SBA Communications Lifts AFFO Outlook, Trims Revenue Forecast After Q3
SBA Communications raised its full-year AFFO per share outlook on Monday even as third-quarter adjusted funds from operations slipped 3.3% to $3.19 per share, and the tower owner said it has bought back $300 million of stock since its last report.
The company now expects 2026 AFFO of $12.15 to $12.37 per share, an 8-cent increase at the midpoint from its Aug. 3 outlook, according to its 8-K. It trimmed its total revenue outlook by $18.0 million at the midpoint to $2.833 billion to $2.858 billion, reflecting currency moves and the sale of its towers in Chile and Ecuador.
The quarter
Site leasing revenue rose 1.4% to $665.4 million, while site development revenue fell 36.0% to $48.5 million. Combined, the two lines totaled $713.9 million, down 2.5% from $732.3 million a year earlier.
Net income attributable to SBA was $231.3 million, or $2.19 per share, compared with $2.20 a year ago. Results included a $1.6 million currency-related loss on intercompany loans, versus a $25.5 million gain a year earlier. AFFO fell 5.0% to $337.3 million, and adjusted EBITDA slipped 1.1% to $488.1 million.
Domestic versus international
The two halves of the business moved in opposite directions. Domestic site leasing revenue fell 3.4% to $454.4 million, while international site leasing revenue jumped 13.3% to $211.0 million.
SBA built 213 towers in the quarter and owned or operated 45,252 sites at Sept. 30, including 17,340 in the U.S. and its territories. On Sept. 10, it sold all of its towers in Chile and Ecuador and agreed to sell its Peru towers, a deal expected to close in the fourth quarter pending regulatory approval.
"Demand for our tower assets remains strong as wireless carriers continue to expand and upgrade their networks," CEO Brendan Cavanagh said. He pointed to the upper C-band auction, new spectrum and the move toward 6G as drivers of future deployments.
Buybacks, dividend and balance sheet
SBA repurchased 1.7 million shares for $300.0 million in the quarter at an average price of $179.68, leaving $0.8 billion under its $1.5 billion authorization. The board declared a quarterly dividend of $1.25 per Class A share, payable Dec. 10 to holders of record on Nov. 12.
The company ended the quarter with $13.0 billion of total debt and net debt of 6.4 times annualized adjusted EBITDA. In September it set up a $2.5 billion commercial paper program, and it had nothing drawn on that program or its revolver as of the release.
By the numbers
- $3.19 AFFO per share, down 3.3%
- $12.15 to $12.37 raised 2026 AFFO per share outlook
- $2.19 diluted EPS, versus $2.20
- 13.3% international site leasing revenue growth
- $300.0 million of buybacks in the quarter
- $1.25 quarterly dividend
Sources
- SBA Communications Form 8-K with third-quarter 2026 results, filed Nov. 2, 2026 (accession 0001193125-26-443666)
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