Iron Mountain — Third Quarter 2026 Earnings Summary

Financial Performance

• Total reported revenues for Q3 2026 reached $2.0 billion, a 13.5% year-over-year increase; excluding foreign exchange, revenue grew 13.3%.
• Storage rental revenue was $1.15 billion (up 11% YoY), and service revenue was $841 million (up 17% YoY).
• Net income for Q3 2026 was $129 million, compared to $86 million in Q3 2025, representing a 49% increase.
• Adjusted EBITDA for Q3 2026 was $748 million, a 13.3% increase from $660 million in Q3 2025, with an Adjusted EBITDA margin of 37.6%.
• Adjusted EPS for Q3 2026 was $0.64, up 19% from $0.54 in Q3 2025.
• Funds From Operations (FFO) Normalized per share was $1.05 for Q3 2026, up 12.9% from $0.93 in Q3 2025.
• Adjusted Funds From Operations (AFFO) for Q3 2026 was $458 million ($1.53 per share), a 17% increase from $393 million ($1.32 per share) in Q3 2025.
• Year-to-date total revenues were $5.96 billion, up 17.7% from $5.06 billion in 2025.
• Year-to-date Net Income was $384 million, compared to $59 million in 2025.
• Year-to-date Adjusted EBITDA was $2.18 billion, up 16.8% from $1.87 billion in 2025.
• Year-to-date AFFO was $1.32 billion ($4.40 per share), up 18% from $1.11 billion ($3.73 per share) in 2025.
• Total assets as of September 30, 2026, were $22.32 billion.
• Long-term debt, net of current portion, was $16.74 billion as of September 30, 2026.
• Deferred revenue was $378 million as of September 30, 2026, down from $402 million as of December 31, 2025.

Guidance and Future Outlook

• Full-year 2026 revenue guidance is raised to $7.95 billion – $8.02 billion, representing an approximate 16% year-over-year increase.
• Full-year 2026 Adjusted EBITDA guidance is raised to $2.95 billion – $2.98 billion, representing an approximate 15% year-over-year increase.
• Full-year 2026 AFFO guidance is raised to $1.78 billion – $1.80 billion, representing an approximate 16% year-over-year increase.
• Full-year 2026 AFFO per share guidance is raised to $5.94 – $6.00, representing an approximate 15% year-over-year increase.
• Fourth quarter 2026 revenue guidance is approximately $2.03 billion.
• Fourth quarter 2026 Adjusted EBITDA guidance is approximately $780 million.
• Fourth quarter 2026 AFFO guidance is approximately $473 million.
• Fourth quarter 2026 AFFO per share guidance is approximately $1.57.

Business Segments and Product Lines

• Growth businesses (data center, digital, and asset lifecycle management) collectively grew more than 30% year-over-year in the third quarter.
• Data center leasing activity included 102 megawatts in Q3 2026, bringing the year-to-date total to 137 megawatts.
• Cross-selling efforts in Asset Lifecycle Management (ALM) and Digital are accelerating.

Market and Competitive Landscape

• Iron Mountain serves more than 240,000 customers across 61 countries, including approximately 95% of the Fortune 1000.
• The company partners with customers to connect physical, digital, and intelligent workflows for lifecycle solutions.

Risks and Challenges

• Risks include the ability to execute strategic growth plans, incorporate alternative technologies (including AI), and achieve satisfactory returns on new product offerings.
• Potential shifts in customer preferences from paper and tape storage to alternative technologies requiring less physical space.
• Compliance costs and risks related to data privacy, cybersecurity, fire, safety, and environmental standards.
• Risks associated with attacks on internal IT systems, service interruptions, equipment damage, and power costs for data center operations.
• Risks related to maintaining REIT qualification, raising debt or equity capital, and complying with debt obligations.
• Potential disruptions from climate change, geopolitical events, and fluctuations in commodity prices.

Management Commentary and Tone

• CEO William L. Meaney stated the company is pleased to report another record performance exceeding expectations, reflecting the strength of physical records storage and growth businesses.
• Management highlighted a clear view for sustained long-term growth driven by 137 megawatts of new data center leases year-to-date and accelerating cross-selling.
• The tone was confident regarding the strong 2026 growth and positive outlook, citing disciplined operational execution and customer value creation.

Other Key Points

• The Board of Directors declared a quarterly cash dividend of $0.993 per share for the fourth quarter of 2026, a 15% increase from the prior quarter.
• The fourth quarter 2026 dividend is payable on January 6, 2027, to shareholders of record at the close of business on December 15, 2026.
• Iron Mountain does not provide a reconciliation of non-GAAP measures for its annual guidance due to the unavailability of certain significant information, such as the impact of exchange rates and gains/losses on real estate dispositions.