ATN International Q2 2026 Earnings Report

ATN International EPS Results

• Actual EPS: N/A
• Consensus EPS: $0.12
• Beat/Miss: N/A
• One Year Ago EPS: N/A

ATN International Revenue Results

• Actual Revenue: N/A
• Expected Revenue: $183.20 million
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

ATN International Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Thursday, August 6, 2026
• Conference Call Time: 11:00AM ET

ATN International (NASDAQ:ATNI) (NASDAQ: ATNI) is a diversified provider of telecommunications services that operates through a combination of wireless, wireline and broadband networks. Headquartered in Beverly, Massachusetts, the company offers a range of voice and data solutions to residential, commercial and wholesale customers. Its core offerings include long-distance voice services, fixed-line telephony, broadband internet access and network infrastructure solutions.

Through its business segments, ATN delivers tailored communications products to underserved markets across the Caribbean, Latin America, parts of the Pacific and select rural regions of the United States. Its wireless division provides mobile voice and data services, while its wireline operations support local and long-distance service, Ethernet connections and IP-based solutions. The company also markets broadband internet, digital subscriber line (DSL) technology and equipment sales to address the growing demand for high-speed connectivity.

Founded in 1987, ATN has expanded its footprint primarily through strategic acquisitions and network build-outs, focusing on regions with limited competition and strong growth potential. Today, the company serves customers in territories such as Puerto Rico, the U.S. Virgin Islands, the British Virgin Islands, the Bahamas, the Cayman Islands, Guam and rural U.S. communities. Its international wholesale business further complements retail offerings by providing voice and data capacity to global carriers and enterprises.

ATN International is led by a management team with decades of experience in telecommunications operations and strategy. The company emphasizes network reliability, customer service and targeted investment in emerging markets, positioning itself as a specialist in delivering communications solutions where larger providers may have limited presence. Its board and executive leadership continue to guide ATN’s efforts to enhance service quality while pursuing growth through both organic projects and acquisition opportunities.

ATN International Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Adjusted EBITDA increased nearly 9% year over year to $49.7 million, while the margin expanded approximately 170 basis points to 27%, reflecting revenue growth and operating-efficiency initiatives.
• Positive Sentiment: The U.S. tower portfolio sale generated $268 million in initial cash proceeds, reducing net leverage to 0.91 times from 2.36 times at year-end 2025 and significantly improving liquidity and financial flexibility.
• Positive Sentiment: Management reaffirmed its 2026 outlook, including Adjusted EBITDA of $183 million to $193 million and net capital expenditures of $105 million to $115 million, while also expanding the share repurchase authorization to $30 million and raising the quarterly dividend 5.5%.
• Neutral Sentiment: Revenue rose only 2% to $184.5 million, with results affected by lower construction revenue, the loss of U.S. Virgin Islands subsidies, and approximately $1 million of recurring quarterly Adjusted EBITDA impact from the tower sale; management expects growth from fiber expansion, fixed wireless, and approximately $150 million of potential BEAD funding.

Presentation

[Operator]

Good day and thank you for standing by. Welcome to the ATN International Q2 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Michele Satrowsky, Head of Investor Relations. Please go ahead.

[Michele Satrowsky, SVP and Head of Investor Relations and Treasury at ATN International]

Thank you operator. Good morning, everyone. I'm joined today by Naji Khoury, ATN's Chief Executive Officer, and Carlos Doglioli, ATN's Chief Financial Officer. This morning, we'll be reviewing our second quarter 2026 results and reaffirming our 2026 outlook. As a reminder, we announced our 2026 second quarter results yesterday after the market closed. Investors can find the earnings release and conference call slide presentation on our investor relations website. Our earnings release and the presentation contain certain forward-looking statements concerning our current expectations, objectives, underlying assumptions regarding our future operations. These statements are subject to risks and uncertainties, that could cause actual results to differ from those described. Also, in an effort to provide useful information for investors, our comments today include non-GAAP financial measures.

[Michele Satrowsky, SVP and Head of Investor Relations and Treasury at ATN International]

For details on these measures and reconciliations to comparable GAAP measures, for further information regarding the factors that may affect our future operating results, please refer to our earnings release on our website at ir.atni.com or the 8-K filing provided to the SEC. I would now like to turn the call over to Naji.

[Naji Khoury, President and CEO at ATN International]

Thank you, Michele. Good morning, everyone. Before we turn to the slides, I would like to take a moment to share a high-level perspective after my first three months at ATN. During this time, I've had the opportunity to visit our markets, meet with team members, customers, stakeholders, and investors, spend meaningful time understanding the strength of our platform. What I have seen gives me a high degree of confidence in ATN's future. We have experienced management teams, capable operating organization, strong infrastructure assets, and customer relationships that have been built over many years. Like any other providers, we have room to improve and optimize our operations. Turning to slide three, our second quarter results demonstrate continued progress across the business. Our segments delivered positive revenue growth and Adjusted EBITDA growth while expanding Adjusted EBITDA margin by approximately 170 basis points year-over-year.

