Iron Mountain reported third‑quarter 2025 revenue of $1.8 billion, a 13% year‑over‑year increase that beat consensus estimates of $1.75 billion by $50 million. Adjusted earnings per share rose to $0.54, surpassing the $0.54 consensus by $0.04 and reflecting disciplined cost management and a favorable mix shift toward higher‑margin data‑center and digital‑solutions contracts.
The revenue lift was driven by a 10% rise in storage‑rental revenue to $1.03 billion and a 16% increase in service revenue to $721 million. Within services, data‑center revenue grew 33% and asset‑management‑and‑logistics (ALM) revenue surged 65%, underscoring the success of the Project Matterhorn strategy that is expanding the data‑center and digital‑solutions portfolio to more than 25% of total revenue.
Adjusted EBITDA climbed to $660 million, a 16% year‑over‑year gain, and the margin expanded to 37.6%—an increase of 110 basis points year‑over‑year. The margin lift was driven by higher pricing in the data‑center segment, improved operating leverage as scale grew, and cost discipline in the storage‑rental business, offsetting modest inflationary pressure in the ALM segment.
Management raised its full‑year 2025 guidance, now projecting revenue of $6.79 billion to $6.94 billion and adjusted EBITDA of $2.52 billion to $2.57 billion, up from the prior guidance of $6.70 billion to $6.85 billion and $2.45 billion to $2.50 billion. The company also increased the quarterly dividend to $0.864 per share, a 10% rise, signaling confidence in sustained AFFO growth.
CEO William L. Meaney highlighted the quarter as “very strong performance” and emphasized continued momentum in AI‑driven data‑center services and digital‑transformation initiatives. He also noted foreign‑exchange headwinds that the company is managing through hedging and pricing adjustments. The results were met with a mixed market reaction; analysts praised the revenue beat and margin expansion but cautioned that valuation multiples remain high and foreign‑exchange volatility could temper near‑term earnings.
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