Iron Mountain Incorporated

Second-quarter revenue was $2.03 billion, up $317 million year over year, or 19% reported, 18% constant currency, and 17% organic. Adjusted EBITDA was a record $727 million, up $99 million or 16%, and AFFO was $433 million, up $63 million or 17%, with AFFO per share at $1.44, up 16%. By segment, Global RIM revenue was $1.4 billion, up 8% reported and 7% organic; Data Center revenue was $263 million, up 39%; and ALM revenue was $288 million, up 88%. For the full year 2026, Iron Mountain raised guidance to revenue of $7.94 billion to $8.01 billion, adjusted EBITDA of $2.945 billion to $2.975 billion, and AFFO of $1.76 billion to $1.78 billion, or $5.87 to $5.93 per share. For third quarter 2026, it expects revenue of about $1.98 billion, adjusted EBITDA of about $745 million, and AFFO of about $440 million, or $1.47 per share.

Bill Meaney framed the quarter as evidence that Iron Mountain is still early in a long growth cycle, with growth businesses increasingly driving the company’s mix. He emphasized data center, ALM, and digital momentum, noting that those businesses grew more than 50% collectively and now represent more than 30% of consolidated revenue. His tone was confident and expansive, highlighting a large pipeline, especially in AI inference-related data center demand, and saying the company expects to compound double-digit revenue and earnings growth well into the future.

Barry Hytinen focused on the beat versus the prior outlook and the cash and balance-sheet improvements. He said revenue was about $65 million ahead of the prior projection, adjusted EBITDA beat by $12 million, and AFFO per share beat by $0.04, with growth supported by better-than-expected revenue and cost discipline. He also pointed to first-half operating cash flow of $888 million, up $315 million, free cash flow improvement of $441 million year over year, growth CapEx of $553 million, recurring CapEx of $38 million, net lease adjusted leverage of 4.8x, and a new $1.5 billion bond at a 6.25% fixed coupon due 2035 with an investment-grade covenant package.

Analysts focused heavily on data center leasing timing, the pipeline, and whether management would keep guiding to megawatts leased. Management said leasing is inherently lumpy, but that the company has 325 megawatts of capacity expected to energize over the next 24 months and remains confident it will meaningfully exceed the original 100-megawatt target. Questions also centered on Groupe ATF, with management saying it is a small tuck-in deal that broadens the ALM platform in France and Belgium and should add about $7 million of contribution in the back half, and on how the company can use its scale to win global MSAs and cross-sell across data center, ALM, and digital.