Iron Mountain Q1 2026 Earnings Report

Iron Mountain EPS Results

• Actual EPS: $0.60
• Consensus EPS: $0.50
• Beat/Miss: Beat by +$0.10
• One Year Ago EPS: $1.17

Iron Mountain Revenue Results

• Actual Revenue: $1.94 billion
• Expected Revenue: $1.86 billion
• Beat/Miss: Beat by +$74.54 million
• YoY Revenue Growth: +21.50%

Iron Mountain Announcement Details

• Quarter: Q1 2026
• Date: 4/30/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, April 30, 2026
• Conference Call Time: 8:30AM ET

Iron Mountain (NYSE:IRM) (NYSE: IRM) is a global information management and data center services company. It helps organizations protect, manage and access physical and digital information, including business records, documents, backup media and other critical assets.

The company provides records storage and retrieval, secure shredding and destruction, information governance, digitization, document management and data migration services. Iron Mountain also operates data centers and offers colocation, hybrid cloud and related infrastructure services. Its asset lifecycle management business supports the secure disposition and reuse of information technology equipment and other business assets.

Founded in 1951, Iron Mountain has expanded from its origins in records storage into a broader information and infrastructure services provider. The company serves customers across a wide range of industries and operates in more than 60 countries. William L. Meaney has served as Iron Mountain’s president and chief executive officer since 2013.

Iron Mountain Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Iron Mountain reported an exceptional Q1 with 22% year-over-year growth in revenue, adjusted EBITDA and AFFO, 17% organic growth (highest in 25+ years), and raised its full-year financial outlook.
• Positive Sentiment: Data center revenue grew 47%, with 22 MW leased in Q1 plus 10 MW in April (32 MW YTD), 400 MW of capacity to be energized over 24 months, and management now expects leasing to be meaningfully above its prior 100 MW guide.
• Positive Sentiment: Asset Lifecycle Management (ALM) revenue surged 92% (77% organic) driven by decommissioning and enterprise wins, and Iron Mountain raised ALM full-year revenue guidance to $950 million (+$100M).
• Positive Sentiment: Operational and cash metrics strengthened — record Q1 operating cash flow of $339M, adjusted EBITDA up 22% with margin expansion, AFFO up 22%, and net lease adjusted leverage improved to 4.8x, enabling higher retained cash flow guidance.
• Neutral Sentiment: Component/memory prices helped ALM results but have been volatile — prices rose, then moderated and stabilized; management says current levels align with guidance, but the pricing environment remains a potential source of variability.

Presentation

[Operator]

Good morning. Welcome to the Iron Mountain first quarter 2026 earnings conference call. I would now like to turn the conference over to Mark Rupe, Senior Vice President of Investor Relations. Please go ahead.

[Mark Rupe, SVP of Investor Relations at Iron Mountain]

Thanks, Rocco. Good morning, everyone, and welcome to our 1st quarter 2026 earnings conference call. Joining us today are Bill Meaney, our President and Chief Executive Officer, and Barry Hytinen, our Executive Vice President and Chief Financial Officer. After our prepared remarks, we'll open the lines for Q&A. Today's call will include forward-looking statements which are subject to risks and uncertainties. For a discussion of the major risk factors that could cause our actual results to differ from these statements, please refer to today's earnings materials, including the safe harbor language on slide two of the earnings presentation and our annual and quarterly reports on Form 10-K and 10-Q. Each of these items, as well as reconciliations of non-GAAP financial measures referenced during this call, can be found on our investor relations website. With that, I'll turn the call over to Bill.

[Bill Meaney, President and CEO at Iron Mountain]

Thank you, Mark, and thank you all for joining us today to discuss our first quarter results. As you saw in this morning's release, we are off to an incredibly strong start to 2026. Our first quarter results were exceptional, above our expectations, with 22% year-over-year growth for revenue, adjusted EBITDA, and AFFO. Our team's execution of our growth plans and consistent delivery of value to our customers continues to drive the record performance across our business. First quarter organic growth of 17% is the highest rate we've achieved in more than 25 years. The outstanding results were driven by our growth business of data center, ALM, and digital, which grew more than 50% in the quarter and now exceed more than 30% of our total revenue.

