Nov 4, 2026, 5:21 PM ETCommunication Services

ATN International — Third Quarter 2026 Earnings Summary

ATNIATN INTERNATIONAL INC

Financial Performance

Consolidated revenue was stable at $183.2 million, unchanged year-over-year.
Operating income increased 32% to $12.9 million, driven by lower depreciation and amortization and lower losses on asset dispositions.
Net income attributable to ATN stockholders increased to $18.6 million, compared to prior year figures.
Diluted earnings per share increased to $1.09 from $0.18, primarily reflecting higher operating income, lower interest expense, and a greater tax benefit.
Adjusted EBITDA remained consistent at $50 million, with an Adjusted EBITDA margin of 27.3%.
Net cash provided by operating activities decreased to $76.7 million for the quarter, driven primarily by working capital timing.
Net Leverage Ratio improved to 0.94x from 2.36x as of December 31, 2025.
Cash, cash equivalents, and restricted cash totaled $351.5 million as of September 30, 2026, compared to $117.2 million on December 31, 2025.
Total debt declined to $537.5 million on September 30, 2026, from $565.2 million on December 31, 2025.

Full-year 2026 Adjusted EBITDA guidance is updated to the high end of, or modestly above, the previous range of $183 million to $193 million.
Full-year 2026 capital expenditures remain expected in the original range of $105 million to $115 million (net of reimbursable expenditures).
Management expects subsequent closings of the U.S. Tower Portfolio Sale to occur in or by June 2027, subject to conditions, with potential additional cash consideration of up to $29.6 million.

International Telecom: Revenue increased 2% to $96.9 million; growth in ancillary services, mobility, and carrier services offset the loss of a government subsidy. Operating income and Adjusted EBITDA each increased 9%, expanding Adjusted EBITDA margin by 240 basis points to 37.4%.
US Telecom: Revenue decreased 2% to $86.3 million due to the U.S. Tower Portfolio Sale, lower construction revenue, and timing of government subsidies. Excluding the sale impact, communication services revenue would have increased 1%.
US Telecom Adjusted EBITDA: Excluding the sale impact, Adjusted EBITDA would have increased 2% with a 60 basis point margin expansion.
Network Footprint: High-speed broadband homes passed increased by 4% year-over-year.
Customer Base: High-speed broadband customers were relatively unchanged year-over-year, reflecting increased competition in certain international markets.

The International segment demonstrated strong performance amid a heightened competitive environment.
Increased competition in certain international markets contributed to a lack of growth in high-speed broadband customers.
The company continues to face challenges related to the loss of government subsidies in the International segment.

Risks include the ability to satisfy outstanding conditions to complete subsequent closings of the U.S. Tower Portfolio Sale.
Potential impacts from government regulation on telecommunications licenses, revenue, and operating costs.
Geopolitical instability and U.S. military presence in the Caribbean.
Reliance on a limited number of key suppliers and vendors.
Ongoing risks of economic downturns, inflationary concerns, supply chain disruptions, and increased competition.
Risk of weather events and natural catastrophes.
Challenges in replacing revenue declines in US Telecom businesses resulting from the pending tower portfolio sale.

CEO Naji Khoury stated that consolidated revenue and Adjusted EBITDA remained flat year-over-year while operating income and earnings per share increased despite the impact of the U.S. Tower Portfolio Sale.
Management highlighted that excluding the sale, communication services revenue would have increased by 1% and Adjusted EBITDA by 6%.
Khoury noted that strong performance in the International segment and continued improvement in the US segment, particularly Alaska, reflect the benefits of strategic initiatives and underscore business resilience.
Management emphasized a focus on disciplined execution, operational improvement, and targeted capital deployment to support performance and deliver sustainable long-term value.

On October 9, 2026, the Company paid a quarterly dividend of $0.29 per share.
The Company did not repurchase any shares during the third quarter.
As of September 30, 2026, the full $30 million authorized under the Company's repurchase program remained available.
On February 11, 2026, subsidiaries entered into an agreement to sell approximately 214 tower portfolio sites in the southwest US for up to $297 million; the initial closing on June 2, 2026, received $267.7 million in cash.
Capital expenditures for the nine months ended September 30, 2026, were $66.4 million, net of $34.8 million in reimbursable expenditures.
Net cash provided by operating activities for the nine months ended September 30, 2026, was $76.7 million, down from $97.7 million in the same period last year.