Shares of Iron Mountain (IRM) surged 5.04% in Friday's intraday trading session, following the company's impressive first-quarter 2025 results and increased full-year guidance. The data storage and information management services provider demonstrated strong performance across its key business segments, driving investor optimism.
Iron Mountain reported record first-quarter revenue of $1.6 billion, representing an 8% year-over-year growth. The company's adjusted EBITDA increased by 12% to $580 million compared to the previous year. Notably, Iron Mountain's portfolio of growth businesses, including data center, digital solutions, and asset life cycle management, collectively grew more than 20% in the quarter.
Barry Hytinen, Chief Financial Officer of Iron Mountain, stated, "Based on our strong first quarter performance and positive outlook and recent changes in currency exchange rates, we are pleased to increase our financial guidance." The company now expects full-year 2025 revenue to be in the range of $6.74 billion to $6.89 billion, representing year-on-year growth of 11% at the midpoint.
Adding to the positive sentiment, Iron Mountain secured a significant $140 million contract with the Department of Treasury for digital transformation services. This new contract, along with the company's strong performance in its data center and asset lifecycle management businesses, has bolstered investor confidence in Iron Mountain's growth strategy.
While the stock's surge reflects the market's positive reaction to the company's results and outlook, it's worth noting that Iron Mountain faces some challenges. The company reported uncharacteristically low leasing activity in its data center segment for the past three quarters, and its consumer storage business remained a headwind to revenue growth in the first quarter.
As Iron Mountain continues to execute its Matterhorn growth strategy, investors will be closely watching the company's ability to maintain its momentum and capitalize on opportunities in its key growth areas.
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