With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

World's Most Admired Companies

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

Just as it dominates our economy, Big Tech now dominates Fortune’s annual ranking of corporate reputation.

This year’s Fortune 500 marks the 68th running of the list.

After a year in which humanity leaned more heavily than ever on tech giants, see which companies topped Fortune's ranking of corporate reputation.

This year’s Fortune 500 marks the 67th running of the list.

American Tower operates simultaneously as a real estate investment trust and an operator of communications networks. The company leases out space on wireless and broadcast towers at more than 43,000 properties in the U.S. and Canada. The company has benefited in recent years from efforts by telecom companies to upgrade their networks to the 5G transmission standard; American Tower's revenue grew 6% in 2020.

For an astounding 13th straight year, Apple claims the top spot in Fortune’s annual ranking of corporate reputation, based on a survey of almost 3,800 executives, directors, and analysts.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-414-American-Tower

An operator of wireless and broadcast communications towers, American Tower expanded further into emerging markets in 2019.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

American Tower is a global real estate investment trust that owns, operates, and develops communications real estate. The company provides the infrastructure that enables wireless carriers and broadcasters to transmit signals, supporting mobile and broadband networks. The company utilizes a “vertical office building” model for its clients by leasing space on its towers to multiple tenants.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

Q3 2024

American Tower (AMT): Company Profile, Stock Price, News, Rankings

legacy

American Tower

american tower

Ladies and gentlemen, thank you for standing by. Welcome to the American Tower Second Quarter twenty twenty five Earnings Conference Call. As a reminder, today's conference call is being recorded. Following the prepared remarks, we will open the call for questions. I would like to turn the call over to your host, Kate Reeb, Senior Director of Investor Relations. Please go ahead.

Good morning, and thank you for joining American Tower's second quarter earnings conference call. We have posted a presentation, which we will refer to throughout our prepared remarks under the Investor Relations tab of our website, www.americantower.com. I am joined on the call today by Steve Vondrin, our President and CEO, and Rod Smith, our Executive Vice President, CFO, and Treasurer. Following our prepared remarks, we will open up the call for your questions. Before we begin, I'll remind you that our comments will contain forward looking statements that involve a number of risks and uncertainties.

Examples of these statements include our expectations regarding future growth, including our 2025 outlook, capital allocation, and future operating performance, and any other statements regarding matters that are not historical facts. You should be aware that certain factors may affect us in the future and could cause actual results to differ materially from those expressed in these forward looking statements. Such factors include the risk factors set forth in this morning's earnings press release, those set forth in our most recent annual report on Form 10 ks, and in other filings we make with the SEC. We urge you to consider these factors and remind you that we undertake no obligation to update the information contained in this call to reflect subsequent events or circumstances. With that, I'll turn the call over to Steve.

Thanks, Kate. Good morning, everyone, and thanks for joining the call. As you can see from our results, 2025 continues to be a good year. Demand for our tower leasing, services, and data center businesses, combined with FX tailwinds, has led us to raise outlook for property revenue, EBITDA, and AFFO. These results highlight the ongoing strength of our global businesses and the durability of mobile network demand that underpins it.

And American Tower continues to offer a predictably compelling value proposition for investors against a volatile macroeconomic backdrop. I'll briefly share a few highlights and trends before Rob discusses more detailed results and outlook. Mobile data consumption continues to climb, driving increased demand for network capacity in every region where we operate. We see this demand catalyze activity across our extensive tower footprint and drive network upgrades as the sun setting of legacy radios faster than we've seen in early g cycles. Carriers in developed markets continue to expand and mature their five gs networks as they work with aggressive coverage and quality targets between now and the end of the decade, while emerging market players actively complete their four gs rollouts and selectively yet increasingly pursue the five gs cycle.

