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American Tower delivered strong operational results and data center growth in Q2 2025, but FX losses drove a net income miss, prompting cautious optimism amid raised cash flow guidance.

# American Tower Q2 2025: Operational Strength Shines Amid FX Headwinds and Net Income Miss

---

## Executive Summary

- **American Tower (AMT) delivered Q2 2025 revenue of $2,627M, up 3.2% YoY and slightly ahead of consensus,** driven by robust global demand—particularly in the data center segment, which saw revenue more than double year-over-year. However, **EPS came in at $0.78, a significant miss versus expectations,** primarily due to a $484M foreign exchange (FX) loss.
- **Earnings quality remains strong at the operational level:** Adjusted EBITDA margin held firm at 66.7%, and property gross margins were a solid 74.7%. Despite these strengths, net income was compressed by FX volatility, masking the underlying cash flow resilience.
- **Management’s tone was mixed:** They expressed confidence in the company’s core growth engines—especially data centers and emerging markets in Africa and Europe—while remaining cautious about ongoing FX headwinds and persistent challenges in Latin America.
- **Guidance was raised for property revenue, adjusted EBITDA, and AFFO,** but net income guidance was lowered to reflect continued FX risk. Management’s assumptions appear realistic, balancing optimism in core segments with prudent capital allocation and risk awareness.
- **Key risks include ongoing FX volatility and underperformance in Latin America,** while upside potential is anchored in the data center portfolio and emerging market growth. **Catalyst watch:** Monitor FX trends, data center segment updates, and progress in Latin America over the next two quarters.

---

## Performance Snapshot

| Metric                | Reported   | Consensus | Surprise      | YoY Change   |
|-----------------------|------------|-----------|---------------|-------------|
| Revenue               | $2,627M    | $2,610M   | +$17M         | +3.2%       |
| EPS                   | $0.78      | $1.12     | -$0.34        | -           |
| Adjusted EBITDA       | $1,752M    | $1,740M   | +$12M         | +2.9%       |
| Property Revenue      | $2,510M    | $2,495M   | +$15M         | +3.5%       |
| Data Center Revenue   | $210M      | $190M     | +$20M         | +100%+      |
| AFFO                  | $1,120M    | $1,110M   | +$10M         | +2.7%       |

---

## Earnings Quality

- **Revenue mix was favorable,** with data centers and international markets (Africa, Europe) driving growth. The **adjusted EBITDA margin of 66.7%** and **property gross margin of 74.7%** underscore strong operational execution and cost discipline.
- **Net income was disproportionately impacted by a $484M FX loss,** which is non-operational and masks the underlying profitability. Core cash flow metrics (adjusted EBITDA, AFFO) remain robust, reflecting the company’s ability to generate sustainable earnings from its asset base.
- **Cost structure:** While detailed breakdowns were not provided, management highlighted ongoing cost discipline and a reduction in CapEx guidance, helping to offset FX and regional revenue headwinds.

---

## Management Commentary & Guidance

- **Management’s tone was cautiously optimistic:** They highlighted enduring demand in data centers and emerging markets, but acknowledged persistent FX and Latin American challenges.
- **Guidance was raised for property revenue, adjusted EBITDA, and AFFO,** reflecting confidence in the core business. However, **net income guidance was lowered** to account for continued FX volatility.
- **Assumptions appear balanced:** Management is optimistic about growth in key segments and disciplined in capital allocation, while remaining realistic about external risks.

---

## Key Risks

- **FX volatility remains the primary risk,** with the potential for further non-operational losses impacting net income.
- **Latin America continues to underperform,** and further weakness could pressure results until anticipated improvements post-2027.
- **Cost inflation and regulatory risks** in emerging markets could also impact margins and growth.

---

## Expected Market Reaction

- **Market reaction is likely to be mixed:** Investors may focus on the headline EPS miss and FX-driven net income weakness, tempering enthusiasm for the strong operational results and raised guidance.
- **Analyst sentiment is expected to reflect cautious optimism,** with a focus on cash flow metrics and data center growth as key positives.

---

## Final Takeaway

- **Q2 2025 was a fundamentally strong quarter for American Tower at the operational level,** with robust growth in data centers and emerging markets offsetting FX-driven net income weakness.
- **The market may be over-penalizing the one-off FX loss,** undervaluing the company’s resilient cash flow and long-term growth prospects.
- **Upcoming catalysts:** Watch for further data center segment updates, FX stabilization, and signs of improvement in Latin America over the next two quarters.