[Naji Khoury, President and CEO at ATN International]

This follows a 200 basis point year-over-year margin improvement in the first quarter and reflects the early benefit of our focus on operating discipline, execution, and profitable growth. Other highlights from the quarter include the initial closing on the U.S. tower portfolio sale and the receipt of $268 million in cash, which has significantly increased our liquidity, financial flexibility, and optionality. In addition, we entered into an agreement to sell certain U.S. spectrum licenses for up to $41 million, with the transaction expected to close in 2027. Lastly, most recently, the board expanded our share repurchase authorization to $30 million, reflecting our confidence in the outlook for the business, the strength of our financial position, and our commitment to disciplined capital allocation to create shareholder value. Turning on to the international segment on slide four.

[Naji Khoury, President and CEO at ATN International]

Across our international markets, we have a combination of stable operating platform and meaningful growth opportunities. Bermuda remains a stable and well-established market, while Guyana, the Cayman Islands, and the U.S. Virgin Islands offer attractive runways for continued fiber expansion, market share gain, and brand-led growth. In Guyana, we continue to see the benefits of a very dynamic economic environment. The country's oil and gas-driven expansion is supporting broader economic activity, we are beginning to see that translate into stronger demand for broadband services, improving penetration, and continued migration from prepaid to postpaid mobile subscribers. We are replacing legacy subscribers with fiber subscribers, and in more remote or lower density areas, we are using fixed wireless technology where it is the more efficient solution. The ability to deploy both fiber and fixed wireless gives us a flexible toolkit to serve customers and expand our addressable market.

[Naji Khoury, President and CEO at ATN International]

We currently cover more than three-quarters of households with fiber. In the Cayman Islands, we continue to expand our fiber footprint, increase penetration, and gain share across both the consumer and enterprise markets. We have had several important enterprise wins recently, we are pleased with the team's execution. In the U.S. Virgin Islands, we operate an HFC network and are beginning the process of upgrading portions of that network to fiber. This is an important modernization opportunity, we will continue to take a disciplined approach as we evaluate the pace and economics of that transition. In Bermuda, we concluded a memorandum of understanding with Google to become a strategic partner to facilitate access to their new subsea cables in Bermuda, which are expected to go live in the second half of 2027. Now turning to slide five.

[Naji Khoury, President and CEO at ATN International]

Our U.S. segment includes two distinct operating areas: Alaska and the Southwest, which includes New Mexico and the Four Corners region. These markets have different growth profiles, both are central to our strategy of modernizing infrastructure, expanding customer reach, and migrating customers from legacy networks to higher-speed technologies over time. Home pass growth in the U.S. segment is being driven by a combination of fiber deployment and fixed wireless technology. In both Alaska and New Mexico, we are also leveraging available government funding to further expand our footprint and bring high-speed connectivity to additional homes and businesses. I was recently in Alaska, the growth opportunity there is significant. The opportunity is centered on combining government-supported infrastructure funding with our own targeted investment to expand our reach and replace legacy copper infrastructure over time. We have already made meaningful progress, there is more work ahead.

[Naji Khoury, President and CEO at ATN International]

As we previously announced, we have appointed a new CEO, Courtland Maddock, for Alaska, who will begin in September. Today, most of our Alaska revenue comes from carrier and business customers, which provide a stable foundation. Looking forward, we see the growth opportunity is primarily in the residential market, where continued network expansion, copper replacement, and stronger commercial execution should support higher penetration over time. Similar opportunities exist across our Southwest markets, including New Mexico and the Four Corners region. There, we remain focused on expanding our fiber footprint and improving penetration as the network grows. We are actively constructing fiber this year under the series of government grants, and we believe this investment will strengthen our competitive position, improve service quality, and support long-term customer growth.

[Naji Khoury, President and CEO at ATN International]

Across both Alaska and the Southwest, we are particularly excited about the opportunities created by government broadband initiatives, including approximately $150 million BEAD funding available within our footprint later this year and into 2027. With our proven experience deploying and operating telecom infrastructure, we are well-positioned to capitalize on this program. We expect these funds to help reduce the cost of serving rural America while enabling fiber expansion to communities and businesses that have historically been uneconomical to reach, creating meaningful long-term growth opportunities. With that, let me turn it over to Carlos to discuss the financials.

