American Tower 2025 Second Quarter Earnings Preview

Market Expectations   

American Tower’s Q2 2025 earnings report is expected to be released before the market opens on Tuesday, July 29, 2025, followed by a conference call at 8:30 AM Eastern Time (ET). Below are the market expectations for American Tower’s Q2 2025 revenue and earnings per share (EPS):

• Revenue Expectation: American Tower’s total revenue for Q2 2025 is projected to be $2.59 billion, a 10.69% decline from $2.9 billion in the same quarter of 2024.
• EPS Expectation: The expected earnings per share (EPS) for Q2 2025 is $1.66, down 13.54% from $1.92 in Q2 2024.

Key Investor Focus Areas

• Organic Tenant Billings Growth: Organic tenant billings growth is a key metric for assessing American Tower’s ability to attract new customers and retain existing ones. In Q1 2025, organic tenant billings grew by 4.7%, reflecting sustained demand for communications infrastructure. For Q2 2025, growth is expected to remain in a similar range (approximately 4.5%-5%), driven by global 5G deployments and enterprise digital transformation. Investors will closely monitor whether this steady trend continues, particularly in the U.S. and international markets.
• Property Revenue Growth: In Q1 2025, American Tower’s property revenue reached $2.488 billion, up 0.2% year-over-year. The Indian market was a significant contributor, generating $1.27 billion in property revenue with accelerated cash collections, indicating strong regional growth momentum. For Q2 2025, property revenue is expected to remain stable, with year-over-year growth likely between 0% and 1%. Investors should be mindful of potential currency fluctuations impacting international revenue. Performance in India and other emerging markets (such as Africa and Latin America) and the company’s strategies to mitigate currency risks will be key focus areas.
• AFFO per Share: Adjusted Funds From Operations (AFFO) per share is a critical metric for evaluating the company’s cash flow generation and dividend sustainability. In Q1 2025, AFFO per share was $2.75, down 1.4% year-over-year, but adjusted for foreign exchange and other non-recurring factors, it grew by 6.6%, reflecting effective cost optimization. For Q2 2025, AFFO per share is expected to return to positive growth (projected at 2%-5% year-over-year), supported by tenant billings growth and improved operational efficiency. Investors should focus on the company’s cost management, capital expenditure optimization, and whether AFFO provides room for dividend growth.
• Data Center Performance: American Tower’s CoreSite data center business is a key growth driver, fueled by 5G network deployments and surging cloud computing demand. In Q2 2024, CoreSite achieved its second-highest new business bookings, and in Q1 2025, it recorded its highest single-quarter service revenue since 2021. For Q2 2025, CoreSite is expected to continue driving revenue growth, with bookings and revenue contributions potentially reaching new highs. Investors should evaluate the data center business’s revenue share (approximately 10% of total revenue in Q1 2025) and the impact of new bookings on long-term growth.
• Dividend Policy: American Tower is known for its stable and consistently growing dividend policy, making it a favorite among REIT investors. In Q1 2025, the company generated $955 million in free cash flow, supporting a dividend payment of $1.62 per share. Investors will be watching the Q2 2025 earnings report for any announcement of a dividend increase, particularly if AFFO performance remains robust. The magnitude and sustainability of dividend growth will be critical indicators of the company’s financial health.

Get Started