In our developed tower markets, which consist of The US, Canada, and Europe, mobile traffic growth rates are anticipated to slightly outpace global averages over the next five years. And increasingly data intensive and uplink use cases like mobile video, AI, and new devices will continue to stress networks and prompt both mid band coverage and capacity driven five gs activity across our tower footprint and rooftop sites. In The US, we see the five gs cycle playing out in line with our original expectations as carriers continue site upgrade activities work toward twenty twenty six five gs coverage goals and begin early densification oriented colocation activity to improve network quality. We still see significant differences in mid band rollout progress across our portfolio, positioning us well to capture substantial new business for both amendments and colocations, with the latter comprising an increasingly material share of application mix for certain big three customers. On a combined basis, total application volumes increased more than 50% year over year, representing strong broad based demand for ourselves.

Our US services business posted a near record quarter propelled mainly by out sales construction services, signaling our customers increasing recognition of the quality, efficiency, and overall value that we provide through our best in class offerings. Next, our Europe business also continues to trend in line with expectations, benefiting from a healthy overall operating environment and strong customer agreements that provide both growth and insulation from various customer shifts across the region. Midbank coverage now stands at just about 55% of the markets where we operate, which is slightly ahead of the continental average and leaves a significant runway for more coverage oriented activity as carriers pursue 2,030 rollout targets. Additionally, spectrum extensions and related coverage obligations in Germany should unlock long term investment and yield future growth benefits and in the near term are bringing energy and momentum to five gs rollout activity. In our emerging markets, we've raised our outlook due to a mix of FX tailwinds and core leasing outperformance.

Our Africa business continues to post robust growth results, benefiting from a stabilized lower churn care landscape, better consumer pricing in key markets, and supportive demand dynamics. Five gs maturity remains limited in the region, with most activity focused on four gs rollouts and densification. But we do see early five gs deployments continue to progress in select urban areas propelled by use cases of fixed wireless. Activity has improved in markets like Nigeria, where higher consumer prices are supporting better carrier economics and unlocking stronger levels of network investment. Growth in Latin America remains muted relative to historical trends, and our expectations for persisting low single digit growth through 2027 remain unchanged.

However, consolidation has normalized in Brazil, and new activity is anticipated across the more stabilized three player market as carriers work to fulfill regulator commitments in the region and realize better margins from higher ARPUs. Our outlook for the region has modestly increased, along with some improvements in markets like Brazil, we're seeing continued elevated levels of churn as carriers rationalize the infrastructure required through consolidation activity. Moving to our data center business, we continue to see exceptional performance from CoreSite and have increased our 2025 expectations to reflect new growth attributable to the recently acquired DE1 facility, as well as elevated demand and pricing from our broader portfolio of interconnection data center facilities. Hybrid and multi cloud IT architecture requiring secure low latency interoperability remains a primary driver of demand. The early phases of AI related workloads, including inferencing, machine learning models, and GPUs as service represent a fast growing component of ForeSite's leasing.

Capacity constraints from high absorption rates and continued AI driven demand from both very large hyperscale players across the wider market and the enterprise customers that value our interconnection ecosystem are driving a sustained favorable pricing and pre leasing environment that we expect to continue into the foreseeable future. These tailwinds have enabled us to remain selective in our customer mix to curate high quality ecosystems while exceeding our initial underwriting assumptions. We plan to continue to prioritize funding CoreSite on a success basis and in line with our capital allocation strategy to replenish supply and facilitate future growth. Overall, our outlook is generally looking up as we enter the 2025, But we remain focused on delivering our differentiated value proposition and staying true to our stated strategy. Our experienced team is well versed in addressing certain ebbs and flows across our global footprint.

Our strategic long term focus enables us to benefit from the durability of tower leasing and growing mobile data and computing demand trends. Our superior global portfolio, best in class services and customer delivery, high quality balance sheet, protected contracts, and highly disciplined approach to capital allocation already enable us to extract significant value from the global tower landscape. But we remain motivated to continuously improve and deliver even more compelling returns to our stakeholders. Now I'll hand it over to Rod to discuss second quarter results and our revised 2025 outlook. Rod?

Thanks, Steve, and thank you all for joining the call. As noted in this morning's press release, we had a strong second quarter driven by resilient demand across our global portfolio. We are well positioned to benefit from growing mobile data consumption and confident in our ability to sustain growth through the second half of the year. Before diving into our Q2 results and our revised full year outlook, I'll share a few highlights. First, leasing momentum remains strong, resulting in consolidated organic tenant billings growth of 4.7%.

