ATN International Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Total Revenue: $184.5 million, up 2% year-over-year; 3% growth when excluding reduced construction revenues and lost subsidies in the U.S. Virgin Islands.

Operating Income: $240 million, boosted by a $230 million gain from the U.S. tower portfolio sale; adjusted operating income at approximately $16.1 million (up $15.9 million year-over-year).

Net Income: $167 million, or $10.71 per share, compared to a loss of $7 million or $0.56 per share in Q2 2025.

Adjusted EBITDA: $49.7 million, up nearly 9% year-over-year, with an adjusted EBITDA margin of 27%, reflecting a 170 basis point improvement.

Liquidity: Cash and equivalents increased to $332 million, with total debt reduced to $513 million and a net leverage ratio improved to 0.91x.

2Strategic Updates and Business Highlights

Operational Improvements: Continued focus on operating discipline and profitable growth led to margin expansion across segments.

International Segment Growth: Revenue increased 1.4% to $96 million, with adjusted EBITDA rising 6.6% to $35.5 million. Notable growth in Guyana due to economic expansion and fiber deployment.

U.S. Segment Performance: Revenue at $88 million, up 2%, driven by carrier services and fixed business revenue despite declines in construction revenue.

Capital Allocation: Share repurchase program expanded to $30 million, and a 5.5% increase in quarterly cash dividend to $0.29 per share was announced.

Strategic Partnerships: A memorandum of understanding with Google for subsea cable access in Bermuda, expected to enhance service offerings.

3Forward Guidance and Outlook

2026 Adjusted EBITDA: Reaffirmed guidance of $183 million to $193 million, factoring in the impact of the tower portfolio sale.

Capital Expenditures: Expected to remain within the range of $105 million to $115 million for the year, with ongoing investments in fiber deployment and infrastructure modernization.

4Bad News, Challenges, or Points of Concern

Impact of Tower Sale: The initial closing of the U.S. tower portfolio sale has led to reduced revenues from lost tower rents, which is expected to recur in the remaining months of 2026.

U.S. Virgin Islands Subsidy Loss: The expiration of government support in the U.S. Virgin Islands is impacting revenue growth, with expectations of continued challenges in this market.

Net Cash from Operating Activities: Decreased by $6.3 million compared to the prior year, primarily due to movements related to the tower sale.

5Notable Q&A Insights

No questions were raised during the Q&A session, indicating a potential lack of immediate investor concerns or a focus on the presented information. Overall, ATN International reported a solid quarter with improved financial metrics, strategic growth opportunities, and a reaffirmed positive outlook, despite facing challenges related to market subsidies and the impact of asset sales.