Some of the information we will discuss on this call is forward-looking, including but not limited to, any guidance for 2026 and beyond. With that, I will now turn it over to Marc to comment on the first quarter results and 2026 outlook. The primary drivers of these increases include outperformance during our first quarter, higher street-level revenue, and favorable foreign currency rates. In the first quarter, we continued to operate efficiently, controlling direct costs and achieving company-wide Tower Cash Flow margins of approximately 80%.

Internationally, we continue to see healthy demand for infrastructure, and we added approximately $4 million of quarterly new lease and amendment billings year-over-year. Consistent with our prior outlook, we continue to assume that our $1.2 billion November ABS maturity will be refinanced in November at 5.25%. Our current leverage of 6.6x net debt to Adjusted EBITDA remains near historical lows and within our target range of 6x to 7x. During the first quarter, we declare a cash dividend of $135.2 million or $1.25 per share.

This dividend represents an increase of approximately 13% over the dividend paid in the first quarter of 2025 and an annualized rate of approximately 41% of the midpoint of our full year AFFO guidance. The first quarter was another quarter of solid financial and operational results, leading both an industry AFFO per share and year-over-year growth in our dividend. Our customers around the globe remained busy deploying cutting-edge technology, expanding their footprints, and deepening existing capacity to meet strong customer demand. Our backlogs also continued to steadily increase during the quarter, and we expect to see steady activity levels throughout the remainder of 2026.

What went well
  • Given a solid start to the year, SBA increased its full-year 2026 outlook for all key metrics, including site leasing revenue, Tower Cash Flow, Adjusted EBITDA, AFFO, and AFFO per share versus initial 2026 guidance.
  • The company continued to operate efficiently, controlling direct costs and achieving company-wide Tower Cash Flow margins of approximately 80%.
  • In the U.S., SBA added approximately $10 million of quarterly new lease and amendment billings year-over-year, with the bulk of activity coming from new collocations as carriers densified and expanded their network footprints.
  • U.S. backlogs continued to steadily increase during the quarter, replenishing faster and at a higher rate than they were being used, which supports steady leasing activity for the rest of 2026.
  • Internationally, SBA saw healthy demand and added approximately $4 million of quarterly new lease and amendment billings year-over-year.
  • The Millicom asset integration progressed well, with co-location demand for those Central American sites exceeding SBA's initial lease-up projections.
  • SBA built just over 60 towers in Central America in the first quarter, with expectations to do much more over coming quarters at risk-adjusted returns expected to be well above its cost of capital.
  • The board declared a first quarter dividend of $1.25 per share, an increase of approximately 13% over the first quarter of 2025.
  • Leverage of 6.6x net debt to Adjusted EBITDA remained near historical lows and within the target range of 6x to 7x, even after removing all EchoStar revenue as of January 1st.
  • SBA remained well positioned to become an investment grade issuer during the year, expecting to make its inaugural investment grade bond issuance at some point in 2026 depending on market conditions.
What went wrong
  • International churn continued to be elevated due to carrier consolidations, bankruptcy restructurings, and wireless operators' network rationalizations, and SBA expects 2026 to be the peak year for international churn.
  • SBA continued to litigate the EchoStar matter in federal court and removed all EchoStar revenue from its outlook as of January 1st.
  • SBA did not repurchase meaningful shares in the first quarter, as it prioritized paying down its revolving credit facility with excess free cash flow.

Guidance Changes

MetricPeriodCurrent guidance
Site leasing revenue (full-year 2026)FY2026Increased
Tower Cash Flow (full-year 2026)FY2026Increased
Adjusted EBITDA (full-year 2026)FY2026Increased
AFFO (full-year 2026)FY2026Increased
AFFO per share (full-year 2026)FY2026Increased
November ABS maturity refinancing rateNovember 20265.25% (assumed)

Performance Breakdown

MetricYoYNote
U.S. new lease and amendment billings +~$10 million quarterly Bulk of activity from new collocations as carriers densify and expand network footprints, including C-band, Massive MIMO upgrades, and Fixed Wireless Access growth
International new lease and amendment billings +~$4 million quarterly Healthy demand for infrastructure internationally
Quarterly dividend per share +~13% (to $1.25) Shareholder-friendly remuneration policy; represents an annualized rate of approximately 41% of the midpoint of full-year AFFO guidance
Tower Cash Flow margin ~80% company-wide Efficient operations and control of direct costs

Earnings Call Themes & Trends

TopicPrevious mentionCurrent periodTrend
6G / edge computingEarly theoretical discussion of compute at the towerStarting to see early signs of 6G with higher capacity radios and denser antennas; actively engaged with multiple companies exploring edge data centers at tower sites for AI inference and low-latency use cases—
Millicom / Central AmericaAssets recently acquiredIntegration progressing well; co-location demand exceeding initial lease-up projections; ramping new tower builds and land purchases—
Investment grade transitionCommitted to becoming IG issuerWell positioned to be an investment grade issuer during 2026, with inaugural IG bond issuance expected at some point in 2026—
Organic growth drivers5G deploymentUpper C-band auction expected mid-2027, 6G network architecture toward more balanced uplink/downlink, and new spectrum bands being studied for future auction—

Q&A Summary

Analysts asked about multiple PE firms reportedly circling to take SBA private, with a reported $250-per-share figure, and what it would take for a deal to happen.
Brendan Cavanagh said that as a matter of policy SBA does not comment on speculation or rumors in the press. He noted that in his 28-plus years with SBA the company has always focused on evaluating all options to act in the best interest of shareholders, will always evaluate any opportunity that presents itself, and would make whatever decision it thought was best for shareholders at the time.
Was the moderate increase in domestic backlog broad-based across carriers or specific to one, and could it offset an expected second-half slowdown?
Cavanagh said it was not completely even among the biggest customers; one customer with a recently signed agreement is driving increased activity. He expects all three primary U.S. customers to be active at various points during the year.
What investment is required to refit sites for Mobile Edge Compute, and when will it flow into the P&L?
Cavanagh said SBA is excited about the opportunity, especially for AI inference and low-latency environments, is actively engaged with multiple companies and has done a very small number of trial deployments, but it is too early to give material timing for financial impact and he would provide updates in future quarters.
What was the cap rate on the Guatemala land purchase under the Millicom towers?
Cavanagh said the multiple paid was in the seven-ish range, which he characterized as attractive and accretive, and helpful for de-risking SBA's positioning by controlling the land under most of the Guatemala towers.
Is the demand for Millicom towers an initial burst that may subside or something more sustainable?
Cavanagh said there is an initial burst of interest as carrier-controlled sites open up for co-location, but he believes growth is sustainable for an extended period given the large number of sites and pent-up demand, expecting a very attractive lease-up over an extended period.
How should investors think about leverage, buybacks, and M&A in balancing capital allocation?
Cavanagh said SBA starts with leverage, keeping it within the revised 6-7x target range, then prioritizes among buybacks, dividends, and new asset investments (tower builds and acquisitions), expecting to spend on all categories over time as it has historically.

More on Sba Communications Corp

Reported 2026-04-29 · figures from the Sba Communications Corp Q1 2026 earnings call.

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