SBA Communications Corporation (SBAC) Earnings

Management highlights

### Key Points - Financial Outlook: Increased full-year outlook for key metrics due to first quarter performance, straight-leg revenue, and favorable foreign currency rates. - U.S. Activity: Added ~$10M quarterly new lease and amendment billings, bulk from new collocations; backlogs increasing. - International Activity: Added ~$4M quarterly new lease and amendment billings, elevated return due to various factors; 2026 expected to be peak year for international return. - Balance Sheet: Paid off $750M of ABS debt in January, outlook to use free cash flow to pay down credit facility; $1.2B November ABS maturity assumed. - Dividend: Declared $135.2M cash dividend, $1.25 per share; Board declares first quarter dividend of $1.25 per share. - Future Growth Drivers: Upper C-band auction in mid-2027, 6G network architecture, new spectrum bands; potential in mobile edge computing with macro tower compounds. - International Integration: Made progress integrating Millicom assets, exceeding NHTSA lease-up projections; ramping up tower builds in Central America. - Capital Allocation: Dividend as % of ASFO low, preserving flexibility for investments; expect share buybacks in 2026; leverage within target levels, well positioned for investment-grade issuer status.

Guidance

### Guidance - Increased full-year outlook for cycle leasing revenue, tariff cash flow, adjusted EBITDA, ASFO, and ASFO per share compared to initial 2026 guidance. - Primary drivers: High first quarter performance, high straight-leg revenue, and favorable foreign currency rates. - Expect improvement in turn rate over next several years for international return.

Segment performance

In the U.S., added approximately $10 million of quarterly new lease and amendment billings year over year; bulk of activity from new collocations. Internationally, added approximately $4 million of quarterly new lease and amendment billings year over year; international return elevated due to carry-on consolidations, bankruptcy restructuring, and wireless operator network re-solidations. Cycle leasing revenue, tariff cash flow, adjusted EBITDA, ASFO, and ASFO per share all see increased full-year outlook due to first quarter high performance, high straight-leg revenue, and favorable foreign currency rates. Company-wide salary cash flow margins approximately 80% in first quarter. Ended quarter with approximately $13 billion of total debt, total leverage 6.6 times net debt to adjusted EBITDA, near historical lows and within target range of six to seven times.

Risks & headwinds

### Risks - Litigation related to Equistar matter in federal court. - Potential impact of market conditions on achieving investment-grade issuer status. - Uncertainty in the timing and extent of impact from mobile edge computing investments on financials.

Analyst Q&A

• Q: Help us understand what are the advantages and disadvantages of being a public company versus a private company as you look at competing for assets and tenants and capital.

  A: Focus on quality of assets and best service to customers regardless of public or private; differences in capitalization and public disclosures but business remains same. -

• Q: When you look at Canada, how do you kind of think of going through the potential list of buyers and what's important?

  A: Decided to monetize Canadian assets as couldn't achieve scale to grow business; achieved attractive price and appropriate, similar to portfolio review in other markets. -

• Q: Obviously, not meaningful stock buyback this quarter, but you said you still plan to do some in 2026. How should we think about leverage level buyback, M&A opportunities, and how you're kind of balancing those use of your flexibility?

  A: Leverage targets 6 to 7 turns of net debt to adjusted EBITDA, operate in middle of range; prioritize leverage first, then consider buybacks, dividends, new asset investments; compare options at given time and expect to spend on all categories over time. -

• Q: The release referred to, I believe it was a larger backlog in domestic leasing. Just curious if you could talk about the significance of that change in backlog versus, you know, maybe other historical first quarters and put that into perspective in terms of the type of leasing growth that you're expecting to deliver this year or in future years. And the second question, you know, maybe just taking a step back, as you talked at some conferences the subject of your value versus, you know, private markets has come up. And I'm curious, you know, what you've learned about how investors are valuing you in the public market and what are the ways that SBA is trying to respond to questions about whether it's the business or the financial outlook in a way to improve that visibility and transparency for your future financial opportunities.

  A: Domestic backlog increased from Dec 31st to Mar 31st, moderate increase, replenishing faster than being used, expect steady activity; focus on being clear with public investors about business attributes, quality of assets, growth prospects, and cash flow. -

• Q: Just to follow up on the domestic activity, with the backlog, the moderate increase of the backlog that you're seeing, is that across the board or specific to a company? I think one of your tenants had been slowing down significantly. Do you see some uptick in their activity to maybe offset some of the slowdown you were expecting in the second half? And a question on the mobile edge compute that you think could provide a new incremental revenue opportunity. What kind of investment do you think it would require to refit your sites? And when do you think that will start to flow into the P&L, both from an expense and a revenue perspective?

  A: Domestic backlog increase not completely even among biggest customers, one customer has recent agreement causing increase; early stages of mobile edge compute, some trial, incurred dollars, timing for material impact to financials not certain but starting to gain traction. -

• Q: Just a follow-up on the edge side. Brendan, can you give any concrete examples of how AI being deployed at a tower site is advantageous relative to in a traditional data center. I ask this because it's largely been theoretical over the past several years. So maybe it sounds like there's some momentum and things are changing there. So any additional color you can give would be helpful.

  A: AI deployed at tower site advantageous due to applications with more uplink vs downlink requiring lower latency, closer compute to edge and user making a difference, and distributed application network potentially easier than centralized data centers. -

• Q: Can you just kind of walk through some of those details and what the cap rate was on the land purchase in Guatemala?

  A: Bought land under most towers in Guatemala acquired from Milicom acquisition, multiple was about seven turns, attractive and accretive, helps with risk positioning. -

• Q: Brendan, you noted in your prepared remarks that the demand you're seeing for the Milcom powers has exceeded your expectations. I guess based on your conversation with those customers, you know, is it your sense that this is like an initial burst that's happening, the sites that become available that may subside, or does it strike you as something that's more sustainable?

  A: Initial interest due to sites being in carrier-controlled hands before now open for co-location, but opportunity to sustain growth for extended period due to many sites and pent-up demand. -

• Q: One of your peers has commented that the big carriers might be more interested in working with the larger public tower companies to undertake more new construction opportunities. I was wondering if you've observed anything similar.

  A: Dialogue with MNOs in U.S. more constructive towards new-to-build opportunities than past, as relationships established and financial terms and stability improve. ### Question and Answer -

• Q: Do you and Jeff who's still determined, would really want to sell. So could you kind of walk us through what would it take for this to actually happen?

  A: As a matter of policy, don't comment on speculation or rumors; focus on evaluating all options to act in best interest of shareholders, will evaluate any opportunity presented, but can't comment on hypothetical cases.