Iron Mountain Q2 Earnings Call Highlights

Iron Mountain reported record Q2 2026 results, with revenue up 19% year over year to $2.03 billion and adjusted EBITDA up 16% to $727 million. Data centers, asset lifecycle management (ALM) and digital solutions grew more than 50% collectively. Data center leasing momentum accelerated, with 110 megawatts leased year to date and roughly 325 megawatts expected to be energized over the next 24 months. Management expects to meaningfully exceed its original 100-megawatt full-year leasing target. The company raised its 2026 outlook, projecting $7.94 billion–$8.01 billion in revenue, $2.945 billion–$2.975 billion in adjusted EBITDA and AFFO of $5.87–$5.93 per share, supported by ALM revenue expected to approach $1 billion. Iron Mountain NYSE: IRM reported record second-quarter results for 2026, with revenue rising 19% year over year to $2.03 billion and adjusted EBITDA increasing 16% to $727 million, as growth in data centers, asset lifecycle management and digital solutions outpaced the company’s expectations. President and Chief Executive Officer Will Meaney said organic revenue grew 17% during the quarter, while adjusted funds from operations, or AFFO, increased 17%. The company’s data center, asset lifecycle management, or ALM, and digital businesses collectively grew by more than 50%, contributing 35% of second-quarter revenue, up 750 basis points from a year earlier. The team delivered another outstanding performance with record-breaking second quarter results exceeding expectations across all metrics, Meaney said. Iron Mountain’s data center business generated $263 million in second-quarter revenue, up $73 million, or 39%, from the prior year. The segment’s adjusted EBITDA rose $41 million to $137 million, and its adjusted EBITDA margin increased 140 basis points year over year to 52.2%. The company signed 13 megawatts of new data center leases in the second quarter, including a 10-megawatt lease in Amsterdam. In July, it signed an additional 75 megawatts of leases, bringing year-to-date leasing to 110 megawatts. July activity included a 25-megawatt lease that fully leased Iron Mountain’s London Three asset and a 51-megawatt, 10-year agreement with a major global hyperscaler in Mumbai. Meaney said the company has about 325 megawatts of capacity expected to be energized during the next 24 months, following leasing activity in the first half and July. He said demand is strong across the company’s pipeline, including at its Richmond campus, in Europe and in India. Management said it expects to “meaningfully exceed” its original 100-megawatt full-year leasing target, though executives noted that large hyperscale leases can be uneven from quarter to quarter. Chief Financial Officer Barry Hytinen said the company plans to emphasize its energization schedule rather than issue annual leasing guidance, describing the available capacity as located in attractive markets with robust customer pipelines. ALM revenue rose 88% year over year to $288 million, including 82% organic growth. Hytinen said the segment exceeded the company’s prior projection by more than $45 million, supported by both enterprise ALM services and hyperscale data center decommissioning. Enterprise ALM revenue grew more than 60% organically, aided by expansion with existing customers and new contract wins. Data center decommissioning revenue increased more than 100% from the prior year, partially reflecting abo.