[Bill Meaney, President and CEO at Iron Mountain]

Our highly recurring physical record storage business delivered its best quarterly growth in years and is well on track to deliver its 38th consecutive year of organic storage rental growth. I'm also impressed with our commercial team's progress in accelerating cross-selling efforts in ALM and digital. We had a very strong quarter of bookings across the business, which sets us up well for the balance of the year. Following this strong performance and continuing the momentum into the second quarter, we are pleased to increase our full-year financial outlook. Let me now share some of the highlights from the quarter and the confidence this provides as we look to sustain industry-leading revenue and earnings growth in 2026 and beyond. Data center revenue increased 47% in the first quarter. Industry demand remains very strong, with hyperscalers continuing to build out inference and cloud capacity.

[Bill Meaney, President and CEO at Iron Mountain]

This has led to significant customer engagement across our portfolio, given our 400 MW of available to lease capacity energized over the next 24 months. We leased approximately 22 MW in the first quarter and another 10 MW in April, positioning us at 32 MW leased year-to-date. We drove substantial growth in our Asset Lifecycle Management business in the first quarter with a 92% increase in revenue. This was fueled by a strong showing in both our enterprise and decommissioning businesses, the latter of which was mainly pricing. Beyond the favorable component price environment, the underlying strength of our business is being driven by our compelling and differentiated customer value proposition, which continues to yield new customer wins and deeper expansion within our existing base. Our digital solutions business achieved record first quarter revenue, growing greater than 20% year-over-year.

[Bill Meaney, President and CEO at Iron Mountain]

We continue to win traditional projects and new contracts across industry verticals for DXP, our AI-powered digital solutions platform. We won another Google Partner of the Year this month for media and entertainment, adding to the 2018 Google Partner of the Year award for AI and machine learning. We also executed very well operationally. We drove expanded profitability across the business with adjusted EBITDA increasing 22%. We are still in the early phases of our long-term growth journey, our opportunity has never been more clear and tangible. We operate in large and growing markets with a $170 billion total addressable market, we continue to invest and execute growth strategies to fully capitalize on our opportunity. Let me share some recent wins that illustrate the strength of our synergistic business model and commercial momentum.

[Bill Meaney, President and CEO at Iron Mountain]

I want to start with providing an update on our government business. From the outset, we firmly believe that Iron Mountain was positioned to be a major beneficiary of efficiency and productivity efforts for governments across the world. Building on last year's important award from the Department of Treasury, I am pleased to share that first quarter bookings in the public sector were our second best in our company's history. We are significantly expanding our government business across the world and especially here in the U.S. Let me highlight two of these wins. For one agency, we will provide advanced digitization solutions to process millions of records, and we will also securely manage over 29,000 cubic feet of physical documents. For another agency, we are providing services for pathology operations, including storage and tracking claims folders.

[Bill Meaney, President and CEO at Iron Mountain]

We are just getting started, and the outlook for additional government wins is promising. Our positive trajectory is supported by the federal certification for our digital services suite through the achievement of FedRAMP High authorization for InSight. This will fundamentally shift our competitive stance for digital services within the U.S. public sector, allowing us to pursue high-value mission-critical workloads across the federal landscape. To be sure, our commercial momentum in recent wins extend far beyond the government sector. Let me share some other wins across our business. In records management, our insurance team signed a new deal with a Canadian insurance company to deploy our Smart Reveal solution, where we will process more than 1 million files currently stored with us. We also signed a new multi-year agreement with a global law firm to deploy our Smart Sort solution across six U.S. locations.

[Bill Meaney, President and CEO at Iron Mountain]

We will process more than 2 million files and onboard an additional 60,000 cubic feet of physical storage, ensuring the customer effectively manages its complex compliance and fiduciary requirements. In digital solutions, we won an important new multi-year agreement with a leading Brazilian clinical diagnostics firm. Iron Mountain's DXP platform, leveraging AI capabilities, will process over 20 million medical records. DXP will be fully integrated with the customer's systems to reduce manual efforts, eliminate errors, and ensure compliance for time-sensitive clinical results. We won a new contract with a U.S. healthcare center to improve patient data visibility. The win cuts across multiple lines of our services, including Smart Sort for more than 600,000 medical records and digital solutions for nearly 12 million images.

[Bill Meaney, President and CEO at Iron Mountain]

In our data center business, we cross-sold to an existing ALM decommissioning customer and leased to them our entire 16 MW Miami site as part of a 10-year contract to support expansion of its cloud platform. We also leased approximately 6 MW to enterprise customers in Q1. In April, we are pleased to have leased 10 MW in Amsterdam to a major global cloud player who is new to our portfolio and with whom we are having encouraging discussions regarding interest across our data center footprint. Turning to Asset Lifecycle Management business, we are uniquely positioned as the industry leader with strong competitive advantages, including our full-service capabilities, unmatched global scale, reputation for security, and ability to deliver exceptional value to our customers. This is translating into growth in the number and size of deals we are winning across our enterprise in our data center decommissioning business.

