SBA Cuts 2026 Site Leasing Outlook After Chile, Ecuador Sales

The Tip Desk · November 2, 2026 · 4 min read

The tower operator reported third-quarter 2026 site leasing revenue of $665.4 million, up 1.4% from a year earlier, and now sees full-year site leasing revenue of $2.643 billion to $2.658 billion, $13.0 million below the midpoint of its August range, after selling all towers in Chile and Ecuador.

SBA Communications Corporation (SBAC) reported third-quarter 2026 site leasing revenue of $665.4 million, up 1.4% from a year earlier, and cut its full-year 2026 site leasing revenue outlook by $13.0 million to $2.643 billion to $2.658 billion after selling all towers in Chile and Ecuador. It also agreed to sell all towers in Peru as part of its exit from South America outside Brazil.

The independent tower owner said the Chile and Ecuador sales negatively impacted the 2026 outlook by about $10.0 million for site leasing revenue, $6.0 million for tower cash flow and $4.0 million for adjusted EBITDA. Total revenues were cut $18.0 million to $2.833 billion to $2.858 billion versus the August 3 outlook.

Site leasing revenue growth slowed to 1.4% from a year earlier in the third quarter, after 5.1% growth in the second quarter and 6.5% in the first. Site leasing revenue was $665.4 million. Site development revenue fell 36.0% to $48.5 million.

Net income attributable to SBA was $231.3 million, or $2.19 a share, versus $198.8 million, or $1.87 a share, in the second quarter. Diluted earnings were $2.19 a share, down 0.6% from a year earlier. Net income included a $1.6 million loss, net of taxes, on currency-related remeasurement of intercompany loans, versus a $25.5 million gain a year earlier.

Domestic site leasing revenue fell 3.4% to $454.4 million. Domestic site leasing segment operating profit declined 4.4% to $382.6 million.

International site leasing revenue rose 13.3% to $211.0 million, with segment operating profit up 15.5% to $149.1 million. International tower cash flow increased 14.7% to $146.3 million.

Consolidated tower cash flow was $526.9 million, up 0.1% from a year earlier after a 2.7% year-over-year increase in the prior quarter. Adjusted EBITDA declined 1.1% to $488.1 million, reversing a 1.8% year-over-year increase in the second quarter. AFFO per share was $3.19, down 3.3% from a year earlier. Tower cash flow margin compressed to 79.7% from 80.4% a year earlier. Adjusted EBITDA margin expanded to 68.8% from 67.5%.

The company built 213 towers in the quarter and spent $105.2 million on cash capital expenditures, including $91.1 million of discretionary spend. It acquired seven communication sites for $10.8 million. As of September 30, it owned or operated 45,252 communication sites, 17,340 in the United States and its territories and 27,912 internationally. Subsequent to quarter end, it purchased or was under contract to purchase 69 sites for $17.9 million, expected to close by the end of the fourth quarter.

On September 10, SBA sold all towers and related assets in Chile and Ecuador and entered an agreement to sell all towers in Peru, subject to regulatory approval and expected to close in the fourth quarter. The company said it made no adjustment to the 2026 outlook for the Peru sale given closing-date uncertainty.

It repurchased 1.7 million shares for $300.0 million at an average $179.68, leaving $0.8 billion of authorization remaining under its $1.5 billion plan. It declared and paid a cash dividend of $131.3 million in the quarter and declared a $1.25 a share quarterly dividend payable December 10.

On July 23, SBA issued $1.35 billion of 4.875% notes due 2030, $1.35 billion of 5.150% notes due 2031 and $0.8 billion of 5.450% notes due 2033, with a blended rate of 5.113%. Net proceeds repaid $1.0 billion on the revolving credit facility and a $2.2 billion 2024 term loan. It entered a new $2.5 billion senior unsecured revolving credit facility maturing July 23, 2031, and established a $2.5 billion commercial paper program. It ended the quarter with $13.0 billion of total debt, $0.5 billion of cash and cash equivalents, short-term restricted cash, and short-term investments, and net debt of $12.5 billion. Net debt to annualized adjusted EBITDA was 6.4x.

The updated 2026 outlook raises discretionary cash capital expenditures $20.0 million to $480.0 million to $490.0 million and AFFO per share $0.08 to $12.15 to $12.37. Tower cash flow is now $2.083 billion to $2.098 billion and adjusted EBITDA $1.918 billion to $1.928 billion. The outlook assumes the $1.165 billion 2021-1C tower securities, with an anticipated repayment date of November 9, 2026, would be refinanced in the fourth quarter at 5.25%.