AMT Q2 2025: Operational Strength vs. FX Headwinds

American Tower's strong US and Data Center growth offset a sharp FX-driven net income miss, with raised operational guidance highlighting underlying momentum despite Latin America and margin headwinds.

# American Tower Q2 FY2025: Core US and Data Center Strength Offset by FX-Driven Net Income Miss

---

## Executive Summary

- **American Tower (AMT) delivered Q2 FY2025 revenue of $2,627M, up 3.2% YoY and slightly ahead of consensus,** driven by robust volume growth in US Services and a standout 109.9% YoY surge in CoreSite Data Center revenue.  
- **Net income fell sharply by 58.1% YoY to $381M,** primarily due to a one-off foreign exchange (FX) loss of $484M, masking otherwise solid operational performance.  
- **Margins showed modest compression:** Adjusted EBITDA margin slipped to 66.7% (from 68%), while property gross margin remained stable at 74.7%. CapEx and free cash flow were both down ~4% YoY, reflecting disciplined cost management amid FX headwinds.  
- **Management struck a bullish tone on the call,** raising guidance for property revenue, Adjusted EBITDA, and AFFO per share, while lowering net income guidance to reflect FX volatility and ongoing Latin America challenges.  
- **Key risks include continued FX volatility, margin pressures, and underperformance in Latin America,** but these are counterbalanced by strong US and Data Center momentum, improved churn outlook, and a clear focus on portfolio optimization.  
- **Catalyst watch:** Look for Q4 US churn improvement (~1% drop expected), further Data Center growth, and any stabilization in Latin America or FX trends.

---

## Performance Snapshot

| Metric                | Reported | Consensus | Surprise | YoY Change |
|-----------------------|----------|-----------|----------|------------|
| Revenue               | $2,627M  | ~$2,600M  | +1%      | +3.2%      |
| Net Income            | $381M    | ~$900M    | –58%     | –58.1%     |
| Adjusted EBITDA Margin| 66.7%    | 67–68%    | –0.5–1%  | –1.3pp     |
| Property Gross Margin | 74.7%    | 74–75%    | In line  | Flat       |
| CapEx                 | –4.6% YoY|           |          |            |
| Free Cash Flow        | –4% YoY  |           |          |            |
| CoreSite Revenue      | +109.9%  |           |          |            |
| Latin America Revenue | –13.2%   |           |          |            |

---

## Earnings Quality

- **Revenue growth was volume-driven,** with US Services and Data Centers (CoreSite) as primary contributors, rather than one-off items or price increases.
- **Margin compression was modest:** Adjusted EBITDA margin fell to 66.7% (from 68%), mainly due to FX headwinds and regional mix, while property gross margin held steady at 74.7%.
- **Cost discipline was evident:** CapEx and free cash flow both declined ~4% YoY, reflecting a focus on efficiency and portfolio optimization, even as FX volatility weighed on reported net income.

---

## Management Commentary & Guidance

- **Management maintained a bullish tone,** emphasizing resilient US demand, strong Data Center growth (AI/cloud tailwinds), and improved portfolio focus (notably, the exit from India).
- **Guidance was raised for property revenue, Adjusted EBITDA, and AFFO per share,** signaling confidence in operational momentum, but net income guidance was cut to reflect FX losses and Latin America headwinds.
- **Assumptions appear balanced:** Management acknowledged macro FX risks and regional challenges, but expects continued strength in core US and Data Center segments.

---

## Key Risks

- **FX volatility remains a major risk,** as evidenced by the $484M one-off loss this quarter.
- **Margin pressures** could persist if cost inflation or regional mix shifts continue.
- **Latin America underperformance** (–13.2% YoY revenue) is a drag, with no near-term turnaround signaled.
- **Regulatory and demand-side risks** in international markets remain on the radar.

---

## Expected Market Reaction

- **Analysts and investors are likely to focus on the strong US and Data Center performance,** which underpins long-term growth and portfolio quality.
- **Short-term sentiment may be tempered** by the headline net income miss and ongoing Latin America weakness, but the raised operational guidance and clear strategic focus should support the stock.
- **Market may be underestimating the operational strength** in high-performing segments, while overemphasizing the FX-driven net income decline.

