Bank of New York Mellon Corp trimmed its position in shares of SBA Communications Corporation (NASDAQ:SBAC – Free Report) by 4.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 544,834 shares of the technology company’s stock after selling 28,193 shares during the period. Bank of New York Mellon Corp owned about 0.52% of SBA Communications worth $93,771,000 as of its most recent SEC filing.
A number of other institutional investors also recently modified their holdings of SBAC. Elevation Wealth Partners LLC increased its holdings in SBA Communications by 523.8% during the 4th quarter. Elevation Wealth Partners LLC now owns 131 shares of the technology company’s stock valued at $25,000 after purchasing an additional 110 shares during the period. DV Equities LLC bought a new stake in shares of SBA Communications in the 4th quarter worth approximately $29,000. Geneos Wealth Management Inc. grew its position in shares of SBA Communications by 105.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 164 shares of the technology company’s stock worth $36,000 after buying an additional 84 shares during the last quarter. Fulcrum Asset Management LLP purchased a new position in shares of SBA Communications during the third quarter valued at approximately $32,000. Finally, High Point Wealth Management LLC purchased a new position in shares of SBA Communications during the fourth quarter valued at approximately $39,000. 97.35% of the stock is currently owned by hedge funds and other institutional investors.
SBA Communications Stock Performance Shares of NASDAQ:SBAC opened at $181.97 on Tuesday. SBA Communications Corporation has a 52-week low of $162.41 and a 52-week high of $243.16. The firm has a market capitalization of $19.30 billion, a P/E ratio of 19.15, a P/E/G ratio of 1.85 and a beta of 1.00. The stock has a 50 day moving average price of $194.51 and a 200-day moving average price of $195.35.
SBA Communications Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Friday, May 22nd were paid a $1.25 dividend. This represents a $5.00 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Friday, May 22nd. SBA Communications’s dividend payout ratio is presently 52.63%.
Analyst Upgrades and Downgrades SBAC has been the subject of a number of research analyst reports. Truist Financial reaffirmed a “buy” rating and issued a $248.00 price target (up from $247.00) on shares of SBA Communications in a research note on Tuesday, May 5th. Royal Bank Of Canada reduced their price objective on shares of SBA Communications from $245.00 to $210.00 and set an “outperform” rating on the stock in a research report on Friday, July 10th. Wells Fargo & Company upgraded shares of SBA Communications from an “equal weight” rating to an “overweight” rating and decreased their price objective for the stock from $220.00 to $210.00 in a report on Friday. Scotiabank raised their target price on shares of SBA Communications from $223.00 to $230.00 and gave the stock a “sector perform” rating in a research report on Friday, May 1st. Finally, The Goldman Sachs Group started coverage on shares of SBA Communications in a research report on Friday, June 26th. They issued a “neutral” rating and a $205.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $235.28.
Get Our Latest Research Report on SBAC
SBA Communications Company Profile (Free Report)
SBA Communications Corporation (NASDAQ: SBAC) is a real estate investment trust that owns, operates and develops wireless communications infrastructure. Its core business is the leasing of space on communications towers, rooftop sites and other wireless structures to mobile network operators, broadband providers and other wireless service customers. The company also provides site development, construction and ongoing site management services to support the deployment and operation of wireless networks.
In addition to traditional macro towers, SBA offers a range of infrastructure solutions designed for dense urban and suburban markets, including small cells, distributed antenna systems (DAS) and fiber backhaul and transport services.
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BOCA RATON, Fla.--(BUSINESS WIRE)--SBA Communications Corporation (NASDAQ: SBAC) (“SBA” and “Company”) announced it will release its second quarter results on Monday, August 3, 2026 after market close. SBA will host a conference call on Monday, August 3, 2026 to discuss these results. The call may be accessed as follows: When: Monday, August 3, 2026 at 5:00 PM (EDT) Dial-in Number: 1-202-735-3323 Access Code: 5982682 Conference Name: SBA Second Quarter 2026 Results Replay Availa.
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Index S&P 500 +0,44 % na 7516,13 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Informační technologie +1,6 % Zdravotní péče -1,8 % Průmysl +1,2 % Nezbytná spotřeba -0,8 % Finanční sektor +0,2 % Reality -0,6 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Western Digital Corp (WDC) +9,0 % O'Reilly Automotive (ORLY) -5,2 % Advanced Micro Devices (AMD) +7,5 % AutoZone (AZO) -4,7 % Vertiv Holdings (VRT) +7,4 % Constellation Brands (STZ) -3,8 % Teradyne (TER) +7,1 % SBA Communications Corp (SBAC) -3,7 % GE Vernova (GEV) +6,5 % Genuine Parts (GPC) -3,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení
Key Takeaways SBAC gained 14.8% in three months, outpacing the industry's 10.3% growth on tower leasing strength.SBA Communications sees healthy 2026 leasing activity backed by rising backlog and carrier capacity needs.SBAC expanded with site buys, land purchases and new towers while continuing consistent dividend growth. SBA Communications’ (SBAC - Free Report) shares have rallied 14.8% in the past three months compared with the industry’s growth of 10.3%.
The company benefits from rising wireless data demand through long-term tower leasing, steady colocation activity, strategic tower expansion and site acquisitions, complemented by site development services and consistent dividend growth, supporting long-term shareholder value.
Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for its 2026 AFFO per share has been revised northward by 6 cents to $12.20 over the past two months.
Image Source: Zacks Investment Research
Factors Behind SBAC Stock’s Price SurgeMobile data usage continues to rise as carriers expand coverage, densify networks and upgrade sites with additional spectrum bands and technologies such as C-band and massive MIMO antennas. Fixed wireless access growth adds load to carrier networks and supports additional equipment needs at existing macro sites. This activity underpins demand for SBA Communications’ tower infrastructure across the United States and its international markets in Central America, South America and Africa.
