Sba Communications Raises Revenue Outlook as International Growth Offsets Domestic Slump
The wireless infrastructure provider reported consolidated site leasing revenue of $663.9 million for the second quarter.
SBA Communications (SBAC) reported second-quarter results characterized by a widening divergence between its international expansion and domestic contraction. The wireless infrastructure provider saw international growth sustain the top line while domestic leasing revenue continued to slide.
Consolidated site leasing revenue rose 5.1% year-over-year to $663.9 million. This growth represented a deceleration from the 6.5% increase recorded in the first quarter.
International site leasing revenue grew 30.5% year-over-year to $211.4 million. This performance offset a 3.7% year-over-year decline in domestic site leasing revenue, which fell to $452.5 million. The domestic decline accelerated from a 2.3% dip in the prior quarter.
Site development revenue fell 23.5% year-over-year to $51.4 million. The drop marked a significant acceleration in decline compared to the 1.6% dip reported in the first quarter.
Adjusted funds from operations (AFFO) per share declined 3.8% year-over-year to $3.05. The decline was less severe than the 4.7% drop to $3.03 seen in the first quarter. Tower cash flow margin compressed to 79.5% from 81.0% in the second quarter of 2025, and was down from approximately 80% in the first quarter of 2026.
SBA raised the midpoint of its full-year 2026 site leasing revenue outlook by $2.0 million compared to its April 29 guidance. The company also increased the midpoint for discretionary cash capital expenditures by $25.0 million. Conversely, the company lowered the midpoint for both tower cash flow and adjusted EBITDA by $1.0 million.
Net debt to adjusted EBITDA leverage improved to 6.4x from 6.6x in the first quarter. S&P upgraded the company's credit rating to BBB during the reporting period.
Following the quarter's end, SBA issued its first $3.5 billion investment grade senior notes and established a new $2.5 billion senior unsecured revolving credit facility.