Our U. S. Services business had a near record quarter while application volumes among the big three were up over 50% year over year. This was primarily driven by amendment upgrades and a 200% year over year increase in colocations. CoreSite also had an exceptional quarter with double digit revenue growth and gross margin expansion fueled by hybrid cloud demand and AI related use cases.

Strategically, we closed the acquisition of our DE1 data center asset in Denver and deployed over 75% of our discretionary capital in developed markets, rising to over 85% when including acquisition capital. Finally, we strengthened our balance sheet by issuing €500,000,000 in senior unsecured notes at 3.625%. Proceeds were used primarily to pay down existing debt. At quarter end, floating rate debt was approximately 7% of our total outstanding debt and net leverage stood at 5.1 times. Turning to second quarter property revenue and organic tenant billings growth on slide six.

Consolidated property revenue grew 1.2% year over year and more than 3% when excluding non cash straight line revenue despite absorbing more than 70 basis points of FX headwinds. Year over year growth was negatively impacted by 2% due to a change in non recurring revenue in the current period relative to the prior year. US and Canada property revenue declined by more than half a percent and grew approximately 3% when excluding non cash straight line revenue despite absorbing more than 100 basis points of Sprint churn. International property revenue grew approximately 1% year over year and approximately 3% when excluding the impacts of foreign currency fluctuations. Finally, property revenue in our data center business grew over 13%.

Moving to the right side of the slide, consolidated organic tenant billings growth was 4.7% driven by solid demand across our global portfolio. In our US and Canada segment, organic tenant billings growth met our expectations at 3.7 and greater than 5% when excluding Sprint related churn. Our international segment drove 6.5% in organic tenant billings growth, a modest step down from Q1 twenty twenty five, reflecting generally consistent leasing trends paired with slightly lower contributions from escalators and churn. Turning to slide seven, adjusted EBITDA grew 1.8% and approximately 4.5% when excluding non cash net straight line despite absorbing approximately 90 basis points of FX headwinds. Growth was positively impacted by continued direct expense management resulting in a high conversion of cash property revenue and a greater than 100% increase in U.

S. Services business gross profit, partially offset by the flow through of non recurring revenue benefits in the prior year period. Increased bad debt associated with Latin America customer collections and other non recurring and timing related costs. Cash adjusted EBITDA margin declined 40 basis points year over year, partially driven by a higher contribution from U. S.

Services. Moving to the right side of the slide, attributable AFFO and attributable AFFO per share declined by approximately 6.76.8% respectively, primarily due to more than $65,000,000 of prior year revenue reserve reversals in our India business. On an as adjusted basis normalizing for the sale of India, attributable AFFO per share growth was approximately 2.4% driven by the high conversion of cash adjusted EBITDA growth to AFFO through the effective management of below the line costs, partially offset by flow through of non recurring revenue benefits in the prior year period previously mentioned. Now turning to our revised full year outlook. As you will see on the next few slides, our core year to date results and expectations for the second half of the year are contributing to improvements across property revenue and adjusted EBITDA compared to our prior outlook.

In addition, our revised FX assumptions are providing tailwinds of 130,000,000, 80,000,000 and 55,000,000 to property revenue, adjusted EBITDA and attributable AFFO respectively. As a result, we are raising our expectations for property revenue, adjusted EBITDA, attributable AFFO and attributable AFFO per share by approximately $165,000,000 $120,000,000 $55,000,000 and $0.12 respectively compared to our prior outlook. At the midpoint, our expectation for attributable AFFO per share is $10.56 or approximately 6% year over year growth on an as adjusted basis. Turning to slide eight, we are increasing our expectations for property revenue by approximately $165,000,000 compared to our prior outlook, which includes $130,000,000 of FX tailwinds, dollars 15,000,000 of consolidated core property outperformance and $20,000,000 of additional upside consisting of an approximately $25,000,000 increase in straight line revenue partially offset by an approximately $5,000,000 decrease in pass through revenue. Consolidated core property outperformance includes upside from international and CoreSite, including incremental contributions from our recently acquired DE1 asset.

