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Iron Mountain (IRM)
NYSE:IRM
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Iron Mountain
(NYSE:IRM)
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Rating:58Neutral
Price Target:
$110.00
▼(-0.26% Downside)
Action:ReiteratedDate:02/14/26
The score is held back primarily by elevated financial risk (high and rising leverage, negative equity, and negative free cash flow) and a stretched P/E, while strong multi-year guidance and clear operating momentum (especially data centers/ALM) provide meaningful support. Technically, the trend is strong but appears overbought, tempering the near-term outlook.
Positive Factors
Data center scale & land bank
A ~400 MW land bank and plans to lease 100+ MW in 2026 underpin sustained, high-single to double-digit data-center revenue growth. Converting capacity into long‑term leases with hyperscalers creates durable, contracted cash flows and strategic scale that materially diversifies revenue mix.
Asset Lifecycle Management (ALM) acceleration
ALM’s rapid, above-market growth and expanding Fortune 1000 customer base reflect strong product-market fit. As a higher-growth, higher-margin services line, ALM structurally increases recurring revenue, client stickiness, and cross-sell opportunities, improving long-term margin mix.
Durable physical storage franchise
A multi-decade record of organic rental growth and a nearly $5B storage base deliver annuity-like revenue and high customer retention. This steady, recurring cash flow stream provides a conservative earnings foundation that supports investment in growth businesses and dividend sustainability.
Negative Factors
High and rising leverage
Debt rising to ~$18.7B and negative equity in recent years leaves a thin capital buffer. Elevated leverage reduces financial flexibility, raises refinancing and covenant risks in a higher-rate environment, and limits the firm's ability to absorb shocks or opportunistically pursue large M&A without external funding.
Persistent negative free cash flow
Consistent negative free cash flow despite rising operating cash generation implies capital spending outstrips internal funding. This structural cash shortfall increases reliance on capital markets or asset sales to fund growth, complicates de‑leveraging, and elevates medium‑term liquidity risk if market access tightens.
Heavy growth CapEx & execution dependence
Large, front‑loaded data‑center capex requires disciplined pre‑leasing and hyperscaler demand to be accretive. Execution or leasing shortfalls would leave underutilized assets, strain cash flow and leverage metrics, and could force slower growth or costly financing, increasing medium‑term operational risk.
Iron Mountain (IRM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.31B
Dividend Yield3.98%
Average Volume (3M)2.02M
Price to Earnings (P/E)218.0
Beta (1Y)1.00
Revenue Growth10.88%
EPS Growth51.13%
CountryUS
Employees28,850
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.61
Shares Outstanding295,835,200
10 Day Avg. Volume2,423,687
30 Day Avg. Volume2,015,961
Financial Highlights & Ratios
PEG Ratio-8.61
Price to Book (P/B)-24.98
Price to Sales (P/S)3.55
P/FCF Ratio-26.30
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue7.50
Enterprise Value/Gross Profit13.55
Enterprise Value/Ebitda23.50
Forecast
1Y Price Target
$130.50Price Target Upside18.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Iron Mountain Business Overview & Revenue Model
Company DescriptionIron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services. Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across approximately 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts. Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.
How the Company Makes MoneyIron Mountain generates revenue through several key streams, primarily by charging clients for the storage and management of physical documents and digital assets. Its revenue model includes fees for offsite storage, which is billed on a per-box or per-pallet basis, and recurring charges for data management services. The company also earns revenue from its data center operations, providing secure and compliant environments for client data and IT infrastructure. Additionally, Iron Mountain has established significant partnerships with technology providers and enterprises, enhancing its service offerings and expanding its customer base. Other revenue streams include document shredding, digitization services, and consulting, all contributing to its overall earnings.
Iron Mountain Key Performance Indicators (KPIs)
Any
Revenue by Type
Highlights the different sources of revenue, helping investors understand the company's business model and which areas are driving growth or facing challenges.
Highlights the different sources of revenue, helping investors understand the company's business model and which areas are driving growth or facing challenges.
