Iron Mountain Q3 profit beats estimates on higher storage rental and service revenue

Iron Mountain

05/11/2025 11:56

Overview

Iron Mountain Q3 revenue rises 12.6% yr/yr, meeting analyst expectations

Adjusted EPS for Q3 beats analyst expectations, reflecting strong performance

Company increases quarterly dividend by 10%, driven by AFFO growth

Outlook

Iron Mountain reiterates full-year 2025 guidance, with Q4 revenue expected to rise ~14%

Company expects Q4 2025 adjusted EBITDA to increase ~14%

Result Drivers

GROWTH BUSINESSES - Data center, digital, and ALM businesses collectively grew over 30% year-over-year, driving revenue growth

REVENUE INCREASE - Record revenue of $1.8 bln, driven by a 9.5% increase in storage rental revenue and a 15.3% increase in service revenue

ADJUSTED EBITDA GROWTH - Record Adjusted EBITDA of $660 mln, driven by increased revenue and improved operating leverage

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Meet
$1.75 bln
$1.75 bln (8 Analysts)
Q3 Adjusted EPS
Beat
$0.54
$0.53 (6 Analysts)
Q3 EPS
$0.28
Q3 Net Income
$86 mln
Q3 Adjusted EBITDA
Beat
$660 mln
$639.80 mln (7 Analysts)
Q3 Adjusted EBITDA Margin
37.60%


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 $122.00, about 15.3% above its November 4 closing price of $103.32

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

Press Release: ID:nBw6Sjp5pa

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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.)