit the dividend paid successful the archetypal 4th of 2025 and an annualized complaint of astir 41% of the midpoint of our afloat twelvemonth AFFO guidance. I volition present crook the telephone implicit to Brendan.