stockrowWhat it does
SBA Communications Corporation is a real estate investment trust that owns and operates wireless communications infrastructure. It was founded in 1989, is headquartered in Boca Raton, and Brendan T. Cavanagh is President and Chief Executive Officer.
The company’s core assets are tower structures, rooftops and other sites that support antennas used by wireless networks. It leases space on these sites to wireless service providers and other customers, allowing multiple tenants to place equipment on one tower. It also manages some rooftop and tower sites for property owners under contractual arrangements.
As of December 31, 2025, SBA Communications owned 46,328 towers. Its site leasing business is its primary business line and generated 97.9% of total segment operating profit in 2025. The company also operates a U.S. site development business, which helps wireless providers plan, permit, construct, equip and maintain their networks. This work can include identifying locations, securing zoning approvals, building towers, installing antennas and commissioning radio equipment.
The company owns two regional data centers in the U.S., one in Brazil and certain tower-based data centers. It is also exploring infrastructure uses including edge data centers, fiber aggregation and regeneration huts, satellite ground stations, private cellular and Wi-Fi networks, and open-access networks in real estate developments.
How it makes money
SBA Communications earns most of its revenue by leasing antenna space on multi-tenant towers under long-term contracts. Wireless providers may sign an agreement for one site or a master lease agreement covering terms across multiple sites; individual sites generally retain their own pricing and site-specific terms. Initial tenant lease terms are generally five to 15 years, with renewal options for tenants. Contracts typically include fixed annual rent escalators, inflation-linked escalators, or both.
The company reports domestic site leasing and international site leasing as separate segments. Domestic Site Leasing revenue was $1.9 billion in FY2025, while International Site Leasing revenue was $705.0 million in FY2025. Site Development revenue was $244.5 million in FY2025. Domestic Site Leasing represented 66.3% of revenue, International Site Leasing represented 25.0%, and Site Development represented 8.69%.
A tower can accommodate several tenants. As of December 31, 2025, the company had an average of 1.8 tenants per site, and it states that most towers have capacity for additional antennas. Adding a customer to an existing tower generally does not require a corresponding increase in recurring operating costs. This creates additional lease revenue when carriers add equipment or expand their network presence at a site.
Site development is conducted in the U.S. and provides project-based revenue rather than the long-term recurring revenue profile of tower leases. It also supports customer relationships and can produce installation and equipment-related work at company tower locations and third-party sites.
For Q2 2026, FFO per share was $3.05 and the cash dividend was $1.25 per share.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Domestic Site Leasing | $1.9 billion | 66.3% | 0.22% |
| International Site Leasing | $705.0 million | 25.0% | 5.97% |
| Site Development | $244.5 million | 8.69% | 59.9% |
Customers and how it sells
SBA Communications primarily serves wireless service providers. T-Mobile accounted for 31.1% of FY2025 revenue, AT&T Wireless accounted for 20.3%, and Verizon Wireless accounted for 15.1%. The company therefore depends on a limited number of large carrier customers for a substantial portion of revenue.
Domestic site leasing is concentrated in the United States and its territories, where the company owned 17,394 sites as of December 31, 2025. These sites generated 72.6% of total site leasing revenue in FY2025. No U.S. state or territory represented more than 10% of the total tower portfolio by site count or more than 10% of total revenue.
Internationally, the company owned 28,934 sites across 12 markets in South America, Central America and Africa. Brazil accounted for approximately 30% of total towers and Guatemala approximately 10%; no other international market represented more than 5% of total towers. International customers include Airtel Tanzania, Claro, Entel, MTN, Telefonica, Tigo, TIM, Vodacom and YAS.
Sales activity is organized through an internal sales force and local field organizations. The company works with carrier representatives at regional and local levels, and with national offices when appropriate. Its site development services are provided through regional, market and project offices in the U.S.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Domestic Site Leasing | $1.9 billion | 66.3% | 0.22% |
| International Site Leasing | $705.0 million | 25.0% | 5.97% |
| Site Development | $244.5 million | 8.69% | 59.9% |
Suppliers and costs
SBA Communications does not describe a manufacturing operation or name key or sole-source suppliers. Its recurring site-leasing cost base is tied mainly to the land beneath its towers and to operating each site.
Costs of site leasing revenue include cash and non-cash ground-rent expense, right-of-use and other property-interest costs, property taxes, maintenance and monitoring, utilities, insurance, fuel and amortization of lease initial direct costs. Fuel is particularly relevant in international markets without electric-grid access at tower sites.
The company controls some underlying land through ownership, perpetual easements or long-term leases. As of December 31, 2025, approximately 71% of tower structures stood on land owned by the company, subject to perpetual easements, or covered by a leasehold interest extending beyond 20 years. Its ground leases and other property interests generally have initial terms of at least five years, multiple renewal periods controlled by the company, and fixed or inflation-linked rent escalators.
