IRON MOUNTAIN INC

Iron Mountain Incorporated is a global leader in information management services, trusted by more than 240,000 customers in 61 countries, including approximately 95% of the Fortune 1000. The company serves customers across an array of market verticals including commercial, legal, financial, healthcare, technology, insurance, life sciences, energy, business services, entertainment and government organizations. As of December 31, 2025, Iron Mountain was number 567 on the Fortune 1000 and is a constituent of the S&P 500 Index, the MSCI REIT index, and the FTSE EPRA Nareit Global Real Estate Index. The company has been organized and has operated as a REIT beginning with its taxable year ended December 31, 2014.

The company faces competition from numerous storage and information management services providers globally, as well as storage and information management services that are managed and operated internally by organizations. Competition for records and information customers is driven by factors such as pricing, reputation and reliability, the quality and security of storage solutions and the scope and scale of technology. While the majority of competitors operate in only one market or region, Iron Mountain believes it provides a differentiated global offering. The company also competes with numerous data center developers, owners and operators, and believes competition for data center customers is based on availability of power, security measures, location, connectivity and rental rates. In the ALM business, the company competes with both hyperscalers and individual corporate clients who manage their own asset recycling, disposition and management, in addition to external competitors.

The company generates revenue through storage rental revenues and service revenues. Storage rental revenues consist primarily of recurring periodic rental charges related to the storage of materials or data that are typically retained by customers for many years and revenues associated with data center operations. Service revenues include charges for handling of records, secure shredding, decommissioning and recycling of IT hardware, and digital solutions including scanning, imaging and document conversion services. A majority of revenue is recurring in nature, with contracted storage rental agreements in the Records Management business generally ranging from one to five years in length. As of December 31, 2025, the company stored more than 740 million cubic feet of physical volume and has consistently experienced strong customer retention levels. In the Global Data Center Business, lease durations vary by customer, with a weighted average lease expiration of 10.3 years as of December 31, 2025. Approximately 5% of customers currently buy from more than one of the company's business units, presenting a significant cross-sell opportunity.

The Global Records and Information Management Business segment includes Records Management, which stores physical records and provides information services, vital records services, courier operations, and the collection, handling and disposal of sensitive documents for customers in 61 countries. Data Management provides storage and rotation of backup computer media as part of corporate disaster recovery plans. Global Digital Solutions develops, implements and supports comprehensive storage and information management solutions for the complete lifecycle of customers' information, including the management of physical records, conversion of documents to digital formats and digital storage of information. In October 2025, the company launched version 2.0 of the Insight Digital Experience Platform, which offers enhanced content management and smart document processing with workflow tools and AI agents. Secure Shredding includes the scheduled pick-up of office records and is a natural extension of hardcopy records management operations. Media and Archive Services helps industry clients store, safeguard and deliver physical media and provides digital content repository systems. Consumer Storage provides on-demand, valet storage for consumers utilizing data analytics and machine learning.

The Global Data Center Business segment provides enterprise-class data center facilities and hyperscale-ready capacity to protect mission-critical assets and ensure the continued operation of customers' IT infrastructure. The world's most heavily regulated organizations have trusted Iron Mountain as a data center operator for over 20 years, with five of the largest global hyperscalers among its customers. As of December 31, 2025, the company operated 31 data centers across 21 global markets, either directly or through unconsolidated joint ventures, and had leased approximately 97% of the existing 488 megawatt capacity of its data centers. With a total potential capacity of 1,340 MW in land and buildings currently owned or operated, the company is among the largest global data center operators. Corporate and Other consists primarily of the ALM and Fine Arts businesses. ALM provides hyperscale and corporate IT infrastructure managers with services and solutions that enable the decommissioning, data erasure, processing and disposition, and recycling or sale of IT hardware and component assets. As of December 31, 2025, the company operated 34 ALM facilities across 8 global markets. Fine Arts provides technical expertise in the handling, installation and storing of art.

In 2025, the company completed its investments in Project Matterhorn, a global program designed to accelerate the growth of the business announced in September 2022. The company incurred approximately $574.4 million in Restructuring and other transformation costs related to Project Matterhorn since its inception. Total costs related to Project Matterhorn during the years ended December 31, 2025, 2024 and 2023 were approximately $195.9 million, $161.4 million, and $175.2 million, respectively. On September 10, 2025, the company completed a private offering of 1,200.0 million Euros aggregate principal amount of 4.75% Euro Senior Notes due 2034, with total net proceeds of approximately 1,188.0 million Euros (or $1,390.7 million) used to repay the 3.875% GBP Senior Notes due 2025 and a portion of outstanding borrowings under the Revolving Credit Facility. In December 2025, the company entered into an agreement to form the Iron Mountain Data Centers Arizona 3 JV, LP joint venture, resulting in an initial Noncontrolling interest of approximately $74.8 million.

Total revenues for the year ended December 31, 2025 were $6,901.737 million, an increase of 12.2% compared to $6,149.909 million in the prior year. Storage rental revenue was $4,052.510 million, up 10.1%, and service revenue was $2,849.227 million, up 15.5%. Net income was $152.254 million, compared to $183.666 million in the prior year, a decrease of 17.1%. Net income attributable to Iron Mountain Incorporated was $144.591 million, or $0.49 per diluted share, compared to $180.156 million, or $0.61 per diluted share, in the prior year. Adjusted EBITDA was $2,573.950 million, an increase of 15.1% compared to $2,236.380 million in the prior year, with Adjusted EBITDA Margin expanding 90 basis points to 37.3%.

