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AMT

American Tower Corp/MA (AMT) Reports Strong Second Quarter 2026 Results

American Tower’s second-quarter 2026 results showed revenue, cash flow, and earnings all moving higher from a year earlier, with the company also lifting shareholder returns and reshaping its debt profile.

Total revenue rose 4.7% to $2.749 billion, while total property revenue climbed 6.3% to $2.688 billion. Property gross margin increased 4.9% to $1.980 billion, and the property gross margin rate was 73.7%.

Operating cash generation was stronger as well. Cash provided by operating activities increased 16.0% to $1.487 billion, and free cash flow rose 19.6% to $1.158 billion after capital expenditures of $329 million, up 5.1% from a year ago.

Adjusted EBITDA increased 3.2% to $1.808 billion, with the adjusted EBITDA margin at 65.8%. AFFO attributable to common stockholders increased 3.8% to $1.264 billion, and AFFO per share rose 4.2% to $2.71.

Earnings advanced sharply. Net income increased 133.2% to $888 million, while net income attributable to common stockholders rose 136.5% to $868 million. Diluted earnings per share attributable to common stockholders jumped 138.5% to $1.86. The company said those growth rates were affected by foreign-currency gains of about $42.1 million in the quarter versus foreign-currency losses of $484.0 million a year earlier.

Tenant billings also moved higher, with total tenant billings growth of $46 million, up 2.4%, and organic tenant billings growth of $34 million, up 1.7%.

On capital returns, American Tower declared a quarterly common stock distribution of $1.79 per share, up 5.3% year over year, for a total payout of $834.1 million. The company also repurchased about 0.1 million shares for roughly $19 million during the quarter.

The balance sheet saw significant activity. Net debt stood at $35.427 billion at June 30, 2026, against total debt of $37.190 billion and cash and cash equivalents of $1.763 billion, producing a net leverage ratio of 4.9x. Total liquidity was about $9.9 billion, including $1.8 billion of cash and $8.2 billion of borrowing capacity under revolving credit facilities.

During the quarter, the company repaid $700 million of senior unsecured notes due in April, repaid €500 million of notes due in May, issued €750 million of 4.000% notes due 2033, and redeemed €250 million of 4.125% notes due 2027, leaving €350 million outstanding.

American Tower also completed two divestitures in the quarter: the sale of its Philippines subsidiary for $75.6 million and the sale of its controlling interest in Kirtonkhola Tower Bangladesh Limited for $6.9 million. As a result of these announcements, the company's shares have moved 5.87% on the market, and are now trading at a price of $176.535. For the full picture, make sure to review AMERICAN TOWER CORP /MA/'s 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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