Iron Mountain Q4 AFFO Beat, Storage Rental & Service Revenues Rise

Iron Mountain Incorporated’s IRM fourth-quarter 2025 adjusted funds from operations (AFFO) per share of $1.44 outpaced the Zacks Consensus Estimate of $1.39. Total revenues of $1.84 billion surpassed the Zacks Consensus Estimate of $1.80 billion.

AFFO per share and total revenues increased 16.1% and 16.6%, respectively, on a year-over-year basis.

IRM’s Revenue Details

IRM’s storage rental revenues increased 12.7% year over year to $1.061 billion in the fourth quarter of 2025. The figure was higher than our estimate of $1.057 billion. Service revenues grew 22.3% year over year to $781.9 million, which was higher than our estimate of $745.3 million.

Total revenues in the Global RIM business came in at $1.373 billion, which rose 9.1% from the prior-year quarter. It was higher than our estimate of $1.370 billion.

Total revenues in the Global Data Center business increased 39.1% year over year to $236.7 million. The figure came in higher than our estimate of $230.1 million.

The Corporate and Other business experienced a year-over-year total revenue increase of 52.9% to $233.5 million. The figure was higher than our estimate of $216.5 million.

IRM’s Adjusted EBITDA

Adjusted EBITDA for the Global RIM business rose 7.5% year over year to $622.4 million. The figure was higher than our estimate of $621.8 million.

The Global Data Center business reported adjusted EBITDA growth of 38.3% year over year, totaling $121.9 million. It was higher than our estimate of $112.5 million.

Adjusted EBITDA for Corporate and Other posted a year-over-year decline of $39 million. The figure was lower than our estimate of a decrease of $44.2 million.

Balance Sheet Position

IRM exited the fourth quarter with $158.5 million of cash and cash equivalents, down from $195.2 million as of Sept. 30, 2025.

As of Dec. 31, 2025, the company has net debt of $16.39 billion, up from $16.11 billion as of Sept. 30, 2025, with a weighted average years to maturity of 4.6 years and a weighted average interest rate of 5.6%.

2026 Guidance by IRM

Iron Mountain expects AFFO per share in the range of $5.69-$5.79. The Zacks Consensus Estimate is pegged at $5.69, which lies at the lower end of the guided range.

Revenues are estimated to be in the band of $7.625-$7.775 billion, while adjusted EBITDA is anticipated to be between $2.875 and $2.925 billion. The Zacks Consensus Estimate for 2026 revenues is pegged at $7.58 billion.

Iron Mountain currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Iron Mountain Incorporated Price, Consensus and EPS Surprise

Iron Mountain Incorporated price-consensus-eps-surprise-chart | Iron Mountain Incorporated Quote

Performance of Other REITs

Equinix Inc.’s EQIX fourth-quarter 2025 AFFO per share of $8.91 missed the Zacks Consensus Estimate of $9.07. The figure improved 12.5% from the prior-year quarter. Results reflected higher expenses, adversely impacting the performance. Recurring revenues increased year over year, led by strong demand for digital infrastructure and services. The company surpassed more than 500,000 total interconnections. EQIX hiked its dividend.

Digital Realty Trust DLR reported fourth-quarter 2025 core FFO per share of $1.86, beating the Zacks Consensus Estimate of $1.83. FFO also increased 7.5% year over year. Results reflected steady leasing momentum with better rental rates amid rising demand.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.

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

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