[Bill Meaney, President and CEO at Iron Mountain]

Let me highlight some of our wins. A new multi-year agreement with a global advertising company that consolidated its highly fragmented vendor base and selected Iron Mountain as its sole enterprise-wide ALM services partner. As part of the deal, we will manage and secure decommissioning and remarketing of IT assets across more than 30 countries. We cross-sold to one of our existing data center customers working to recycle and reuse 75,000 IT hardware items across the U.S., Europe, and APAC. We signed a multi-year agreement with a global technology leader to securely decommission, sanitize, and remarket 60,000 drives. In conclusion, our team is delivering exceptional results. We are still in the early phases of our tremendous long-term growth opportunity. Our set of services delivering differentiated value to our customers gives us high confidence in continued double-digit consolidated top and bottom-line growth across cycles.

[Bill Meaney, President and CEO at Iron Mountain]

I would like to express my gratitude to my global colleagues for their unwavering commitment to our customers. I especially want to thank our colleagues in the Middle East who demonstrate the best of the Mountaineer culture as they navigate a challenging time in keeping themselves and families safe whilst continuing to serve our customers in the region. The exceptional stewardship provided by our Mountaineers to more than 240,000 customers remains a cornerstone of our ongoing success. With that, I'll turn the call over to Barry.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Thanks, Bill. Thank you all for joining us to discuss our results. As you've heard this morning, we're off to a strong start to the year. Our team delivered record first quarter performance across all of our key financial metrics, underscoring the significant momentum we have in the business. In terms of the first quarter, revenue of $1.94 billion was up $344 million year-over-year. This was well ahead of the projection we provided on our last call, driven by continued strength across our business. As compared to last year, revenue increased 22% on a reported basis, 19% on a constant currency basis, and 17% on an organic basis.

[Barry Hytinen, EVP and CFO at Iron Mountain]

While the change in FX rates contributed approximately $40 million in revenue year-on-year, I would like to note that this was slightly below what we had assumed in our outlook as the dollar strengthened following our last call. Looking at the $80 million revenue upside in the quarter, this was driven by outperformance in our ALM, records management, and data center businesses. Total storage revenue was $1.1 billion, up $146 million or 15% year-on-year. Total service revenue was $841 million, up $197 million or 31% from last year. Adjusted EBITDA of $708 million increased $128 million or 22% year-over-year.

[Barry Hytinen, EVP and CFO at Iron Mountain]

This exceeded the projection we provided on our last call by $23 million, driven by the revenue upside and operational efficiency across the business. Adjusted EBITDA margin was 36.6%, an increase of 20 basis points from last year. Our margin performance was particularly impressive, especially when considering the substantial growth in our services revenue, which naturally drives a mix headwind. AFFO was $426 million, up $78 million. This represented an increase of 22% as compared to last year. AFFO on a per share basis was $1.43, up 22% to last year and was $0.04 ahead of the projection we provided on our last call. Now turning to segment performance.

[Barry Hytinen, EVP and CFO at Iron Mountain]

In our Global RIM business, first quarter revenue of $1.4 billion was a quarterly record and grew $148 million as compared to last year. Reported growth of 12% year-on-year was supported by 8% organic growth. This success was driven by strong performances in both our storage and services businesses. Sequential growth in Global RIM revenue was in excess of $30 million as compared to the fourth quarter. Performance was driven by revenue management, consistent positive volume trends, and sustained strength in our service business, where the team successfully completed some project work that carried over from late last year. Storage revenue growth was up 9% on a reported basis and up 6% on an organic basis.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Global RIM service revenue grew over 16%. The team delivered a strong organic growth in excess of 12%. This was driven by the continued strength of our core services and our fast-growing digital business. As you heard from Bill, we are significantly expanding our government business across the world and especially here in the U.S. As it relates to the multiyear Department of the Treasury contract, we recognized approximately $9 million of revenue in the first quarter. We continue to expect $45 million of revenue in 2026 and in excess of $100 million annually in 2027 and beyond. From a profitability perspective, Global RIM adjusted EBITDA increased $61 million to $618 million. This was an increase of 11% year-on-year with an adjusted EBITDA margin of 44%.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Turning to our global data center business, we achieved revenue of $255 million in the first quarter, an increase of $82 million or 47% year-on-year. Growth was driven by lease commencements, positive pricing trends, and customers ramping power faster than we expected. In the first quarter, we signed 22 MW of new leases, commenced 24 MW, and renewed 193 leases totaling 7 MW. I am also pleased to note that we have increased our future development capacity in Northern Virginia by 20% to 195 MW. Pricing remains strong with renewal pricing spreads of 12% and 14% on a cash and GAAP basis, respectively.

