SBA Communications Corporation

SBA Communications Corporation (Nasdaq: SBAC) leases space on wireless communications towers and other sites to mobile network operators. It also provides network construction and related development services. It owned or operated 45,252 sites at September 30, 2026: 17,340 in the United States and its territories and 27,912 internationally.

Third-quarter results

The table compares the three months ended September 30. Amounts are USD millions, except per-share figures.

AFFO, or adjusted funds from operations, adds back real estate depreciation and makes other adjustments, including for noncash compensation, lease accounting and selected tax and transaction items. It deducts maintenance and general corporate capital spending and retains cash interest costs. The table uses SBA's group AFFO measure before the adjustment for joint venture partners.

U.S. weakness and international expansion

Domestic cash leasing revenue fell 3.7% to $453.6 million in Q3, the same percentage decline reported in Q2. The measure removes noncash straight-line rent adjustments. The annual forecast includes $55 million to $56 million of revenue lost through Sprint consolidation and $56 million from EchoStar.

International cash leasing revenue increased 12.7% to $207.4 million, or 9.2% excluding currency movements. These portfolio results include acquired and newly built sites. They follow the completion in October 2025 of the remaining tower purchases from Millicom in Central America.

Site development revenue fell 36% to $48.6 million. Its operating profit was $10.7 million, compared with $13.4 million a year earlier.

Annual expectations and the share count

SBA's November annual AFFO forecast is $1.284 billion to $1.308 billion, versus $1.270 billion to $1.318 billion in August. The midpoint rose $2 million. Per-share guidance changed to $12.15 to $12.37 from $11.95 to $12.40. The assumed average diluted share count fell to 105.7 million from 106.3 million after the company's Q3 repurchases.

The annual adjusted EBITDA forecast fell to $1.918 billion to $1.928 billion from $1.920 billion to $1.940 billion. That measure removes interest, taxes, depreciation, amortization and selected other items. Excluding currency changes and the Chile and Ecuador sales, the midpoint is unchanged.

The maintenance and corporate capital-spending forecast is $61 million to $65 million, down from $65 million to $75 million. The separate growth-investment forecast rose to $480 million to $490 million from $455 million to $475 million. Net cash interest is forecast at $487 million to $493 million, versus $490 million to $498 million.

Tower purchases, construction and sales

SBA built 213 towers in Q3, including 210 outside the United States. It built 109 towers in Q2.

SBA completed the sale of all its towers and related assets in Chile and Ecuador on September 10. It also agreed to sell its Peru operations, subject to regulatory approval, with closing expected in Q4. The annual forecast includes a $10 million reduction in leasing revenue from the completed sales and retains Peru through year-end.

Cash flow, debt and shareholder returns

Q3 operating cash flow was $325.1 million, versus $318.0 million a year earlier. Capital expenditures in the cash-flow statement were $72.8 million, versus $60.1 million. The separate $105.2 million cash-investment total also includes acquisitions and related site investments.

At September 30, cash and cash equivalents were $417.5 million. Debt principal totaled $12.975 billion. Net debt, which deducts cash, short-term restricted cash and short-term investments, was $12.520 billion, or 6.4 times the latest quarter's adjusted EBITDA multiplied by four. That leverage ratio was unchanged from June.

In July, SBA issued $3.5 billion of unsecured notes and replaced its former credit facility with a $2.5 billion unsecured revolver due in July 2031. Those transactions were already disclosed in August. A $2.5 billion commercial paper program established in September is backed by the same revolver; issuing paper reduces the revolver's remaining availability. Neither had borrowings outstanding at November 2.

SBA repurchased approximately 1.7 million shares for $300 million during Q3 and retired them. Approximately $800 million remained authorized at November 2. The declared quarterly dividend is $1.25 a share, payable December 10.