Iron Mountain appoints new EVP for data centers

PORTSMOUTH, N.H. - Iron Mountain Incorporated (NYSE: IRM), a prominent player in the Specialized REITs industry with a market capitalization of $22.7 billion and annual revenue of $6.15 billion, has announced the appointment of Gary Aitkenhead as Executive Vice President and General Manager of its Data Centers division. Aitkenhead will oversee the global commercial and operational activities for the Data Centers business and will be part of the company’s executive team.

Gary Aitkenhead brings a wealth of experience to the role, with a background that includes leadership positions at Equinix, the UK Ministry of Defence’s Science & Technology Laboratory, and Motorola Solutions. He is recognized as a Chartered Engineer and holds fellowships with the Royal Academy of Engineering and the Institute of Engineering and Technology.

The President and CEO of Iron Mountain, William L. Meaney, expressed confidence in Aitkenhead’s capabilities, highlighting his global commercial and operational experience, as well as his data center expertise. Meaney anticipates that Aitkenhead’s contribution will be instrumental in enhancing the company’s commitment to delivering secure and innovative solutions to its customers.

Mark Kidd, who Aitkenhead will report to, praised the new EVP’s ability to lead teams and drive results, anticipating that under Aitkenhead’s leadership, the Data Centers business is poised to achieve new milestones.

Aitkenhead himself commented on the opportunity, noting the pivotal moment for the data center industry and Iron Mountain’s strong position to scale as demand for capacity increases. He stated his commitment to driving growth and contributing to Iron Mountain’s ongoing success.

Iron Mountain serves over 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000. The company offers a wide array of solutions that span information management, digital transformation, information security, data center, and asset lifecycle management. With an impressive track record of maintaining dividend payments for 16 consecutive years and currently offering a 4.07% dividend yield, Iron Mountain has demonstrated consistent shareholder returns despite recent market challenges, including a 32.86% decline over the past six months. InvestingPro analysis reveals multiple key insights about Iron Mountain’s performance and outlook, with 14 additional ProTips available to subscribers. Iron Mountain’s emphasis on safety, security, sustainability, and innovation is foundational to its operations and services.

This leadership change is based on a press release statement from Iron Mountain Incorporated.

In other recent news, Iron Mountain reported its fourth-quarter 2024 earnings, revealing a slight miss on both earnings per share (EPS) and revenue compared to analyst forecasts. The company posted an EPS of $0.50, falling short of the expected $0.51, and revenues of $1.58 billion, below the anticipated $1.6 billion. Despite these misses, Iron Mountain’s full-year 2024 revenue increased by 12% year-over-year to $6.15 billion, with adjusted EBITDA rising by 14% to $2.24 billion. The company’s Records and Information Management (RIM) and Data Center businesses were significant contributors to this growth, with the latter seeing a 25% increase to $620 million.

In other developments, Iron Mountain updated its federal income tax considerations related to its REIT status, providing shareholders with an overview of the tax implications associated with the company’s stock. UBS analyst Kevin McVeigh maintained a Sell rating on Iron Mountain with a price target of $45, expressing concerns over slowing revenue growth and financial constraints. McVeigh also highlighted challenges in the data center segment, including a significant increase in churn rate.

Additionally, Iron Mountain’s data center revenue grew by 25% in 2024, driven by strong leasing activity, although the company passed on a significant opportunity in the fourth quarter to maintain underwriting return expectations. The company also announced a joint venture with a telecom and data center company, expanding its footprint in the Middle East. These recent developments reflect Iron Mountain’s ongoing efforts to expand its data center and digital solutions businesses while navigating financial and market challenges.

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