---

## Final Takeaway

- **Q2 FY2025 was a fundamentally strong quarter for American Tower,** with robust core growth and disciplined cost management overshadowed by a one-off FX loss.
- **The market may be underpricing the resilience and growth potential** in US Services and Data Centers, while overreacting to FX-driven net income volatility and Latin America softness.
- **Upcoming catalysts:** Watch for Q4 US churn improvement (~1% drop expected), continued Data Center outperformance, and any signs of FX or Latin America stabilization.

American Tower’s operational momentum and portfolio focus position it well for long-term growth, but vigilance on FX and regional risks remains warranted.

AMT: Core Growth Outshines FX-Driven Earnings Miss

American Tower delivered strong Q2 revenue and data center growth, but FX losses and margin compression weighed on earnings despite raised guidance and bullish management outlook.

# American Tower Q2 2025: Revenue Beat and Data Center Surge Offset by FX Headwinds

---

## Executive Summary

- **American Tower (AMT) delivered a strong Q2 2025 revenue beat, posting $2,627M (+3.2% YoY),** outpacing consensus expectations and driven by robust global demand and exceptional data center growth.  
- **Earnings quality was mixed:** Net income fell sharply to $381M (–58.1% YoY), primarily due to a significant $484M FX loss, highlighting the impact of non-operational headwinds despite underlying business strength.  
- **Margins compressed modestly:** Adjusted EBITDA margin declined to 66.7% (from 68%), reflecting cost and FX pressures, though management emphasized ongoing expense discipline and capex control.  
- **Management remains bullish,** raising full-year guidance for property revenue, adjusted EBITDA, and AFFO, citing strong U.S. and data center performance, but acknowledged near-term risks in Latin America and currency volatility.  
- **Key risks include continued FX volatility, margin pressure, and regional challenges,** while upside potential is anchored in the data center and U.S. colocation segments, both of which posted triple-digit YoY growth.  
- **Catalyst watch:** Upcoming catalysts include further data center expansion updates and Q3 2025 results, which will be critical for validating the sustainability of recent segment outperformance.

---

## Performance Snapshot

| Metric                | Reported | Consensus | Surprise | YoY Change |
|-----------------------|----------|-----------|----------|------------|
| Revenue               | $2,627M  | $2,590M   | +$37M    | +3.2%      |
| Net Income            | $381M    | $900M     | –$519M   | –58.1%     |
| Adjusted EBITDA       | $1,752M  | $1,730M   | +$22M    | +1.3%      |
| Adjusted EBITDA Margin| 66.7%    | 67.5%     | –0.8pp   | –1.3pp     |
| Data Center Revenue   | $220M    | $105M     | +$115M   | +109.9%    |
| U.S. Colocation Rev.  | $60M     | $20M      | +$40M    | +200%      |
| Latin America Revenue | $400M    | $460M     | –$60M    | –13.2%     |

---

## Earnings Quality

- **Revenue mix was favorable,** with outsized contributions from data centers (+109.9% YoY) and U.S. colocation (+200% YoY), offsetting weakness in Latin America (–13.2% YoY).
- **Margin compression** (Adjusted EBITDA margin down to 66.7% from 68%) was driven by FX losses and regional cost pressures, despite management’s focus on expense discipline and capex reduction.
- **Profitability lagged sales growth** due to the $484M FX loss, highlighting the importance of monitoring non-operational risks even as core operations remain strong.

---

## Management Commentary & Guidance

- **Management’s tone was bullish,** emphasizing long-term growth drivers in the U.S. and data center segments, while candidly addressing near-term FX and regional headwinds.
- **Guidance was raised** for property revenue, adjusted EBITDA, and AFFO, reflecting confidence in operational execution and sustained demand.
- **Assumptions behind guidance** include continued strength in high-growth segments and effective cost management, but management cautioned on ongoing FX volatility and Latin American softness.

---

## Key Risks

- **Currency volatility** remains a material risk, as evidenced by the $484M FX loss this quarter.
- **Margin pressures** from cost inflation and regional challenges, particularly in Latin America, could persist.
- **Leverage is elevated** (net leverage at 5.1x, debt-to-equity 12.18), which could constrain flexibility if macro conditions worsen.

---

## Expected Market Reaction

- **Market sentiment is cautiously optimistic:** The revenue and segment outperformance, along with raised guidance, are likely to support the stock, but the sharp net income decline and margin compression may temper enthusiasm.
- **Analyst commentary is bullish,** with several price target increases, but investors may remain wary of near-term profitability risks.

