Iron Mountain Raises Dividend 15% And Outlook As Newer Businesses Expand
Quarterly net income rose 49%, while data centers, digital services and retired IT equipment management together grew more than 30%.
Iron Mountain, which stores business records and manages digital information, raised its quarterly dividend 15% and lifted its full-year outlook Thursday as net income reached $128.9 million, up 49% from a year earlier. The results, furnished with an SEC filing, combined growth in physical storage with a more than 30% increase across data centers, digital services and asset lifecycle management.
Profit Outruns Sales Growth
Third-quarter revenue totaled $1,991 million, up 13.5% as reported and 12.8% after excluding currency movements, acquisitions and divestitures. Storage rental brought in $1,150 million, compared with $1,033 million a year earlier; services generated $841 million, against $721 million.
Higher operating income was the main reason net income increased from $86.2 million, the company said. Reported earnings per share reached $0.41, versus $0.28, while adjusted earnings were $0.64 per share, against $0.54.
Adjusted earnings before interest, taxes, depreciation and amortization hit a quarterly record of $748.0 million. That was 13.3% above the year-earlier $660.4 million, or 13.0% higher excluding currency movements. The adjusted margin was 37.6%, unchanged from a year earlier.
Adjusted funds from operations — a supplemental earnings measure that removes certain expenses and deducts recurring capital spending — also set a quarterly record at $458.4 million. It rose 16.6% from $393.3 million; the per-share figure increased to $1.53 from $1.32.
Records Fund The Newer Businesses
Iron Mountain's expansion builds on a records business that generates cash to finance growth elsewhere, the company said in its presentation. Its operations span storage, scanning and secure shredding, data-center leases to enterprises and cloud providers, and recycling and resale of retired IT equipment. The company serves more than 240,000 customers across 61 countries.
The newer businesses are taking a larger share of sales. Data centers, digital solutions and asset lifecycle management represented 28% of revenue in 2025, against 24% in 2024. Management projects that share will reach 34% in 2026, based on the midpoint of its outlook.
Data-center revenue increased 34% both as reported and excluding currency movements. New leases signed during the quarter covered 102 megawatts of power capacity, bringing leasing through September to 137 megawatts. Asset lifecycle management revenue grew 43% as reported and 38% excluding currency movements, acquisitions and divestitures.
William L. Meaney, Iron Mountain's president and CEO, said in the earnings release that “our cross-selling efforts in ALM and Digital are accelerating, all of which supports significant future growth.”
Higher Payout, Higher Annual Targets
The board set the quarterly dividend at $0.993 per share. The company tied the 15% increase to growth in adjusted funds from operations and its positive outlook.
Management now expects full-year revenue of $7,950 million–$8,020 million and adjusted funds from operations of $5.94–$6.00 per share. Its annual adjusted earnings before interest, taxes, depreciation and amortization forecast is $2,948 million–$2,978 million. The higher guidance absorbs an adverse effect from the stronger U.S. dollar since the last earnings call, according to the company's presentation.
For the fourth quarter, Iron Mountain expects approximately $2,030 million in revenue and about $1.57 per share in adjusted funds from operations.
The higher dividend is payable January 6, 2027, to shareholders of record at the close of business December 15, 2026.
Sources
- 8-K Filing — IRON MOUNTAIN INC (IRM) — SEC EDGAR
- Exhibit q32026earningspressrelea.htm — IRON MOUNTAIN INC 8-K exhibit — SEC EDGAR
- Exhibit q32026earningspresentati.htm — IRON MOUNTAIN INC 8-K exhibit — SEC EDGAR
- Exhibit q32026srpfinal.htm — IRON MOUNTAIN INC 8-K exhibit — SEC EDGAR
- IRM Q3 AFFO Beats Estimates on Data Center and ALM Growth — Yahoo Finance
- Iron Mountain (IRM) Q3 2026 Earnings Call Transcript - The Globe and Mail — theglobeandmail.com
- Iron Mountain Reports Third Quarter 2026 Results — businesswire.com
- Iron Mountain Increases Quarterly Dividend per Share by 15% — businesswire.com
