SBA Communications Q1 2025 Update: Buybacks Begin
- Guidance for 2025 raised 1.16% for AFFO per share attributable to SBAC.
- Shares repurchased in early April. Average price per share of $210.87.
- By my math, about 0.54% of shares outstanding were repurchased.
- AFFO per share attributable to SBAC of $3.16 matches the consensus estimate.
One of our largest allocations, SBA Communications (SBAC), announced earnings this afternoon.
From the Earnings Release
Management's commentary is included below:
“We had a positive start to 2025, producing favorable financial and operating results,” commented Brendan Cavanagh, President and Chief Executive Officer. “Carrier activity levels in the U.S., represented by both new leasing business signed up and services volumes, continued to grow in the quarter. We also saw our U.S. leasing and services application backlogs increase from year-end, providing us confidence in continued solid activity levels throughout the year. Internationally, we also saw solid leasing activity in line with our expectations, and we were able to secure an earlier than expected closing of 321 sites from our previously announced Millicom acquisition.
These first quarter results have allowed us to increase our full year outlook for each of our key financial metrics from the levels provided just two months ago. Our balance sheet remains very strong as we ended the quarter with a net debt to Adjusted EBITDA leverage ratio of 6.4x, no remaining debt maturities in 2025, and a significant cash balance of over $600 million. In the current uncertain macroeconomic environment, SBA stands out as a reliable, cash flow producing, high performing company.
With some of the dislocation in the stock market over the last month, we have demonstrated confidence in our company and prospects by repurchasing approximately 583 thousand shares of our stock for $122.9 million. In addition, today we are announcing that our Board of Directors has approved a new $1.5 billion share repurchase authorization, providing us with the opportunity and flexibility to continue returning capital to our shareholders. The favorable characteristics of our underlying business, the outstanding execution of our team and the strength of our balance sheet, provide us with tremendous opportunities to continue serving our customers and creating value for our shareholders.”
Results for AFFO Attributable to SBA Communications Per Share
- AFFO consensus estimate: $3.16
- AFFO attributable to SBA Communications Per Share Result: $3.16
- Result: Matches estimate.
Note: SBAC reports two AFFO metrics. Sometimes the databases pull the one labeled as “AFFO” and other times they pull “AFFO attributable to SBA Communications”.
We focus on “AFFO attributable to SBA Communications”.