Site development has a different cost profile because it involves local project operations, including planning, permitting, construction, equipment installation and maintenance work. The company had 1,844 employees as of December 31, 2025, including 663 based outside the U.S. and its territories.
- Revenue$2.8B
- Cost of revenue−$691.0M
- Selling, general and administrative−$277.6M
- Other operating costs−$503.8M
- Operating income$1.3B
Competitive position
In U.S. site leasing, SBA Communications competes with American Tower Corporation and Crown Castle International, regional independent tower owners, wireless providers that own towers, and owners of alternative facilities. Alternative facilities include rooftops, distributed antenna system networks, billboards, utility poles and electric transmission towers. International competition includes carrier-owned networks, multinational, national and regional tower companies, and similar alternative facilities.
The company identifies tower location and capacity, service quality, density within a geographic market and price as significant competitive factors in site leasing. Its U.S. site development business is price sensitive and competes with local and national site-development firms, zoning consultants, real estate firms, wireless construction companies, tower owners, telecommunications equipment vendors and carriers’ internal staff.
Our reading: The company’s network of 46,328 towers, local field organizations and long-term control of many land positions form a meaningful operating moat because tower sites are location-specific and new sites face permitting, zoning and construction requirements. (item1; item7)
Our reading: Existing tower capacity is a meaningful economic advantage because the company can add tenants without generally increasing operating costs proportionately. (item1; item7)
Our reading: The moat is limited by carriers’ ability to use their own towers, choose other tower operators, negotiate price, or deploy equipment on alternative infrastructure. (item1; item1a)
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| American Tower Corporation | U.S. site leasing | High |
| Crown Castle International | U.S. site leasing | High |
Growth opportunities
The company seeks to grow site leasing through additional tenants on existing towers, acquisitions and new tower construction. Most towers have capacity available for more antennas, and the company markets this space through its internal sales force. It also pursues build-to-suit projects, under which a carrier identifies a location, SBA Communications builds and retains the tower, and can add co-located tenants later.
During 2025, the company purchased over 7,000 sites from Millicom International Cellular S.A. in Central America. The arrangement includes a seven-year exclusivity right to build up to 2,500 build-to-suit sites in Central America, with each built site having an initial lease term of 15 years.
The company expects 2026 currency-neutral core leasing revenue to exceed 2025 levels, supported in part by unused-spectrum deployment, the full-year contribution from 2025 towers and towers expected to be acquired and built in 2026. It expects elevated churn through 2026, including domestic churn related in part to Sprint and EchoStar and international churn related in part to Oi wireline.
The company sees longer-term demand from carrier network expansion, data use, spectrum deployments and equipment upgrades. It also expects international growth opportunities from network coverage and quality investment in markets with lower wireless data penetration and less mature networks. It is exploring edge-computing infrastructure and satellite-related network applications, while stating that satellite services are complementary to terrestrial wireless networks rather than a substitute.
- $2.3BFY2021
- $2.6BFY2022
- $2.7BFY2023
- $2.7BFY2024
- $2.8BFY2025
Structural risks
-
Customer concentration: The company depends on a relatively small number of customers. T-Mobile, AT&T Wireless and Verizon Wireless together accounted for substantial portions of FY2025 revenue, and the loss or financial instability of a significant customer may materially decrease revenue.
-
Debt and refinancing: The company states that its debt could require cash flow to be directed to principal and interest, limit financing flexibility and raise refinancing costs if interest rates increase.
-
Carrier churn and network changes: Tenant non-renewals, cancellations, discounts, customer consolidation and the cessation of specific technologies can reduce lease revenue. The company expects elevated churn through 2026, including churn associated with Sprint, EchoStar and Oi wireline.
-
International operating exposure: International operations face carrier competition and consolidation, bankruptcy restructurings, currency devaluation, inflation, political and economic changes, foreign-ownership restrictions, infrastructure limitations and local regulatory uncertainty.
-
Regulatory and environmental requirements: Tower construction, modification and operation are subject to zoning, aviation, communications, environmental, safety and permitting rules. Non-compliance may result in civil penalties, monetary penalties or deconstruction orders.
-
REIT requirements: Maintaining REIT qualification involves technical and complex tax provisions. Taxable income can exceed cash flow because of timing differences, nondeductible capital expenditures, reserves and debt or amortization payments.
Bottom line
Our reading
Our reading: SBA Communications is a communications-infrastructure landlord whose principal activity is leasing tower space to wireless carriers under long-term contracts with rent escalators. Its economics rest on adding equipment and tenants to existing sites while recurring tower costs remain relatively fixed. (item1; item7)
Our reading: The business has substantial customer concentration, material debt and exposure to carrier consolidation and international operating conditions. Its growth plans depend on carrier spectrum deployment, network investment, tower acquisitions and new construction, while it expects elevated churn through 2026. (item1; item1a; item7; call_prepared)