SBA Communications Corporation (SBAC)

SBA Communications reported third-quarter 2026 results on 2 November 2026, with site leasing revenue of $665.4 million, up 1.4 percent from the year before 1.

Net income attributable to the company was $231.3 million, or $2.19 per share 1. AFFO, its adjusted funds from operations measure, was $3.19 per share against $3.30 a year earlier 1.

The two halves of the business moved apart 1. Domestic site leasing revenue fell 3.4 percent to $454.4 million, while international site leasing revenue rose 13.3 percent to $211.0 million 1.

Churn is a lease that is not renewed, is cancelled or is discounted before its term ends, the annual report says 2. Chief financial officer Marc Montagner said on the call that Sprint-related churn was $16 million in the quarter and EchoStar-related churn was $14 million 3.

SBA repurchased 1.7 million shares for $300.0 million 1. It also set up a $2.5 billion commercial paper program, a form of short-term borrowing, and agreed to sell all its towers in Peru after selling those in Chile and Ecuador 1.

Bloomberg reported on 22 October 2026 that SpaceX aims to secure at least 80,000 US cell sites, and it named Crown Castle as one company in talks 4. Chief executive Brendan Cavanagh said he has no specific insight into SpaceX's plans 3.

SBA was incorporated in Florida in March 1997 and is taxed as a real estate investment trust, a REIT 2. It says it has built towers for wireless carriers in the US since 1989 and owned and operated towers for itself since 1997 2.

In 2020 revenue rose to $2.08 billion from $2.01 billion 9. Tower sites it bought and built in the US and abroad, plus new leases and rent escalators, lifted leasing revenue 9. Site development revenue fell as carrier activity decreased, driven primarily by T-Mobile and Sprint 9.

Revenue then climbed to $2.31 billion in 2021 and $2.63 billion in 2022, a rise of 13.9 percent in 2022 8. International growth did most of the work, with 4,908 towers acquired, among them 1,445 from Airtel Tanzania and 2,632 sites from GTS in Brazil 8.

In 2022 the company also bought wireless tenant licenses on 719 utility transmission structures from PG&E 8. It warned that the sale of Oi's wireless assets in Brazil could cost it $23.0 million to $33.0 million of churn 8.

Growth then stalled, with revenue of $2.71 billion in 2023 and $2.68 billion in 2024 10. Site development revenue fell 21.5 percent in 2024 as carrier activity decreased, while domestic leasing grew only 0.8 percent, helped by a 2023 master lease agreement with AT&T 10.

In 2025 revenue recovered to $2.82 billion 2. Site development revenue rose 59.9 percent on increased carrier activity, and the company bought over 7,000 sites from Millicom in Central America 2.

International site leasing revenue rose $39.7 million that year, mainly from 7,266 towers acquired since 1 January 2024, 7,110 of them from the Millicom deal, and 904 towers built 2.

That year it also sold all its towers and ended operations in the Philippines and Colombia, and sold substantially all of its Canadian operations 2. Sprint lease non-renewals held domestic site leasing revenue to a gain of 0.2 percent 2.

In December 2025 EchoStar, formerly DISH Wireless, defaulted on its payments to SBA, and the company expects that churn to take about $56.0 million of cash site leasing revenue in 2026 2.

Cavanagh said SBA agreed in the third quarter to sell about 1,800 sites in three South American markets, which carry roughly $43 million of annual leasing revenue 3.

In July 2026 SBA sold $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 1. The money repaid its $1.0 billion revolving credit facility and $2.2 billion term loan 1.

Domestic site leasing

SBA leases space on towers to wireless carriers, and the US is its largest part 2. It owned 17,394 sites in the United States and its territories at the end of 2025, giving 72.6 percent of site leasing revenue 2.

Domestic site leasing revenue was $1.87 billion in 2025 2. US tenant leases generally start with a five to ten year term, with renewals at the tenant's option 2. Chief executive Brendan Cavanagh said the bulk of activity comes from new leases as carriers fix coverage gaps and add capacity 3.

International site leasing

Abroad SBA owns towers in 12 markets across South America, Central America and Africa, with 28,934 sites at the end of 2025 2. About 30 percent of its towers are in Brazil and 10 percent in Guatemala 2.

International site leasing revenue was $705.0 million in 2025 2. On 30 September 2026 SBA owned or operated 45,252 sites, of which 17,340 were in the US and 27,912 abroad 1. It built 213 towers in the third quarter 1.