Outperformance was partially offset by slower commencements compared to initial expectations related to a customer in The U. S. Which affect organic tenant billings growth expectations that I will touch on in a moment. Moving to slide nine, we are reiterating our organic tenant billings growth expectations of approximately 5% on a consolidated basis. We have revised our expectations for The U.

S. And Canada organic tenant billings growth to approximately 4.3, reflecting slight timing differences due to modestly slower than initially anticipated pacing of new business. Importantly, while the timing of commencements could result in some quarter to quarter variability, it does not change our overall expectations to capture the new business. In addition, we are reiterating our organic tenant billings growth expectations of approximately 5% for Europe, raising our expectations for Africa and APAC to greater than 12% due to solid carrier activity and slightly lower churn expectations and raising our expectations for LATAM to greater than 2% driven by modestly higher than expected contributions from CPI linked escalators. Turning to slide 10, we are increasing our adjusted EBITDA outlook by $120,000,000 compared to our prior outlook driven by the conversion of property revenue, services gross profit and FX tailwinds, partially offset by non recurring expense items, including incremental bad debt associated with certain Latin America customers.

Moving to slide 11, we are raising our expectations for AFFO attributable to common stockholders by $55,000,000 at the midpoint or $0.12 on a per share basis. Cash adjusted EBITDA outperformance and FX tailwinds are partially offset by increased minority interest and maintenance capital. Our revised attributable AFFO per share midpoint is $10.56 Year over year AFFO per share growth is now expected to be approximately 6% on an as adjusted basis. Turning to slide 12, we are modestly revising our 2025 capital plans, which include approximately $1,700,000,000 in capital expenditures, down $20,000,000 compared to prior outlook and contemplates a 100 site reduction in Latin America and consistent data center spending. We continue to expect to distribute approximately $3,200,000,000 to our shareholders as a common dividend, which remains unchanged from our prior expectation and subject to board approval.

Moving to the right side of the slide, our balance sheet is strong, providing financial flexibility and optionality, including $10,500,000,000 in liquidity and low floating rate debt exposure. Turning to slide 13 and in summary, we're pleased with our results through the 2025 which highlights the criticality of our assets, the resilience of our business model, and the outstanding execution of our talented employees. We are confident in our ability to deliver sustainable growth and long term shareholder value. And with that operator, we can open the line for questions.

Thank you so much. And as a reminder to get in the queue, simply press And it's from the line of Michael Rawlings with Citi. Please proceed.

Thanks and good morning. So first, I'm curious if you could dig further into the different observations for domestic leasing. You talked about the increase in applications from amendments and colodentification, but also the delay in commencements from one of your customers. So can you talk about a little bit more about how that's affecting the second half of the year? And is that setting up 2026 to be a better year and to get some of these benefits to come through? And then secondly, was just curious if you could provide an update on the opportunities to extract an incremental layer of efficiency within the business. Thanks.

Yeah. Thanks, Mike. I'll take both of those. So when you look at the The US leasing environment, what we're excited to see is the increase in application volume that we expected from the beginning of the year. And so that's playing out in line with our expectations.

So if you look across the board, we're seeing a healthy level of activity. We're seeing continued increases in the pipeline and we're seeing an increase in the new co locations on that. So that's all very positive. We're excited to see that. And that's indicative of very healthy leasing environment.

And in terms of kind of what we were expecting in our pipeline, the volume that we were expecting, from our customers is consistent and the pricing is consistent. What has been a little bit slower than we expected is the conversion from one of our customers of that leasing into commencements and that the customer is not on the holistic agreement. And so when we did our forecasting, we had a certain cadence that we thought that we were gonna see in there and they're just moving a little bit slower than we expected. So from our perspective, you're talking a few million dollars of in a year is all in the difference. And that OTBG metric is very sensitive to the timing of commencements on it.

But when you look at the health of the business and the fact that we're gonna get that new business, we're very confident in that. We're not seeing anything that would indicate a pullback. We're not seeing the pipeline of applications dry up. We're not seeing them cancel projects or anything like that. It's just a little bit slower cadence in terms of signing leases, getting them back and getting the equipment installed.

