SBA Communications (SBAC) Down 7.5% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for SBA Communications (SBAC). Shares have lost about 7.5% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is SBA Communications due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

SBA Communications Q1 AFFO & Revenues Beat Estimates on Higher Leasing Revenue

SBA Communications posted first-quarter 2026 AFFO per share of $3.01, beating the Zacks Consensus Estimate of $2.86 by 5.24%. The figure compared unfavorably with the FFO per share of $3.16 in the prior-year period. Total revenues rose 5.9% year over year to $703.4 million and came in 0.66% above the consensus mark of $698.8 million.

Results reflected solid site-leasing momentum, led by a sharp rebound in international operations, while the company continued to operate at a company-wide tower cash flow margin of about 80%.

Higher Leasing Revenue on International Strength

Site-leasing revenue increased 6.5% year over year to $656.1 million, remaining the dominant driver of the company’s quarterly performance. Site development revenues, however, edged down 1.6% to $47.3 million, modestly offsetting the leasing-led growth.

Within site leasing, domestic revenues slipped 2.3% to $450.3 million, while international site-leasing revenues surged 32.6% to $205.8 million. The mix shift underscores how international operations carried overall top-line momentum in the quarter, even as the U.S. market remained comparatively softer.

Faces Higher Costs

Cost pressures were evident in the core leasing business. The cost of site leasing rose 14.2% year over year to $131.9 million, while selling, general and administrative expense increased 6.5% to $70.5 million.

Those higher costs weighed on profitability metrics. Adjusted EBITDA totaled $475.4 million, up 4% from the year-ago quarter, but the adjusted EBITDA margin slipped to 68.1% from 69.0% a year earlier, highlighting the impact of higher operating expenses.

Expands Portfolio With Sites and Land

SBA Communications continued investing in its asset base during the quarter. The company acquired 10 communication sites and, notably, purchased rights to land underneath approximately 3,900 communication sites in Guatemala for total cash consideration of $133 million. It also built 80 towers during the first quarter. As of March 31, 2026, the company owned or operated 46,358 communication sites, including 17,378 in the United States and its territories and 28,980 internationally.

The company also spent $10.4 million to purchase land and easements and extend lease terms. Total cash capital expenditures were $191.9 million, including $12.7 million of non-discretionary cash capital expenditures and $179.2 million of discretionary cash capital expenditures tied to new tower builds, tower augmentations, acquisitions and land-related investments.

As of April 29, 2026, the company purchased or was under contract to buy 56 communication sites for a total consideration of $36.9 million in cash. It expects to complete the acquisitions by the end of the third quarter of 2026.

Liquidity & Leverage

Liquidity remained supported by cash generation. Net cash provided by operating activities was $255.1 million in the first quarter compared with $301.2 million in the year-ago period. Total cash, cash equivalents and restricted cash ended the quarter at $332.5 million, providing flexibility to fund ongoing investment needs.

Leverage stayed elevated but within management’s targeted range. It ended the quarter with net debt of $12.6 billion, translating to net debt to annualized adjusted EBITDA of 6.6x, in the middle of its 6.0x to 7.0x range.

SBA Communications Lifts 2026 Outlook

Given the quarter’s performance, the company raised its full-year 2026 outlook across key metrics. The updated forecast indicates site-leasing revenues of $2.649-$2.674 billion and total revenues of $2.839-$2.884 billion, each up $24 million at midpoint from prior guided range. Adjusted EBITDA is now projected at $1.921-$1.941 billion, $9 million up at midpoint.

AFFO per share is expected in the range of $11.93-$12.38, up 9 cents at midpoint from previous guidance range.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates review.

VGM Scores

At this time, SBA Communications has a poor Growth Score of F, however its Momentum Score is doing a bit better with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SBA Communications has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

SBA Communications belongs to the Zacks REIT and Equity Trust - Other industry. Another stock from the same industry, Highwoods Properties (HIW), has gained 7.2% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.

Highwoods Properties reported revenues of $214.03 million in the last reported quarter, representing a year-over-year change of +6.8%. EPS of $0.29 for the same period compares with $0.83 a year ago.

Highwoods Properties is expected to post earnings of $0.87 per share for the current quarter, representing a year-over-year change of -2.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.

Highwoods Properties has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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