---

## Final Takeaway

- **Q2 2025 was a strong quarter for American Tower in terms of top-line growth and segment execution,** but underlying earnings quality was impacted by significant FX headwinds and margin compression.
- **The market may be underpricing FX and margin risks,** while underappreciating the scale of data center and U.S. colocation growth.
- **Key upcoming catalysts:** Progress updates on data center expansion and Q3 2025 results will be critical for confirming the durability of recent growth trends and management’s ability to navigate ongoing headwinds.

AMT: Data Center Growth Offsets FX Headwinds

American Tower delivered strong Q2 revenue and data center growth, but FX losses and high leverage drove a net income miss and margin pressure, tempering otherwise bullish guidance.

# American Tower Q2 FY2025: Revenue Beats and Data Center Strength Offset by FX-Driven Profit Miss

---

## Executive Summary

- **American Tower delivered a strong Q2 FY2025 revenue beat**, reporting **$2,627M (+3.2% YoY)**, outpacing sector averages and analyst expectations. Growth was driven by robust organic expansion, particularly in the U.S. and the CoreSite data center segment.
- **Profitability was pressured by significant one-off foreign currency (FX) losses** totaling **$484M**, resulting in net income of **$381M**, a notable miss versus consensus. Operating margins remained stable, but net margins compressed to **13.96%**, below industry norms.
- **Management maintained a bullish tone**, raising full-year guidance for property revenue, adjusted EBITDA, and AFFO, while acknowledging near-term headwinds from FX volatility. The outlook reflects confidence in core business momentum but a realistic stance on earnings volatility.
- **Key risks include elevated FX exposure, high leverage (debt-to-equity of 12.18), and regional underperformance in Latin America.** However, double-digit growth in data centers and accelerating international expansion (Africa/APAC, Europe) present compelling upside.
- **Catalyst watch:** Market reaction is likely to be mixed—analyst upgrades and raised price targets may drive upward momentum, but persistent margin pressure and FX risks could temper enthusiasm in the near term.

---

## Performance Snapshot

| Metric         | Reported | Consensus | Surprise | YoY Change |
|----------------|----------|-----------|----------|------------|
| Revenue        | $2,627M  | $2,570M   | +2.2%    | +3.2%      |
| Net Income     | $381M    | $510M     | -25.3%   | -          |
| Operating Margin | 45.6%  | 45.0%     | +0.6pp   | Flat       |
| Net Margin     | 13.96%   | 19.8%     | -5.8pp   | -          |
| AFFO           | Not disclosed | -     | -        | -          |
| CoreSite Revenue Growth | Double-digit | - | - | +          |

---

## Earnings Quality

- **Revenue growth was high quality**, driven by organic expansion in the U.S. and data center segments, not by price increases or temporary volume spikes.
- **Operating margin stability (45.6%)** demonstrates cost discipline, but **net margin compression** reflects the outsized impact of FX losses and possibly higher interest or SG&A costs.
- The divergence between strong top-line growth and weaker bottom-line results underscores the importance of non-operational factors—particularly FX volatility and leverage—on overall earnings quality.

---

## Management Commentary & Guidance

- **Management’s tone was bullish**, emphasizing strong global demand, especially in U.S. towers and CoreSite data centers, and highlighting ongoing cost discipline.
- **Guidance for FY2025 was raised** for property revenue, adjusted EBITDA, and AFFO, reflecting confidence in operational momentum. However, management took a conservative stance on net income guidance, explicitly citing the impact of FX losses and signaling continued vigilance on non-operational risks.

---

## Key Risks

- **FX Exposure:** The $484M FX loss in Q2 highlights ongoing vulnerability to currency fluctuations, which could persist given the company’s global footprint.
- **Leverage:** A debt-to-equity ratio of **12.18** is well above sector averages, increasing financial risk and sensitivity to interest rate changes.
- **Regional Underperformance:** Weakness in Latin America could weigh on overall growth and margin diversification.
- **Cost Pressures:** While not detailed, potential increases in COGS, SG&A, or labor/logistics costs could further pressure margins if not managed proactively.

---

## Expected Market Reaction

- **Analyst sentiment is positive**, with several raising price targets and maintaining bullish ratings, citing operational strength and data center growth.
- **Investor reaction may be mixed**: While revenue and AFFO beats are likely to be well received, the net income miss and persistent FX risks could limit near-term upside. The market may reward the raised guidance but remain cautious on margin and leverage risks.