Data provided by:
The Fly
The FlyIron Mountain Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented strong and broad-based growth across multiple strategic businesses with record quarterly and full-year results, meaningful margin expansion, robust data center and ALM momentum, and confident multi-year guidance. Risks discussed include mix-driven gross margin effects, near-term EBITDA phasing, execution dependence on pre-leasing and hyperscaler demand, exposure to memory pricing for ALM remarketing, and sensitivity to FX and acquisition assumptions. Overall, the company emphasized operational execution, disciplined capital allocation, and a constructive backlog and pipeline that support continued double-digit growth.Q4-2025 Updates
Positive Updates
Record Quarterly and Full-Year Financial Performance
Q4 revenue $1.84B (+17% YoY reported; +15% constant currency; +14% organic). Full-year revenue $6.9B (+12% YoY). Adjusted EBITDA Q4 $705M (+17% YoY) and full-year $2.57B (+15% YoY). AFFO Q4 $430M (+17% YoY) and full-year $1.54B (+>15% YoY); AFFO per share $1.44 in Q4 (+16% YoY).
Data Center Momentum and Growth Outlook
Data center revenue +30% in 2025 (Q4 +39% YoY). Signed/leased 43 MW in Q4 and commenced 41 MW; renewals totaled 4 MW. Company expects >25% data center revenue growth in 2026, projects >$1.0B data center revenue in 2026 and anticipates leasing over 100 MW in 2026. Land bank of ~400 MW expected to energize over next 24 months.
Asset Lifecycle Management (ALM) Accelerating
ALM revenue +63% in 2025 (total) and +40% organic in 2025; Q4 organic ALM growth +56%. Q4 ALM revenue $190M (+70% YoY reported; +56% organic). Enterprise ALM organic growth expected >20% in 2026. ALM revenue guidance for 2026: $850M (~+35% YoY). Fortune 1,000 customers using ALM increased from 270 to 360.
Digital Solutions Expansion (DXP)
Digital revenue eclipsed $500M in 2025 (all-time high) with another year of double-digit growth. Number of DXP deals in Q4 was all-time high and average deal value more than doubled vs prior year. Recurring business now >40% of digital revenue and pipeline growing.
Growth Portfolio Contribution
Data center, ALM, and digital collectively grew >30% in 2025 to nearly $2.0B in revenue, accounted for two-thirds of total growth and contributed ~8 percentage points to consolidated growth.
Physical Storage Franchise Stability
Nearly $5.0B physical storage business grew at mid-single digit rate in 2025; 37th consecutive year of organic storage rental revenue growth. Total storage revenue in Q4 $1.0B (+13% YoY).
Margin and Expense Improvements
Adjusted EBITDA margin reached 38.3% in Q4 (highest reported to date) and enterprise adjusted EBITDA increased 15% in 2025 with margin improvement of ~90 basis points. Services gross margin up >100 bps YoY and +350 bps sequentially. Lowest SG&A expense ratio in many years.
Strong Guidance for 2026
2026 guidance: revenue $7.625–7.775B (midpoint +12% YoY); adjusted EBITDA $2.875–2.925B (midpoint +13% YoY); AFFO $1.705–1.735B (midpoint +12% YoY); AFFO per share $5.69–5.79 (midpoint +11% YoY). Five-year CAGRs implied >12% revenue and >13% EBITDA on like-for-like FX.
Capital Allocation and Balance Sheet
Quarterly dividend declared $0.864 (+10% YoY). Q4 growth CapEx $525M and recurring CapEx $43M. 2026 planned growth CapEx $2.0B and recurring CapEx $150M (~$1.8B+ to data centers). Net lease-adjusted leverage ended Q4 at 4.9x, lowest since pre-2014 REIT conversion.
Notable New Commercial Wins
Multiple large contract wins across geographies and verticals: Fortune 500 healthcare (RIM + ALM + governance), major UK government department (records management), global media archival deal (1,600+ high-value assets), Asia financial services DXP win (500M images/files metadata extraction), and ongoing ramp with Department of the Treasury.
Negative Updates
Services Mix Dilution Impacting Overall Gross Margin
Services penetration increased ~200 bps YoY and, because services have lower gross margins than storage, total gross margin was modestly down YoY due to mix despite services gross margin improving >100 bps YoY.
