SBA Communications Revenue Hits $713.9 Million, Missing Third-Quarter Forecasts
Key Facts
SBA Communications reported revenue of $713.9 million in the third quarter of 2026, below analysts’ estimate of $727.1 million, according to a Zacks survey of 3 analysts. Results reflected a mixed performance across the company’s businesses, with international leasing revenue rising while domestic leasing and site-development revenue declined. Growth in international activity did not prevent AFFO per share from falling year over year, according to the company’s filing with the U.S. Securities and Exchange Commission. The company, however, raised its full-year outlook for the measure. Investing.com reported that the stock fell 2% in after-hours trading on November 2 following results in which adjusted earnings per share beat expectations while revenue missed.
International leasing revenue was $211.0 million, up 13.3% from the third quarter of 2025. In the United States, domestic leasing revenue fell 3.4% to $454.4 million over the same period. Site-development revenue declined 36.0% to $48.5 million, from $75.9 million a year earlier. AFFO per share was $3.19, down 3.3% from $3.30 in the third quarter of 2025. The figures reflect growth in international leasing alongside weakness in other revenue sources, with the international increase insufficient to offset the year-over-year decline in the adjusted per-share measure.
Chief Executive Brendan Cavanagh said demand for tower assets "remains strong as carriers continue to expand and upgrade their networks." Cavanagh also linked demand to rising mobile data traffic, which requires more equipment on more towers. Looking ahead to deployment opportunities, he cited the upper C-band auction, growing spectrum supply and the sector’s transition toward sixth-generation technology. Those factors "are expected to drive new equipment deployments on our sites," he said. He also pointed to potential opportunities from satellite service providers and edge computing, without providing figures for their revenue contribution.
SBA raised its 2026 AFFO-per-share outlook to a range of $12.15 to $12.37, an increase of $0.08 at the midpoint compared with its outlook issued on August 3. The company also indicated that it had lowered its annual revenue outlook range, without the available information specifying the range’s boundaries. The update sets out two different paths for the year: a higher forecast for the adjusted per-share measure and a lower revenue outlook. The increase in the full-year forecast does not change the fact that third-quarter AFFO per share came in below the level recorded in the same period last year, according to the filing data.
The company repurchased 1.7 million shares during the third quarter for $300.0 million, at an average price of $179.68 per share. A $0.8 billion buyback authorization remained as of November 2. It also declared a quarterly cash dividend of $1.25 per share, payable on December 10, 2026, to shareholders of record at the close of November 12. In its tower portfolio, the company completed the sale of its sites in Chile and Ecuador and entered into an agreement to sell its towers in Peru. Cavanagh said these steps "complete our exit from the region outside Brazil."
Among upcoming obligations, the company said it expects to refinance $1,165 million of Tower Securities notes, due November 9, 2026, during the fourth quarter, at an assumed interest rate of 5.25%. The final plan had not been determined, and terms were subject to market conditions. The maturity date follows the November 2 release of third-quarter results and updated guidance. The company also set November 12 as the record date for shareholders eligible for the cash dividend scheduled for payment on December 10.