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Introduction & Market Context
American Tower Corporation (NYSE:AMT) presented its first quarter 2025 earnings results on April 29, showing mixed performance with modest reported growth but stronger underlying operational metrics when adjusted for foreign exchange impacts. Despite a significant decline in net income, the company raised its full-year 2025 outlook, citing solid global demand and disciplined cost management.
The telecommunications infrastructure giant, currently trading at $211.30 (as of April 28 close), reported that its performance exceeded initial expectations, leading management to increase guidance across key financial metrics for the year.
Quarterly Performance Highlights
American Tower reported total property revenue of $2,488 million for Q1 2025, representing a modest 0.2% increase year-over-year. However, on an FX-neutral basis, property revenue growth was significantly stronger at 3.2%, indicating substantial currency headwinds affecting reported results.
As shown in the following consolidated results slide, net income attributable to AMT common stockholders declined dramatically by 46.7% to $489 million, with earnings per diluted share falling 46.9% to $1.04:
The company’s Adjusted EBITDA reached $1,744 million, up 1.9% year-over-year (4.7% on an FX-neutral basis), with an Adjusted EBITDA margin of 68.1%. Adjusted Funds From Operations (AFFO) attributable to AMT common stockholders was $1,290 million, representing a 1.0% decline from Q1 2024, though FX-neutral growth was positive at 2.5%.
The property revenue breakdown reveals solid tenant billings growth across all regions, with particularly strong performance in Europe (13.2%) and Africa & APAC (6.7%):
Management highlighted that non-cash straight-line revenue decline contributed to over 2.5% headwind to reported property revenue growth, masking stronger operational performance. The company also noted that Sprint churn had a 3% impact on results.
Detailed Financial Analysis
American Tower’s AFFO per share was $2.75 in Q1 2025, representing a 1.4% decline from the reported $2.79 in Q1 2024. However, on an as-adjusted basis, AFFO per share grew 6.6% from $2.58 in Q1 2024, with FX-neutral growth reaching 10.5%.
The following slide illustrates the company’s Adjusted EBITDA and AFFO performance:
A notable bright spot was the company’s U.S. services business, which saw gross profit growth of approximately 140% year-over-year, driven by increased tower activity. Management emphasized that disciplined cost management is driving incremental margin expansion across the business.
The impact of foreign exchange on American Tower’s financial results was substantial, as shown in the reconciliations slide:
This data reveals how currency fluctuations significantly dampened reported growth rates across all key metrics, with FX-neutral growth rates consistently 2-3 percentage points higher than reported figures.
Strategic Initiatives
American Tower outlined its capital allocation strategy for 2025, with plans to distribute $3.2 billion in common stock dividends, representing resumed dividend growth of approximately 5% year-over-year. The company also plans to invest $1.5 billion in discretionary capital projects, with the largest portion (40%) allocated to U.S. data centers.
The following capital allocation slide details the company’s deployment plans:
On the balance sheet front, American Tower has improved its net leverage ratio from 5.1x at the end of 2024 to 5.0x as of March 31, 2025. The company maintains strong liquidity of $11.7 billion and a conservative debt profile with 96% fixed-rate debt.
Forward-Looking Statements
In a significant vote of confidence, American Tower raised its full-year 2025 outlook across all key metrics:
The revised guidance increases Property Revenue from $9,995 million to $10,045 million, Adjusted EBITDA from $6,890 million to $6,920 million, and Attributable AFFO from $4,875 million to $4,895 million ($10.40 to $10.44 per share). Management noted that these increases are primarily driven by favorable foreign exchange movements.
For the full year 2025, American Tower expects property revenue growth of over 1% (approximately 3% on an FX-neutral basis) and Adjusted EBITDA growth of over 1.5% (over 3% on an FX-neutral basis). The company reiterated its organic tenant billings growth expectations across all regions.
Management summarized the quarter by highlighting the resilient domestic and international carrier network investments, strong new leasing activity, cost discipline, and resumed dividend growth as key factors supporting their long-term AFFO growth algorithm.
Full presentation:
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