Iron Mountain posted record Q2 revenue and raised its 2025 outlook, driven by growth in digital services, data centers, and asset lifecycle management, with strong global momentum. | Photo Courtesy of Iron Mountain
Iron Mountain reported a sharp jump in asset lifecycle management (ALM) revenue in the second quarter, helping drive record results and a full-year forecast raise as demand grows for secure IT asset disposition and data center decommissioning services.
The ALM segment posted $153 million in revenue for the quarter ended June 30, up 70% from the prior year. Organic growth hit 42%, with strength in both the enterprise and data center channels. CFO Barry Hytinen said volume was the main growth driver, supported by a late-quarter pricing tailwind and synergies from recent acquisitions, including Regency Technologies, APCD and Wisetek.
Recent customer wins include a global consulting firm that selected Iron Mountain for secure IT asset disposition in Canada, a global food company that awarded the firm a 1,500-location contract in France and a series of decommissioning assignments in the U.K. and North America, including a hyperscale client seeking reuse and remarketing of retired racks and equipment.
Executives said Iron Mountain’s ability to offer a range of disposition services, from on-site destruction to resale and recycling, remains a key differentiator for clients with complex compliance and security needs.
“We can do everything either on site or we can remove it from their site with very secure chain of custody,” CEO William Meaney said during the company’s earnings call on Wednesday. “Some customers want more destroyed and less reused. Others want the opposite. We offer a full menu with the scale to support it globally.”
Hytinen estimated the total addressable market for data center decommissioning at $8 billion and the broader enterprise ITAD market at $22 billion, both highly fragmented and underpenetrated. He said Iron Mountain’s global presence, regulated-industry relationships and secure chain-of-custody capabilities positioned it well to continue gaining share.
Broader financial results also beat expectations, with the Boston-based information management and data services firm reporting $1.71 billion in total revenue, up 12% from the prior year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 15% to $628 million, while adjusted funds from operations (AFFO) climbed 15% to $370 million. AFFO per share rose to $1.24, compared with $1.08 a year ago and $1.17 in the first quarter.
While the company posted a net loss of $44.9 million due to foreign exchange rate impacts on intercompany balances, Hytinen said the impact was non-recurring and isolated. “Our team executed very well in the second quarter, delivering another record performance across all of our key financial metrics,” he said. “We exceeded our projection for the second quarter by $32 million, driven by strength in our ALM business.”
Iron Mountain now expects full-year 2025 revenue to fall between $6.79 billion and $6.94 billion, up from a prior forecast of $6.74 billion to $6.89 billion. Adjusted EBITDA is projected at $2.52 billion to $2.57 billion, while AFFO per share is expected to range from $5.04 to $5.13, up from an earlier estimate of $4.95 to $5.05.
Digital and physical storage platforms continue to deliver
Physical storage revenue rose 9% year over year to $1.01 billion, supported by both volume and pricing gains. Service revenue, which includes Iron Mountain’s digital, ALM and data center operations, increased 14% to $702 million. Meaney said the company’s growth strategy is unfolding as planned, with newer businesses scaling up and records storage delivering steady, long-term growth.
“Our double-digit growth reflects continued successful execution of our strategic priorities,” he said. “We are delivering AI-powered digital solutions across industry verticals, growing our data center business on a global basis and accelerating growth in our Asset Lifecycle Management business.”
The company’s data center business also posted strong results, with revenue up 24% to $189 million. Organic storage rental growth came in at 26%. Iron Mountain brought 23 megawatts of capacity online during the quarter and renewed leases totaling 25 megawatts, with pricing spreads of 13% on a cash basis and 20% on a generally accepted accounting principles basis.
Although leasing activity was slower than expected in the first half, executives said customers were focused on building large language model campuses, facilities that fall outside Iron Mountain’s immediate scope but may yield decommissioning work down the line. Meaney said interest is now picking up in AI inference and cloud infrastructure deployments in markets such as Northern Virginia, Richmond, Amsterdam, Chicago and Madrid.
For the third quarter, Iron Mountain expects revenue of about $1.75 billion, adjusted EBITDA of more than $650 million and AFFO of approximately $385 million, or $1.28 per share. The company reaffirmed its dividend of $0.785 per share, payable in early October.
“We have a significant runway for growth and remain focused on driving double-digit revenue growth over many years,” Hytinen said. “All of our businesses are continuing to see improving trends in margin and we are very pleased with the level of flow-through.”