SBA Communications Corporation

What they do

The company owns 46,390 towers as of June 30, 2026, and leases space on them to wireless service providers under leases generally running five to fifteen years with multiple renewal options. Its primary business line is site leasing, which contributed 98.4% of total segment operating profit for the six months ended June 30, 2026. A smaller site development business assists wireless service providers in developing and maintaining their own networks.

Revenue drivers

• Site leasing — Rents tower and rooftop space to wireless tenants; generated $663.9 million of Q2 2026 revenue, up 5.1% year over year, and 98.4% of segment operating profit in the first half of 2026.
• Site development — Assists carriers in developing and maintaining their own wireless networks; Q2 2026 revenue was $51.4 million, down 23.5% from $67.2 million in Q2 2025.
• Domestic tower portfolio — Principal operations are in the U.S. and its territories, where no single state or territory accounts for more than 10% of towers or revenues.
• International tower portfolio — Owns and operates towers in South America, Central America, and Africa; as of June 30, 2026, approximately 30% of total towers are in Brazil and 10% in Guatemala.

Recent performance

For Q2 2026, net income attributable to SBA was $198.8 million, or $1.87 per diluted share, versus $2.09 in Q2 2025. Total site leasing revenue rose 5.1% to $663.9 million, while site development revenue fell 23.5% to $51.4 million. Adjusted EBITDA was $483.8 million, up 1.8%, and AFFO per share was $3.05, down 3.8% from $3.17. Net income in the quarter included gains of $8.0 million and $30.4 million, net of taxes, on currency-related remeasurement of intercompany loans with foreign subsidiaries.

Strategy

Management's primary strategy is expanding the site leasing business through organic growth and adding towers. The company continues to build new towers, including sites in Central America for Millicom and others, and purchased over 7,000 sites from Millicom International Cellular S.A. during 2025. It is shifting its balance sheet toward investment grade, having issued $3.5 billion of senior unsecured notes and replaced its secured revolver with a $2.5 billion unsecured facility. Management targets net debt to Adjusted EBITDA within a 6.0x to 7.0x range and expects to keep growing the dividend while repurchasing stock.

Risks

• Carrier concentration — Site leasing revenues are derived primarily from wireless service provider tenants, so reduced carrier spending or consolidation among carriers can directly pressure leasing revenue.
• Foreign currency exposure — In Brazil, Chile, and South Africa, revenue, expenses, and capital expenditures are denominated in local currency, exposing results to currency movements; Q2 2025 net income included foreign currency remeasurement gains.
• Leverage and negative equity — As of June 30, 2026, long-term debt was $9.15 billion against total assets of $11.74 billion and shareholder equity of negative $4.63 billion, with net debt to Adjusted EBITDA of 6.4x.
• Ground lease and site development cyclicality — Ground leases and other property interests are a recurring cost, and the site development business is exposed to cyclical changes in customer spending.

Outlook

Management said second-quarter results were in line with expectations and that carrier activity remained steady, with customers upgrading sites and adding new colocations. The company expects new tower construction in Central America to grow steadily through the year. Management cited the upcoming Auction 115 and future network deployments, and said it expects to keep growing the dividend at the highest rate in the industry while investing in its portfolio and returning capital through stock repurchases.