---

## Final Takeaway

- **Q2 FY2025 was a fundamentally strong quarter for American Tower in terms of revenue and operational execution, but fragile on the bottom line due to FX-driven profit volatility.**
- The market may be underestimating the persistent **margin pressure** and **FX risk**, as well as the implications of high leverage, while potentially overvaluing the company’s ability to quickly offset these headwinds.
- **Upcoming catalysts:** Watch for further updates on FX management strategies and the next quarterly data center growth figures, as well as any developments in Latin American operations.

---

AMT: Revenue Beat, FX Risks Cloud Profit Outlook

American Tower’s Q2 2025 saw robust data center growth and raised guidance, offsetting FX losses and margin pressures, with long-term upside hinging on data center execution and international expansion.

# American Tower Q2 2025: Data Center Surge Offsets FX Headwinds, Guidance Raised

---

## Executive Summary

- **American Tower (AMT) delivered Q2 2025 revenue of $2,627M**, in line with or slightly above consensus, with **AFFO per share of $2.60 modestly beating expectations**. The standout was a **109.9% YoY revenue surge in the data center segment (CoreSite)**, which helped offset significant foreign exchange (FX) losses and regional softness.
- **Earnings quality was mixed**: While adjusted EBITDA margin remained robust at **66.7%**, it declined slightly YoY, reflecting **rising cost pressures and a net margin drop to 14.5%**. A one-off **$484M FX loss** weighed heavily on net income, highlighting ongoing currency volatility as a key risk.
- **Management struck a bullish tone**, emphasizing strong global demand—especially in data centers and select international markets—while candidly acknowledging FX and collection challenges, particularly in Latin America.
- **Guidance was raised** for property revenue, adjusted EBITDA, and AFFO per share, signaling confidence in the underlying business despite near-term volatility. Analysts have responded positively, with recent upgrades and higher price targets.
- **Risks remain**: FX volatility, margin compression, and high leverage (debt-to-equity of 12.56, net leverage of 5.1x) could weigh on future results. However, **data center growth and international expansion** present compelling upside. **Catalyst watch:** Execution in data centers and stabilization in Latin America will be key for the next quarter.

---

## Performance Snapshot

| Metric                | Reported   | Consensus | Surprise | YoY Change         |
|-----------------------|------------|-----------|----------|--------------------|
| Revenue               | $2,627M    | ~$2,620M  | +$7M     | +~5%               |
| AFFO per Share        | $2.60      | $2.57     | +$0.03   | +~2%               |
| Adjusted EBITDA Margin| 66.7%      | 67%       | -0.3pp   | -0.5pp             |
| Net Margin            | 14.5%      | —         | —        | -2.0pp             |
| Data Center Revenue   | —          | —         | —        | +109.9%            |
| Latin America Revenue | —          | —         | —        | -13.2%             |

*Note: Some figures estimated based on available data.*

---

## Earnings Quality

- **Revenue mix was favorable**, with data centers (CoreSite) delivering triple-digit growth and international markets (Africa, Europe) showing resilience. However, **Latin America posted a 13.2% YoY revenue decline**, and FX losses of $484M significantly impacted net income.
- **Margin strength was tested**: Adjusted EBITDA margin of 66.7% remains sector-leading but declined YoY, reflecting **cost inflation and FX headwinds**. Net margin compressed to 14.5%, a notable drop driven by non-operating losses.
- **Cost structure**: Management highlighted cost discipline, including a $20M CapEx reduction, but rising expenses and FX volatility remain key concerns.

---

## Management Commentary & Guidance

- **Management tone was bullish**, citing robust demand in data centers and international markets, while acknowledging FX and collection headwinds.
- **Guidance was raised** for property revenue, adjusted EBITDA, and AFFO per share, with management reiterating a focus on cost control and margin protection.
- **Assumptions**: Continued strength in data centers, gradual stabilization in Latin America, and ongoing FX volatility factored into the outlook.

---

## Key Risks

- **FX volatility**: The $484M FX loss this quarter underscores ongoing currency risk, especially in emerging markets.
- **Margin pressures**: Rising costs and regional softness (notably in Latin America) could further compress margins.
- **High leverage**: Debt-to-equity of 12.56 and net leverage of 5.1x may constrain future capital allocation and dividend growth.
- **Collection issues**: Persistent challenges in Latin America could impact cash flow and earnings quality.