So from our perspective, there's nothing on that that indicates anything other than a robust leasing pipeline. We'll read '26 guidance to '26. If you think about kind of the variables going into 2026, a good pipeline is important. And that's what we're seeing is a pipeline that's kind of supportive of our long term guide that's there. We do have less contracted revenue going into the next couple of years than we had the prior years.

So we are more dependent on that activity based, revenue commencement. And so we are excited to see that pipeline continue to build. That's positive for us. We are still expecting churn to trend down. Now that's not considering The US cellular, transaction, which has now been approved.

So that's something we're gonna be launching at the variable looking into the next couple of years and see how that's gonna affect it. But overall, I'd the pipeline's healthy and we'll wait to give guidance on twenty sixth when we get there. As for your second question in terms of the extracting value, I've given Bud till close to the end of the year to give me guidance on that. But the efforts are progressing very well. And we've had, some very good receptivity across the globe to our globalization efforts and the team is seeing opportunities there.

And just to kind of set expectations in terms of what that's gonna look like, we're looking at our total addressable spend, so that's including direct expenses, O and M, SG and A, growth CapEx, supply chain, all those different areas in it. And the overall goal that we've set ourselves is to have a continuously increasing gross margin in our tower business. So, you know, you probably shouldn't expect to see like a, you know, a huge decrease in direct expenses. Some of that is just, the cost of doing business, but the goal is to bend the curve down so that those are growing slower than our revenue in every geography on a consistent basis. And so as Bud works through what this looks like, it'll be kind of a multi year goal that we set up to bend that cost curve down to give us better margin expansion than what we would see otherwise on that.

So we'll continue to work through that. And again, I've committed to you guys by the end of the year, we'll get some targets out there. But so far, everything is kind of aligning up with what we thought we were gonna see when we started this journey. And we feel very good about that, in terms of what we're gonna be able to create in terms of value creation over time.

Hey, Michael. This is Rod. I can add just a couple of quick points here for you, to follow-up on Steve's comments. Regarding new business, all the things that Steve mentioned around timing in The U. S, you'll see that play out in our numbers primarily in new business and organic tenant billings growth.

You know, we were at a projection of about 165,000,000 or slightly better for new business. With this revised timing of the pacing of some of the deployments, that number is expected now to be more like 160. And it is a timing related issue, as Steve, mentioned. And what that does is it affects OTBG in a very modest or subtle way. Our original guide was equal to or greater than 4.3% in The U.

S. We've adjusted that to approximately 4.3% just to reflect the fact that we could be at 4.3% or slightly below because of this mild, timing. So just to give you a little bit of numbers there. And then I would just make one quick comment on SG and A for the full year of 2025. We expect to be roughly flat on SG and A excluding the bad debt.

And that's after absorbing things like a few legal fees for some of the customer issues that we have in Latin America, as well as managing through the very robust business in CoreSite. There is some added SG and A there to support that double digit growth. So you'll see us absorbing that and also keeping SG and A flat with a few other kind of timing issues in there.

Thank you. Our next question comes from Rick Prentiss with Raymond James. Please go ahead.

Hey. A couple of questions. Follow-up Steve, you mentioned US Cellular T Mobile deal now is approved. Can you frame for us what that USM exposure you think might be and the timing for that? And then obviously more speculative, just maybe an update on DISH, what you're seeing there and what the exposure is there.

Sure. So with respect to UScellular, in absolute terms, not the overlap, but the total amount of new business we have with US Cellular, it represents about less than a half a percent contribution to our property revenues or global property revenues and less than 1% to our US and Canada property revenues. So it's relatively small exposure overall. And if you look at that portfolio, what we don't know yet is what T Mobile plans to do with those sites. And so as we're looking out over the next couple of years, a lot of it depends on what their plans are.

We haven't been able to have discussions on that because the deal wasn't approved yet. So that's kind of worst case scenario. We certainly wouldn't expect to lose all of that. But there will be some of that that they're gonna wanna turn off of as part of their synergies and we'll work with them on that some more of the way we have in the past. And so as that closes and we have those conversations, we can get can give you guys a little bit more visibility into it, over time. And by and by the way, that those percentages of total revenue, not new biz, that's total revenue that less than half a percent of property revenues and half a percentage of US and Canada revenues on that.

