SBA Communications Reports 1.9% Revenue Growth and Increased Net Income in Q1 2025

SBA Communications Corporation reported its financial results for the first quarter of 2025, revealing total revenues of $664.2 million, a 1.9% increase from $657.9 million in the same period last year. The company's site leasing segment, which remains its primary revenue driver, generated $616.2 million, while site development revenues surged to $48.0 million, up from $29.6 million in the prior year. The net income attributable to SBA Communications increased significantly to $220.7 million, compared to $154.5 million in the first quarter of 2024, resulting in a diluted earnings per share of $2.04, up from $1.42.

The company experienced notable changes in its financial metrics compared to the previous fiscal period. Operating income rose to $334.9 million, reflecting a 3.6% increase from $323.4 million in the prior year. This growth was supported by a decrease in total operating expenses, which fell to $329.3 million from $334.5 million, primarily due to lower asset impairment and decommission costs. Additionally, interest income increased by 47.5% to $10.8 million, while interest expense rose to $104.1 million, up from $96.4 million, reflecting higher average debt levels and interest rates.

Strategically, SBA Communications has been active in expanding its portfolio, acquiring 344 towers and related assets during the quarter, including a significant transaction with Millicom International Cellular S.A. The company also sold all its towers in the Philippines and Colombia, concluding operations in those markets. As of March 31, 2025, SBA owned 39,709 towers, with approximately 30% located in Brazil. The company anticipates further growth in its site leasing revenues, driven by the deployment of unused spectrum by wireless carriers and the full-year impact of towers acquired and built in 2024.

Operationally, SBA Communications reported a total of 460,994 domestic site leasing revenues, a slight decrease from the previous year, while international site leasing revenues fell to $155.2 million, reflecting a decrease in lease renewals. The company’s total assets decreased to $10.4 billion from $11.4 billion at the end of 2024, primarily due to a reduction in cash and cash equivalents. The company’s employee headcount remained stable, with no significant changes reported.

Looking ahead, SBA Communications expects core leasing revenue to increase over 2024 levels, driven by ongoing demand for wireless infrastructure. The company plans to continue its capital allocation strategy focused on portfolio growth through acquisitions and new builds, while also returning value to shareholders through dividends and stock repurchases. The company has authorized a new $1.5 billion share repurchase plan, indicating confidence in its long-term growth prospects.