American Tower Boosts 2025 Revenue Forecast Amid Leasing Demand

American Tower, a leading provider of wireless infrastructure, has raised its annual property revenue forecast for 2025, driven by robust leasing activity among wireless carriers. On Tuesday, the company announced revised expectations, with projected property revenue now estimated between $10.14 billion and $10.29 billion. This marks an increase from the previous forecast range of $9.97 billion to $10.12 billion.

Despite the positive news regarding revenue, American Tower slightly reduced its outlook for full-year organic tenant billings growth in the United States and Canada. The company now anticipates growth of approximately 4.3 percent, down from earlier expectations of 4.3 percent or more. This adjustment led to a roughly 2 percent decline in the company’s shares, as investors reacted to the tempered growth forecast.

A key factor in this revision is the pace of new business from a major customer, which has been slower than anticipated. Analysts at MoffettNathanson reported that while the application pipeline from this customer remains healthy, the lengthening of the book-to-bill cycle has impacted leasing forecasts. As a result, American Tower has adjusted its leasing forecast for 2025 down by about $5 million.

In conjunction with these changes, American Tower has also lowered its net income forecast for 2025 to a range of $2.34 billion to $2.44 billion, down from a previous estimate of $2.74 billion to $2.84 billion. The company cited adverse currency fluctuations against the U.S. dollar as a contributing factor to this adjustment.

The competitive landscape for 5G capacity has intensified among wireless carriers, stimulating a strong demand for leasing activity. However, American Tower’s bottom line has faced challenges, with a reported 58.1 percent decrease in second-quarter net income compared to the same period last year, amounting to $381 million.

AT&T, T-Mobile, and Verizon, the three largest telecom firms in the United States, were significant contributors to American Tower’s property segment revenue last year. Despite the challenges, the company’s outlook for funds from operations (AFFO) per share remains optimistic, with expectations set between $10.46 and $10.65, surpassing analysts’ predictions of $10.27.

For the quarter ending on June 30, 2023, American Tower reported revenue of $2.63 billion, slightly above analyst estimates of $2.60 billion. This performance highlights the company’s resilience in a competitive market, even as it navigates the complexities of slower leasing growth and foreign currency impacts.