With respect to DSH, we continue to watch the situation like everybody else does and to see what's happening there. We think there have been a few positive developments in terms of some of things that they said publicly that they're doing. So we feel pretty good about that. The overall exposure to dish is they represent about 2% of our global over 2% of our global revenues, slightly over, over 4% of our US revenues. And that's again, total exposure for that portfolio.

But again, what we're seeing is the same thing you guys are seeing. The headlines are slightly positive lately. So we're optimistic and hopeful that they'll work through their situations and continue to deploy.

Sorry. Just regarding the churn, since you brought up churn, I've been looking forward to saying this for a few years here. But just to remind everyone that we are in our final year of the Sprint churn. So when you think about the churn percentages for Q3, we were at a little over 2%, maybe 2.3% total churn in our U. S.

Business. As we work through the churn this quarter for Sprint, it won't be in our Q4 numbers or any numbers beyond that. And we expect churn as a percent to drop down to about 100 basis points or maybe even below for Q4. And then probably stay in that lower end of our range between 12% as a churn number, kind of staying at the lower end of that, closer to 1% for a little while, excluding the things Steve just talked about in terms of, U. S. Cellular.

A lot of discussion lately about direct to device satellite connectivity. You guys own a piece of ASTS. Update us a little bit about what you're seeing in direct to device and what you think it might mean US versus international.

Yeah. We continue to see direct to device as the complementary technology to the macro cell networks. Delivering bandwidth via macro towers continues to be the cheapest way to deliver bandwidth to the customers no matter where they are. So we don't view it as a threat at all to our business in The US or internationally, quite frankly. The places where satellite is gonna be ideal are places that have lower population densities than what the carriers would like to cover through macro towers.

So when you think about the Grand Canyon or rural Montana, those are places where that's gonna be an excellent way to provide coverage. And we don't have towers there and frankly, I don't wanna build towers there because there's not a good business case for doing that. Same thing internationally. If you look at Sub Saharan Africa, there are gonna be places that are much better served by satellite. Again, we don't have towers in those areas and don't wanna build towers in those area.

So, overall, we believe it's complementary, not competitive. So if think about where the satellite coverage is optimal, it's less than a 100 pops per site, know, person of the research that's kind of been cited out there. So, we view it as a nice niche market. We're happy with our investment in AST. We're really happy with the, ringside seat that we have to see how this plays out.

And, and it's all playing out just the way we thought. No threat and complimentary and might make a nice little profit on our investment there.

Thank you. One moment for our next question, please. And it's from the line of Nick Del Deo with MoffettNathanson. Please proceed.

Hey, morning guys. Thanks for taking my questions. First, just to dig in a bit more into your prior comments, Steve, regarding the customer that's moving a bit slower than you had expected. Just to be clear, is this just a lengthening of the book to bill cycle? So they're kind of applying and signing leases that expected, but it's just dragging it in terms of when they get on air?

Or are you seeing the applications come in with a bit of a delay?

No. It's exactly what you said. It's the book to bill cycle is a little bit longer. The application pipeline continues to be healthy. It's just not moving along as quickly as we anticipated it to do.

Okay, okay. So it's in your backlog is just purely timing then?

Okay, great. And then maybe switching to CoreSite, could you talk a little bit about CoreSite's position in the supply chain and kind of the risk management strategy you have in place?

In particular, I'm thinking with the jump in demand for a lot of key components to support big projects from both established new players, I'm curious as to whether it's becoming at all more challenging for CoreSite to kind of keep its place in line.

Well, a lot of the supply chain challenges really started during COVID. And so that whole supply chain process lengthened several years ago, we had to adjust our strategy then. So we started pre buying those long lead time items several years ago. And the way you secure your place in line is you gotta pay. So you put a deposit down on that equipment.

