SBA Communications Corporation

SBA reported Q2 2026 AFFO per share of $3.05 and a cash dividend of $1.25 per share. Management said company-wide tower cash flow margins were just under 80%, U.S. domestic new lease and amendment billings were approximately $9 million, and international new lease and amendment billings were approximately $4 million. The company modestly increased full-year 2026 guidance for site leasing revenue, AFFO and AFFO per share versus prior guidance, driven mainly by higher straight-line revenues and improved net cash interest expense. In July, SBA raised $3.5 billion of unsecured investment-grade bonds, used net proceeds to repay its Term Loan B and revolver, ended with $570 million of cash, and reported pro forma secured debt below 50% of total debt; leverage was 6.4x net debt to adjusted EBITDA. Management continues to assume the $1.2 billion November ABS maturity will be refinanced in November at 5.25%, and said the quarterly dividend of $1.25 per share is up approximately 13% from the prior-year period and annualizes to about 41% of the midpoint of full-year AFFO outlook.

Brendan Cavanagh described the quarter as solid and emphasized steady customer demand, especially around U.S. 5G densification, C-band, massive MIMO, and fixed wireless access. He spent much of the call on long-term growth themes: new spectrum auctions, more stringent FCC build-out rules, edge compute, and potential terrestrial needs tied to satellite direct-to-device offerings. His tone was constructive and confident, repeatedly framing the company as well positioned for years of organic growth, while also saying the stock looks undervalued and that buybacks are attractive at current levels.

Marc Montagner said results were in line with expectations and highlighted the modest full-year increase in site leasing revenue, AFFO and AFFO per share. He pointed to just under 80% tower cash flow margins, $9 million of U.S. billings, $4 million internationally, and no change to prior expectations for Sprint- and EchoStar-related churn. He also detailed the new capital structure: $3.5 billion of unsecured bonds, a $2.5 billion unsecured revolver, $570 million of cash, total debt of about $13 billion, and leverage of 6.4x net debt to adjusted EBITDA, all while maintaining the dividend at $1.25 per share.

Analysts focused on whether activity could accelerate into next year, but management said application volumes are still consistent with the first half and that the newer spectrum-driven growth opportunities are mostly longer term, not expected to materially affect 2027. Questions also centered on the recent debt issuance, buyback pacing, and M&A; management said buybacks will be active in the second half, but the exact pace depends on capital needs and opportunities. On the litigation with EchoStar/DISH, management reiterated it strongly disagrees with their claims and expects to prevail, while saying the FCC already curtailed some of EchoStar’s arguments around the escrow fund.