SBA Communications generates most of its revenues from long-term tower leases, which support visibility in cash flows and high tower cash flow margins. In the first quarter of 2026, U.S. leasing activity was driven largely by new colocations as wireless carriers added capacity. Management expects healthy leasing activity to continue through the remainder of 2026, supported by an increasing domestic leasing backlog.
SBA Communications provides site development services in the United States, helping carriers with site acquisition, zoning, construction and equipment installation. The segment also offers installation, optimization and integration services across network technologies. While site development is a smaller contributor to operating profit than site leasing, it deepens customer relationships and helps the company participate in network build cycles beyond pure colocation.
SBA Communications continues to expand its footprint through selective acquisitions, land purchases and new tower builds in markets where carrier demand supports returns. As of March 31, 2026, the company owned or operated 46,358 communication sites. In the first quarter of 2026, it acquired 10 communication sites and the rights to the land underneath about 3,900 communication sites in Guatemala for $133 million, and built 80 towers. Subsequent to quarter-end, the company purchased or is under contract to purchase 56 sites for $36.9 million in cash, with the transactions expected to close by the end of the third quarter of 2026.
SBA Communications’ dividend hikes demonstrate its commitment to driving shareholder value and superior capital-distribution ability. The company has increased its dividend five times in the past five years, and its five-year annualized dividend growth rate is 17.06%. Given SBA Communications’ solid operating platform, the dividend distribution is expected to be sustainable over the long run.
Key Concerns for SBACCustomer concentration, Sprint and EchoStar churn, leverage, interest expenses, currency fluctuations and technology shifts can limit SBA Communications near-term growth and valuation.
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Lamar Advertising (LAMR - Free Report) and Vornado Realty Trust (VNO - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for LAMR’s 2026 FFO per share is pegged at $8.81, which indicates year-over-year growth of 6.66%.
The Zacks Consensus Estimate for VNO’s full-year FFO per share is pinned at $2.34, which calls for an increase of 0.86% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
SBA Communications remains a buy, with the current valuation reflecting industry headwinds and offering upside on potential recovery. Q1 results beat expectations, guidance was raised, and AFFO per share is projected at $11.93–$12.38 for 2026, despite ongoing churn and refinancing pressures. Leverage remains elevated at 6.6x net debt/adj. EBITDA, but management targets investment-grade bond issuance in 2026 and maintains a sustainable dividend payout.
REIT headwinds are finally fading after years of pressure. Valuations remain deeply discounted despite improving fundamentals. Three powerful catalysts could now drive a REIT recovery.
Private equity is circling REITs as discounts to asset value remain unusually wide. Some beaten-down infrastructure names may still have meaningful upside despite recent rebounds. We think two REIT targets stand out as especially likely takeover candidates.
BOCA RATON, Fla.--(BUSINESS WIRE)--SBA Communications Corporation (NASDAQ: SBAC) (“SBA” and “Company”) announced it will release its first quarter results on Wednesday, April 29, 2026 after market close. SBA will host a conference call on Wednesday, April 29, 2026 to discuss these results. The call may be accessed as follows: When: Wednesday, April 29, 2026 at 5:00 PM (EDT) Dial-in Number: 1-202-735-3323 Access Code: 7690149 Conference Name: SBA First Quarter 2026 Results Replay Availab.
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On April 21, 2026, SBA Communications Corp SBAC shares fell 3.3% today, closing at $213.10. This decline comes amidst a 52-week range where the stock has traded between $162.41 and $245.16.
GF Value™ verdict: Currently priced at $213.10, SBAC is 8.8% undervalued compared to its GF Value™ of $233.54.GF Score™: With a score of 82/100, SBAC is considered a strong investment opportunity.Most notable signal: The company has seen no insider transactions in the last three months, indicating stability in management's outlook. Is SBAC Overvalued or Undervalued? The current price of SBA Communications Corp SBAC at $213.10 is below its GF Value™ estimate of $233.54, suggesting that the stock is undervalued by 8.8%. This margin of safety offers potential for appreciation, especially considering the positive historical performance trends in the telecommunications REIT sector. The GF Valuation label indicates that the stock is fairly valued; however, the intrinsic value assessment points towards a favorable investment opportunity, provided the underlying business fundamentals remain strong.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Investors should be cautious, as market conditions can shift, impacting valuations and stock performance.
How Does SBAC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 21.7x 49.9x Forward P/E 27.8x N/A Currently, SBAC's P/E ratio of 21.7x is significantly below its 5-year median P/E of 49.9x, indicating that the stock is trading at a much lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict that suggests the stock is undervalued, reinforcing the notion that there may be an opportunity for growth as the market adjusts to the intrinsic value of the company.
What Does SBAC's GF Score™ Tell Us? Metric Rating GF Score™ 82/100 Financial Strength 2/10 Profitability 9/10 Growth 8/10 Valuation 9/10 Momentum 4/10 The GF Score™ of 82/100 indicates a strong overall assessment of SBAC's investment potential. The highest scores in Profitability (9/10) and Valuation (9/10) suggest that the company maintains solid profit margins and is currently priced attractively relative to its intrinsic value. However, it is noteworthy that the Financial Strength score is a low 2/10, indicating potential concerns in the balance sheet or liquidity, which investors should consider. The Momentum score of 4/10 further suggests a mixed performance in recent price trends.
What Are Insiders Doing with SBAC Stock? Over the past three months, there have been no insider transactions reported for SBA Communications Corp. This lack of insider activity can indicate a level of confidence from management regarding the company's current valuation and future prospects. In general, when insiders are not buying or selling shares, it often reflects their belief in the stability of the company’s performance and strategic direction.
