SBA Communications Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income attributable to SBA was $231.3 million ($2.19 per share), compared to $236.8 million ($2.20 per share) in the prior year quarter.
• Consolidated site leasing revenue was $665.4 million, a 1.4% increase year-over-year (excluding foreign exchange impact of 0.4%).
• Site development revenue was $48.5 million, a 36.0% decrease year-over-year.
• Total revenues were $713.9 million.
• Adjusted EBITDA was $488.1 million, a 1.1% decrease year-over-year (excluding foreign exchange impact of 1.9%).
• Funds from Operations (FFO) was $328.6 million ($3.11 per share), compared to $335.9 million ($3.13 per share) in the prior year.
• Adjusted Funds from Operations (AFFO) was $337.3 million ($3.19 per share), a 5.0% decrease year-over-year (excluding foreign exchange impact of 6.2%).
• Tower cash flow was $526.9 million, a 0.1% increase year-over-year (excluding foreign exchange impact of 0.8%).
• Tower cash flow margin was 79.7%, down from 80.4% in the prior year.
• Adjusted EBITDA margin was 68.8%, up from 67.5% in the prior year.
• Net cash interest expense was $118.9 million, a 3.8% increase year-over-year.
• Total debt was $13.0 billion, with $6.5 billion in secured debt.
• Net debt was $12.5 billion.
• Net Debt to Annualized Adjusted EBITDA leverage ratio was 6.4x.
• Net Secured Debt to Annualized Adjusted EBITDA leverage ratio was 3.1x.
• Cash and cash equivalents, short-term restricted cash, and short-term investments totaled $0.5 billion.

Guidance and Future Outlook:

• Full year 2026 Site leasing revenue outlook is $2,643.0 million to $2,658.0 million.
• Full year 2026 Site development revenue outlook is $190.0 million to $200.0 million.
• Full year 2026 Total revenues outlook is $2,833.0 million to $2,858.0 million.
• Full year 2026 Tower Cash Flow outlook is $2,083.0 million to $2,098.0 million.
• Full year 2026 Adjusted EBITDA outlook is $1,918.0 million to $1,928.0 million.
• Full year 2026 Net cash interest expense outlook is $487.0 million to $493.0 million.
• Full year 2026 Non-discretionary cash capital expenditures outlook is $61.0 million to $65.0 million.
• Full year 2026 Discretionary cash capital expenditures outlook is $480.0 million to $490.0 million.
• Full year 2026 AFFO outlook is $1,284.0 million to $1,308.0 million.
• Full year 2026 AFFO per share outlook is $12.15 to $12.37.
• The outlook assumes an average foreign currency exchange rate of 5.32 Brazilian Reais, 2,560 Tanzanian Shillings, and 16.40 South African Rand to 1.0 U.S. Dollar for Q4 2026.
• The sale of towers in Chile and Ecuador negatively impacted the 2026 outlook by approximately $10.0 million for Site leasing revenue, $6.0 million for Tower Cash Flow, and $4.0 million for Adjusted EBITDA.
• The outlook assumes the refinancing of $1,165.0 million 2021-1C Tower Securities at a rate of 5.25% in Q4 2026, subject to market conditions.

Business Segments and Product Lines:

• Domestic site leasing revenue was $454.4 million, a 3.4% decrease year-over-year.
• Domestic site leasing segment operating profit was $382.6 million, a 4.4% decrease year-over-year.
• International site leasing revenue was $211.0 million, a 13.3% increase year-over-year (excluding foreign exchange impact of 9.8%).
• International site leasing segment operating profit was $149.1 million, a 15.5% increase year-over-year (excluding foreign exchange impact of 11.9%).
• The company sold all towers in Chile and Ecuador and entered into an agreement to sell all towers in Peru, completing its exit from the region outside of Brazil.
• The company built 213 towers during the quarter.
• The company acquired 7 communication sites for $10.8 million during the quarter.
• As of September 30, 2026, the company owned or operated 45,252 communication sites (17,340 domestic, 27,912 international).

Market and Competitive Landscape:

• Demand for tower assets remains strong as wireless carriers continue to expand and upgrade networks.
• Mobile data traffic growth requires more equipment on more towers.
• Future growth drivers include the upper C-band auction, a growing pipeline of new spectrum, and the industry's move toward 6G.
• New opportunities are emerging from satellite and edge compute providers valuing the reach and infrastructure of the portfolio.
• The company is seeing new opportunities in markets where it has scale, having more than doubled new tower builds in those markets.

Risks and Challenges:

• The sale of towers in Peru is subject to regulatory approval and expected to close in Q4 2026; no adjustment to the full year outlook was made due to closing date uncertainty.
• The outlook assumes the refinancing of 2021-1C Tower Securities, but the actual date and rate are subject to market conditions.
• The outlook does not contemplate additional repurchases or debt financings beyond the refinancing of 2021-1C Tower Securities, though the company may do so.
• The outlook assumes acquisitions of only those sites under contract expected to close in 2026; additional capital may be spent on unidentified assets.

Management Commentary and Tone:

• Brendan Cavanagh, President and CEO, stated that demand for tower assets remains strong and the company is excited about the next wave of network investment.
• Management highlighted the company's investment-grade balance sheet providing flexibility to invest in the portfolio while returning capital.
• Management expressed confidence in the business and belief that shares represent great value, citing the repurchase of $300 million of stock since the last earnings release.

Other Key Points:

• The Board of Directors declared a quarterly cash dividend of $1.25 per share of Class A Common Stock, payable December 10, 2026, to shareholders of record on November 12, 2026.
• The company repurchased 1.7 million shares of Class A common stock for $300.0 million during the quarter at an average price of $179.68 per share.
• $0.8 billion of authorization remains under the $1.5 billion stock repurchase plan.
• On July 23, 2026, the company issued $3.5 billion in unsecured senior notes (blended rate 5.113%, weighted average maturity 4.9 years) to repay existing debt and for general corporate purposes.
• The company terminated its existing senior credit agreement and entered into a New Senior Credit Agreement providing a $2.5 billion senior unsecured revolving credit facility maturing July 23, 2031.
• On September 25, 2026, the company established a $2.5 billion commercial paper program backed by the Revolving Credit Facility.
• As of the press release date, there were no amounts outstanding under the Revolving Credit Facility or Commercial Paper Program.
• Subsequent to quarter end, the company purchased or is under contract to purchase 69 communication sites for $17.9 million, expected to close by the end of Q4 2026.
• The company paid a cash dividend of $131.3 million in the third quarter of 2026.