SBA Communications met Q2 estimates and cut full-year guidance. Carriers slowed spending, pushing domestic leasing growth to 2%.
SBA Communications posted second-quarter results that matched analyst expectations. The tower operator then lowered its full-year outlook. Wireless carriers have pulled back on capital spending, executives said on the earnings call. The stock fell in after-hours trading.
The 2026 forecast now calls for domestic cash site leasing revenue growth of roughly 2% at the midpoint. Some analysts had modeled 3%. The revision reflects a pause in carrier network investment, executives said.
"We continue to see capital spending constraints from our carrier customers," said Brendan Cavanagh, SBA's chief executive. "The rollout of 5G fixed wireless access and coverage deployments should pick up later this year."
New lease applications moderated in the second quarter from the first. Amendment activity also slowed. T-Mobile, SBA's largest tenant, generated 46.5% of the quarter's revenue.
Marc Montagner, SBA's chief financial officer, said the company does not plan to access the capital markets in the second half of 2026. Net debt to adjusted EBITDA stood at 5.3 times, down from 6.2 times a year earlier.
SBA has a $600 million share repurchase authorization. The company's SBAC stock page carries an Alpha Score of 54 out of 100, a Mixed label that reflects the tension between stable rental cash flows and the near-term spending slowdown, according to AlphaScala's proprietary model.
"The year is not over," Cavanagh said. "We expect activity to pick up in the fourth quarter."
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