[Barry Hytinen, EVP and CFO at Iron Mountain]

First quarter data center adjusted EBITDA was $133 million, up $42 million year-on-year, resulting in adjusted EBITDA margin of 52.1%, 30 basis points below last year. As our clients continue to experience very strong growth in cloud and AI deployments, we are seeing their usage ramp faster. As we've discussed before, power is a pass-through item, and correcting for that, our data center margin was up 120 basis points year-over-year. Turning to Asset Lifecycle Management. Total ALM revenue was $232 million, an increase of $111 million or 92% year-over-year. On an organic basis, our team grew revenue $93 million or 77%.

[Barry Hytinen, EVP and CFO at Iron Mountain]

This was driven by greater than 100% organic growth in our data center decommissioning business and more than 45% organic growth in the enterprise channel. As it relates to our recent acquisitions, Premier Surplus and ACT Logistics continue to perform well, contributing $17 million of revenue in the quarter. From a profitability perspective, our team's execution led to significant ALM margin improvement year-over-year. I know there is a lot of interest in the price environment for memory, I want to provide some context. As we've discussed on prior calls, memory prices continued to trend higher in the quarter. In late March and early April, we saw prices moderate, over the last few weeks they have stabilized. At current levels, pricing is in line with our original guidance and meaningfully above last year.

[Barry Hytinen, EVP and CFO at Iron Mountain]

With that said, we are increasing our full year outlook for ALM revenue to $950 million. This is $100 million higher than our prior expectation with $40 million of ALM revenue upside delivered in the first quarter. The additional $60 million will be driven over the balance of the year by volume and data center decommissioning and growth in enterprise. I will note that the majority of that is reflected in our guidance for the second quarter. Turning to cash flow on a consolidated basis. First quarter operating cash flow was $339 million, up $141 million from last year. This marks the best first quarter operating cash flow the company has ever achieved. As we have discussed before, we expect retained cash flow to continue to expand meaningfully over the next several years.

[Barry Hytinen, EVP and CFO at Iron Mountain]

With our strong start to the year, we are raising our projection for retained cash flow to be at least $300 million ahead of last year. Turning to capital allocation, our focus remains on growing our dividend and investing in high-return opportunities that drive double-digit growth while maintaining our strong balance sheet. Our board of directors declared our quarterly dividend of $0.864 per share to be paid in early July. On a trailing 4-quarter basis, our payout ratio is now 61% in line with our target ratio of low 60s%. In terms of capital investments, in the first quarter, we invested $492 million of growth CapEx and $35 million of recurring CapEx. We continue to plan for full year CapEx to be slightly down from last year.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Turning to the balance sheet, with strong EBITDA performance, we ended the quarter with net lease adjusted leverage down slightly from last quarter to 4.8 times. This is the best performance we've had on this metric since prior to the company's re-conversion in 2014. Turning to our outlook for full year 2026. With the trajectory we are on, we have increased our financial guidance for the year. We now expect total revenue to be within the range of $7.825 billion-$7.925 billion, which represents year-on-year growth of 14% at the midpoint.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Relative to our prior guidance, we are raising revenue by $175 million at the midpoint with $80 million of the beat in the first quarter and $95 million driven by the improved outlook across our business for the balance of the year. I'd like to provide a little more context for the revenue increase. As I noted a moment ago, $100 million of that is driven by our ALM business. The remaining $75 million is driven by upside in records management, digital solutions, and data center, of which $40 million occurred in the first quarter. To be clear, we are using the same FX rates as we had in our prior guidance, so none of this increase is FX driven.

