SBA Sets Stage for Next Decade of Growth with Strong Q3 Results
The third quarter of 2026 was another remarkable period for SBA, as the company delivered industry-leading Adjusted Funds From Operations (AFFO) per share, strong operating margins, and a solid investment-grade balance sheet. Key highlights from the quarter included continued progress on its portfolio review, with over $430 million returned to shareholders through dividends and share repurchases.
Brendan Cavanagh, President and Chief Executive Officer of SBA, highlighted the company's strong performance during the Q3 earnings conference call. "We had another great quarter," he said. "Our customers remained focused on investing in their wireless networks, with new leases accounting for a significant portion of activity." This trend is expected to continue, driven by carriers' efforts to address coverage gaps and add capacity through mid-band spectrum upgrades.
The growth of fixed wireless access also contributed to the company's success, with millions of new subscribers added compared to just a few years ago. Mobile data traffic continues to surge, with a 20% increase in the U.S. in 2025 alone. This trend is expected to quadruple by 2032, driven largely by AI and non-phone devices such as wearables and smart sensors.
SBA's expertise in supporting wireless networks makes it an essential partner for carriers looking to upgrade their infrastructure. The company is well-positioned to capitalize on upcoming spectrum auctions, including the upper C-band auction scheduled to begin in April 2027. This auction will make 160 MHz of spectrum available, complementing the existing lower C-band and creating a large contiguous mid-band for wireless use.
Louis Friend, Vice President Finance and Capital Markets, pointed out that each major spectrum auction over the last two decades has been followed by a meaningful deployment cycle on SBA's towers. "Our priority is to be ready for the next one," he said, highlighting the company's focus on investing in its sites, people, and processes to support carrier activity.
While the timing of carrier activity may fluctuate from quarter-to-quarter, the long-term direction is promising. SBA believes that this spectrum will form the foundation of sustained organic leasing growth well into the next decade. Beyond its core customers, the company sees opportunities to expand its customer base to satellite and edge providers.
SBA's view on satellites remains unchanged: they are a complement to terrestrial wireless networks. The recent purchase of low-band 800 MHz spectrum by a satellite provider is a testament to this philosophy, as it enhances capacity from the ground.