What This Means for Investors Based on the GF Value™ analysis, SBA Communications Corp SBAC appears to be undervalued at its current price of $213.10, suggesting a potential investment opportunity as it is priced below its intrinsic value of $233.54.
For the complete analysis, visit the SBA Communications Corp SBAC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is SBAC's GF Score™?
SBAC's GF Score™ is 82/100, indicating a strong potential for long-term returns based on various fundamental factors.
Is SBAC overvalued or undervalued?
SBAC is currently considered undervalued, trading at $213.10, which is 8.8% below its GF Value™ estimate of $233.54.
What is SBAC's P/E ratio?
SBAC's P/E ratio is 21.7x, which is significantly below its 5-year median of 49.9x, indicating that the stock is trading at a much lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways SBAC is set to report Q1 results with revenues expected to rise, but AFFO per share projected to decline.SBA Communications may see growth from 5G spending, leasing activity and long-term contracts.Higher churn, interest expenses and a leveraged balance sheet could pressure performance. SBA Communications Corporation (SBAC - Free Report) is scheduled to report first-quarter 2026 results on April 29, after market close. While the company’s quarterly results might display a rise in revenues year over year, adjusted funds from operations (AFFO) per share is expected to decline.
In the last reported quarter, this Boca Raton, FL-based communications tower REIT reported an AFFO per share of $3.19, missing the Zacks Consensus Estimate of $3.25. Results reflected growth in revenues during the quarter. However, higher costs and interest expenses undermined the performance to some extent.
Over the preceding four quarters, SBAC’s AFFO per share surpassed the Zacks Consensus Estimate on three occasions and missed on the remaining, the average beat being 1.12%. The graph below depicts this surprise history:
SBAC: Factors at PlayIn the first quarter, SBA Communications is likely to have benefited from steady carrier spending on network expansion and 5G deployments, supporting leasing activity through new colocations and site upgrades. Its long-term contracts with built-in escalators are likely to have ensured stable site-leasing revenues, while services tied to network construction may have added to growth.
However, elevated churn — particularly Sprint-related in the United States and from carrier consolidation and restructuring internationally — may have weighed on performance. Higher interest expenses and a leveraged balance sheet could have been additional headwinds.
Projections for SBA CommunicationsThe Zacks Consensus Estimate for first-quarter site-leasing revenues, which account for the lion’s share of total revenues, is pegged at $650.8 million, indicating an increase from the year-ago quarter’s $616.2 million.
Site-development revenues are expected to remain flat in the first quarter. The consensus mark stands at $48 million, unchanged from the year-ago period.
The Zacks Consensus Estimate for total quarterly revenues is pegged at $698.8 million, calling for year-over-year growth of 5.2%.
The company’s activities in the to-be-reported quarter were inadequate to garner analysts’ confidence. The Zacks Consensus Estimate for quarterly AFFO per share has remained unchanged at $2.86 over the past two months. The figure also implies a year-over-year decline of 9.5%.
What Our Quantitative Model Predicts for SBA CommunicationsOur proven model does not conclusively predict a surprise in terms of AFFO per share for SBA Communications this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an AFFO beat, which is not the case here.
SBA Communications currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a LookHere are two stocks from the broader REIT sector — Ventas (VTR - Free Report) and Cousins Properties (CUZ - Free Report) — you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Ventas, scheduled to report quarterly numbers on April 27, has an Earnings ESP of +0.62% and carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cousins Properties, slated to release quarterly numbers on April 29, has an Earnings ESP of +0.94% and carries a Zacks Rank of 3 at present.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
BOCA RATON, Fla.--(BUSINESS WIRE)--SBA Communications Corporation (Nasdaq: SBAC) ("SBA" or the "Company") today reported results for the quarter ended March 31, 2026. Highlights of the first quarter include: Net income attributable to SBA of $184.8 million or $1.74 per share Industry-leading AFFO per share of $3.03 Increased full year 2026 outlook across all key metrics Company-wide Tower Cash Flow margin of approximately 80% In addition, the Company announced today that its Board of Directors.
SBA Communications (SBAC - Free Report) came out with quarterly funds from operations (FFO) of $3.01 per share, beating the Zacks Consensus Estimate of $2.86 per share. This compares to FFO of $3.16 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +5.39%. A quarter ago, it was expected that this communications tower operator would post FFO of $3.25 per share when it actually produced FFO of $3.19, delivering a surprise of -1.85%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
SBA Communications, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $703.44 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 0.66%. This compares to year-ago revenues of $664.25 million. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
SBA Communications shares have added about 12.5% since the beginning of the year versus the S&P 500's gain of 4.3%.
What's Next for SBA Communications?While SBA Communications has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SBA Communications was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $2.95 on $698.23 million in revenues for the coming quarter and $12.13 on $2.84 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Clipper Realty Inc. (CLPR - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 14.
This company is expected to post quarterly earnings of $0.09 per share in its upcoming report, which represents a year-over-year change of -52.6%. The consensus EPS estimate for the quarter has been revised 33.3% lower over the last 30 days to the current level.
Clipper Realty Inc.'s revenues are expected to be $39.6 million, up 0.5% from the year-ago quarter.
