Iron Mountain Beats Expectations with 5% Topline Growth in Q2, Declares 5% Increase in Dividend

Iron Mountain Inc (NYSE: IRM) reported second-quarter FY23 revenue growth of 5% year-on-year to $1.36 billion, beating the consensus estimate of $1.35 billion.

Storage rental revenue grew 8% Y/Y to $810 million. Service revenue rose 2% Y/Y to $504 million.

The adjusted EBITDA margin expanded by 60 bps to 35.1%.

Adjusted EPS of $0.40 was in line with the consensus. Adjusted FFO per share improved by 1% Y/Y to $0.94. 

Iron Mountain held $149.5 million in cash and equivalents.

Dividend: The board declared a quarterly cash dividend of $0.65 per share, representing an increase of 5%.

"We are pleased to have delivered strong performance in the second quarter, resulting in all-time record Revenue and Adjusted EBITDA," said William L. Meaney, President and CEO of Iron Mountain. The resilience of our business model and the success of Project Matterhorn are fueling our sustained growth trajectory."

Outlook: Iron Mountain reiterated its FY23 revenue forecast of $5.5 billion-$5.6 billion versus the consensus of $5.54 billion.

It also reiterated adjusted FFO per share of $3.91-$4.00.

IRM Price Action: IRM shares traded lower by 0.71% at $61.20 on the last check Thursday.