And so we've been very proactive in looking at that over time and and securing those places. The other component that we're watching very closely like everyone else is is the effect of potential tariffs on some of those supplies because a lot of those components can only be sourced overseas. And what we're doing to protect ourselves there is building a contractual, mitigation so that if there are an increase in costs when we're doing the pre leasing, that we have a mechanism to adjust that to make sure that we're getting that mid teens stabilized yield that we're underwriting on things. So I feel very good about the actions the team teams have taken to be able to secure that. And for all of our kind of development pipeline that we have in view and the things that we've planned out, we're we're secure on that.

It it may make it challenging to accelerate things from the pace that we originally wanted. You know, we'd like to accelerate some of this development because the demand environment is so healthy right now. And it does make that a little bit more challenging, but we are finding ways to do that, you know, in some circumstances as well. So certainly a challenge out there that we're all all facing, but something that I felt like the team has done a good job of getting ahead of.

Okay, great. And sorry, can I ask one quick housekeeping item on the CoreSet front as well? Anything you can share about the inorganic contribution from the Denver Gas and Electric Building acquisition, both financials and what it may have meant for interconnection ads, which looks like they may have had an inorganic bump.

Let me talk about the acquisition kind of more broadly. And then I don't know if we have any financials that we're not gonna share at hand right now, but that building was one where where we already had a presence. It was a leased facility for us, but we didn't have the whole building. And so we had the opportunity to buy the whole building. And, you know, if you have a chance to take that interconnection hub and make it owned versus leased and pick up some incremental new business and incremental interconnection along the way.

That's always a good thing to do. So we're very happy that we have the opportunity to do that. And it is the most highly interconnected site, in that Denver area. So it gives us another kind of feather in our cap in terms of that portfolio. And Rod, I'm not sure if we put any public numbers out on the acquisitions or something you want to share on that or not going to get it?

Yeah, just a couple of points that I would make for you, Nick. So we did close on the DE three. We have it in our outlook. I think I made a couple of comments in the script there. But you can assume that there's roughly $10,000,000 in property revenue in our updated outlook coming from DE1.

Thank you. Our next question is from Jim Schneider with Goldman Sachs. Please go ahead.

Good morning. Thanks for taking my question. Maybe just a quick follow-up on the data center business and then wanted to ask about LATAM. On the data center side of things, DE1 $10,000,000 of property revenue this year. Is that a good run rate to use for next year?

Or could we expect a bigger kind of run rate contribution for the full year of 2026? And maybe just kind of talk about directionally whether you expect the overall CoreSite business to sort of grow the same better or decel, next year relative to this year on an organic basis?

Yes. Thanks for the question, James. So the $10,000,000 is the in year number that reflects the fact that we completed the acquisition, you know, earlier this year in Q2. So with that said, there would be a full year impact next year. So you'd want to prorate that.

But I don't want to get into any more details around what the exact impact would be for next year. Regarding, you know, CoreSight, you can pick up in Steve's comments, his prepared comments, as well as mine. The CoreSight business continues to perform very strongly with revenue growth up in the 13, better than 13% for the quarter. We expect a very similar number, of revenue growth for the full year. That double digit growth also extends down into interconnection growth, which is a key element of that business.

So we expect interconnection revenue to grow by double digits. We also are seeing margin expansion in the business. As I mentioned earlier on this call, we have a little bit higher SG and A in CoreSite to support the demand that we're seeing in all the new business that we've booked. So you'll see a slight bump up in SG and A, but our operating profit margin is also expanding year over year this year by about 100 basis points. So the business continues to perform exceptionally well based on the last several years of either near record new business or record new business as we had in 2023 and then again in '24.

We expect that double digit growth to continue for the next couple of years based on, kind of exhausting that backlog and delivering all those new business contracts. So we couldn't be more pleased with the performance, of CoreSite, not just the last several years, but going forward as well.

Thanks. And then as a follow-up, maybe if you can kind of talk about the LatAm business. Sounds like things are stabilizing or potentially improving there. Are we at a point where you can call a bottom in LatAm? And to what extent could you expect some significant acceleration heading in 2026? Thank you.

