Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 3, 2026 · Beat 2 of last 7 quarters
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SBA's results underscore the ongoing carrier investment in 5G densification and spectrum deployment, which directly supports the AI infrastructure buildout by requiring more distributed, edge compute capacity. The FCC's stricter build-out requirements for upper C-band and potential new spectrum bands signal sustained demand for tower infrastructure, which is essential for the low-latency, high-bandwidth networks that AI applications require.
SBA delivered a solid Q2 with AFFO per share of $3.05 and a cash dividend of $1.25, while maintaining tower cash flow margins near 80%. The company completed its inaugural $3.5 billion unsecured investment-grade bond offering in July, paying down its Term Loan B and revolver, and was upgraded to BBB by S&P. U.S. leasing activity remained steady, with $9 million in new billings, while international added $4 million, with elevated churn from consolidations and bankruptcies. New tower builds increased to 99, driven by Central America and Tanzania. Management reiterated confidence in its EchoStar litigation and sees share buybacks as the best use of capital at current valuations.
Management modestly raised full-year 2026 guidance for site leasing revenue, AFFO and AFFO per share, driven by higher straight-line revenues and improved net cash interest expense. They expect to resume share buybacks in the second half of 2026, citing current valuation as a low-risk, high-return opportunity. The FCC's upper C-band auction (April 2027) with stricter build-out requirements, plus potential 2.7 GHz and 4.4 GHz spectrum repurposing, are expected to drive incremental equipment deployments and organic growth over the next several years. International churn remains elevated. Edge compute and satellite direct-to-device are emerging long-term growth drivers.
“We continue to lead the industry in AFFO per share and dividend growth.”
on Financial performance
“We now have the largest set of federal spectrum bands ever under consideration for repurposing, including 1.6 gigahertz, 2.7 gigahertz, 4.4 gigahertz and the 7 gigahertz band.”
on Spectrum opportunity
“We see share repurchases at current valuations as a low-risk, high-return opportunity.”
on Capital allocation
Could you provide a little bit more color on the application volume that you're seeing in the second half? And if any early indications of the activity that you talked about, higher colocation and the spectrum held by the carriers, if that could show up as an acceleration in the growth rate into next year?
Application volumes are relatively consistent with the first half of the year, with some cyclicality among carriers. The new spectrum bands are longer-term drivers, likely over the next 5+ years, and not expected to significantly impact next year.
How should we think about your pacing of the buyback, how it works with leverage and your other capital allocation items?
We fully expect to be active in buying back stock in the second half of the year. With the refinancing completed in July, we are in a strong position to lean into what we see as very good value in our stock.
In LatAm, one of the Brazilian carriers talked about expense controls when it comes to things like tower rent. And I wondered if you could give us an update on what you're doing and how your contracts are structured to maybe prevent exposure to that... And then secondly, ground lease buybacks and what's going on in that segment of the market in terms of multiples, your activity level and pace. And if I can maybe lob in a third one, the returns that you're seeing on new tower builds.
We deliver value through high-quality locations and service; cost pressures are the exception. Ground lease buyouts continue, with smaller opportunity in the U.S. but more in Central America. New tower build returns are strong internationally, particularly in Africa and Central America, with U.S. returns less attractive due to competition.