01—Abstract
Summary
Summary of the 8-K filed February 26, 2026. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation reported fourth-quarter and full-year 2025 results on February 26, 2026, and issued initial full-year 2026 guidance alongside a quarterly cash dividend of $1.25a per share, about a 13% increase over the prior-year fourth-quarter dividend.
Fourth-quarter net income was $370.4 millionb, or $3.47 per diluted share, which included a $226.3 million gain on the sale of substantially all of the company's Canadian operations. Site leasing revenue was $666.2 million, up 3.1% year over year (1.6% excluding foreign exchange), while Adjusted EBITDA was $486.0 million, down 0.7%, and AFFO per share was $3.19, down 8.1%. The 2026 outlook projects site leasing revenue of $2,625.0 million to $2,650.0 million, Adjusted EBITDA of $1,912.0 million to $1,932.0 million, and AFFO per share of $11.84 to $12.29.
The company states that the outlook fully removes all contracted revenue from EchoStar, which it says is in dispute and unpaid, though it intends to pursue its contractual rights. The dividend is described as representing approximately 41%c of 2026 AFFO outlook.
Capital allocation included acquisitions of 2,026 sites in the quarter, mostly from the Millicom transaction in Central America, and repurchases of 1.1 million shares for $213.0 milliond during the quarter. As of December 31, 2025, the company reported total debt of $13.0 billion, Net Debt of $12.5 billion, and a leverage ratio of 6.4x, with 46,328 sites owned or operated.
02—Key points
Key Highlights
- Q4 2025 net income of $370.4 million ($3.47 per diluted share), including a $226.3 million gain on the sale of substantially all Canadian operations
- Q4 2025 site leasing revenue of $666.2 million, up 3.1% year over year (1.6% excluding foreign exchange); Adjusted EBITDA of $486.0 million, down 0.7%
- Quarterly cash dividend declared at $1.25 per share, an increase of approximately 13% over the prior-year fourth-quarter dividend, payable March 27, 2026
- Initial 2026 outlook: site leasing revenue of $2,625.0–$2,650.0 million, Adjusted EBITDA of $1,912.0–$1,932.0 million, and AFFO per share of $11.84–$12.29
- 2026 outlook excludes all contracted EchoStar revenue due to an ongoing dispute and lack of payment, though the company intends to pursue its contractual rights
- Repurchased 1.1 million shares for $213.0 million in Q4 2025; $1.1 billion of authorization remains under the $1.5 billion plan
- Leverage at year-end 2025: Net Debt of $12.5 billion, Net Debt to Annualized Adjusted EBITDA of 6.4x, and Net Secured Debt leverage of 4.9x
03—Questions
Frequently Asked Questions
Why did SBA's reported Q4 2025 net income rise so sharply?
Net income of $370.4 million compared with $178.8 million in Q4 2024, with the filing noting a $226.3 million gain on the sale of substantially all of the company's Canadian operations in Q4 2025. Net income also reflected a $10.3 million after-tax currency-related remeasurement loss on intercompany loans, versus a $77.8 million loss in the prior-year quarter. Excluding foreign exchange effects, net income rose 39.9%.
What does the 2026 outlook assume about EchoStar?
The outlook incorporates the full removal of all contracted revenue from EchoStar. The company states it intends to pursue its contracted legal rights to these amounts but believes excluding them gives the cleanest view of expectations given the existing dispute and lack of payment.
Does the 2026 outlook include future share repurchases or new debt?
No. The outlook does not contemplate additional stock repurchases or new debt financings in 2026, other than the assumed refinancing of the $1,165.0 million 2021-1C Tower Securities at a fixed rate of 5.25% before the fourth quarter. The company notes it does not currently have specific refinancing plans.
What acquisitions did SBA complete and what is pending?
In Q4 2025 SBA acquired 2,026 communication sites, including 2,020 from the Millicom transaction, for $236.4 million in total cash consideration. Subsequent to quarter end, it closed on rights to land under approximately 3,900 sites in Guatemala for $109.0 million, and it has purchased or is under contract to purchase 48 additional sites for $45.0 million, expected to close by the end of the second quarter of 2026.
How much debt did SBA repay and how is the balance sheet positioned?
On January 9, 2026, SBA repaid $750.0 million of 2020-1C Tower Securities using revolver borrowings, and on January 30, 2026 it repaid $39.5 million of 2020-2R Tower Securities, leaving $31.6 million outstanding. As of the release date, $1.205 billion was outstanding under its $2.0 billion Revolving Credit Facility. Year-end total debt was $13.0 billion against $0.4 billion of cash and equivalents, short-term restricted cash and short-term investments.
04—Continue