Yeah, we're still anticipating to have a low single digit growth for the next couple of years there. So through 2027, we're gonna continue to deal with the dynamics of that market where you have a higher churn. We've had taken a little bit of a reserve on some collections issues there as well. And as that market continues to go through the challenges of consolidation and what's happening there, it's gonna be a challenge for the next couple of years. And it's all the things we've talked about, things like Oi in Brazil and some of the consolidation in some of the other markets there. So, you should expect to see that continue to be a challenge for the next two years. And we think that the inflection points really going to happen in 2028. That's when we see things getting, significantly better for us there.

Thank you. Our next question is from Michael Funk with Bank of America. Please proceed.

Yes. Hi. Hi. Good morning. Thank you for the questions.

So just coming back to the conversion from leasing to commencements from the one customer, just wondering if anything in your experience, in the past, it could inform our view on on the timing and what might move that forward.

It really just comes down to their priorities and and what they're trying to accomplish and how they're incentivizing their teams. So there's nothing specific that I would point to in this circumstance. When you look at kind of the relative positioning of the three major carriers, we have one that's got about 85% of our sites are upgraded to mid band five gs, one's at about 70% and one's still at about 50%. And that implies quite a bit of work to do to get to that kind of upper nineties percentage, which is where we think we'll end up with mid band five gs on the site. And so, we were doing our forecast at the beginning of the year, the way we construct that is we're going based on what the pipeline looks like, what we're hearing the priorities are from the people in the field.

And then, you're only talking about a relatively small slowdown in that conversion rate. So major catalyst that we're seeing on it. And I don't wanna speculate as to the reason because no one's given us a reason for it. I think it could just be the pace at which they're doing the deployments. So there's nothing in this from kind of a prior GE or prior deployment that I would look at and say there's an there's a comparison of this.

It's just a little bit of a slow start to the year, quite frankly.

Okay. So so not nothing to point to either on the on the labor side, equipment provisioning, or if it's simply a capital budget decision, nothing to really point to there?

There's nothing pervasive. I mean, I'm sure every site has its own story, but but there's no there's no kind of general trend there.

Okay. And I think in prepared remarks, you mentioned, made some comments about Europe, particularly Alex, that's actually unchanged. I thought you mentioned Germany. Can you dig in a bit more on what you're seeing in Europe and expectations for that region?

Sure. I'll touch on Ron if you want to jump in. We continue to see the European carriers, steadily deploying mid band five gs on their sites. And there's kind of a mixed bag in terms of how far along they are in that. But there are some targets in the EU to get to a certain percentage of mid band five gs deployment by 02/1930.

So there's still quite a bit of work left to do there. So what we're seeing on that front is we're seeing our anchor tenants continue to do amendments to get there. And we're seeing some continued deployments by other carriers. There is some consolidation that's happening in a few markets and our exposure that's relatively It's zero, but it's relatively modest in terms of what that consolidation churn could be. And that will slow down some of those carriers and other deployments a little bit.

But overall, the leasing pipeline there is consistent with what we had in our underwriting for the deal originally. It's consistent with our kind of mid single digit organic growth in Europe that we're expecting to see. So overall, it's kind of right in line with what we thought and none of the, consolidations or other news in the market is concerning us at this point.

Great, thanks for the question. Nick, if I could just add a, or I'm sorry, Michael, I just add a couple of comments around the stability of the revenue growth expectations in particularly the organic growth. So, it's a solid kind of steady, mid single digit organic new biz, let's call it in around 3.5% contribution to organic tenant billings growth comes from that new business. That's pretty consistent with where it was last year. I think across most of the markets there, have CPI linked escalators, that add a little bit more to that, another 2.5% or so.

And one of the other very important elements is that the churn percentage is historically pretty low. And the way that our contracts work, particularly with one of our largest customers, we expect that churn percentage to be below 100 basis points kind of going forward. It's been there, for a couple of years since the acquisition. So you put all those things together and you get a very reliable and durable organic tenant billings growth in the mid single digits, again, in a very high quality market, high quality economies there with high quality counterparties. So again, the acquisition that we did in Europe and our general Europe business is very steady, very solid and, of a high quality.

American Tower (AMT) Q2 2025 Earnings Call Transcript

Company Participants