SBA Communications (SBAC - Free Report) reported $703.44 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 5.9%. EPS of $3.01 for the same period compares to $1.77 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $698.82 million, representing a surprise of +0.66%. The company delivered an EPS surprise of +5.39%, with the consensus EPS estimate being $2.86.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how SBA Communications performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Sites owned - Domestic: 17,378 compared to the 17,393 average estimate based on three analysts.Sites owned - International: 28,980 versus 29,798 estimated by three analysts on average.Sites owned - Total: 46,358 versus 47,191 estimated by three analysts on average.Sites decommissioned - Domestic: -31 compared to the -18 average estimate based on two analysts.Sites owned previous - International: 28,934 versus 28,934 estimated by two analysts on average.Sites owned previous - Total: 46,328 compared to the 46,328 average estimate based on two analysts.Sites acquired - Total: 10 compared to the 1,124 average estimate based on two analysts.Sites built - Total: 80 versus 143 estimated by two analysts on average.Revenues- Site Development: $47.29 million versus the four-analyst average estimate of $48.01 million. The reported number represents a year-over-year change of -1.6%.Revenues- International Site Leasing: $205.85 million compared to the $205.61 million average estimate based on four analysts. The reported number represents a change of +32.6% year over year.Revenues- Domestic Site Leasing: $450.3 million versus $445.17 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2.3% change.Revenues- Site Leasing: $656.15 million versus the four-analyst average estimate of $650.76 million. The reported number represents a year-over-year change of +6.5%.View all Key Company Metrics for SBA Communications here>>>
Shares of SBA Communications have returned +26.4% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Published in earnings earnings-estimates-revisions earnings-surprise
SBA Communications Corp (SBAC) Q1 2026 Earnings Call Highlights: Strong Performance Boosts Full-Year Outlook SBA Communications Corp (SBAC) reports increased revenue projections and a significant dividend hike, despite challenges in international markets. Summary
Site Leasing Revenue: Increased full year outlook due to outperformance in Q1.Cash Flow: Positive outlook with plans to use free cash flow to pay down credit facility.Adjusted EBITDA: Full year outlook increased from initial 2026 guidance.AFFO and AFFO per Share: Full year outlook increased from initial 2026 guidance.Tower Cash Flow Margins: Approximately 80% in Q1.New Lease and Amendment Billings (US): Approximately $10 million increase year-over-year.New Lease and Amendment Billings (International): Approximately $4 million increase year-over-year.Total Debt: Approximately $3 billion at the end of Q1.Net Debt to Adjusted EBITDA: 6.6 times, within target range of 6 to 7 times.Dividend: $1.25 per share declared for Q1, a 13% increase over Q1 2025.New Tower Builds (Central America): Over 60 towers built in Q1.
Release Date: April 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points SBA Communications Corp SBAC increased its full-year outlook for key metrics, including site leasing revenue, cash flow, adjusted EBITDA, AFFO, and AFFO per share, due to strong first-quarter performance.The company achieved high Tower cash flow margins of approximately 80% by controlling direct costs efficiently.SBA Communications Corp (SBAC) declared a dividend increase of approximately 13% over the previous year, reflecting strong financial health and shareholder returns.The company is making progress in integrating Millicom assets, with colocation demand exceeding initial lease-up projections.SBA Communications Corp (SBAC) is exploring opportunities in mobile edge computing, leveraging its existing portfolio to potentially drive incremental revenue. Negative Points International churn remains elevated due to carrier consolidation, bankruptcy, and restructuring, with 2026 expected to be the peak year for international churn.The company is involved in litigation with EchoStar, which could impact financial results depending on the outcome.SBA Communications Corp (SBAC) did not repurchase meaningful shares in the first quarter, prioritizing debt repayment over share buybacks.The company faces challenges in achieving scale in certain markets, as evidenced by the decision to sell its Canadian tower portfolio.There is uncertainty regarding the timing and financial impact of mobile edge computing initiatives, which are still in the early stages. Q & A Highlights Q: Can you help us understand the advantages and disadvantages of being a public company versus a private company in terms of competing for assets, tenants, and capital?
A: Brendan Cavanagh, President and CEO, explained that the focus is on the quality of assets and customer service, regardless of being public or private. The differences lie in capitalization and public disclosures, but the business operations remain the same.
Q: How do you prioritize factors like price, ability to close, and financing when selling assets, as seen with the Canadian tower portfolio sale?
A: Brendan Cavanagh noted that the decision to sell the Canadian assets was due to the inability to achieve scale. The sale process focused on achieving an attractive price and was consistent with their approach to portfolio review across all markets.
Q: With the moderate increase in domestic leasing backlog, is this growth across the board or specific to certain companies?
A: Brendan Cavanagh mentioned that the increase was not uniform among all customers. A recent agreement with one customer contributed to the backlog increase, but activity levels are expected to be steady throughout the year.
Q: What are the investment requirements and timeline for the mobile edge compute initiative, and how will it impact financials?
A: Brendan Cavanagh stated that they are in early stages with edge compute, engaging with multiple companies. While some initial investments have been made, the financial impact is yet to be determined, but it is expected to gain traction and contribute in the future.
Q: How does SBA view the potential acquisition interest from private equity firms, and what would it take for a sale to happen?
A: Brendan Cavanagh emphasized that SBA evaluates all options in the best interest of shareholders but does not comment on speculation or rumors. Decisions are made based on what is best for shareholders at any given time.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways SBAC posted Q1 FFO of $3.01 and revenue of $703.4M, both above consensus estimates.International site-leasing revenue jumped 32.6%, offsetting softer domestic leasing trends.SBA Communications raised 2026 revenue, EBITDA, and AFFO per share guidance. SBA Communications Corporation (SBAC - Free Report) posted first-quarter 2026 funds from operations (FFO) per share of $3.01, beating the Zacks Consensus Estimate of $2.86 by 5.24%. The figure compared unfavorably with the FFO per share of $3.16 in the prior-year period. Total revenues rose 5.9% year over year to $703.4 million and came in 0.66% above the consensus mark of $698.8 million.
Results reflected solid site-leasing momentum, led by a sharp rebound in international operations, while the company continued to operate at a company-wide tower cash flow margin of about 80%.
SBAC Posts Higher Leasing Revenue on International StrengthSite-leasing revenue increased 6.5% year over year to $656.1 million, remaining the dominant driver of the company’s quarterly performance. Site development revenues, however, edged down 1.6% to $47.3 million, modestly offsetting the leasing-led growth.
