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BOCA RATON, Fla. - SBA Communications Corporation (NASDAQ:SBAC), a leading operator of wireless communications infrastructure with a market capitalization of $24.1 billion, has announced its financial results for the first quarter ended March 31, 2025. The company reported a net income of $189 million or $1.77 per share, which represents a significant increase from the previous year. According to InvestingPro analysis, the company maintains strong profitability with a gross margin of 77.3% and currently appears to be trading above its Fair Value.
The quarter also saw an industry-leading Adjusted Funds from Operations (AFFO) per share of $3.18. Following these strong results, SBA Communications repurchased 583 thousand shares and received Board approval for a new $1.5 billion share repurchase authorization.
A quarterly cash dividend of $1.11 per share was declared, payable on June 17, 2025, to shareholders of record as of May 22, 2025. Brendan Cavanagh, President and CEO, expressed confidence in the company’s continued solid activity levels, bolstered by growth in U.S. carrier activity and international leasing.
SBA’s financial health remains robust with a net debt to Adjusted EBITDA leverage ratio of 6.4x and no debt maturities remaining in 2025. The company’s strong balance sheet, with over $600 million in cash, positions it well in the current uncertain macroeconomic environment.
During the first quarter, SBA acquired 344 communication sites, including 321 from the Millicom acquisition, for a total cash consideration of $58 million. As of March 31, 2025, the company owned or operated 39,709 communication sites, with 17,447 in the United States and its territories and 22,262 internationally.
The company’s outlook for the full year 2025 has been updated, reflecting positive expectations based on current market conditions and recent acquisitions. This information is based on a press release statement. For deeper insights into SBAC’s performance and outlook, InvestingPro subscribers can access a comprehensive Research Report, part of the platform’s coverage of over 1,400 US stocks, offering detailed analysis and actionable intelligence for informed investment decisions.
In other recent news, SBA Communications Corporation has seen a series of developments that are of interest to investors. The company’s senior unsecured debt rating was upgraded by S&P Global Ratings to ’BB+’ from ’BB’, reflecting an improved recovery rating due to the inclusion of unencumbered tower sites in its valuation. On the earnings front, SBA Communications reported adjusted funds from operations (AFFO) per share of $3.46 for the fourth quarter of 2024, surpassing estimates from Jefferies and other analysts. However, guidance for 2025 has been less optimistic, with the midpoint AFFO per share guidance falling below analyst expectations.
KeyBanc Capital Markets maintained an Overweight rating on the company, citing potential catalysts such as tax reform and spectrum auctions that could benefit SBA Communications. Meanwhile, Jefferies adjusted its price target to $221 from $205, maintaining a Hold rating due to ongoing challenges like the impact of Sprint churn. BMO Capital Markets kept a Market Perform rating, noting the company’s international market challenges and underwhelming domestic leasing guidance.
JMP Securities reiterated a Market Outperform rating with a $250 price target, highlighting the company’s low net debt and potential growth from 5G network rollouts. These recent developments suggest a mixed outlook, with analysts recognizing both opportunities and challenges facing SBA Communications in the near term.
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