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Sba Communications Annual Report, Year Ended Dec 31, 2024

Filing Date
Filed February 26, 2025
Period End
December 31, 2024
Security
SBAC
One revenue dollarkept$0.28
In the record · 2016–202610-K1110-Q328-K107

SBAC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 107 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · May ’20May ’20
  2. Leadership change8-K · Jun ’22Jun ’22
  3. Material agreement8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 10-K filed February 26, 2025. Cited figures are marked; the original filing is the authoritative source.

SBA Communications Corporation reported total revenues of $2.68 billiona for the year ended December 31, 2024, essentially flat versus $2.71 billion in 2023, with site leasing revenue of $2.53 billion and site development revenue of $152.9 million.

Site leasing generated 98.4% of total segment operating profit in 2024. Net income attributable to SBA Communications Corporation rose to $749.5 millionb from $501.8 million, driven in large part by a reduction in depreciation, accretion, and amortization of $446.8 million, which reflects the revision of tower useful lives from 15 to 30 years effective January 1, 2024 (a $411.5 million reduction in depreciation and amortization expense, or $3.45 per diluted share). Adjusted EBITDA was $1.89 billion, roughly unchanged year over year, and cash provided by operating activities was $1.33 billion, down from $1.54 billion.

The balance sheet remains highly levered. Total principal debt rose to $13.67 billionc from $12.39 billion, and the shareholders' deficit was $5.11 billion. The company refinanced its 2018 Term Loan with a $2.3 billion 2024 Term Loan, issued $2.05 billion of new Tower Securities, and repaid $620.3 million of Tower Securities.

Capital returns in 2024 included $200.0 milliond of share repurchases and $424.2 million of dividends paid, with a $1.11 per share quarterly dividend declared in February 2025. The company also has a pending agreement to acquire over 7,000 sites in Central America from Millicom for approximately $975.0 million, with an estimated closing date of September 1, 2025, and has sold its Philippines towers and agreed to sell its Colombia towers. Key risks flagged in the filing include customer consolidation and churn, with expected churn of $115.0 million to $125.0 million of cash site leasing revenue from 2025 through 2028 related to the T-Mobile and Sprint consolidation, and approximately $27.0 million to $31.0 million of international churn expected in 2025.

Customer concentration is significant, with T-Mobile, AT&T Wireless, and Verizon Wireless representing 30.5%, 20.6%, and 15.1% of 2024 total revenues, respectively. Foreign currency exposure is also material, as the Brazilian Real weakened 6.9% on average in 2024, and the company recorded a $156.8 million net-of-tax loss on intercompany loan remeasurement in 2024.

02—Key points

Key Highlights

  1. Total revenues of $2.68 billion in 2024, roughly flat versus $2.71 billion in 2023; site leasing revenue was $2.53 billion.
  2. Net income attributable to SBA Communications Corporation increased to $749.5 million from $501.8 million, aided by a $411.5 million reduction in depreciation and amortization from the tower useful-life change (15 to 30 years).
  3. Adjusted EBITDA of $1.89 billion in 2024, essentially unchanged from $1.89 billion in 2023.
  4. Total debt principal of $13.67 billion at December 31, 2024, up from $12.39 billion, with a shareholders' deficit of $5.11 billion.
  5. Pending acquisition of over 7,000 Central American sites from Millicom for approximately $975.0 million, with an estimated closing date of September 1, 2025, subject to regulatory approvals.
  6. Customer concentration remains high: T-Mobile (30.5%), AT&T Wireless (20.6%), and Verizon Wireless (15.1%) of 2024 total revenues.
  7. Cash returned to shareholders in 2024 included $200.0 million of share repurchases and $424.2 million of dividends; a $1.11 per share dividend was declared in February 2025.

03—One dollar

Follow one dollar

Of each $1.00 of revenue in FY2024, Sba Communications kept $0.28.

  1. Revenue$2.68B100.0%
  2. Cost of revenue−$581.7M21.7%
  3. Gross profit$2.10B78.3%
  4. Operating costs−$662.1M24.7%
  5. Operating income$1.44B53.6%
  6. Interest, other & tax−$686.2M25.6%
  7. Net income$749.5M28.0%
Computed from 10-KFY2024filed February 26, 2025Computed from this filing’s revenue, gross profit, operating income and net income · right columngrey figure: share of revenue

Where FY2024 revenue went

$2.68B
  • Net income: $749.5M, 28% of revenue
  • Interest, other & tax: $686.2M, 26% of revenue
  • Cost of revenue: $581.7M, 22% of revenue
  • Other operating costs: $403.4M, 15% of revenue
  • SG&A: $258.8M, 9.7% of revenue

Kept 28% as net income

Full revenue history →

04—Financials

Financial Highlights

Figures from 10-KFY2024filed February 26, 2025
Revenue$2.68B78.3% Gross MarginNet Income$749.54M28.0% Net MarginEPS (Diluted)$6.94Total Assets$11.42BCash & Equivalents$189.84MFree Cash Flow$1.11B

Financial Statements

FY2024 against FY2023

Line itemFY2024FY2023Change
Revenue$2.68B$2.71B−1.2%
Cost of Revenue$581.73M$612.62M−5.0%
Gross Profit$2.10B$2.10B−0.1%
SG&A Expenses$258.76M$267.94M−3.4%
Operating Expenses$1.24B$1.79B−30.4%
Operating Income$1.44B$923.66M+55.4%
Net Income$749.54M$501.81M+49.4%
EPS (Basic)$6.96$4.64+50.0%
EPS (Diluted)$6.94$4.61+50.5%
Shares Outstanding (Basic)107.64M108.20M−0.5%
Shares Outstanding (Diluted)108.08M108.91M−0.8%

05—Questions

Frequently Asked Questions

  1. Why did net income rise so sharply in 2024?

    Net income rose to $748.7 million from $497.4 million, mainly because depreciation, accretion, and amortization fell $446.8 million to $269.5 million. The filing attributes this largely to revising tower useful lives from 15 to 30 years effective January 1, 2024, which reduced depreciation and amortization by about $411.5 million, or $3.45 per diluted share. Revenue was essentially flat, so the accounting change is the main driver of the increase.

  2. How much debt does SBA carry, and how is it structured?

    Total principal debt was $13.67 billion at December 31, 2024, up from $12.39 billion a year earlier. It includes $8.4 billion of Secured Tower Revenue Securities, a $2.28 billion 2024 Term Loan maturing in 2031, $3.0 billion of senior notes, and no outstanding balance on the $2.0 billion Revolving Credit Facility. Of the total, about $2.3 billion, or 16.7%, is variable rate, and the company holds interest rate swaps that fix much of that exposure.

  3. What risks could affect SBA's future leasing revenue?

    The filing highlights wireless carrier consolidation and churn, with expected churn from the T-Mobile and Sprint consolidation of $115.0 million to $125.0 million of cash site leasing revenue from 2025 through 2028, and about $27.0 million to $31.0 million of international churn expected in 2025. Customer concentration, slower carrier capital spending, and foreign currency movements, particularly the Brazilian Real, are also cited as material risks.

  4. What is the Millicom transaction and what does it mean for SBA?

    SBA agreed to purchase over 7,000 communication sites in Central America from Millicom for approximately $975.0 million in cash. Millicom will lease back space on the acquired sites under 15-year master lease agreements, and SBA received a seven-year exclusivity right to build up to 2,500 build-to-suit sites for Millicom. The estimated closing date is September 1, 2025, but closing depends on regulatory approvals and other conditions.

06—Continue

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