Within site leasing, domestic revenues slipped 2.3% to $450.3 million, while international site-leasing revenues surged 32.6% to $205.8 million. The mix shift underscores how international operations carried overall top-line momentum in the quarter, even as the U.S. market remained comparatively softer.
SBAC Faces Higher CostsCost pressures were evident in the core leasing business. The cost of site leasing rose 14.2% year over year to $131.9 million, while selling, general and administrative expense increased 6.5% to $70.5 million.
Those higher costs weighed on profitability metrics. Adjusted EBITDA totaled $475.4 million, up 4% from the year-ago quarter, but the adjusted EBITDA margin slipped to 68.1% from 69.0% a year earlier, highlighting the impact of higher operating expenses.
SBAC Expands Portfolio With Sites and LandSBA Communications continued investing in its asset base during the quarter. The company acquired 10 communication sites and, notably, purchased rights to land underneath approximately 3,900 communication sites in Guatemala for total cash consideration of $133 million. It also built 80 towers during the first quarter. As of March 31, 2026, the company owned or operated 46,358 communication sites, including 17,378 in the United States and its territories and 28,980 internationally.
The company also spent $10.4 million to purchase land and easements and extend lease terms. Total cash capital expenditures were $191.9 million, including $12.7 million of non-discretionary cash capital expenditures and $179.2 million of discretionary cash capital expenditures tied to new tower builds, tower augmentations, acquisitions and land-related investments.
As of April 29, 2026, SBAC purchased or was under contract to buy 56 communication sites for a total consideration of $36.9 million in cash. It expects to complete the acquisitions by the end of the third quarter of 2026.
SBAC Liquidity & LeverageLiquidity remained supported by cash generation. Net cash provided by operating activities was $255.1 million in the first quarter compared with $301.2 million in the year-ago period. Total cash, cash equivalents and restricted cash ended the quarter at $332.5 million, providing flexibility to fund ongoing investment needs.
Leverage stayed elevated but within management’s targeted range. SBAC ended the quarter with net debt of $12.6 billion, translating to net debt to annualized adjusted EBITDA of 6.6x, in the middle of its 6.0x to 7.0x range.
SBAC Lifts 2026 OutlookGiven the quarter’s performance, SBAC raised its full-year 2026 outlook across key metrics. The updated forecast indicates site-leasing revenues of $2.649-$2.674 billion and total revenues of $2.839-$2.884 billion, each up $24 million at midpoint from prior guided range. Adjusted EBITDA is now projected at $1.921-$1.941 billion, $9 million up at midpoint.
AFFO per share is expected in the range of $11.93-$12.38, up 9 cents at midpoint from previous guidance range. The Zacks Consensus Estimate is currently pegged at $12.13 per share, which is within the guided range.
SBAC’s Zacks RankThe company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other REITsW. P. Carey Inc. (WPC - Free Report) delivered first-quarter 2026 adjusted funds from operations per share of $1.30, topping the Zacks Consensus Estimate by 1.6%. Revenues of $453.02 million also came ahead of the consensus mark of $451.06 million, a 0.4% surprise, and rose 11.2% year over year.
WPC’s results reflected the accretive impact of net investment activity and contractual rent escalations across the net-lease portfolio. Contractual same-store rent registered 2.4% growth year over year on a constant-currency basis.
Digital Realty Trust (DLR - Free Report) posted first-quarter 2026 core FFO of $2.04 per share, up 15.3% from $1.77 a year ago. The results beat the Zacks Consensus Estimate of $1.94, delivering a 5.15% earnings surprise.
Total operating revenues were $1.635 billion, up 16.2% from $1.408 billion in the year-ago quarter. Revenues also topped the consensus mark of $1.609 billion by 1.6%, supported by DLR’s strong leasing activity and healthy commencements from a growing backlog.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
BOCA RATON, Fla.--(BUSINESS WIRE)--SBA Communications Corporation (NASDAQ: SBAC) (“SBA”) announces that Marc Montagner, Chief Financial Officer is scheduled to speak at the JP Morgan 2026 Global Technology, Media and Communications Conference, Monday, May 18, 2026 at 2:50 PM ET. The conference will be at The Westin Boston Seaport District in Boston, Massachusetts. The audio presentation for SBA can be accessed by visiting www.sbasite.com. About SBA Communications Corporation SBA Communications.
On a recent Morningstar Investing Insights segment unveiling the 2026 class of exceptional dividend growers, the host offered one caveat worth the entire show: “Valuation was not a component in this screen whatsoever.” A stock can clear the bar for double-digit dividend raises, a narrow or wide moat, and low or medium uncertainty, and still be priced for poor forward returns. The screen rewards capital return discipline. It says nothing about your entry point.
That gap is what should keep you reading. Buying a great dividend grower at a stretched multiple compounds the income, but a price drawdown can still erase years of payout. The fix is to overlay a valuation filter on top of the quality screen. Five names from this year’s list clear both gates: trading at 10% or deeper discounts to Morningstar fair value while raising the dividend aggressively.
The five names that pass both tests The discounts run deepest at Zoetis (NYSE: ZTS | ZTS Price Prediction) at 32%, Accenture (NYSE: ACN) at 30%, Domino’s Pizza (NASDAQ: DPZ) at 23%, Intuit (NASDAQ: INTU) at 19%, and SBA Communications (NASDAQ: SBAC) at 13%.
The fundamentals support the gap.
Accenture posted Q2 FY26 revenue of $18.04 billion, up 8%, with record bookings of $22.1 billion, and raised its quarterly dividend 10% to $1.63. Intuit grew Q2 revenue 17% to $4.651 billion and lifted the payout 15%. Both stocks are deep in the red year to date.
