TLDR
- Q1 revenue grew 3% excluding FX, beating expectations.
- U.S. and Canada revenue dipped 1% but rose 3.5% adjusting for Sprint churn.
- Data center revenue climbed 9%, supported by strong leasing.
- AFFO per share guidance raised to $10.44, up 5% year over year.
- Liquidity remained strong at $11.7B, with $1.7B capex planned.
American Tower Corporation (NYSE: AMT) kicked off 2025 with better-than-expected results, driven by steady global demand and data center strength. Shares rose 1.15% to $223.87 in midday trading. AMT is outperforming the broader market with a 23.14% year-to-date gain, well ahead of the S&P 500’s 6.38% decline.
Q1 property revenue rose about 3% year over year when excluding noncash items, overcoming a 300 basis point FX headwind. International property revenue grew 8% on a constant currency basis, while U.S. and Canada revenue slipped 1% but gained 3.5% when adjusted for Sprint network churn. As of writing, $AMT was trading at $224.71, a 1.53% gain as of 1:29:47 PM EDT.
American Tower Corporation(AMT)
Data Centers and Tenant Growth Power Results
The company’s data center unit delivered a standout quarter with 9% revenue growth, fueled by strong leasing and favorable processing trends. CoreSite, AMT’s key data center business, added 11 megawatts of capacity during the quarter.
Consolidated organic tenant billings rose 4.7%, led by 6.7% growth in the international segment. In the U.S. and Canada, tenant billings climbed 3.6%, or nearly 5% excluding Sprint-related churn.
Adjusted EBITDA expanded 1.9%, and grew over 5.5% when adjusting for noncash revenue impacts. Cash adjusted EBITDA margin improved by 70 basis points to 68.2%.
AFFO Guidance Raised, Dividend Attractive
Despite a slight 1% year-over-year decline in attributable AFFO per share due to last year’s India business contribution, management raised its full-year 2025 guidance. AFFO per share is now expected at $10.44, reflecting nearly 5% growth on an adjusted basis.
AMT offers a forward dividend yield of 3.07%, with its next ex-dividend date having passed on April 11, 2025.
Capex, Balance Sheet, and Outlook
The company plans approximately $1.7 billion in capital expenditures this year, including 2,250 newly constructed tower sites and $610 million earmarked for data center development. Liquidity remains robust at $11.7 billion, with low exposure to floating-rate debt, providing financial flexibility amid economic uncertainty.
Management remains cautious about FX volatility, macroeconomic headwinds, and ongoing churn from Sprint in North America and Oi in Latin America. Despite these risks, AMT’s raised outlook and continued demand suggest resilience.
Conclusion
American Tower delivered another solid quarter, outperforming expectations and slightly raising its full-year outlook. Robust tenant billings growth, expanding data center operations, and steady cash flow underpin the positive momentum. With a rising AFFO forecast and strong balance sheet, AMT appears well-positioned to navigate FX pressures and mobile carrier churn in the near term.