Quarter-to-Quarter Storage Variability
Total RIM storage revenue was slightly down QoQ; management cited a stronger U.S. dollar and lower data management revenue following an especially strong Q3 comp as causes, indicating some volatility in data management and FX sensitivity.
Near-Term EBITDA Growth Lags Revenue in Q1 2026 Guide
Q1 2026 guidance: revenue ~ $1.855B (+16% YoY) but adjusted EBITDA ~ $685M (+8% YoY), signaling near-term margin pressure or phasing effects despite overall annual margin expansion guidance.
Dependence on Hyperscalers and Pre-Leasing Execution
Data center growth expectations (100+ MW leasing in 2026 and large backlog) depend heavily on continued hyperscaler demand and successful pre-leasing before construction—execution and market shifts could impact outcomes.
ALM Pricing and Memory Market Exposure
Q4 ALM outperformance benefited from stronger-than-expected memory pricing (management noted $15–$20M upside vs prior guide). Continued reliance on favorable memory remarketing prices introduces revenue variability risk if market pricing softens.
Treasury Contract Ramp Uncertainty
Treasury contract recognized $6M revenue in Q4; management conservatively included $45M in 2026 guidance with expectation of >$100M in 2027. The multi-year ramp nature and outsourcing complexity create execution and timing risk.
CapEx Scale and Execution Risk
Large 2026 growth CapEx plan ($2.0B, ~ $1.8B+ to data centers) requires disciplined pre-leasing and project execution; higher-than-expected starts without pre-leases or delays could pressure cash flow and leverage.
Leverage Remains Elevated Despite Improvement
Net lease-adjusted leverage improved to 4.9x (lowest since pre-2014) but remains a meaningful capital structure consideration and could limit strategic flexibility if growth requires incremental leverage.
Acquisition Contribution and Integration Needs
Recent ALM acquisitions (Premier Surplus and ACT Logistics) contributed ~$14M in Q4; continued M&A in ALM is expected but integration and achieving targeted synergies remain execution items.
FX and Acquisition Assumptions Embedded in Guidance
2026 guidance assumes ~ $75M FX tailwind and ~$45M revenue from last year’s acquisitions; outcomes are sensitive to currency moves and realized acquisition contributions.
Company Guidance
Guidance summary: For full-year 2026 Iron Mountain guided revenue of $7.625–$7.775 billion (≈+12% YoY at the midpoint; ~+10% organic constant-currency), adjusted EBITDA of $2.875–$2.925 billion (+13% at the midpoint), AFFO of $1.705–$1.735 billion (+12% at the midpoint) and AFFO per share of $5.69–$5.79 (+11% at the midpoint). First-quarter targets are revenue ≈$1.855 billion (+16% YoY; +12% organic cc), adjusted EBITDA ≈$685 million (+8% YoY) and AFFO ≈$425 million. Key segment calls: Global Data Center revenue is expected to exceed $1.0 billion in 2026 (>25% YoY) with plans to lease 100+ MW in 2026 and a 400 MW land bank (half expected to energize in ~18 months) supporting >25% data-center revenue growth in 2026 and another year of 20%+ growth in 2027; ALM is guided to ~$850 million (~35% YoY) with expanding margins; digital momentum continues after eclipsing $500 million in 2025 and recurring digital now >40% of digital revenue. Capital and balance-sheet items: 2026 growth CapEx $2.0 billion and recurring CapEx $150 million (slightly below 2025), FX is expected to benefit full-year revenue by ≈$75 million, last year’s acquisitions add ≈$45 million of revenue, like‑for‑like FX targets imply ≈$8.1 billion revenue and $3.0 billion EBITDA, net lease‑adjusted leverage ended Q4 at 4.9x and is expected to be similar at year‑end 2026, dividend set at $0.864/quarter (up 10% YoY) with a target payout in the low‑60s of AFFO per share, cash interest modeled ≈$905 million and cash taxes assumed up ≈$20 million, and no restructuring charges are planned.Iron Mountain Financial Statement Overview
Summary
