Recent earnings reports from Iron Mountain and ITAD company Echo’s parent company showed overall growth and pointed to headwinds in data center decommissioning and personal devices.
Iron Mountain
Iron Mountain’s earnings report for the first quarter of 2025 showed growth in its ITAD and data center segments, boosted by recent acquisitions.
In a May 1 investor call, Executive Vice President and CFO Barry Hytinen noted that the total asset lifecycle management revenue was $121 million in Q1, up 44% year over year, driven by volume increases in both enterprise and hyperscale businesses.
Recent acquisitions Wisetek and APCD “continued to perform well,” he added, and contributed revenue of $18 million. Iron Mountain acquired Premier Surplus at the end of the first quarter, so it wasn’t included in the report.
The company’s global data center business brought in $173 million in the first quarter, up from $144 million in Q1 2024, the company noted in its quarterly Securities and Exchange Commission filing.
Overall, Iron Mountain reported $1.6 billion in revenue for the first quarter, an increase of 7.8% compared to the same period last year. Adjusted EBITDA for the first quarter was $579.9 million, higher by 11.8% year over year.
“We think over time, as large enterprises become more sensitive to the cyber risks with the disposal of their IT assets, Iron Mountain’s brand will play an ever-increasing factor in their vendor selection,” President and CEO Bill Meaney said in the investor call.
“And in the hyperscale channel, given the robust growth in data center development in recent years, we anticipate strong tailwinds for decommissioning work for the foreseeable future,” he said, adding that the company also plans to continue to selectively acquire asset lifecycle management businesses.
Completed acquisitions have started to skew the company from predominantly data center decommissioning to enterprise. Meaney estimated that previously the company was about 60% data center decommissioning and 40% enterprise, but “that’s starting to shift as we are doing the acquisitions, and we feel good about that shift.”
The first quarter of 2025 saw a mix of 59% enterprise and 41% hyperscale business, Hytinen added.
Echo
Envela, the parent company of ITAD business Echo, recently reported its Q4 2024 and full year 2024 earnings. Echo is part of the company’s commercial division, which handles ITAD. Envela also has a luxury jewelry segment.
In 2024, the commercial segment sold 1.3 million individual units of electronics and components for reuse and 12,800 metric tons of e-scrap, roughly level with the prior year.
Sales in the commercial segment increased by 8.8% year over year to $49.9 million in FY24. In the fourth quarter of 2024, that quarter’s revenue was $11.8 million, up from $11.3 million in the prior-year quarter.
“The change was primarily attributed to the favorable performance from almost all of our verticals with the most significant being the sale of personal technology assets and sales generated through our ITAD business,” Envela wrote in its SEC filing.
Combining both segments, Envela had a full year revenue of $180.4 million, up year over year from $175.3 million. The combined Q4 2024 revenue was $48.3 million, compared to $37.5 million in the same time period the prior year.
