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FY2025 Q4
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Iron Mountain Incorporated earnings call
Buzzberg read
Data center revenue expected to grow over 25% in 2026 and 20%+ in 2027
Iron Mountain reported a record Q4 and full-year 2025, with revenue, EBITDA, and AFFO all hitting all-time highs, driven by strength in data centers, ALM, and digital solutions. Management points to a strong backlog, particularly in data centers, and expects another year of double-digit growth in 2026, with continued margin expansion. Total 4Q25 revenue of $1.84B was up 17% YoY, with 14% organic growth, beating expectations.
Buzzberg read Data center revenue expected to grow over 25% in 2026 and 20%+ in 2027 Iron Mountain reported a record Q4 and full-year 2025, with revenue, EBITDA, and AFFO all hitting all-time highs, driven by strength in data centers, ALM, and digital solutions. Management points to a strong backlog, particularly in data centers, and expects another year of double-digit growth in 2026, with continued margin expansion. Total 4Q25 revenue of $1.84B was up 17% YoY, with 14% organic growth, beating expectations. Read full analysisCollapse analysis
Iron Mountain reported a record Q4 and full-year 2025, with revenue, EBITDA, and AFFO all hitting all-time highs, driven by strength in data centers, ALM, and digital solutions. Management points to a strong backlog, particularly in data centers, and expects another year of double-digit growth in 2026, with continued margin expansion. Total 4Q25 revenue of $1.84B was up 17% YoY, with 14% organic growth, beating expectations.
- Data center revenue grew 39% in Q4, with 43 MW of new leases, and significant 400 MW pipeline over next 24 months.
- ALM revenue grew 70% in Q4, driven by strong memory pricing and enterprise growth, though pricing could be a tailwind for memory makers.
- The US Treasury contract ramped to $6M in Q4 and is expected to be $45M in 2026, growing to over $100M annually in 2027.
DATA_CENTER Revenue237Reported
Revenue$1.8432BReported
EPS$1.44Reported
Gross margin55.38%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
ALM revenue to grow ~35% in 2026, becoming multi-billion dollar business
Supply
Plans to release over 100 megawatts of data center capacity in 2026
Show 3 more callouts
AI
Digital revenue exceeded $500 million, DXP deal value doubled
Margins
Margin expansion expected as SG&A efficiency improves
Guidance
Treasury contract to ramp, $45M revenue expected in 2026
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| DATA_CENTER Revenue | 237 | Reported |
| Revenue | $1.8432B | Reported |
| EPS | $1.44 | Reported |
| Gross margin | 55.38% | Reported |
| Operating margin | 18.5% | Reported |
| Free cash flow | $-0.0162B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Revenue | FY2026 | $7.625B–$7.775B | $7.7B | Initiated |
| RevenueDATA_CENTER | FY2026 | $1B | $1B | Initiated |
| RevenueALM | FY2026 | $0.85B | $0.85B | Initiated |
AI, capex & demand read
Management read
Upbeat
Management expressed strong confidence in momentum across all growth businesses, highlighting record results, robust demand, and a clear path to sustained double-digit growth.
Management AI read
Management highlighted strong demand for its AI-powered digital solutions platform (DXP), with an all-time high in DXP deals in Q4 and average deal value more than double the prior year. They also mentioned achieving FedRAMP High certification for their SaaS platform, positioning them to serve federal government customers. DXP is a key component of their digital solutions growth strategy.
Investment and capacity
Growth capital expenditures are planned at $2.0 billion for 2026, slightly down from last year, with the vast majority (approximately $1.8 billion) allocated to data center development. Management emphasized a focus on pre-leasing before commencing meaningful construction, and noted that spending could be higher if pre-leasing activity exceeds expectations.
External signals
Supply-chain alpha · 3returns since call
The 4Q ALM beat was driven substantially by memory pricing, which ran $15-20 million above original guidance, indicating strong pricing power in the memory resale market.
Evidence
“I mentioned that memory pricing in particular... was running 15 plus million ahead of what we had provided for our fourth quarter guidance... probably 15 to $20 million versus our original guide for the fourth quarter on pricing related to…”
Iron Mountain landed a deal with the US Treasury that is expected to ramp to $45M in 2026 and exceed $100M annually in 2027, with the company being the only vendor at the FedRAMP High certification stage.
Evidence
“we're also in the final approvals for FedRAMP high, and we're the only vendor that's at that stage in terms of FedRAMP certification.”
Data center leasing momentum saw a major shift, including a hyperscaler swapping a London lease for the entire 36MW Chicago site, reflecting a rebalancing of capacity from European to US markets.
Evidence
“an existing hyperscale customer leased our entire 36 megawatt Chicago site as part of a 10-year contract transferring and expanding the customer's previous lease in London.”
Methodology & coverage
Management-only analysis. All 0 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.