American Tower Corporation (NYSE: AMT) has released its financial results for the first quarter of 2025, showcasing a mix of growth and challenges. The company reported a slight increase in total revenue, yet faced a significant drop in net income due to foreign currency fluctuations. This article delves into the quarterly performance and future guidance.
AMT Reports Total Revenue of $2.56 Billion for First Quarter 2025
American Tower Corporation (NYSE: AMT) reported total revenue of $2,563 million ($2.56 billion) for the first quarter of 2025, marking a 2.0% increase from the previous year. This figure slightly surpassed the anticipated revenue of $2.54 billion. However, net income saw a dramatic decrease of 45.9% to $499 million, primarily attributed to foreign currency losses. When comparing these results to market expectations, the company fell short in terms of earnings per share (EPS), which was reported at $1.04, below the forecasted $1.59.
The property revenue segment, which constitutes a significant portion of the company’s earnings, reported a marginal increase of 0.2% to $2,488 million. Despite the challenges, adjusted EBITDA rose by 1.9% to $1,744 million, indicating some operational efficiency gains. The adjusted funds from operations (AFFO) per share grew by 6.6% on an adjusted basis, reflecting the company’s efforts to manage costs amidst a volatile economic environment.
CEO Steven Vondran highlighted the positive leasing trends from 2024 that continued into the first quarter, driven by robust demand for mid-band deployments in the U.S. and favorable international market activities. Despite the revenue growth, the steep decline in net income underscores the impact of foreign currency fluctuations, which amounted to a loss of approximately $345.7 million compared to a gain of $127.7 million in the prior year.
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American Tower Corporation Adjusts 2025 Outlook
Looking ahead, American Tower Corporation has adjusted its full-year 2025 outlook to account for foreign currency exchange rate fluctuations and strategic business developments. The company anticipates total property revenue to range between $9,970 million and $10,120 million, reflecting a modest growth of 1.1%. Adjusted EBITDA is expected to be between $6,885 million and $6,955 million, with a growth rate of 1.6%.
The company has also revised its AFFO attributable to common stockholders, projecting a range of $4,850 million to $4,940 million, indicating a slight decline of 0.8% from the previous year. However, on an adjusted basis, this metric is expected to grow by 5.0%. The AFFO per share is forecasted to be between $10.35 and $10.54, showing a similar trend of decline on a nominal basis but growth when adjusted.
American Tower’s strategic focus remains on enhancing earnings quality through active portfolio management and disciplined capital allocation. The company has earmarked significant investments for discretionary capital projects, including the construction of up to 2,550 communication sites globally. Additionally, the acquisition of a data center facility in Denver is expected to contribute to future revenue streams. Despite the challenges posed by foreign currency impacts, the company’s strong balance sheet and liquidity position it well to navigate the current economic landscape and drive long-term shareholder value.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
