Q2 FY2026
Filed Aug 3, 2026SBA Communications Corporation Reports Second Quarter 2026 Results; Updates Full Year 2026 Outlook; and Declares Quarterly Cash Dividend
International site leasing growth and a stronger investment-grade financing position offset declining domestic site leasing revenue, lower net income, lower AFFO, and lower AFFO per share.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Site leasing revenueGAAP | $ 663.9 | – | 5.1 % |
| Site development revenueGAAP | 51.4 | – | (23.5 %) |
| Site leasing segment operating profitother | 529.8 | – | 3.2 % |
| Tower cash flownon-GAAP | 524.9 | – | 2.7 % |
| Net cash interest expenseother | 122.1 | – | 9.5 % |
| Net incomeGAAP | 196.5 | – | (12.9 %) |
| Net income attributable to SBAGAAP | $198.8 million | – | – |
| Earnings per share — dilutedGAAP | 1.87 | – | (10.7 %) |
| Adjusted EBITDAnon-GAAP | 483.8 | – | 1.8 % |
| AFFOnon-GAAP | 324.4 | – | (5.2 %) |
| AFFO per sharenon-GAAP | 3.05 | – | (3.8 %) |
| Tower Cash Flow Marginnon-GAAP | 79.5 % | – | – |
| Adjusted EBITDA Marginnon-GAAP | 68.0 % | – | – |
| Site leasing contribution to total operating profitother | 98.2% | – | – |
| Total cash capital expendituresother | $91.2 million | – | – |
| Non-discretionary cash capital expendituresother | $15.8 million | – | – |
| Discretionary cash capital expendituresother | $75.4 million | – | – |
| Communication sites acquiredother | 6 communication sites | – | – |
| Cash consideration for communication sites acquiredother | $10.5 million | – | – |
| Towers builtother | 109 towers | – | – |
| Communication sites owned or operatedother | 46,390 communication sites | – | – |
| United States and territories communication sitesother | 17,362 | – | – |
| International communication sitesother | 29,028 | – | – |
| Land, easements, and lease-term expendituresother | $17.2 million | – | – |
| Total debtother | $12.8 billion | – | – |
| Total secured debtother | $9.8 billion | – | – |
| Cash and cash equivalents, short-term restricted cash, and short-term investmentsother | $0.4 billion | – | – |
| Net Debtother | $12.4 billion | – | – |
| Net Debt to Annualized Adjusted EBITDA Leverage Rationon-GAAP | 6.4x | – | – |
| Net Secured Debt to Annualized Adjusted EBITDA Leverage Rationon-GAAP | 4.9x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic site leasingDomestic site leasing revenue declined (3.7 %). | $ 452.5 | – | (3.7 %) |
| International site leasingInternational site leasing revenue increased 30.5 % and 22.4 % excluding FX. | 211.4 | – | 30.5 % |
Full Year 2026 Outlook outlook
- Revenue$ 2,841.0 to $ 2,886.0
- NoteSite leasing revenue: $ 2,651.0 to $ 2,676.0
- NoteSite development revenue: $ 190.0 to $ 210.0
- NoteTower Cash Flow: $ 2,091.0 to $ 2,111.0
- NoteAdjusted EBITDA: $ 1,920.0 to $ 1,940.0
- NoteNet cash interest expense: $ 490.0 to $ 498.0
- NoteNon-discretionary cash capital expenditures: $ 65.0 to $ 75.0
- NoteAFFO: $ 1,270.0 to $ 1,318.0
- NoteAFFO per share: $ 11.95 to $ 12.40
- NoteDiscretionary cash capital expenditures: $ 455.0 to $ 475.0
- NoteAssumed weighted average number of diluted common shares: 106.3 million
- NoteAverage foreign currency exchange rate assumption: 5.10 Brazilian Reais to 1.0 U.S. Dollar
- NoteAverage foreign currency exchange rate assumption: 2,560 Tanzanian Shillings to 1.0 U.S. Dollar
- NoteAverage foreign currency exchange rate assumption: 16.40 South African Rand to 1.0 U.S. Dollar
- NoteAssumed fixed rate for refinancing the $1,165.0 million 2021-1C Tower Securities: 5.25%
Capital returns
- The Board of Directors declared a quarterly cash dividend of $1.25 per share of the Company’s Class A Common Stock.
- The distribution is payable September 17, 2026 to shareholders of record at the close of business on August 20, 2026.
- The Company declared and paid a cash dividend of $132.7 million in the second quarter of 2026.
- As of the date of the press release, the Company had $1.1 billion of authorization remaining under its stock repurchase plan.
What drove it
- Carrier activity remained steady, with customers upgrading sites and expanding networks through new colocations.
- International site leasing revenue increased 30.5 %, or 22.4 % excluding FX.
- The Company increased new tower construction in Central America for Millicom and others.
- SBA built 109 towers during the second quarter of 2026.
- The full-year outlook assumes acquisitions only of communication sites under contract that are expected to close in 2026.
Concerns
- Domestic site leasing revenue declined (3.7 %) to $ 452.5.
- Site development revenue declined (23.5 %) to 51.4.
- Net income declined (12.9 %) to 196.5, while diluted earnings per share declined (10.7 %) to 1.87.
- AFFO declined (5.2 %) to 324.4 and AFFO per share declined (3.8 %) to 3.05.
- Tower Cash Flow Margin declined to 79.5 % from 81.0 %, and Adjusted EBITDA Margin declined to 68.0 % from 68.1 %.
