SBA Communications: Steady Domestic Carrier Activity, But Still Looking for Softer 2H Leasing Revenue; Higher International Builds as Leasing Improves; Priority Shifts to Buybacks

Research evidence excerpt

SBA Communications: Steady Domestic Carrier Activity, But Still Looking for Softer 2H Leasing Revenue; Higher International Builds as Leasing Improves; Priority Shifts to Buybacks

J P M O R G A N North America Equity Research

04 August 2026

SBA Communications

Steady Domestic Carrier Activity, But Still Looking for Neutral

Softer 2H Leasing Revenue; Higher International Builds SBAC, SBAC US

as Leasing Improves; Priority Shifts to Buybacks Price (03 Aug 26):$179.54

▼Price Target (Dec-27):$220.00

Prior (Dec-26):$230.00

SBA Communications reported solid 2Q26 results and slightly raised guidance for

site leasing revenue and AFFOPS, while also anticipating higher discretionary Communications Infrastructure

capex. The guidance changes for site leasing revenue and AFFOPS are slight Richard Choe AC

adjustments related to FX related and interest expense savings from refinancing of (1-212) 622-6708

debt. Higher discretionary capex of $25m reflects SBA’s tower builds primarily in richard.choe@jpmorgan.com

Central America (for Millicom) as well as in Tanzania. The 2026 outlook for Braden Nguyen

organic growth components was unchanged as the company continues to anticipate (1-212) 622-1861

braden.nguyen@jpmorgan.com

a slowdown in domestic new leasing in 2H26 while international new leasing J.P. Morgan Securities LLC

should accelerate. We model $35m in domestic new leasing for the year, in-line

with the midpoint of guidance. We believe the low and high end of $33-37m

guidance is unlikely given activity levels. For the full year, we expect domestic Key Changes (FYE Dec)

organic growth of -2.5%, a trough year due to elevated churn. Internationally, we Prev Cur Δ

model 2026 new leasing of $20m, in-line with the midpoint of guidance and AFFO per share - 26E ($) 12.17 12.19 0.1%

Adj.