Why the discount math matters more than the dividend math Take a concrete example. Suppose you put $10,000 into Zoetis at $114. That buys roughly 88 shares paying $2.12 annually, an entry yield near 1.9%.
Had you bought a year ago near $154, you would own roughly 65 shares, earning the same dividend per share on a higher cost basis. Same company, same payout, permanently lower yield on cost.
That is the math the screen ignores.
The discount widens the runway for total return, too. Zoetis trades at a forward P/E of 19 against an analyst target of $150. Accenture sits at a forward P/E of 14 with a target of $251. Intuit’s forward multiple is 15 with a target of $594.
Who this list fits, and who it hurts The setup fits an investor with a 7-to-15-year horizon to fund future income. A 50-year-old building taxable retirement income can buy a 1-to-2% starter yield today and let double-digit raises do the heavy lifting. Domino’s quarterly dividend climbed from $1.51 in 2024 to $1.99 in 2026. SBA Communications raised 13% in April to $1.25, with the payout still only ~41% of AFFO. That leaves room to keep raising.
The same list hurts a 70-year-old who needs cash flow today. Zoetis, at a 1.9% yield, does not cover current bills, regardless of growth rate. Retirees drawing portfolios are usually better served pairing a sleeve of these growers with higher current-yield holdings, Treasury ladders, or covered-call funds that prioritize today’s check over tomorrow’s raise.
What to do with this Three steps.
First, pull the Morningstar fair value estimate for each name before buying and confirm the discount is still there. Gaps close. Second, project your yield on cost at year 10 using a conservative 8% annual growth assumption, well below the recent 10% to 15% raises across this group, and compare it against what a 10-year Treasury would pay you on the same dollars. Third, separate quality and valuation in your own process going forward. The host’s caveat is the lesson: a list of exceptional dividend growers is only a starting point for further research. These five names are simply where both filters happen to overlap right now.
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Investors love dividend stocks because they provide dependable passive income streams and an excellent opportunity for solid total return. Total return includes interest, capital gains, dividends, and distributions realized over time. In other words, the total return on an investment or portfolio consists of income and stock appreciation. At 24/7 Wall St., we have focused on dividend stocks for over 15 years because, despite the stock market’s ups and downs, many people need reliable passive income streams to supplement their income from employment or other sources such as Social Security and pensions.
According to the Internal Revenue Service (IRS), passive income generally includes earnings from rental activity or any trade, business, or investment in which the individual does not materially participate. It can also include income from limited partnerships, stocks, bonds, and other similar enterprises in which the investor is not actively involved. The more passive income covers rising costs—such as mortgages, insurance, taxes, and other expenses—the easier it is for investors to set aside money for future needs as they prepare for retirement. Dependable recurring dividends, paid either monthly or quarterly, are a recipe for success.
We screened our 24/7 Wall St. dividend stocks database, looking for quality companies that have been raising their payments to shareholders by double-digit percentages over the past three years. In an economy that could still be facing more inflation, owning companies that raise dividends by double digits makes sense in an era of rising prices. All five companies we found are Buy-rated by the top Wall Street firms we cover.
Why do we cover companies raising dividends by double digits?
Since 1926, dividends have accounted for approximately 32% of the S&P 500’s total return, while capital appreciation has accounted for 68%. Therefore, sustainable dividend income and the potential for capital appreciation are essential to total return expectations. A study by Hartford Funds, in collaboration with Ned Davis Research, found that dividend stocks delivered an annualized return of 9.18% over the 50 years from 1973 to 2023. Over the same timeline, this was more than double the annualized return for non-payers (3.95%).
ADP This company, founded in 1949, is a global leader in payroll and HR services and provides cloud-based software trusted by over 80% of Fortune 100 companies. Automatic Data Processing (NYSE: ADP | ADP Price Prediction) is a global technology company engaged in providing cloud-based human capital management (HCM) solutions that unite HR, payroll, talent, time, tax, and benefits administration.
ADP benefits from its dominant position in payroll and HR services, with highly recurring, subscription-like revenue, and pays a 2.94% dividend, which has increased by a double-digit amount (12.36%) each year, on average, over the past five years. Its segments include:
Employer Services Professional Employer Organization (PEO) The Employer Services segment serves clients ranging from single-employee small businesses to large enterprises with tens of thousands of employees worldwide, offering a range of technology-based HCM solutions, including its cloud-based platforms and human resource outsourcing (HRO) solutions (other than PEO).
The company’s offerings include:
Payroll Services Benefits Administration Talent Management HR Management Workforce Management Compliance Services Insurance Services Retirement Services Its PEO business, called ADP TotalSource, provides clients with employment administration outsourcing solutions. ADP serves over 1.1 million clients across 140 countries and territories.
Cantor Fitzgerald has a Buy rating with a $244 target price.
Broadcom This technology giant has been on fire. Many investors probably don’t know it has increased its payout by an average of 19.25% annually over the past five years, making it one of the most aggressive dividend growers in tech — despite its small 0.59% dividend yield — as the shares have surged over the past year. Broadcom (NASDAQ: AVGO) is a global technology firm that designs, develops, and supplies a range of semiconductors, enterprise software, and security solutions.
The company operates through two segments. The Semiconductor Solutions segment includes all of its product lines and intellectual property (IP) licensing. Broadcom provides:
Radio-frequency semiconductor devices Wireless connectivity solutions Custom touch controllers Inductive charging solutions for mobile applications The Infrastructure Software segment includes:
Private and hybrid cloud Application development and delivery Software-defined edge Application networking and security Mainframe Distributed and cybersecurity solutions FC SAN business Broadcom provides a portfolio of software solutions that enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms.
J.P. Morgan has an Overweight rating and a $500 target price.