[Barry Hytinen, EVP and CFO at Iron Mountain]

We now expect adjusted EBITDA to be within the range of $2.925 billion-$2.965 billion, which represents year-on-year growth of 14% at the midpoint. Relative to our prior guidance, this is an increase of $45 million at the midpoint. We expect AFFO to be within the range of $1.735 billion-$1.755 billion, or $5.79-$5.86 on a per share basis. At the midpoint, this represents 13% growth and is an increase of $25 million for AFFO and $0.09 for AFFO per share relative to our prior guidance. Now turning to the second quarter, we expect revenue of approximately $1.965 billion, an increase of 15% to last year.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Adjusted EBITDA of approximately $715 million, an increase of 14% to last year. We expect AFFO of approximately $418 million or $1.40 per share. This represents an increase of 13% to last year. With that, I would like to thank all of our Mountaineers for delivering another quarter of outstanding performance. Our growth opportunity remains substantial, and our ability to capitalize on it is becoming more and more evident with each passing quarter. With that, operator, would you please open the line for Q&A?

[Operator]

Absolutely. Thank you. We will now begin the Question and Answer session. To ask a question, you may press star one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star two. We will limit analysts to one question, and you can rejoin the queue. At this time, we'll pause for just a moment to assemble our roster. Today's first question comes from Andrew Steinerman at JPMorgan. Please go ahead.

[Andrew Steinerman, Analyst at JPMorgan]

Hi. If you could just go over if there's any change of where you're spending, your CapEx, for the year. Do you feel like your data center growth in any way, is constrained, you know, in terms of your current CapEx plan?

[Bill Meaney, President and CEO at Iron Mountain]

Good morning, Andrew. Let me start with the growth on the data center side, and then I'll let Barry talk about what that the implications are for CapEx. I would say that we don't have any constraint on capital in terms of the growth of the data center side. First, you know, we're really pleased that as we're now coming into that window with 400 MW being energized of data center capacity in the next two years, is that we're really starting to see an uptick in leasing activity, but also the advanced discussions that we're having with a number of customers across our portfolio. You would have seen the 32 MW year to date now at the end of April.

[Bill Meaney, President and CEO at Iron Mountain]

If I add that to the advanced discussions that we're having with a number of customers across that 400 MW of portfolio, is we expect to be meaningfully above the 100 MW guidance that we gave for the year. I'll let Barry talk about from a capital. Again, it's, you know, it was kind of part of our plan, so we don't see any major ditch there.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Hi, Andrew. Bill kinda has covered it. I'll just reiterate that. The CapEx expectation we're using continues to be slightly down from last year. That's just as you know, we're really not a speculative builder. The vast majority of what we're constructing is already pre-leased to fantastic high credit quality tenants with long duration leases. I'll reiterate something else I said last time, which is that the guidance we have for total capital is would predicate on leasing more than we guided to for the full year in terms of new leases. With the amount of runway we have with respect to MW energizing over the next couple of years, we feel really well-positioned as it relates to data center leasing going forward.

[Operator]

Thank you. Our next question today comes from Eric Luebchow with Wells Fargo. Please go ahead.

[Eric Luebchow, Analyst at Wells Fargo]

I appreciate you taking the question. I'm curious, Bill, in your comments around the new federal opportunities in your pipeline you seem to really highlight this quarter. Maybe you could, you know, give some quantification about how these new awards could impact, you know, either near term or longer term outlook, whether it's in digital solutions or in your records business. Secondarily, maybe just provide an update on the treasury contract. I think I know you're in ramp mode this year. Just wanted to confirm you're still expecting, I believe, $45 million this year and ramping into next year. Thank you.

[Bill Meaney, President and CEO at Iron Mountain]

Okay. Good morning, Eric. I appreciate the question. You know, as I said, we're really pleased. It's the second-highest bookings that we've had in a quarter on the government segment since we start being in the company, and we've been seeing this as a big opportunity. As you can expect, the nature of that business, this, not just this quarter, but in general, and I think I highlighted that in the couple of wins that we have, it's usually a blend, but more and more because it's efficiency driven, it's led with digital. It really is about transforming government operations. There is some exhaust sometimes, and I highlighted that in one of the wins is that we picked up some storage, which is, you know, which is also great.

[Bill Meaney, President and CEO at Iron Mountain]

The fundamental thrust or, you know, movement, if you will, is to actually drive more efficiency in government services and better service to their citizens. It's really much more of a digitally led. That's why we're really happy to have the FedRAMP high classification because it opens up the possibilities of where we can transform the government across the board. I think in terms of the, Barry said it in his remarks, but in terms of the IRS is, you know, $9 million in this quarter, which was in line with our, a little bit higher than what our expectation is, and we still see that $100 million next year, $45 million for this year.

