SBA Communications Corp (NASDAQ:SBAC), a leading independent owner and operator of wireless communications infrastructure, closed the books on 2025 with a fourth-quarter earnings report that presented a mixed financial picture. The company's core leasing business demonstrated steady growth, but its results fell short of Wall Street's expectations on key profitability metrics, leading to a muted initial market reaction.
Earnings and Revenue Versus Estimates
For the quarter ended December 31, 2025, SBA reported site leasing revenue of $666.2 million and total revenue, including its smaller site development segment, of approximately $719.6 million. This total revenue figure came in below the analyst consensus estimate of approximately $740.7 million.
The divergence was more pronounced on the bottom line. The company reported Adjusted Funds from Operations (AFFO) per share of $3.19, a critical profitability metric for real estate investment trusts (REITs). This result missed the analyst estimate of $3.87 per share by a significant margin.
The market's reaction in after-hours trading reflected this disappointment, with the stock price rising a modest 1.4%. This tepid response suggests investors are weighing the earnings miss against other positive elements within the report and the company's forward guidance.
Management's Outlook and Analyst Expectations
A key focal point for investors was the company's initial financial outlook for the full year 2026. SBA provided its own projections, which can be compared to existing analyst estimates compiled prior to the earnings release.
The company's 2026 guidance for key metrics is as follows:
- Site Leasing Revenue: $2.625 billion to $2.650 billion
- Total Revenue: $2.815 billion to $2.860 billion
- AFFO per Share: $11.84 to $12.29
Notably, the midpoint of SBA's AFFO per share guidance range ($12.07) sits below the current analyst consensus estimate of $12.29 for the full year 2026. This conservative forecast likely contributed to the restrained market enthusiasm. The company's outlook explicitly excludes all contracted revenue from EchoStar due to an ongoing dispute and lack of payment, which management stated provides a "cleanest view" of forward expectations.
Summary of Key Press Release Highlights
Beyond the headline numbers, SBA's earnings report contained several important operational and financial updates:
- Dividend Increase: The Board of Directors declared a quarterly cash dividend of $1.25 per share, an increase of approximately 13% over the prior quarter's dividend. This marks what the company calls "industry leading dividend growth."
- Capital Allocation: The company repurchased 1.1 million shares of its common stock during the quarter for $213 million and has continued buybacks in 2026. It ended 2025 with $1.1 billion remaining under its current repurchase authorization.
- Portfolio Growth: SBA completed the majority of its acquisition of sites from Millicom International in Central America during the quarter, strengthening its position in the region. It also sold substantially all of its operations in Canada in October 2025.
- Segment Performance: International site leasing revenue showed strong growth of 15.6% year-over-year (10.2% excluding foreign exchange benefits), helping to offset a slight 1.6% decline in domestic site leasing revenue.
Conclusion
SBA Communications' fourth-quarter results underscore both the resilience of its global tower leasing model and the near-term financial headwinds it faces, including customer churn and higher interest expenses. While the dividend hike and ongoing share repurchases signal confidence in the business's cash-generating ability, the earnings miss and a 2026 outlook that trails analyst estimates have given investors pause. The company's future performance will hinge on its ability to execute its international growth strategy, manage domestic churn, and navigate a higher interest rate environment.
For a detailed look at historical earnings and future analyst estimates for SBA Communications, you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