NextEra Energy This top company is among the highest-rated utility stocks on Wall Street, which pays a dependable 2.59% dividend. NextEra Energy (NYSE: NEE) dividend payments per share have grown at an average of 10.05% over the past 36 months (three years) and 10.11% over the past 60 months. The company has recorded 32 consecutive years of dividend increases. The company has made its target explicit: NextEra Energy continues to expect to grow its dividends per share at roughly 10% per year through at least 2026, off a 2024 base.
NextEra Energy is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources and NextEra Energy Transmission (collectively, NEER), and Florida Power & Light Company (FPL). The company is working with Google on developing gigawatt-scale data center campuses and will develop 2.5 GW of solar projects for Meta. NextEra also agreed to a 25-year deal with Alphabet to acquire 3 gigawatts of energy from a redeveloped nuclear facility.
The FPL segment is a rate-regulated electric utility that generates, transmits, distributes, and sells electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines, and 921 substations.
The NEER segment owns, develops, constructs, manages, and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs, and operates rate-regulated transmission facilities in North America.
HSBC has a Buy rating and a $106 price target.
Parker-Hannifin This top company’s payouts have increased by an average of 14.26% annually over the past five years. With 67 years of consecutive dividend growth, Parker-Hannifin (NYSE: PH) has long since passed the Dividend King threshold of 50 years and specializes in motion and control technologies, with a current dividend yield of 0.81%.
The company designs, manufactures, and provides aftermarket support for highly engineered solutions. Its segments include:
Diversified Industrial Aerospace Systems Diversified Industrial segment, an aggregation of several business units, sells highly engineered, differentiated products to both original equipment manufacturers (OEMs) and distributors serving aftermarket replacement markets. This segment serves various markets, including:
Aerospace and defense Off-highway Plant and industrial equipment Energy and transportation HVAC and refrigeration The Aerospace Systems Segment sells highly engineered, differentiated airframe and engine components and systems to OEMs and aftermarket parts and maintenance directly to end users primarily in the commercial aerospace and defense market verticals. Its products include fuel systems and components, avionics, flight control systems, and others.
Citigroup has a Buy rating with a $1,141 target price.
SBA Communications This cell phone tower REIT was one of five new additions to Morningstar’s list of companies with five or more consecutive years of double-digit dividend increases, putting it among a very select group of consistent double-digit dividend growers. SBA Communications (NASDAQ: SBAC) is an independent owner and operator of wireless communications infrastructure, including towers, buildings, rooftops, distributed antenna systems, and small cells, and it currently pays a 2.20% dividend.
Its primary focus is the leasing of antenna space on its multi-tenant towers to a variety of wireless service providers under long-term lease contracts in the United States, South America, Central America, Canada, and Africa. Its segments include:
Domestic Site Leasing International Site Leasing Site Development The Domestic Site Leasing segment leases to T-Mobile, AT&T Wireless, and Verizon Wireless. It owns over 17,464 sites in the United States and its territories. The International Site Leasing segment owns and operates over 22,285 towers in 13 international markets throughout South America, Central America, Canada, and Africa. Site development services include network pre-design, site audits, tower and related site construction, support for leasing the location, and more.
Truist Financial has a Buy rating with a $248 price objective.
A month has gone by since the last earnings report for SBA Communications (SBAC - Free Report) . Shares have lost about 7.5% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SBA Communications due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
SBA Communications Q1 AFFO & Revenues Beat Estimates on Higher Leasing RevenueSBA Communications posted first-quarter 2026 AFFO per share of $3.01, beating the Zacks Consensus Estimate of $2.86 by 5.24%. The figure compared unfavorably with the FFO per share of $3.16 in the prior-year period. Total revenues rose 5.9% year over year to $703.4 million and came in 0.66% above the consensus mark of $698.8 million.
Results reflected solid site-leasing momentum, led by a sharp rebound in international operations, while the company continued to operate at a company-wide tower cash flow margin of about 80%.
Higher Leasing Revenue on International StrengthSite-leasing revenue increased 6.5% year over year to $656.1 million, remaining the dominant driver of the company’s quarterly performance. Site development revenues, however, edged down 1.6% to $47.3 million, modestly offsetting the leasing-led growth.
Within site leasing, domestic revenues slipped 2.3% to $450.3 million, while international site-leasing revenues surged 32.6% to $205.8 million. The mix shift underscores how international operations carried overall top-line momentum in the quarter, even as the U.S. market remained comparatively softer.
Faces Higher CostsCost pressures were evident in the core leasing business. The cost of site leasing rose 14.2% year over year to $131.9 million, while selling, general and administrative expense increased 6.5% to $70.5 million.
Those higher costs weighed on profitability metrics. Adjusted EBITDA totaled $475.4 million, up 4% from the year-ago quarter, but the adjusted EBITDA margin slipped to 68.1% from 69.0% a year earlier, highlighting the impact of higher operating expenses.
Expands Portfolio With Sites and LandSBA Communications continued investing in its asset base during the quarter. The company acquired 10 communication sites and, notably, purchased rights to land underneath approximately 3,900 communication sites in Guatemala for total cash consideration of $133 million. It also built 80 towers during the first quarter. As of March 31, 2026, the company owned or operated 46,358 communication sites, including 17,378 in the United States and its territories and 28,980 internationally.
The company also spent $10.4 million to purchase land and easements and extend lease terms. Total cash capital expenditures were $191.9 million, including $12.7 million of non-discretionary cash capital expenditures and $179.2 million of discretionary cash capital expenditures tied to new tower builds, tower augmentations, acquisitions and land-related investments.
As of April 29, 2026, the company purchased or was under contract to buy 56 communication sites for a total consideration of $36.9 million in cash. It expects to complete the acquisitions by the end of the third quarter of 2026.
