01—Abstract
Summary
Summary of the 8-K filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
SBA Communications Corporation reported first quarter 2026 results on April 29, 2026, with net income attributable to SBA of $184.8 milliona, or $1.74 per diluted share, compared with $220.7 million, or $2.04 per diluted share, in the prior-year quarter.
Site leasing revenue rose to $656.1 millionb from $616.2 million, and Adjusted EBITDA increased to $475.4 million from $457.3 million. AFFO per share was $3.03 versus $3.18 a year earlier. The company noted that the quarter included a $10.1 million net-of-tax currency remeasurement gain, versus $36.0 million in the prior-year quarter, and that the full removal of EchoStar revenue took effect at the start of 2026.
International site leasing revenue grew 32.6% reported, while domestic site leasing revenue declined 2.3%. SBA raised its full year 2026 outlook across its key metrics. Site leasing revenue is now projected at $2,649.0 million to $2,674.0 millionc, up $24.0 million at the midpoint from the February 26, 2026 outlook, and AFFO per share is projected at $11.93 to $12.38, up $0.09 at the midpoint.
Much of the increase reflects favorable foreign exchange movement, as the company's FX-excluded change was smaller. The outlook assumes Brazilian Reais, Tanzanian Shillings and South African Rand exchange rates of 5.05, 2,560 and 16.40 per U.S. dollar, respectively. The balance sheet ended the quarter with total debt of $13.0 billiond, net debt of $12.6 billion, and a Net Debt to Annualized Adjusted EBITDA leverage ratio of 6.6x, within the company's stated 6.0x to 7.0x target range.
The company declared a quarterly cash dividend of $1.25 per share, payable June 17, 2026 to holders of record on May 22, 2026. Management stated that this dividend represents approximately 41% of 2026 AFFO outlook. In the quarter, SBA repaid $750.0 million of 2020-1C Tower Securities using Revolving Credit Facility borrowings, and $1.1 billion was outstanding under the $2.0 billion revolver as of the release date.
02—Key points
Key Highlights
- Net income attributable to SBA of $184.8 million, or $1.74 per diluted share, versus $220.7 million, or $2.04 per diluted share, in Q1 2025
- Site leasing revenue of $656.1 million, up 6.5% reported and 4.5% excluding FX; international site leasing revenue rose 32.6% while domestic fell 2.3%
- Adjusted EBITDA of $475.4 million and Tower Cash Flow of $519.0 million; Tower Cash Flow margin of 79.8% versus 80.9% a year earlier
- AFFO per share of $3.03 versus $3.18 in Q1 2025, down 4.7% reported and 6.9% excluding FX
- Full year 2026 outlook raised: site leasing revenue of $2,649.0 to $2,674.0 million and AFFO per share of $11.93 to $12.38, each up at the midpoint versus February 26, 2026
- Net Debt to Annualized Adjusted EBITDA leverage of 6.6x, within the 6.0x to 7.0x target range, with $12.6 billion of net debt
- Quarterly dividend of $1.25 per share declared, payable June 17, 2026; company cites approximately 41% of 2026 AFFO outlook
03—Questions
Frequently Asked Questions
Why did net income and AFFO per share decline year over year even though revenue grew?
Net income fell to $184.8 million from $220.7 million attributable to SBA, partly because net interest expense rose: net cash interest expense increased to $123.3 million from $93.4 million, a 32.1% increase. The prior-year quarter also included a $36.0 million net-of-tax currency remeasurement gain, compared with $10.1 million in Q1 2026. AFFO fell to $321.7 million from $343.9 million, and the company attributed a portion of the reported growth in its FX-adjusted measures to currency movements.
What drove the increase in the full year 2026 outlook?
The company said favorable operating results and positive foreign exchange movements allowed it to raise its full year outlook for each key financial metric from the levels provided in late February. Site leasing revenue outlook rose by $24.0 million at the midpoint, of which $18.0 million was excluding FX, and AFFO per share outlook rose by $0.09 at the midpoint, of which $0.05 was excluding FX. The company also noted a growing domestic leasing backlog.
How is SBA's balance sheet positioned after the quarter?
SBA ended the quarter with $13.0 billion of total debt, $10.0 billion of which was secured, and $0.4 billion of cash, restricted cash and investments. Its leverage ratio was 6.6x Net Debt to Annualized Adjusted EBITDA and 5.0x on a secured basis. The company's outlook assumes the $1,165.0 million 2021-1C Tower Securities, due November 9, 2026, will be refinanced before the fourth quarter at an assumed fixed rate of 5.25%, though no specific refinancing plan has been established.
What is the dividend and how does it relate to cash flow?
SBA declared a quarterly cash dividend of $1.25 per share of Class A Common Stock, payable June 17, 2026 to shareholders of record on May 22, 2026. Management stated that the second quarter dividend represents approximately 41% of AFFO in its 2026 outlook, which it said leaves significant capital available for investment in the business. In the first quarter, the company declared and paid dividends of $135.2 million.
04—Continue