The company expects continued total revenue and Adjusted EBITDA growth in 2026 as a result of its focus on new product and service offerings, cross-selling opportunities, innovation, customer solutions and market expansion in line with its growth strategies. Organic storage rental revenue growth is expected to be primarily driven by revenue management in the Global RIM Business segment, where volume is expected to be relatively stable in the near term, as well as by growth in the Global Data Center Business segment primarily driven by lease commencements. Organic service revenue growth is expected to be primarily driven by new and existing digital offerings, traditional records management services and services in the ALM business, all of which are expected to grow in the near term and benefit organic service revenue growth in 2026.

In the Records Management business, the company is focused on driving volume growth while capitalizing on revenue management opportunities as it enhances the value provided to customers through an expanded suite of global and integrated services. The company is a leading global provider of physical records management services and will seek to enhance its position in higher-growth markets such as Central and Eastern Europe, Latin America, Asia, the Middle East and Africa. In Digital Solutions, the company is focused on supporting customers' digital transformation needs as they navigate a complex regulatory environment and seek to gain access to their dark data, with the strategy underpinned by a persistent focus on best-in-class customer experience and continued delivery of innovative solutions such as the Insight Digital Experience Platform.

In the Data Center business, the company is focused on growing its data center operating portfolio by leasing unsold capacity to hyperscale customers across various global markets and completing construction and commencing data center leases entered into in prior periods. As of December 31, 2025, the company had 488 MW of leasable capacity with an additional 852 MW under construction or held for development. The company has matched 100% of the energy consumption in its data centers with clean energy annually since 2017, and its data center business is a founding signatory to the UN Compact on 24/7 Carbon-Free Energy, which seeks hour-by-hour matching of site consumption with local CFE by 2040. In the ALM business, the company is focused on broadening its customer base and increasing penetration with existing customers through cross-selling initiatives, expanded capabilities and select tuck-in acquisitions.

Excluding capital expenditures associated with potential future acquisitions, the company expects total capital expenditures of approximately $2,200.0 million for the year ending December 31, 2026. Of this, the company expects capital expenditures for growth investment of approximately $2,050.0 million and recurring capital expenditures of approximately $150.0 million.

The company's organic revenue growth has been positively impacted by its ability to effectively introduce, expand and monitor revenue management. If the company is not able to continue and effectively manage pricing, its results of operations could be adversely affected and it may not be able to execute on its strategic growth plan. The company continues to experience rising construction costs which reflect the increase in cost of labor and raw materials, as well as supply chain and logistical challenges. Unexpected disruptions to the supply chain, continued inflationary pressures or high interest rates, tariffs, delays in construction, limited financing availability, constrained supplies of new power, or changes in customer requirements could significantly affect the cost or timing of planned expansion projects.

The company's ability to attract and retain customers, particularly in its Global Digital Solutions business, depends on its ability to offer innovative products and services, including through developing or deploying emerging technologies such as AI. Some of the company's products, services and processes leverage AI, including both machine learning and generative AI, and the company continues to make investments in initiatives focused on the further development and deployment of these technologies. However, there is no assurance that the use or development of AI will enhance products or services or their marketability, improve operating results, or deliver anticipated benefits, and product development initiatives involving AI may be unsuccessful. The use of AI in product initiatives and offerings or services, or in internal business operations, may give rise to risks related to accuracy, bias, discrimination, intellectual property infringement, misappropriation or leakage of proprietary, confidential and personal information, defamation, data privacy, and cybersecurity.

Failure to execute the strategic growth plan may adversely impact financial condition and results of operations, as the company expects to invest in existing businesses including records and information management storage and services in higher-growth markets, data centers, digital solutions, ALM business and other complementary businesses, with initiatives involving significant risks and uncertainties. As of December 31, 2025, total long-term debt was approximately $16,544.5 million and stockholders' deficit was approximately $981.0 million, and this indebtedness could have important consequences including inability to satisfy obligations, limits on distributions to stockholders, and restrictions on flexibility in planning for changes in the business. The company's ability to remain qualified for taxation as a REIT involves the application of highly technical and complex provisions of the Code, and if the company fails to remain qualified for taxation as a REIT, it will be subject to federal income taxation at corporate income tax rates and will not be able to deduct distributions to stockholders when computing taxable income. The company's Global Data Center Business depends on providing customers with highly reliable facilities, power infrastructure and operations solutions, and service interruptions or significant equipment damage could result in difficulty maintaining service-level commitment obligations, with the company purchasing significant amounts of electricity and water for cooling from suppliers that are subject to environmental laws. The company's ALM business derives a significant portion of revenue from a limited number of clients and is tied to cyclical projects, with many purchasers of decommissioned IT asset components geographically concentrated, particularly in China, and if governments enact trade policies or environmental regulations that restrict or increase the cost of exporting IT assets into China, revenue from the sale of these assets may be negatively impacted.

Management's message emphasizes the completion of Project Matterhorn investments in 2025, which focused on transforming the operating model to a global operating model and enabled the development of a solution-based sales approach to optimize shared services and better serve customers' needs. The company's key strategic priorities include driving continued revenue growth in physical storage Records Management, delivering differentiated digital solutions that give transformative results to customers in terms of revenue, security and cost, supplying differentiated data center offerings through global scale and customer trust, and providing asset lifecycle management capabilities that are both economic and environmentally sustainable. Management expects continued total revenue and Adjusted EBITDA growth in 2026 as a result of the focus on new product and service offerings, cross-selling opportunities, innovation, customer solutions and market expansion in line with growth strategies.