Liquidity & LeverageLiquidity remained supported by cash generation. Net cash provided by operating activities was $255.1 million in the first quarter compared with $301.2 million in the year-ago period. Total cash, cash equivalents and restricted cash ended the quarter at $332.5 million, providing flexibility to fund ongoing investment needs.
Leverage stayed elevated but within management’s targeted range. It ended the quarter with net debt of $12.6 billion, translating to net debt to annualized adjusted EBITDA of 6.6x, in the middle of its 6.0x to 7.0x range.
SBA Communications Lifts 2026 OutlookGiven the quarter’s performance, the company raised its full-year 2026 outlook across key metrics. The updated forecast indicates site-leasing revenues of $2.649-$2.674 billion and total revenues of $2.839-$2.884 billion, each up $24 million at midpoint from prior guided range. Adjusted EBITDA is now projected at $1.921-$1.941 billion, $9 million up at midpoint.
AFFO per share is expected in the range of $11.93-$12.38, up 9 cents at midpoint from previous guidance range.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, SBA Communications has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SBA Communications has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerSBA Communications belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Highwoods Properties (HIW - Free Report) , has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Highwoods Properties reported revenues of $214.03 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $0.29 for the same period compares with $0.83 a year ago.
Highwoods Properties is expected to post earnings of $0.87 per share for the current quarter, representing a year-over-year change of -2.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
Highwoods Properties has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
The build-out of 5G networks remains a massive multiyear tailwind for the real estate sector. Choosing between SBA Communications (SBAC +1.06%) and Crown Castle (CCI +1.35%) requires weighing international growth against domestic fiber strength.
Both companies operate as real estate investment trusts (REITs), owning the essential infrastructure that allows your smartphone to function. While they share similar business models, their geographic focuses and asset mixes differ significantly. One prioritizes global expansion while the other bets heavily on U.S. small cells and fiber to complement its traditional tower portfolio.
The case for SBA CommunicationsSBA Communications provides essential infrastructure by leasing tower space to wireless providers. Its primary customers include T-Mobile, AT&T, and Verizon. T-Mobile alone accounted for more than 31% of total revenue in 2024, and customer concentration like this adds a layer of risk to the business.
In FY 2025, revenue reached nearly $2.8 billion, which was a growth rate of approximately 5.1% from the previous year. The company reported net income of roughly $1.1 billion during this period. This led to a net margin of approximately 37.4%, which measures how much of each dollar earned becomes profit.
As of its December 2025 balance sheet, the debt-to-equity ratio was -3.2x, indicating that total liabilities exceed shareholder equity. The current ratio, which compares short-term assets to short-term liabilities, was roughly 0.5x. For the year, the company generated free cash flow of close to $1.1 billion.
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The case for Crown CastleCrown Castle focuses its operations on U.S. infrastructure, managing more than 40,000 towers and 90,000 miles of fiber. The big three carriers accounted for roughly 90% of site rental revenue in FY 2025, representing significant customer concentration risk. The company also builds small cell nodes to support high-density wireless demand in urban areas.
For FY 2025, revenue was nearly $4.3 billion, representing a decrease of about 35.1% over the prior year. Net income for the fiscal year was approximately $444.0 million. This resulted in a net margin of roughly 10.4%, showing how much revenue remains after all costs are paid.
According to its December 2025 balance sheet, the debt-to-equity ratio was -18.1x, which means total liabilities exceed shareholder equity. The current ratio was approximately 0.3x. Free cash flow for the year was roughly $2.9 billion, providing significant capital for reinvestment.
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Risk profile comparisonSBA Communications faces risks from a small customer base, particularly with the recent default of EchoStar. This default is expected to lead to a revenue loss of about $56.0 million in 2026. The company also deals with competition from other infrastructure providers like American Tower and must manage currency swings in international markets.
Crown Castle carries a substantial debt load of approximately $24.2 billion, which limits its flexibility to pursue new projects. The company is currently involved in a dispute with EchoStar, asserting that the carrier owes more than $3.5 billion under existing agreements. Competition in the U.S. market from firms like Equinix or carrier self-performance can also pressure lease rates.
Valuation comparisonSBA Communications currently trades at a lower forward P/E and P/S ratio than its peer based on future earnings estimates.
MetricSBA CommunicationsCrown CastleSector BenchmarkForward P/E26.9x42.9x32.2xP/S ratio7.5x9.2xn/aSector benchmark uses the SPDR XLRE sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
SBA, Crown Castle, and American Tower are the three big publicly traded tower companies. They’re REITs, which means they operate like landlords, renting the infrastructure and physical space to providers of cell connectivity. It’s an intriguing idea for an investment, as these companies receive predictable recurring income from major telecoms and operate in an industry that is viewed as a utility.
But there are risks across the board, and the fallout from the EchoStar default and subsequent legal battle is one example. Both SBA and Crown Castle have relatively small customer bases, and if one tenant struggles financially, it can send shockwaves through the balance sheet. SBA is the smallest of the three, both in terms of market cap and in total number of towers. In April, tower stocks responded favorably to rumors that SBA Communications may be the target of an acquisition by infrastructure management companies KKR and Brookfield.
Tower stocks have been losing investments over the past five years, with SBA stock down more than 36% and Crown Castle losing about 55% in that time frame. A major acquisition in the industry could reinvigorate the investment narrative, as could interest from adjacent industries like data centers or satellite internet.
Choosing between SBA and Crown Castle may come down to your geographic preferences. SBA operates in North America, South America, Central America, and Africa, while Crown Castle is more concentrated in the United States. I think SBA’s valuation, superior financials, and potential for an acquisition make it the more interesting choice here, but prospective long-term investors should consider what they believe the industry will look like over the next five to 10 years before making a decision.