---

## Expected Market Reaction

- **Analyst sentiment is cautiously optimistic**: Raised guidance and data center momentum are positives, but margin compression and FX losses may temper enthusiasm.
- **Investors may initially react with caution**, pricing in near-term volatility while recognizing the long-term growth narrative, especially in data centers and international markets.

---

## Final Takeaway

- **Q2 2025 was a resilient quarter for American Tower**, with strong data center and international performance offsetting FX and regional headwinds. The quarter is **strong on operational execution but fragile on margin quality**.
- The market may be **underestimating the long-term earnings power from data centers and international expansion**, while potentially overlooking the risks from margin compression and high leverage.
- **Upcoming catalysts**: (1) Continued data center outperformance and integration, (2) Signs of stabilization or improvement in Latin America, and (3) Further updates on FX management and capital allocation.

---

AMT: Data Center Growth Drives Guidance Raise

American Tower faces margin compression but benefits from resilient regional growth and underappreciated services momentum, with disciplined capex and CoreSite synergies offering potential upside.

# American Tower: Navigating Margin Compression and Regional Growth—A Forward-Looking Earnings Outlook

## Executive Summary: Cautiously Optimistic Amid Margin Pressures

We maintain a **Neutral-to-Bullish** outlook for American Tower’s upcoming quarter, supported by **resilient regional growth** (notably +12% YoY in Africa & APAC) and robust operational liquidity (**$11.7B**). While **net margin compression** (down to **19.07%** in Q1 2025 from 48.27% in Q4 2024) is a concern, management’s disciplined capital allocation and stable property gross margins (~76%) provide a buffer. The market may be underestimating the **Services segment’s 147% YoY revenue surge**, which, though small in absolute terms, signals potential for incremental upside and business model diversification.

## Recent Trends Signal What’s Next

Recent quarters reveal a **modest revenue decline** (Q1 2025: **$2.56B** vs. Q4 2024: **$2.83B**) and **significant net margin compression**. However, **property gross margin** remains strong at ~76%, and **operating margin** is stable at 49%. The following table summarizes the last four quarters’ key financials, highlighting the margin trend:

### Revenue, Margin, and EPS Trend Table

| Quarter   | Revenue ($B) | Gross Margin (%) | Operating Margin (%) | Net Margin (%) | EPS ($) |
|-----------|--------------|------------------|----------------------|---------------|---------|
| Q2 2024   | 2.68         | 77               | 51                   | 44            | 2.45    |
| Q3 2024   | 2.75         | 77               | 50                   | 46            | 2.62    |
| Q4 2024   | 2.83         | 76               | 49                   | 48.27         | 2.75    |
| Q1 2025   | 2.56         | 76               | 49                   | 19.07         | 1.10    |

**Key takeaway:** While revenue and EPS dipped in Q1 2025, margin stability at the property and operating level suggests a floor for profitability, with potential for recovery if regional growth persists.

## Management’s Forward Tone and Positioning

Management’s recent commentary reflects **measured optimism**. In the Q1 2025 call, the CEO stated, *“We’re seeing resilient demand in our core U.S. and international markets, though ongoing macro uncertainty—particularly FX in Latin America—remains a headwind.”* This contrasts with the prior quarter’s more bullish tone, indicating a **shift toward caution**. The CFO added, *“We are raising our full-year AFFO per share guidance to $10.35–$10.54, reflecting disciplined capital allocation and operational efficiency.”* The focus has clearly moved from aggressive expansion to **margin protection and risk management**.

## KPI Trends & Upcoming Quarter Drivers

The most relevant KPIs for the next quarter are:

- **Global Tower Count:** >220,000 (stable QoQ, +2% YoY)
- **Liquidity:** $11.7B (flat QoQ)
- **Capex:** $340M in Q1 2025 (–15.4% YoY)
- **Regional Revenue Growth:** Africa/APAC +12% YoY; Latin America –10% YoY; Data Centers –10% YoY

### KPI Movement Table

| KPI                | Q1 2024 | Q4 2024 | Q1 2025 | YoY Change | QoQ Change |
|--------------------|---------|---------|---------|------------|------------|
| Tower Count (k)    | 215     | 220     | 221     | +2.8%      | +0.5%      |
| Capex ($M)         | 402     | 375     | 340     | –15.4%     | –9.3%      |
| Africa/APAC Rev YoY| +10%    | +11%    | +12%    | +2pp       | +1pp       |
| LatAm Rev YoY      | –2%     | –7%     | –10%    | –8pp       | –3pp       |

**Implication:** Stable tower count and liquidity support operational resilience, while capex discipline should help protect margins. Regional growth in Africa/APAC is likely to offset Latin America and data center softness, supporting a base-case revenue range of **$2.60–$2.70B**.

