Iron Mountain posts record Q2 results as revenue hits USD $1.7 billion
Iron Mountain has reported record financial results for the second quarter of 2025, highlighted by substantial growth across its principal business units and improved financial performance metrics.
Revenue growth
Total reported revenues for the quarter reached USD $1.7 billion, marking an increase of 11.6% compared to the second quarter of 2024. Excluding the impact of foreign exchange, the revenue increase was 11.0% year-on-year. Storage rental revenue contributed USD $1.01 billion, up from USD $920 million, while service revenue rose to USD $702 million from USD $615 million in the previous year. Year to date, total revenues increased to USD $3.3 billion, representing a 9.7% rise.
Segment performance
Iron Mountain reported that its data centre, digital, and asset lifecycle management (ALM) businesses experienced a collective growth of over 30% during the quarter. Growth in the company's core physical records storage business was also described as sustained. The effect of favourable operating leverage and continued improvement activities contributed to the overall rise in revenues and adjusted earnings.
Profitability and cash flow
The company delivered a record quarterly adjusted EBITDA of USD $628 million, reflecting a 15.4% increase compared to USD $544 million in the second quarter of the prior year. The adjusted EBITDA margin improved by 120 basis points to 36.7% for the quarter. Adjusted funds from operations (AFFO) stood at USD $370 million, a 15.2% increase from USD $321 million in the corresponding period last year. AFFO per share increased to USD $1.24 from USD $1.08 a year earlier.
Net income impacted by exchange rates
Despite improvements in multiple performance measures, the company recorded a net loss of USD $43.3 million for the quarter, compared with a net income of USD $34.6 million in the same period last year. This change was primarily attributed to the impact of currency exchange rate changes on intercompany balances. Year-to-date, Iron Mountain reported a net loss of USD $27.1 million, against a net income of USD $111.6 million for the first half of 2024.
Executive comments
"We are pleased to report outstanding performance in the second quarter, resulting in record financial performance across all key metrics and above our expectations. Our team's successful execution of our strategy and commitment to delivering value for our customers, whilst leveraging our synergistic business model continues to drive industry leading growth and record results across each of our business segments," said William L. Meaney, President and CEO of Iron Mountain.
The company also reiterated the strength of its growth businesses and the resilience of its traditional operations. William L. Meaney added, "The collective strength in our growth businesses and the sustained growth in our physical records storage business creates strong momentum which is expected to continue to deliver meaningful overall revenue and profit growth at these levels for the foreseeable future. Based on our strong Q2 outperformance and positive outlook, we are increasing our full year guidance."
Balance sheet and capital management
Iron Mountain reported total assets of USD $20.2 billion as of 30 June 2025, up from USD $18.7 billion at the end of 2024. The company's total liabilities increased to USD $20.7 billion. The cash and cash equivalents position improved to USD $218 million from USD $156 million six months earlier. The company's Board of Directors declared a quarterly cash dividend of USD $0.785 per share of common stock for the third quarter of 2025.
Outlook and revised guidance
Following the strong second-quarter performance and favourable outlook for its core and growth businesses, Iron Mountain revised its full-year 2025 guidance. The company now anticipates total revenue in the range of USD $6.79 billion to USD $6.94 billion, compared to previous estimates of USD $6.74 billion to USD $6.89 billion. Adjusted EBITDA is projected to be between USD $2.52 billion and USD $2.57 billion, while AFFO is forecast in the range of USD $1.505 billion to USD $1.53 billion. AFFO per share is expected to be between USD $5.04 and USD $5.13.
The company reiterated that its ability to continue delivering revenue and profit growth is underpinned by execution of its business strategies across established and growth segments, supported by ongoing customer demand in both established and emerging markets.