Site development

Site development is SBA's smaller business, done in the US only, in which it helps carriers design, permit and build sites and install antennas 2. It earned $244.5 million in 2025 2. In the third quarter of 2026 it earned $48.5 million, down 36.0 percent 1.

Site leasing supplied 97.9 percent of total segment operating profit in 2025 2.

Edge computing and new customers

SBA owns two regional data centers in the US and one in Brazil, bought to learn about new technologies 2. Through SBA Edge it offers power and space at tower sites to AI customers, and Cavanagh said several edge sites are running with a handful of companies 3.

Cavanagh said such sites typically need 200 to 300 kilowatts, and that revenue so far is modest 3.

Customers and rivals

T-Mobile was 31.1 percent of 2025 revenue, AT&T Wireless 20.3 percent and Verizon Wireless 15.1 percent 2. Towers carried an average of 1.8 tenants per site 2.

In the US its main rivals are American Tower and Crown Castle, plus regional tower owners and carriers that run their own towers 2.

People and offices

Brendan Cavanagh is president and chief executive, and Marc Montagner is chief financial officer 13. SBA had 1,844 employees at the end of 2025, of whom 663 were outside the US 2.

It owns its headquarters in Boca Raton, Florida, with about 160,000 square feet of office space 2.

Problems and risks

EchoStar stopped paying in December 2025 and its default continued into 2026 2. Cavanagh said about 3,000 DISH leases were on air, were terminated in the bankruptcy litigation, and the abandoned equipment is now in SBA's control 3.

SBA ended the third quarter with $13.0 billion of total debt and a net debt to annualized adjusted EBITDA ratio of 6.4 times 1. Adjusted EBITDA is earnings before interest, taxes and certain other charges, as the company defines it 2.

The umbrella, in words

SBA operates under one brand, SBA, with SBA Edge as its entity for edge computing 3. The main operating subsidiary is SBA Telecommunications, LLC, wholly owned by SBA Communications Corporation 6.

Brazilian towers sit in SBA Torres Brasil Limitada, which Exhibit 21 shows as 98.96 percent owned by a Florida holding company 6. Exhibit 21 lists United States tower holding companies such as SBA Towers, LLC and SBA Infrastructure, LLC 6.

About 71 percent of its towers stand on land it owns or controls for more than 20 years, with an average remaining ground lease life of 35 years 2.

Control: Dodge & Cox reported owning 11,517,226 Class A shares, 10.7 percent of the class, on a Schedule 13G amendment for an event dated 31 October 2025 7.

For 2026 the company expects total revenues of $2,833.0 million to $2,858.0 million and AFFO per share of $12.15 to $12.37 1. It expects discretionary capital spending of $480.0 million to $490.0 million 1.

The sale of its Peru towers needs regulatory approval and is expected to close in the fourth quarter of 2026 1. The company has also bought or agreed to buy 69 sites for $17.9 million, which it expects to close by year end 1.

The $1,165.0 million 2021-1C Tower Securities have an anticipated repayment date of 9 November 2026, and the outlook assumes they are refinanced at 5.25 percent 1. The board declared a $1.25 dividend per Class A share, payable 10 December 2026 to holders of record on 12 November 2026 1.

Montagner said Sprint churn should be less than $20 million in 2027, and international churn should stay elevated in 2027 and begin to normalize in 2028 3.

Cavanagh said the upper C-band auction is scheduled to begin in April of next year, with the FCC required to complete it by July, offering 160 megahertz between 3.98 and 4.14 gigahertz 3.

He said winning carriers must put that spectrum into service, which means new equipment on SBA's towers 3. Cavanagh also said the FCC proposed auctioning 25 megahertz in the 1.6 and 2.0 gigahertz bands, and that it could auction 2.7 and 7 gigahertz spectrum as early as 2028 3. He said international builds should stay at the third quarter's level 3.

The sale of the Chile and Ecuador towers lowered the 2026 outlook by about $10.0 million of site leasing revenue, $6.0 million of tower cash flow and $4.0 million of adjusted EBITDA, the company said 1.

In Central America, SBA holds a seven-year exclusive right to build up to 2,500 build-to-suit sites, each with a 15-year initial lease, under the Millicom deal 2. It has $0.8 billion of buyback authorization left 1.