- Net cash interest expense increased 9.5 % to 122.1.
- The outlook assumes refinancing of the $1,165.0 million 2021-1C Tower Securities prior to the fourth quarter at a fixed rate of 5.25%, but the Company does not currently have any specific refinancing plans.
What to watch
- Execution on the purchase or contracted purchase of 58 communication sites for an aggregate consideration of $28.8 million in cash, expected to close by the end of the fourth quarter of 2026.
- The pace of new tower construction in Central America and the expected steady production growth throughout the year.
- Domestic site leasing revenue following its (3.7 %) second-quarter decline.
- Foreign-exchange outcomes relative to outlook assumptions of 5.10 Brazilian Reais, 2,560 Tanzanian Shillings, and 16.40 South African Rand to 1.0 U.S. Dollar.
- Any stock repurchases or additional debt financings, neither of which is contemplated in the outlook for the remainder of 2026.
Balance sheet and cash flow
- SBA ended the second quarter of 2026 with $12.8 billion of total debt, $9.8 billion of total secured debt, $0.4 billion of cash and cash equivalents, short-term restricted cash, and short-term investments, and $12.4 billion of Net Debt.
- On July 23, 2026, the Company issued $1.35 billion of 4.875% unsecured senior notes due January 15, 2030, $1.35 billion of 5.150% unsecured senior notes due July 15, 2031, and $0.8 billion of 5.450% unsecured senior notes due July 15, 2033.
- The 2026 Senior Notes have a blended interest rate of 5.113% and a weighted average maturity of 4.9 years.
- Net proceeds were used to repay the aggregate principal amount outstanding on the Revolving Credit Facility ($1.0 billion), the 2024 Term Loan ($2.2 billion), and for general corporate purposes.
- The Company entered into an expanded $2.5 billion senior unsecured revolving credit facility with a maturity date of July 23, 2031.
- As of the date of the press release, the Company had no amounts outstanding under the 2026 Revolving Credit Facility.
Analysis
SBA reported 5.1 % growth in site leasing revenue to $ 663.9, while site development revenue declined (23.5 %) to 51.4. The revenue outcome was split sharply by geography. Domestic site leasing revenue declined (3.7 %) to $ 452.5, whereas international site leasing revenue rose 30.5 % to 211.4, or 22.4 % excluding FX. Management described carrier activity as steady, citing site upgrades and new colocations, and stated that new tower construction increased in Central America.
Profit and cash-flow measures were mixed. Site leasing segment operating profit increased 3.2 % to 529.8, tower cash flow increased 2.7 % to 524.9, and Adjusted EBITDA increased 1.8 % to 483.8. However, the Tower Cash Flow Margin fell to 79.5 % from 81.0 % and the Adjusted EBITDA Margin fell to 68.0 % from 68.1 %. Net cash interest expense increased 9.5 % to 122.1. Net income declined (12.9 %) to 196.5, diluted earnings per share declined (10.7 %) to 1.87, AFFO declined (5.2 %) to 324.4, and AFFO per share declined (3.8 %) to 3.05.
Investment activity included acquisitions of 6 communication sites for total cash consideration of $10.5 million and construction of 109 towers. Total cash capital expenditures were $91.2 million, including $75.4 million of discretionary cash capital expenditures. SBA owned or operated 46,390 communication sites at June 30, 2026. Subsequent to quarter end, it had purchased or was under contract to purchase 58 communication sites for an aggregate consideration of $28.8 million in cash, with expected closing by the end of the fourth quarter of 2026.
The company also reshaped its financing after quarter end by issuing $3.5 billion of unsecured senior notes and replacing its prior secured revolving credit facility with an expanded $2.5 billion senior unsecured revolving credit facility. Quarter-end Net Debt was $12.4 billion, and the Net Debt to Annualized Adjusted EBITDA Leverage Ratio was 6.4x. The Board declared a quarterly cash dividend of $1.25 per share, while $1.1 billion of stock-repurchase authorization remained. The updated full-year outlook calls for total revenues of $ 2,841.0 to $ 2,886.0, Adjusted EBITDA of $ 1,920.0 to $ 1,940.0, and AFFO per share of $ 11.95 to $ 12.40. The company raised discretionary cash capital expenditure outlook by $ 25.0, while it noted that the outlook does not contemplate additional stock repurchases or debt financings during the remainder of 2026.
Management, verbatim
We had another solid quarter, with financial and operating results in line with our expectations.
Brendan Cavanagh, President and Chief Executive Officer
Carrier activity remained steady, with our customers both upgrading sites and expanding their networks through new colocations.
Brendan Cavanagh, President and Chief Executive Officer
We ended the quarter with net debt to Adjusted EBITDA of 6.4x, in the middle of our target range of 6.0x to 7.0x, leaving us plenty of capacity to do both.
Brendan Cavanagh, President and Chief Executive Officer
Not in the filing
stated, not guessed- Actual total revenue for Q2 2026 and Q2 2025 was not printed on its own line item.
- GAAP gross profit and gross margin were not reported.
- Consolidated GAAP operating income was not reported.
- Operating expenses were not reported.
- Tax rate was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Prior-quarter comparisons for reported operating metrics were not provided.
- Prior full-year guidance values were not provided as a separate previous outlook, so comparisons of actual results with prior guidance cannot be made.
- The number and dollar value of shares repurchased during Q2 2026 were not reported.
- A GAAP and non-GAAP reconciliation was referenced but not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.