Operating fundamentals are solid (steady revenue growth and improving EBITDA margins), but the financial profile is constrained by very high leverage with negative equity and a recent stretch of negative free cash flow, which elevates funding and refinancing risk.Income Statement
Revenue has grown steadily over the past several years, accelerating to ~3.9% in 2025, and operating profitability remains solid with EBITDA margins in the low-to-mid 30s (improving in 2025 versus 2024). However, bottom-line profitability has weakened materially: net margin fell to ~2.1% in 2025 from ~10–11% in 2021–2022, indicating heavier non-operating costs and/or depreciation/interest pressure. Overall, the core business looks resilient, but earnings quality at the net income line has deteriorated.67
Positive
Balance Sheet
Leverage is high and rising, with total debt increasing from ~$11.0B (2020) to ~$18.7B (2025). A key concern is negative equity in 2024–2025, which signals a thin capital buffer and makes leverage metrics less meaningful (and riskier) despite the company’s sizable asset base. This balance sheet profile leaves less flexibility in a higher-rate environment and increases reliance on stable operating performance and ongoing capital market access.32
Negative
Cash Flow
Operating cash flow has grown (from ~$0.99B in 2020 to ~$1.34B in 2025), supporting the stability expected of a specialty REIT. The major weakness is consistently negative free cash flow in 2023–2025 (and worsening in 2025), implying elevated reinvestment/capital spending needs and/or heavier cash outlays that are not being covered by operating cash generation. This raises funding risk, particularly alongside the high debt load.41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.90B | 6.15B | 5.48B | 5.10B | 4.49B |
| Gross Profit | 1.77B | 3.45B | 3.12B | 2.91B | 2.60B |
| EBITDA | 2.08B | 1.91B | 1.62B | 1.87B | 1.75B |
| Net Income | 144.59M | 180.16M | 184.23M | 556.98M | 450.22M |
Balance Sheet | |||||
| Total Assets | 21.13B | 18.72B | 17.47B | 16.14B | 14.45B |
| Cash, Cash Equivalents and Short-Term Investments | 158.53M | 155.72M | 222.79M | 141.80M | 255.83M |
| Total Debt | 19.05B | 16.37B | 14.79B | 13.29B | 11.70B |
| Total Liabilities | 21.77B | 18.94B | 17.08B | 15.41B | 13.52B |
| Stockholders Equity | -981.01M | -503.12M | 211.65M | 636.67M | 855.95M |
Cash Flow | |||||
| Free Cash Flow | -931.63M | -657.24M | -231.53M | 44.11M | 134.53M |
| Operating Cash Flow | 1.34B | 1.20B | 1.11B | 927.70M | 758.90M |
| Investing Cash Flow | -2.57B | -2.14B | -1.44B | -1.66B | -473.31M |
| Financing Cash Flow | 1.27B | 876.75M | 425.67M | 639.21M | -220.81M |
Iron Mountain Technical Analysis
Positive
110.29
Price Trends
91.07
Positive
93.62
Positive
94.68
Positive
Market Momentum
5.43
Negative
74.14
Negative
91.09
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRM, the sentiment is Positive. The current price of 110.29 is above the 20-day moving average (MA) of 98.62, above the 50-day MA of 91.07, and above the 200-day MA of 94.68, indicating a bullish trend. The MACD of 5.43 indicates Negative momentum. The RSI at 74.14 is Negative, neither overbought nor oversold. The STOCH value of 91.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IRM.
Iron Mountain Risk Analysis
Iron Mountain disclosed 39 risk factors in its most recent earnings report. Iron Mountain reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Iron Mountain Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $13.54B | 31.45 | 57.04% | 4.90% | 3.04% | -14.88% | |
71 Outperform | $90.81B | 67.18 | 9.75% | 2.47% | 5.36% | -1.68% | |
69 Neutral | $87.37B | 29.76 | 77.38% | 3.76% | -5.33% | 163.89% | |
67 Neutral | $21.04B | 24.86 | ― | 2.31% | 4.82% | 25.24% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
58 Neutral | $31.31B | 217.98 | ― | 3.98% | 10.88% | 51.13% | |
55 Neutral | $38.07B | 18.92 | ― | 5.44% | -26.56% | -369.24% |
* Real Estate Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.