[Bill Meaney, President and CEO at Iron Mountain]

The RAMP is partly driven by also onboarding people because, you know, we have to kind of go through that with the IRS, and it's a very measured, and I would say, well-structured program in terms of ramping the movement of some of this processing from the IRS into Iron Mountain, and of course, driving efficiency along the way.

[Operator]

Thank you. Our next question today comes from Tobey Sommer at Truist. Please go ahead.

[Tobey Sommer, Analyst at Truist]

Thank you. I was wondering if you could give some perspective on ALM and your footprint. Have you reached sufficient scale and breadth such that we're at a tipping point for you to be able to capture more significant wallet share?

[Bill Meaney, President and CEO at Iron Mountain]

Tobey, I'll start with kind of the footprint and then maybe Barry, you can talk about a little bit the wallet share that we're seeing across some of our customers, because as I noted in my remarks, we are seeing both broader and deeper on that aspect. I think we, you know, look, we're always trying to make sure that we can cover the globe with our 61 countries because we have customers in those 61 countries, and we are, you know, continuing to build that out very nicely.

[Bill Meaney, President and CEO at Iron Mountain]

I mean, there's still a few countries that we can't serve, but, you know, the win that I talked about, the advertising company, where, you know, they were highly fragmented across the globe, and we won that partly because we could serve them in 30 countries for all their enterprise devices, and with one person with a counterpart that they actually trusted to do it in a, in both a proper and efficient way. You know, we are seeing that the footprint that we have is driving considerable business now, but, you know, we're not in 61 countries yet, so there's still a little bit more. Barry, you might want to talk about the depth that we're seeing in terms of some of the customers once we bring them into the portfolio.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Yeah, Tobey, as we've discussed before, the enterprise business, we think, is a business that can build on itself for literally years, and we are seeing that continue to happen. Part of the guide up is that we've won some additional business, we're seeing continued ramping in the existing client base. I think we added something about, let's call it two dozen Fortune 1000 clients to our list in the ALM category as we continue to cross-sell and penetrate new accounts and new accounts on the ALM side that are cross-sold from the records business. We got a long trajectory on that. I will tell you we're still very under-penetrated with all of our clients. We tend to get a region or a specific flow and country from a client and then start building from there.

[Barry Hytinen, EVP and CFO at Iron Mountain]

That, I think, is a really, really powerful way for the business to continue to develop over time because it's growth to growth to growth and strength to strength. We are feeling quite good about the enterprise business and see it as a really long-term opportunity.

[Operator]

Thank you. Our next question today comes from Brendan Lynch with Barclays. Please go ahead.

[Brendan Lynch, Analyst at Barclays]

Great. Thanks for taking the question. In terms of your price increases that you typically roll out at the beginning of the year, can you just give us some color on how that process went this year? Especially given, in February and March, it was a time of kind of higher inflation expectations, and if that rolled through into the increases that you pushed out. Thanks.

[Bill Meaney, President and CEO at Iron Mountain]

Hi, Brendan. First, I guess I would say is that we focus our revenue management based on value, not what's going on in, like, CPI or PPI or anything of that sort. As we continue to deliver increasing levels of values to customer, we think, you know, that's how we manage the revenue management program. We've clearly been offering them services that you can't get from any competitor, whether it be our Smart Reveal, Smart Sort, the sorts of the Clean Start, the various programs we have, and together with, you know, cross-selling ALM. We can bring a solution to the clients that I think, you know, Their vote is kind of what it is, that they are continuing to choose us.

[Barry Hytinen, EVP and CFO at Iron Mountain]

We got to continue to win business every day and continue to satisfy our customers and delight them to justify revenue management. We're doing that. We see a long runway for additional revenue management actions over time of the, you know, mid-single plus kinda level that we've been talking about for some time. In the first quarter, we did implement revenue management actions kind of in the late January timeframe, the vast majority of them were in place for the first quarter. I will note, and you'll recall, that last year, our revenue management actions were a little bit more shifted such that the full benefit was in the second quarter. When you think about the comps year-over-year, there's a little bit of a harder comp in the second quarter for us on revenue management specifically.

[Barry Hytinen, EVP and CFO at Iron Mountain]

We also have, likely some revenue management cohort actions, not a huge amount, but some that will be coming in the second half, which will give us another incremental modest lift. You know, we generally focus on the full year in terms of revenue management targets, and you should be fully expecting it to be of the same order that we were achieving last year. I will also note that we, in light of some of the service offerings we've had and just the cadence of historic revenue management actions and the value we're delivering, we leaned into a little bit more revenue management actions on some of the service lines, which is obviously helping the growth and likely will be a incremental leg for us on the service side for some time.

