Iron Mountain raises guidance after record quarterly revenue
Thu, 14th May 2026 (Today)
Iron Mountain reported first-quarter revenue of USD $1.9 billion and raised its full-year 2026 guidance after quarterly revenue, profit and cash-based earnings reached record levels.
Revenue rose 21.6% to USD $1.936 billion from USD $1.6 billion a year earlier, while net income increased to USD $149 million from USD $16.2 million. Adjusted EBITDA climbed 22.1% to USD $707.9 million, and adjusted funds from operations rose 22.3% to USD $426.1 million.
The US-based information management and storage group said organic revenue growth reached 17.2% in the quarter. Its growth businesses in data centres, digital services and asset lifecycle management expanded by more than 50% from a year earlier.
Storage rental revenue, the company's largest revenue line, increased 15.4% to USD $1.095 billion. Service revenue rose 30.6% to USD $841.4 million, helping drive overall growth.
On a constant-currency basis, total revenue increased 18.6% and adjusted EBITDA rose 19.5%. Iron Mountain attributed the gains to higher revenue across all segments and improved operating leverage.
Profitability also improved sharply. Operating income increased 55.4% to USD $395.2 million from USD $254.3 million a year earlier, while diluted earnings per share rose to USD $0.48 from USD $0.05.
Adjusted earnings per share came in at USD $0.60, up from USD $0.43 a year earlier. Normalised funds from operations rose 28.6% to USD $294.5 million, or USD $0.99 per share.
Growth areas
Much of the momentum came from businesses Iron Mountain has been building beyond its traditional physical records storage operations. It highlighted strong results in data centres, digital operations and asset lifecycle management, alongside continued growth in physical storage.
President and Chief Executive Officer William L. Meaney highlighted those businesses in his remarks on the quarter.
"We are pleased to report another quarter of exceptional results, with record performance that exceeded our expectations and showed strength across all key metrics. Our business is experiencing significant momentum, driven by outstanding performance in our growth businesses of data center, ALM, and digital and continued solid growth in our highly recurring physical records storage business. Our team's strong execution of our growth plans and commitment to delivering value to our customers through innovative solutions remain the foundation of our ongoing success," Meaney said.
He also gave an update on leasing in the data centre division.
"Looking ahead, we are accelerating our cross-selling efforts in ALM and Digital and we are off to a strong start to the year in data center leasing, where we have already leased 32 megawatts through April. Additionally, our pipeline momentum continues to build against the 400 megawatts of data center capacity energizing and available over the next 24 months, supporting our outlook for continued strong growth. With the trajectory we are on, together with our first quarter outperformance, we are pleased to raise our full-year financial guidance," Meaney said.
Guidance raised
Iron Mountain increased its full-year outlook for revenue, adjusted EBITDA and AFFO. It now expects total revenue of USD $7.825 billion to USD $7.925 billion, compared with its previous range of USD $7.625 billion to USD $7.775 billion.
Adjusted EBITDA guidance was raised to USD $2.925 billion to USD $2.965 billion from USD $2.875 billion to USD $2.925 billion. AFFO is now expected at USD $1.735 billion to USD $1.755 billion, up from USD $1.705 billion to USD $1.735 billion.
On a per-share basis, AFFO guidance was lifted to USD $5.79 to USD $5.86 from USD $5.69 to USD $5.79. For the second quarter, Iron Mountain forecast revenue of about USD $1.965 billion, adjusted EBITDA of about USD $715 million and AFFO per share of about USD $1.40.
Balance sheet
Cash and cash equivalents stood at USD $250.7 million at the end of the quarter, up from USD $158.5 million at the end of the previous year. Total assets rose to USD $21.49 billion from USD $21.13 billion.
Long-term debt, excluding the current portion, increased to USD $16.89 billion from USD $16.22 billion. Total equity remained negative at USD $938.4 million, compared with negative USD $709.3 million at the end of the prior year.
The board also declared a quarterly cash dividend of USD $0.864 per share for the second quarter.
Iron Mountain serves more than 240,000 customers in 61 countries, including about 95% of the Fortune 1000.