SBA Communications Reports Q3 2026 Results, Updates Outlook, and Declares Dividend

Executive Summary

SBA Communications Corporation (NASDAQ: SBAC) furnished an 8-K disclosing its financial and operating results for the third quarter ended September 30, 2026, updating its full-year 2026 financial outlook, and declaring a quarterly cash dividend.

Key Q3 2026 Financial Metrics

• Site Leasing Revenue: $665.4 million, up 1.4% year-over-year (+0.4% excluding FX effects).
  • Domestic site leasing revenue: $454.4 million (-3.4% YoY).
  • International site leasing revenue: $211.0 million (+13.3% YoY, +9.8% excluding FX).
• Site Development Revenue: $48.5 million (-36.0% YoY).
• Operating Profit & Margins:
  • Site Leasing Operating Profit: $531.7 million (+0.5% YoY).
  • Tower Cash Flow: $526.9 million (+0.1% YoY); Tower Cash Flow Margin of 79.7% vs. 80.4% in Q3 2025.
  • Adjusted EBITDA: $488.1 million (-1.1% YoY); Adjusted EBITDA Margin of 68.8% vs. 67.5% in Q3 2025.
• Bottom Line & Cash Flow:
  • Net Income attributable to SBA: $231.3 million ($2.19 per diluted share) vs. $240.4 million ($2.20 per share) in Q3 2025.
  • AFFO: $337.3 million (-5.0% YoY).
  • AFFO per share: $3.19 (-3.3% YoY).

Portfolio Management & Strategic Divestitures

• South American Exit: On September 10, 2026, SBA completed the sale of all towers and related assets in Chile and Ecuador, and signed an agreement to sell all towers and assets in Peru (pending regulatory approval, expected in Q4 2026). This completes SBA's exit from South America outside of Brazil.
• Asset Footprint: As of September 30, 2026, SBA owned or operated 45,252 communication sites (17,340 domestic; 27,912 international). During Q3 2026, the company built 213 towers and acquired 7 sites for $10.8 million.

Capital Structure & Shareholder Returns

• Share Repurchases: Repurchased 1.7 million shares for $300.0 million at an average price of $179.68 per share during Q3. Remaining authorization stands at approximately $0.8 billion.
• Dividends: Declared a quarterly dividend of $1.25 per share, payable December 10, 2026 to shareholders of record as of November 12, 2026.
• Debt & Liquidity: Total debt was $13.0 billion with $12.5 billion in net debt; leverage ratio stood at 6.4x Net Debt to Annualized Adjusted EBITDA. Established a new $2.5 billion commercial paper program backed by its revolving credit facility.

Full-Year 2026 Outlook Updates

• Site Leasing Revenue: Expected between $2,643.0 million and $2,658.0 million.
• Total Revenues: Expected between $2,833.0 million and $2,858.0 million.
• Adjusted EBITDA: Expected between $1,918.0 million and $1,928.0 million.
• AFFO per Share: Updated to $12.15 – $12.37 (raised midpoint by $0.08, or $0.11 excluding FX and South American divestitures).