[Operator]

Thank you. Our next question today comes from George Tong at Goldman Sachs. Please go ahead.

[George Tong, Analyst at Goldman Sachs]

Hi. Thanks. Good morning. In your data center business, you're targeting at least 100 MW of leasing in 2026. What portion of that is in active late-stage negotiations today, and what's a reasonable quarterly cadence?

[Bill Meaney, President and CEO at Iron Mountain]

Hi, George. Good morning, thanks for the question. As I said, we do expect based on the advanced discussions we're having with folks on top of the 32 MW we've done year to date to be meaningfully ahead of our original guide for 100 MW. As you can imagine, that, though these are hyperscale customers which are lumpy, so, you know, trying to predict where it's gonna land in a specific quarter, if you said to me for the rest of the year, I feel really good to be meaningful above the 100 MW, but to give you kind of a quarterly guide or cadence, these typically are larger contracts.

[Bill Meaney, President and CEO at Iron Mountain]

Based on the discussions we're having, and it's not in one site, as you can imagine, it's really across the globe from India all the way to Virginia, we're engaged in fairly advanced conversations. You can imagine also that given these are large contracts, if you know, these things go on for months, so advanced conversations is we're getting pretty close.

[Barry Hytinen, EVP and CFO at Iron Mountain]

George, the only thing I would add is that we continue to see pricing in all those markets be very strong, and returns are looking quite good on those, on those contracts that Bill's speaking to. If you look at the price that we just generated on new leases as compared to, I think, you know, the last couple of quarters, it's up nicely, think like double digits.

[Barry Hytinen, EVP and CFO at Iron Mountain]

We're pleased with the mix as well as the pricing.

[Operator]

Thank you. Our next question today comes from Jonathan Atkin at RBC Capital Markets. Please go ahead.

[Jonathan Atkin, Analyst at RBC Capital Markets]

Thanks. I was wondering if there was any kind of an update on India, and Web Werks and how that's kind of going. I wanted to also ask about just the ALM growth path. You hit on that in the earlier Q&A, but in terms of further inorganic opportunities as well as opportunities for ALM in, say, the large enterprise or even hyperscale category going forward. Thanks.

[Bill Meaney, President and CEO at Iron Mountain]

Good morning, Jon. Thanks for the question. I'll start with the Indian piece. Then maybe Barry can talk a little bit about the ALM, including how that's rolling out and also M&A on that. On the India side, the Web Werks, you know, it's fully integrated, as you know, that we actually now own 100% of it. We are really pleased with the team that we now have in place that we hired from a competitor in the Indian market. Then if you look at the portfolio that we have, I think you follow that market pretty closely, you can imagine

[Bill Meaney, President and CEO at Iron Mountain]

That's a market that we're in advanced discussions on a number of our assets in India. We feel really good about how we're positioned in the Indian market, and we're really pleased with how that acquisition has turned out now that it's fully under the umbrella of Iron Mountain now for just over a year now. It's about 13 months that we've owned 100% of that. With the new team that we've brought in place, who came with a lot of connections into the market and understanding of how to operate in India, I think we're feeling pretty good about it.

[Barry Hytinen, EVP and CFO at Iron Mountain]

Jon, I'll add that from an inorganic standpoint, we are continuing to certainly look. As we've said before, the ALM market is a very large TAM, and it is highly fragmented, and we're continuing to evaluate opportunities that could further our capabilities and increase our geographic reach. We are looking for tuck-ins here and there, and I expect that we will have some, but we never forecast deals as I think is the prudent way to handle things. We got a long list in the pipeline. We are working with quite a few very good operators as it relates to potential deals over time. Sometimes those take a little while, but, you know, we've managed to find some fantastic deals and partner up with some great teams that are helping us propel this kind of growth.

[Barry Hytinen, EVP and CFO at Iron Mountain]

I highlighted a couple of those on today's prepared remarks. I'll also note that we continue to see pricing for deals in the mid to upper single multiples of EBITDA. That's pre-synergy. All of the deals we've done over the last couple of years have synergized down rapidly to like sub 5 times. We feel very good about the platform and the opportunity to continue to build. I would say you asked about how hyperscale might continue to flow. Look, obviously, the hyperscale business grew even faster than the enterprise business. I mean, the enterprise business, just to reiterate, grew 45% on an organic basis. Very strong growth coming out of both sides of the business.

