American Tower (NYSE:AMT) executives emphasized durable long-term demand for wireless infrastructure and interconnection-rich data centers while outlining a 2026 outlook shaped by DISH’s payment default and elevated churn in parts of the company’s international footprint.
2025 performance and strategic positioning
President and CEO Steven Vondran said the company delivered “a great year and an excellent fourth quarter,” highlighted by attributable AFFO per share, as adjusted, growth of 8% for full-year 2025 and “over 13% growth in the fourth quarter.” Vondran attributed results to strong leasing demand across towers and data centers, along with execution on initiatives intended to improve “earnings, quality, and durability.”
Key 2026 priorities: revenue durability, efficiency, and capital allocation
Vondran framed 2026 around three priorities: durable revenue growth, operational efficiency, and disciplined capital allocation.
On towers, management cited ongoing growth in mobile data consumption, 5G adoption, and Fixed Wireless Access (FWA). Vondran said secular demand is expected to require a “doubling in wireless network capacity between now and 2030,” and he added that AI investment could further increase bandwidth needs, lower latency requirements, and uplink capacity demand. In the U.S., he described carriers as moving from coverage-oriented 5G activity toward capacity-oriented work, with densification expected as networks prepare for the eventual 6G cycle.
The company also addressed DISH’s default, saying it continues to pursue legal action to recover the value of remaining lease obligations. While DISH’s default reduced the 2026 outlook, Vondran said the company expects to ultimately benefit from a “healthier, well-capitalized customer base” over time.
In data centers, management pointed to continued demand for hybrid and multi-cloud deployments and “positive pricing actions” that have supported double-digit growth at CoreSite. Vondran said AI-related leasing—such as inferencing and machine learning—is becoming a larger share of new demand, and he reiterated that CoreSite’s interconnection-oriented platform is designed to support higher-density workloads.
Cost initiatives and margin targets
Operational efficiency remains a long-standing focus, executives said. Vondran noted more than 300 basis points of cash EBITDA margin expansion across the global tower portfolio since 2022 and said tower SG&A is “best in class at approximately 4.5% of revenue.”
Management outlined four areas of potential direct-cost savings across the global tower portfolio:
- Land expense management, including expansion of the U.S. land optimization program to additional markets
- Unified global sourcing and supply chain
- Broader adoption of U.S. “standard of care” operating practices to reduce repair and maintenance costs
- Simplification and standardization of internal technology platforms to improve service and accelerate automation
The company said it expects these initiatives to support 200–300 basis points of tower cash EBITDA margin expansion over the next five years, with potential incremental upside from AI-enabled process automation and predictive maintenance, though management said it is too early to quantify AI benefits.
2026 outlook: DISH reset, regional tower trends, and data center growth
Chief Financial Officer Rodney Smith said consolidated property revenue grew about 4% year-over-year in 2025 (about 5% excluding non-cash straight-line and FX impacts), driven by Organic Tenant Billings Growth of approximately 5% and data center revenue growth of approximately 14%. Adjusted EBITDA grew about 5% (about 7% excluding non-cash straight-line and FX impacts), and attributable AFFO per share, as adjusted, rose approximately 8%.
For 2026, Smith said the company removed 100% of DISH revenue from organic growth beginning Jan. 1 and reflected it in churn. He added that DISH did not affect 2025 results and represented about 2% of consolidated property revenue and about 4% of U.S. and Canada property revenue in 2025.
Key 2026 organic tenant billings expectations discussed on the call included:
- Consolidated: approximately 1% (approximately 4% excluding DISH churn)
- U.S. and Canada: approximately 0.5% (approximately 4.5% excluding DISH churn), including about 2.5% from colocation and amendments, about 3% from escalations, about 4% DISH-related churn, and about 1% normal churn
- Africa and APAC: approximately 8.5%, with churn expected to be back-half weighted
- Europe: approximately 4%, supported by new site demand and ongoing 5G progress
- LATAM: expected to decline approximately 3%, reflecting elevated consolidation-related churn in Brazil and other headwinds
Smith said the company now expects more acute churn in 2026 in Latin America, with organic growth acceleration expected to begin in 2027—one year earlier than previously anticipated. Management also noted an ongoing arbitration with AT&T Mexico that could impact organic growth.
For property revenue, the company expects approximately 1% organic tenant billings growth to be complemented by selective construction of about 2,000 new tower sites at the midpoint and about 13% growth in the U.S. data center business. Excluding non-cash straight-line revenue and FX impacts, property revenue is expected to grow approximately 3%.
Adjusted EBITDA is expected to grow approximately 2% excluding net straight-line and FX impacts, with towers and data centers partly offset by a decline in services. Consolidated cash-adjusted EBITDA margins are expected to be 66.8%, down about 20 basis points year-over-year. The company said tower margins are expected to be flat year-over-year despite absorbing approximately 60 basis points of one-time pressure from DISH-related churn, while data center margins are expected to decline due to one-time 2025 benefits (property tax adjustments and legal settlements) not recurring in 2026.
Attributable AFFO per share growth is guided to approximately 1% year-over-year in 2026. Smith said that normalized for one-time DISH-related churn and excluding FX and refinancing impacts, the outlook implies approximately 5% growth, with higher interest expense, higher cash taxes, and higher minority interest distributions cited as offsets to tailwinds from lower maintenance capital and share repurchases.
Capital allocation: dividend growth, buybacks, and disciplined M&A
Smith said leverage ended 2025 at 4.9x within the company’s 3–5x target range. The company repurchased approximately $365 million of common stock in the fourth quarter of 2025 and an additional approximately $53 million year to date in 2026, with about $1.6 billion remaining under board authorization.
For 2026, management expects to grow the dividend approximately 5% (about $3.3 billion in distributions, subject to board approval) and plans about $1.9 billion in capital deployments, including construction of 2,000 sites at the midpoint. Smith said approximately 85% of discretionary spend is directed toward developed market platforms and CoreSite, including over $700 million in success-based data center investments to replenish sold capacity.
In Q&A, executives said they continue to evaluate M&A but remain on the sidelines due to a disconnect between public and private multiples. Vondran added that the company’s M&A focus is on developed markets, and investors should not expect participation in emerging-market tower acquisitions.
Management also discussed satellite connectivity, noting American Tower’s investment in AST SpaceMobile was intended to provide visibility into the technology. Executives described satellites as complementary to terrestrial networks and said they see “no risk at all” to the tower business over the long term, citing the economics and physics of delivering large volumes of data.
About American Tower (NYSE:AMT)
American Tower (NYSE: AMT) is a real estate investment trust (REIT) that owns, operates and develops wireless and broadcast communications infrastructure. The company’s core business is leasing space on communications sites — including towers, rooftops and other structures — to wireless carriers, broadcasters, government agencies and enterprise customers. Its business model centers on long-term site leases and contracts that provide recurring revenue tied to the footprint and density of wireless networks.
Beyond traditional tower assets, American Tower offers a range of infrastructure and network services to support mobile, broadband and broadcast connectivity.
