Iron Mountain Q4 revenue beats estimates on data center demand

Reuters
Feb 12
Iron Mountain Q4 revenue beats estimates on data center demand

Overview

  • Information management firm's Q4 revenue grew 16.6% yr/yr, driven by strong service revenue

  • Adjusted EPS for Q4 beat analyst expectations

  • Adjusted EBITDA for Q4 beat analyst expectations

Outlook

  • Iron Mountain projects 2026 revenue growth of 10% to 13%

  • Company expects Adjusted EBITDA growth of 12% to 14% in 2026

  • Iron Mountain anticipates 400 megawatts of data center capacity energized over 24 months

Result Drivers

  • GROWTH BUSINESSES - Data center, digital, and ALM businesses grew over 40% in Q4, driving overall revenue growth

  • DATA CENTER LEASING - Strong data center leasing in Q4 supports future growth, with 400 MW capacity to be energized over next 24 months

  • SERVICE REVENUE - Service revenue increased 22% yr/yr in Q4, contributing to total revenue growth

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Adjusted EPS

Beat

$0.61

$0.59 (5 Analysts)

Q4 EPS

$0.30

Q4 Net Income

$93 mln

Q4 Adjusted EBITDA

Beat

$705 mln

$684.97 mln (9 Analysts)

Q4 Adjusted EBITDA Margin

38.30%

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the specialized reits peer group is "buy"

  • Wall Street's median 12-month price target for Iron Mountain Inc is $126.00, about 25.7% above its February 11 closing price of $100.22

  • The stock recently traded at 44 times the next 12-month earnings vs. a P/E of 45 three months ago

Press Release: ID:nBw7Ywq4Da

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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