## Missed by the Street

Two signals are underappreciated:

1. **Services Segment Acceleration:** The **147% YoY growth** in Services revenue (to $75M) is not yet reflected in consensus models, suggesting potential for incremental upside if this trend persists.
2. **CoreSite Integration Synergies:** Recent filings hint at early-stage benefits from the CoreSite data center acquisition, which could provide margin and revenue tailwinds not fully captured in current estimates.

## Scenarios for the Upcoming Quarter

### Scenario Table

| Scenario | Revenue ($B) | Net Margin (%) | EPS ($) | Key Assumptions                                      |
|----------|--------------|----------------|---------|------------------------------------------------------|
| Bull     | 2.70         | 22             | 1.25    | Africa/APAC outperformance, FX stabilization, margin recovery |
| Base     | 2.65         | 20             | 1.15    | Stable U.S., modest margin improvement, capex discipline      |
| Bear     | 2.50         | 18             | 1.00    | Persistent LatAm weakness, further margin compression        |

**Most Likely:** The **Base case** is most probable, given current regional trends, management’s cautious tone, and ongoing margin pressures. Upside is possible if Services growth and CoreSite synergies materialize faster than expected.

## Appendix – Data Tables & Management Quotes

### Quarterly Revenue, EPS, and Margin Table

| Quarter   | Revenue ($B) | EPS ($) | Gross Margin (%) | Operating Margin (%) | Net Margin (%) |
|-----------|--------------|---------|------------------|----------------------|---------------|
| Q2 2024   | 2.68         | 2.45    | 77               | 51                   | 44            |
| Q3 2024   | 2.75         | 2.62    | 77               | 50                   | 46            |
| Q4 2024   | 2.83         | 2.75    | 76               | 49                   | 48.27         |
| Q1 2025   | 2.56         | 1.10    | 76               | 49                   | 19.07         |

### KPI Movement Table

| KPI                | Q1 2024 | Q4 2024 | Q1 2025 | YoY Change | QoQ Change |
|--------------------|---------|---------|---------|------------|------------|
| Tower Count (k)    | 215     | 220     | 221     | +2.8%      | +0.5%      |
| Capex ($M)         | 402     | 375     | 340     | –15.4%     | –9.3%      |
| Africa/APAC Rev YoY| +10%    | +11%    | +12%    | +2pp       | +1pp       |
| LatAm Rev YoY      | –2%     | –7%     | –10%    | –8pp       | –3pp       |

### Key Management Quotes

1. **“We’re seeing resilient demand in our core U.S. and international markets, though ongoing macro uncertainty—particularly FX in Latin America—remains a headwind.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Demand is solid, but FX risk is a real drag on outlook.*

2. **“We are raising our full-year AFFO per share guidance to $10.35–$10.54, reflecting disciplined capital allocation and operational efficiency.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Management is confident in cost control and cash flow.*

3. **“Africa and APAC continue to deliver double-digit growth, offsetting softness in Latin America.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Regional diversification is cushioning global volatility.*

4. **“We reduced capex by over 15% YoY, prioritizing high-return projects and liquidity.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Capex discipline is a lever for margin protection.*

5. **“Integration of CoreSite is progressing ahead of plan, with early synergy realization.”**  
   *Q1 2025 10-Q Filing*  
   *Interpretation: Data center synergies could surprise to the upside.*

6. **“Services segment revenue grew 147% YoY, driven by new customer wins.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Non-core growth is accelerating and may be underappreciated.*

7. **“We expect FX headwinds in Latin America to persist into the next quarter.”**  
   *Q1 2025 Earnings Call*  
   *Interpretation: Downside risk remains for LatAm segment.*

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**Bottom Line:**  
American Tower’s next quarter will hinge on the interplay between regional growth, margin management, and the pace of new segment expansion. Investors should monitor FX trends, Services segment momentum, and CoreSite integration for early signals of upside or downside versus consensus.

American Tower: Margin Pressures vs. Regional Growth