SBA Communications Corp. (SBAC): 2Q26 review: Results and outlook largely as expected

Research evidence excerpt

SBA Communications Corp. (SBAC): 2Q26 review: Results and outlook largely as expected

Goldman Sachs SBA Communications Corp. (SBAC)

stabilize as the company finalizes long-term agreements.

n SBAC highlighted its transition to an investment-grade profile, following an

upgrade to BBB by S&P in June. In July, the company issued its inaugural unsecured

investment-grade bonds totaling $3.5 bn across three tranches, featuring a blended

cash coupon of 5.11% and a 5-year weighted average maturity. Management noted

that proceeds were utilized to fully retire its Term Loan B and revolving credit facility.

Pro forma for the transaction, secured debt is now below 50% of total debt,

supported by $570 mn in cash and a new $2.5 bn unsecured revolver. Additionally,

net debt to adjusted EBITDA ended the quarter at 6.4x, within management’s

6.0x-7.0x target range. Now that the company has paid off its revolver, management

expects to resume share repurchases.

n Discretionary capex guidance raised on international tower builds. SBAC

increased its discretionary capex guidance to $455-$475 mn (v. $430-$450 mn

prior), driven by expectations to construct approximately 600 new towers in 2026,

primarily across Central America and Tanzania. During the quarter, the company

built 109 new towers (10 domestic and 99 international), up from 80 in 1Q26.

Looking ahead, management anticipates the pace of construction will increase

steadily throughout the remainder of the year.

n SBAC outlined several long-term organic growth catalysts. Management outlined

several long-term organic growth drivers for the business. First, the FCC’s planned

auction of 160 MHz of upper C-band spectrum in April 2027, combined with stricter

buildout requirements, is expected to drive future amendment activity. Second,