Strong Top-Line Performance
Total revenue of $1.94 billion, up $344 million year-over-year (+22% reported, +19% constant currency, +17% organic). First quarter organic growth of 17% — the highest rate in more than 25 years.
Iron Mountain
· IRM
April 30th, 2026
Summary
- Earnings Call Date:
- 2026-04-30
- Change Since:
- +4.74%
- Next Earnings Date:
- 2026-07-30
Earnings Call Sentiment
PositiveThe call communicated broad, above-expectation operational and financial outperformance across revenue, adjusted EBITDA, AFFO and cash flow, driven by strong demand in data center, ALM, digital solutions and records services. Management raised full-year guidance and highlighted strategic wins (FedRAMP, government contracts, large cross-sells) and stronger balance sheet metrics. Risks noted include FX sensitivity, memory-price and project timing volatility in ALM, and the lumpy nature of hyperscaler-driven data center leasing and pass-through cost effects on margins.
Company Guidance
Iron Mountain raised its 2026 outlook, now targeting total revenue of $7.825–7.925 billion (≈14% growth at the midpoint; +$175M vs. prior guide, driven by an $80M Q1 beat and $95M of incremental upside), adjusted EBITDA of $2.925–2.965 billion (≈14% growth at midpoint; +$45M vs. prior), and AFFO of $1.735–1.755 billion ($5.79–$5.86 per share, ≈13% growth at midpoint; +$25M and +$0.09/share vs. prior); Q2 guidance is ~ $1.965B revenue (+15% y/y), ~$715M adjusted EBITDA (+14%), and ~ $418M AFFO ($1.40/share, +13%); ALM revenue guidance was raised to $950M (+$100M vs. prior, with $40M realized in Q1 and $60M expected the rest of the year), retained cash flow is now projected to be at least $300M ahead of last year, full‑year CapEx is planned to be slightly down, dividend was declared at $0.864/share (trailing payout ratio ~61%), net lease adjusted leverage was 4.8x, and the revenue upgrade is not FX‑driven (using prior FX assumptions).
Record Profitability and Cash Flow
Adjusted EBITDA of $708 million, up $128 million year-over-year (+22%) with a margin of 36.6% (+20 bps). AFFO of $426 million, up $78 million (+22%); AFFO per share $1.43, up 22% and $0.04 ahead of prior projection. Operating cash flow of $339 million, up $141 million — best Q1 operating cash flow in company history.
Raised Full-Year Financial Guidance
Full-year revenue guidance raised to $7.825B–$7.925B (midpoint +14% y/y). Adjusted EBITDA guidance raised to $2.925B–$2.965B (midpoint +14% y/y). AFFO guidance raised to $1.735B–$1.755B ($5.79–$5.86 per share, midpoint +13% y/y).
Data-Related Growth Engines Outperforming
Combined data businesses (data, data center, ALM and digital) grew more than 50% in the quarter and now exceed 30% of total revenue. Digital solutions achieved record Q1 revenue, growing >20% year-over-year.
Data Center Momentum
Global Data Center revenue $255 million, up $82 million year-over-year (+47%). Signed 22 MW of new leases in Q1, commenced 24 MW, and leased ~32 MW year-to-date (22 MW in Q1 + 10 MW in April). Increased future development capacity in Northern Virginia by 20% to 195 MW.
Asset Lifecycle Management (ALM) Surge
ALM revenue $232 million, up $111 million year-over-year (+92% reported; +77% organic). Management increased full-year ALM revenue outlook to $950 million (+$100 million vs prior guidance), with $40 million upside realized in Q1 and $60 million expected through the rest of the year.
Records Management and Services Strength
Total storage revenue $1.1 billion, up $146 million (+15%). Total service revenue $841 million, up $197 million (+31%). Global RIM revenue a quarterly record at $1.4 billion, up $148 million (+12% reported; +8% organic).
Key Commercial Wins and Certifications
Multiple strategic wins: major government digitization contracts (including Dept. of Treasury/IRS ramping: $9M recognized in Q1; expecting $45M in 2026 and >$100M annually in 2027+), FedRAMP High authorization for InSight, Google Partner of the Year recognition (media & entertainment), and several large cross-sell deals across ALM, records and data center (e.g., 16 MW Miami lease, 10 MW Amsterdam lease).
Capital Allocation and Balance Sheet
Invested $492 million growth CapEx and $35 million recurring CapEx in Q1; full-year CapEx planned to be slightly down from last year. Net lease adjusted leverage improved to 4.8x — best level since pre-2014 REIT conversion. Board declared quarterly dividend of $0.864; trailing-4-quarter payout ratio ~61% (in line with target).
Operator
Good morning, and welcome to the Iron Mountain First Quarter 2026 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Mark Rupe, Senior Vice President of Investor Relations. Please go ahead.
Mark Rupe
Thanks, Rocco. Good morning, everyone, and welcome to our first quarter 2026 earnings conference call. Joining us today are Bill Meaney, our President and Chief Executive Officer; and Barry Hytinen, our Executive Vice President and Chief Financial Officer. After our prepared remarks, we'll open the lines for Q&A. Today's call will include forward-looking statements, which are subject to risks and uncertainties. For a discussion of the major risk factors that could cause our actual results to differ from these statements, please refer to today's earnings materials, including the safe harbor language on Slide 2 of the earnings presentation and our annual and quarterly reports on Form 10-K and 10-Q. Each of these items as well as reconciliations of non-GAAP financial measures referenced during this call can be found on our Investor Relations website. With that, I'll turn the call over to Bill.
William Meaney
Thank you, Mark, and thank you all for joining us today to discuss our first quarter results. As you saw in this morning's release, we are off to an incredibly strong start to 2026. Our first quarter results were exceptional, above our expectations with 22% year-over-year growth for revenue, adjusted EBITDA and AFFO. Our team's execution of our growth plans and consistent delivery of value to our customers continu...
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