SBA Communications Corp. recently released its 10-Q report. The company owns and operates wireless communications infrastructure, including towers, rooftops, distributed antenna systems and small cells, with more than 46,000 communications sites across the Americas and Africa. It is based in Boca Raton, Florida, incorporated in 1989, and trades on Nasdaq under SBAC.
In Item 2, management said the company’s business is dominated by site leasing, which generated 98.4% of total segment operating profit for the six months ended June 30, 2026. As of June 30, 2026, SBA owned 46,390 towers, with about 71% of tower structures on land it owns, land subject to perpetual easements, or land under leaseholds extending beyond 20 years. The company said no U.S. state or territory accounted for more than 10% of its tower count or revenues for the first half of 2026, while Brazil accounted for about 30% of towers and Guatemala about 10%; no other international market exceeded 5% of towers.
Site leasing is built around long-term contracts, typically five to 15 years, with renewal options and annual rent escalators tied to fixed increases, inflation, or both. SBA said international leases can also include pass-through charges for ground rent, utilities, property taxes and fuel. The company said its site leasing costs are relatively fixed over time, and that adding tenants generally does not materially increase operating costs on owned towers.
For the three months ended June 30, 2026, total revenue was $715.3 million, up from $699.0 million a year earlier. Domestic site leasing revenue fell to $452.4 million from $469.8 million, while international site leasing revenue rose to $211.4 million from $162.0 million; site development revenue declined to $51.4 million from $67.2 million. Total operating profit from domestic site leasing was $381.0 million, international site leasing was $148.8 million, and site development was $9.5 million.
Management said domestic site leasing revenue declined mainly because of Sprint, EchoStar and other lease non-renewals, partly offset by contractual escalators, new leases, amendments, and revenue from 27 towers acquired and 39 towers built since April 1, 2025. International site leasing revenue increased on a constant-currency basis, and the company said it expects core leasing revenue in 2026 to rise versus 2025 on a currency-neutral basis, supported by escalators, carrier capacity additions, geographic expansion, and the full-year effect of towers acquired and built in 2025 and 2026.
SBA said churn will remain elevated through 2026. In domestic markets, it expects churn to total between $132.0 million and $136.0 million of cash site leasing revenue, driven in part by Sprint and EchoStar. In international markets, it expects churn of between $36.0 million and $40.0 million, with Oi wireline cited as a factor.
The site development business, which operates only in the United States, provides network pre-design, site audits, location identification, zoning and permit support, tower construction, antenna installation, and radio equipment installation, commissioning and maintenance. Management described it as complementary to site leasing and a source of ancillary revenue tied to tower activity.
On capital allocation, SBA said it plans to keep growing its portfolio through acquisitions and new construction, especially in Central America under its build-to-suit agreement with Millicom. It also said it will continue stock repurchases and cash dividends, and noted that in a higher-rate environment, debt repayment, especially variable-rate debt, may be an accretive use of excess capital. Today the company's shares have moved 1.84% to a price of $181.675. For the full picture, make sure to review SBA COMMUNICATIONS CORP's 10-Q report.
