American Tower Corporation (NYSE: AMT) yesterday reported financial results for the quarter and full year ended December 31, 2024. AMT CEO Steven Vondran said the year’s “solid demand trends” were highlighted by mid-band deployments in the U.S. and Europe, 4G densification and early 5G upgrades in emerging markets, and another exceptional year of leasing at CoreSite.
“Our initial expectations for accelerating activity over the course of the year were validated,” Vondran said. “The contribution to the margin was further complemented by prudent cost controls and the successful execution of our globalization initiatives, driving added efficiency to the already attractive operating leverage inherent to our business. In our U.S. tower business, we’ve observed four quarters of sequential acceleration in application activity over the course of 2024, exiting the year with our big three customers having upgraded an average of 65 percent of their sites within our portfolio with mid-band spectrum, up from just over 50 percent a year ago.”
American Tower’s stock has been the best performing of the Big Three towercos over the last few years, according to Nick Del Deo of MoffettNathanson.
“Since the end of 2021, it has delivered a total return of -28 percent vs. -48 percent for Crown Castle and -43 percent for SBA (vs. the S&P 500 up 32 percent),” Del Deo said, citing long-term master lease agreements (MLAs) helping to insulate its leasing from the industry-wide slowdown of the past couple of years.
“This includes a deal with EchoStar that, like the others, entitles American Tower to minimum levels of new business irrespective of actual activity,” Del Deo said. “Management has also been extremely tight with cost controls, helping to deliver bottom-line improvements irrespective of top-line performance (cash SG&A was down $35M in 2024 vs. 2023).”
Highlights include:
- Total revenue increased 3.7 percent to $2,548 million (over 4th quarter)
- Total property revenue increased 2.0 percent to $2,484 million (over 4th quarter)
- Adjusted EBITDA increased 5.1 percent to $1,692 million (over 4th quarter)
- Net income attributable to AMT common stockholders increased 1,348.3 percent to $1,230 million (over 4th quarter)
- Total revenue increased 1.1 percent to $10,127 million (year over year)
- Property revenue increased 0.7 percent to $9,934 million (year over year)
- Net income increased 9,151.9 percent to $1,231 million (year over year)
- Net income increased 66.8 percent to $2,280 million (year over year)
- Adjusted EBITDA increased 1.9 percent to $6,812 million (year over year)
During the fourth quarter of 2024, total capital expenditures were approximately $453 million, of which $74 million was for non-discretionary capital improvements and corporate capital expenditures. For the full year 2024, total capital expenditures were approximately $1.6 billion, of which $189 million was for non-discretionary capital improvements and corporate capital expenditures.
During the three months ended December 31, 2024, the company completed the previously announced sales of 100 percent of its ownership interests of its subsidiaries in Australia and New Zealand for total aggregate consideration of approximately $77.6 million.
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