[Barry Hytinen, EVP and CFO at Iron Mountain]

We do expect the hyperscale business to be a little bit higher as a percentage of the total ALM business this year, just in light of the trajectory we're seeing. I think we've been prudent about how we're forecasting the pricing in light of what's been going on specifically in memory. I'll just note, we also do tend to do some project-oriented work, as I've said before, in the ALM hyperscale side, and that can be somewhat lumpy. We did some of that work a couple of the quarters last year, including in the first quarter. There was a good-sized project-oriented business, piece of business.

[Barry Hytinen, EVP and CFO at Iron Mountain]

This year, we really haven't had a large project item, and I'm not forecasting any, but there are clients that are looking for things with a quick turn, and we have the ability to do that. The business is flowing really well, and we feel very good about the long-term opportunity at ALM, Jon.

[Operator]

Thank you. Our next question comes from Shlomo Rosenbaum with Stifel. Please go ahead.

[Adam Borg, Analyst at Stifel]

Hi, this is Adam on for Shlomo. Meta recently announced they'll be extending the use of the life of non-AI servers in some cases to seven years due to server supply availability. How would a move like that in the industry impact the ALM business in your view? Thanks.

[Bill Meaney, President and CEO at Iron Mountain]

Thanks for the question. I'll start, and I'll also ask Barry to add further color on it. I think is, first of all, we've seen this trend with not just Meta, but a number of customers pushing out their renew cycles over the last couple of quarters, has the shortage of memory, which we've all witnessed and we've seen that reflected in our results, has come through. It's not so much about any other reason other than just the supply chain in terms of getting equipment.

[Bill Meaney, President and CEO at Iron Mountain]

I would say, though, that that has also seen a benefit for us is because we've seen more and more OEMs now asking for us to sell used memory that we're harvesting from other customers, which they're reintroducing into their new product supply chain, as, you know, as long as it has the right specification, the right performance. Because as we all know, electronics typically fails at the beginning of its life, not in the middle of its life. We're really, you know, pleased by that trend that we're seeing more and more of the products that we're harvesting or helping recycle is getting reintroduced in the new supply chain through the OEMs. The other thing I would say is we also have seen an uptick in some of the servicing. Barry alluded to kind of some of the projects we do.

[Bill Meaney, President and CEO at Iron Mountain]

Well, some of the projects we do, you can call it a project, is we have customers that say, you know, for help us to harvest some of the components out of their old servers and return those to them so that they can actually build out their new servers and new cloud look infrastructure. You know, it's a trend that we've seen over the last couple of quarters. I think we'll continue to see that trend, you know, stay pretty steady as, you know, the shortage of memory is expected to last a couple years. But it's turning out to be giving us some opportunities for our other service lines and also where we sell our recycled products. I don't know, Barry, if you have anything you want to add.

[Barry Hytinen, EVP and CFO at Iron Mountain]

I guess the only thing I would add is that if you look at the amount of infrastructure that the key clients in that part of our business have been deploying over the last 5 to 10 years and the ramp that you've seen in growth of data center infrastructure and higher value gear, there's a tremendous amount of growth year to year over the next several. I think, you know, modest changes with respect to useful life, we've seen that flex up and down over the last several years as we've been operating this business for quite some time now. You know, I don't think that kind of change is likely to slow down the growth. There's a lot of infrastructure over the next few years that needs to continue to be refreshed.

[Barry Hytinen, EVP and CFO at Iron Mountain]

The clients that we operate with, you know, they got a lot of gear coming as well in terms of new. We're feeling very good about the hyperscale side of the business.

[Operator]

Thank you. That concludes our question and answer session and the Iron Mountain first quarter 2026 earnings conference call. We thank you for attending today's presentation. You may now disconnect your lines and have a wonderful day.

Participants

Executives

• Barry Hytinen, EVP and CFO
• Bill Meaney, President and CEO
• Mark Rupe, SVP of Investor Relations

Analysts

• Adam Borg, Analyst at Stifel
• Andrew Steinerman, Analyst at JPMorgan
• Brendan Lynch, Analyst at Barclays
• Eric Luebchow, Analyst at Wells Fargo
• George Tong, Analyst at Goldman Sachs
• Jonathan Atkin, Analyst at RBC Capital Markets
• Tobey Sommer, Analyst at Truist