Iron Mountain Reports Record Q1 Revenue and Growth

Iron Mountain ((IRM)) has held its Q1 earnings call. Read on for the main highlights of the call.

Iron Mountain’s latest earnings call revealed a strong performance for the first quarter, characterized by record revenue and growth across key segments. Despite some challenges in leasing activity and flat pricing in their Asset Lifecycle Management (ALM) business, the overall sentiment was positive, bolstered by significant customer wins and an increased financial guidance.

Record-Breaking Revenue and Growth

Iron Mountain reported an all-time high quarterly revenue of $1.6 billion, marking an 8% increase year-over-year. The company also achieved a record first-quarter adjusted EBITDA of $580 million, which is a 12% rise compared to the previous year. This robust financial performance underscores the company’s strong market position and operational efficiency.

Strong Performance in Key Business Units

The company’s growth businesses, including data center, digital solutions, and asset lifecycle management, collectively expanded by more than 20% during the quarter. Additionally, the traditional records business achieved record results, highlighting Iron Mountain’s ability to sustain growth across diverse business lines.

Significant Customer Wins and Cross-Selling Success

Iron Mountain secured several key contracts in records management and ALM, enhancing customer value and cross-selling opportunities. Noteworthy deals include a 10-year contract in the UK and a substantial order from the Department of Treasury valued at approximately $140 million.

Data Center Segment Surge

The data center segment experienced a revenue growth of over 20% year-over-year, with a 24% organic storage growth. New commencements totaled 12 megawatts, and the business anticipates a total of 125 megawatts in new leasing, indicating a strong future pipeline.

Asset Lifecycle Management Growth

The ALM business reported a 44% revenue growth, including 22% organic growth. The acquisition of Premier Surplus is expected to contribute approximately $10 million to the full-year results, further strengthening this segment.

Challenges in Leasing Activity

Despite the overall positive performance, the leasing activity in the data center business was notably low for the last three quarters, with no new hyperscale contracts signed in the first quarter. This presents a potential challenge for future growth in this segment.

Flat to Slightly Down Pricing in ALM

The ALM business faced flat to slightly down pricing downstream, which could impact future revenue projections. This pricing trend is an area of concern that the company will need to address to maintain its growth trajectory.

Forward-Looking Guidance

Iron Mountain’s forward-looking guidance remains optimistic, with the company projecting total revenue for 2025 in the range of $6.74 billion to $6.89 billion and adjusted EBITDA between $2.505 billion and $2.555 billion. This outlook is driven by continued strong performance and a positive market environment, reflecting confidence in sustained growth.

In conclusion, Iron Mountain’s earnings call highlighted a strong start to the year with record-breaking financial results and significant growth across key business units. While challenges in leasing activity and pricing in the ALM segment exist, the overall sentiment remains positive, supported by strategic customer wins and an optimistic financial outlook.