Iron Mountain reported record fourth-quarter and full-year 2025 results Thursday, marking its fifth consecutive year of double-digit returns, CEO Bill Meaney said during an earnings call.
The double-digit returns are driven by rapid growth in its data center and asset lifecycle management businesses.
Q4 2025 revenue rose 16.6% from a year earlier to $1.84 billion, while adjusted EBITDA increased 16.6% to $705.3 million. Adjusted funds from operations rose 16.8% to $429.7 million, or $1.44 per share.
Iron Mountain’s record growth has been driven by data center, asset lifestyle management and digital sectors, which grew more than 30% in 2025 to nearly $2 billion in revenue, Meaney reported.
“They accounted for two-thirds of our growth or 8 percentage points of growth on a consolidated basis. This growth portfolio provides an important tailwind in supporting our plan for double-digit top and bottom-line growth well into the future, which will only build as the growth portfolio continues to become a larger mix of the overall enterprise,” he said.
For the full year, revenue increased 12.2% to $6.90 billion. Adjusted EBITDA rose 15.1% to $2.57 billion and AFFO increased 14.6% to $1.54 billion, or $5.17 per share.
Data center revenue increased 39% in the fourth quarter, and the company said it expects data center revenue to exceed $1 billion in 2026.
“Our confidence in sustaining strong data center growth is supported by our current backlog, which we expect to drive more than 25% revenue growth in 2026. And on top of this, we expect another year of 20%+ growth in 2027,” Meaney said.
He said Iron Mountain anticipates leasing more than 100 megawatts in 2026, and he pointed to a land bank that includes 400 megawatts of available capacity expected to energize over the next 24 months.
Meaney also said leasing conversations accelerated late in 2025 and highlighted customer interest in Northern Virginia, Richmond, Madrid, London and India as the company pursues new deals and expansions.
ALM, which includes IT asset disposition and component remarketing, also marked record revenue. The company said ALM revenue rose 70% in the fourth quarter, and it forecast about $850 million in ALM revenue for 2026, representing roughly 35% year over year growth.
CFO Barry Hytinen said pricing strength in component remarketing contributed to the quarter’s outperformance and noted that adjusted EBITDA margin reached 38.3% in the period, a company record.
Iron Mountain’s legacy physical storage business continued to provide a large base of recurring revenue, with the company reporting an 11.1% increase in storage rental revenue in the fourth quarter. Meaney said the physical storage operation remained central to cross-selling efforts even as the company expands higher-growth lines.
Looking ahead, Iron Mountain projected 2026 revenue of $7.625 billion to $7.775 billion and adjusted EBITDA of $2.875 billion to $2.925 billion. AFFO is expected to range from $1.705 billion to $1.735 billion, or $5.69 to $5.79 per share.
The company also included $45 million of revenue tied to its Department of the Treasury contract in its 2026 outlook, and it said it expects that program to exceed $100 million in annual revenue beginning in 2027.
David Daoud, Principal Analyst of Compliance Standards and Resource Recycling contributor remarked, “Iron Mountain’s results show significant strength and momentum in ITAD, but the disclosures also reveal some structural vulnerabilities the company will need to watch closely.
“For instance, memory pricing alone created a $15-20 million quarterly swing, representing roughly 10% of ALM revenue moving on a single commodity category. The hyperscale segment, 40% of ALM revenue, remains project-based rather than contracted.
“For the ITAD industry, however, the earnings call provides concrete benchmarks for key metrics, from revenue growth rates and customer penetration data, to remarketing performance that scale players are achieving, as well as the vulnerabilities that come with commodity exposure and project-based revenue models.”
