Capital expenditures were $20.7 million in Q2, with higher CapEx expected in 2025 to support 5G standards and corporate facilities investment.
Cash and cash equivalents stood at $79.3 million with net leverage at 3.6x OEBITDA, expected to reduce below 2x by 2030.
Commercial broadband revenue declined 6% to $12.7 million due to a shift from primary service to companion backup VSAT plans with lower ARPU.
Commercial IoT revenue grew 8% to $44.8 million, reflecting broad adoption across consumer and commercial applications.
Commercial service revenue increased 2% to $128.8 million, led by IoT growth, while voice and data revenue rose 1% to $56.8 million with stable subscribers.
Engineering and support revenue rose significantly to $41.9 million from $25.8 million, driven by work with the Space Development Agency and new U.S. contracts.
Government service revenue increased modestly to $26.8 million, reflecting a step-up in the EMSS contract with the U.S. government.
Operational EBITDA was up 6% in the second quarter to $121.3 million, driven by revenue from engineering and support and recurring services.
Posting and other data services revenue was $14.5 million, up 1%, driven by rising PNT revenue offset by other data service contracts.
Pro forma free cash flow for 2025 is projected at just over $300 million, representing a 61% conversion rate of OEBITDA to free cash flow and a yield approaching 10%.
Subscriber equipment sales declined 15% to $19.5 million but full-year sales are expected to be in line with 2024.
Acquired 4,329 sites for approximately $563 million, mostly from Millicom in Guatemala and Panama.
Declared a quarterly dividend of $1.11 per share, a 13% increase over Q3 2024, representing approximately 35% of the midpoint of full year AFFO outlook.
Domestic organic leasing revenue grew 5% gross and 1% net year-over-year, with 4% churn including $11 million related to Sprint consolidation.
International organic leasing revenue grew 0.8% net on a constant currency basis, with elevated churn mainly due to carrier consolidation and Oi wireless churn in Brazil.
Purchased 799,000 shares for $172 million during Q2 at an average price of $215.33 per share.
Reported $12.6 billion total debt and $12.3 billion net debt with leverage at 6.3x net debt to adjusted EBITDA, near historical lows.
SBA exceeded internal projections in Q2 2025 with strong performance in both U.S. and international businesses.
Dafinchi