[Carlos Doglioli, CFO at ATN International]

Thank you, Naji. Good morning, everyone. Let me walk you through the second quarter 2026 results and review our full-year outlook. Turning to slide six. Total revenue for the second quarter was $184.5 million, an increase of 2% year-over-year. Excluding the impact of reduced construction revenues and the expected loss of the subsidy in the U.S. Virgin Islands, revenue growth was 3% year-over-year. During the quarter, we saw top-line growth in both of our business segments and across multiple product lines. I'll walk through the segment details in the next few slides. Operating income for the quarter was $240 million, which reflects a $230 million gain related to the initial closing of our U.S. tower portfolio sale. Excluding this gain and the associated transaction-related charges of $6.3 million, we delivered operating income of approximately $16.1 million for the quarter.

[Carlos Doglioli, CFO at ATN International]

The $15.9 million improvement versus last year was driven by revenue growth, combined with lower expenses, including restructuring and reorganization, as well as depreciation and amortization. On the bottom line, we reported net income attributable to ATN stockholders of approximately $167 million, or $10.71 per share on a diluted basis, which includes the gain recorded on the U.S. tower portfolio sale. This compares to last year's second quarter loss of $7 million, or $0.56 per share. Adjusted EBITDA for the quarter was $49.7 million, up nearly 9% compared to the prior year period, with growth coming from both our international and U.S. segments. Total Adjusted EBITDA margin expanded to 27% in the quarter Reflecting the revenue growth and the benefits of our ongoing focus on operating efficiency. Let me turn now to segment performance, starting on slide seven.

[Carlos Doglioli, CFO at ATN International]

In our international segment, we continued to deliver steady year-over-year revenue growth and margin expansion. Total revenue increased 1.4% to $96 million, while Adjusted EBITDA rose 6.6% to $35.5 million. The associated Adjusted EBITDA margin expanded by 180 basis points to 36.9%. Excluding the impact of the expected loss of government support in the U.S. Virgin Islands, which expired at the end of 2025, international revenue grew approximately 3%. We saw growth in most revenue categories, which, combined with our efforts to improve operating efficiencies throughout the business, allowed us to expand our Adjusted EBITDA margin. Now turning to slide eight. In our domestic segment, revenue was $88 million, up a little over 2% year-over-year. Growth in carrier services, together with higher fixed-business revenue, more than offset the decline in construction revenue during the quarter and the impact of the initial closing of the tower portfolio sale in June.

[Carlos Doglioli, CFO at ATN International]

Excluding these two items, U.S. segment revenue increased 4% year-over-year, reflecting the continued strengthening of our core business. Adjusted EBITDA increased 4.5% year-over-year to $19 million, with margin expanding 50 basis points to 21.6%. The initial closing of the U.S. tower portfolio sale in early June resulted in reduced revenues of approximately half a million from lost tower rents. This, combined with a similar increase in costs, generated a net impact of approximately $1 million on Adjusted EBITDA. We expect a similar impact recurring in the remaining months of 2026, which is built into our outlook. Now turning to slide nine. Our liquidity and leverage at the end of the quarter benefited from the initial closing of the tower sale during June, which generated $268 million in cash proceeds.

[Carlos Doglioli, CFO at ATN International]

As previously announced, we continue to expect subsequent closings to occur over the next 10 months, with the potential for up to an additional $30 million in proceeds from remaining sites deferred at the initial closing. We used $68 million of the cash received at the initial close to pay off the amounts outstanding in the CoBank revolver facility and ended the quarter with $332 million in cash equivalents, and restricted cash, an increase of $215 million from year-end. Total debt declined to $513 million, and our net leverage ratio improved to 0.91 times from 2.36 times at the end of 2025. The reduction in leverage was driven by the transaction proceeds as well as 4% growth in our trailing four-quarter Adjusted EBITDA. As a reminder, approximately two-thirds of our outstanding debt sits at the subsidiary level and is non-recourse to ATN parent.

[Carlos Doglioli, CFO at ATN International]

For the first six months of the year, net cash from operating activities decreased by $6.3 million compared to the same period last year, primarily reflecting movements related to the tower sale. Turning to slide 10. Capital expenditures for the first six months of the year were $38.3 million, a $3.8 million decrease versus the same period last year. The reimbursable CapEx spend was $27 million versus $46 million last year, reflecting the variable timing of our government programs. As a reminder, our capital expenditure plans are managed on a full year basis, and while quarterly spending may fluctuate, we continue to expect capital expenditures for the year to remain within our guided range. Now turning to slide 11. During the quarter, we announced a 5.5% increase in our quarterly cash dividend to $0.29 per share.

[Carlos Doglioli, CFO at ATN International]

In late July, our board authorized an expansion of the share repurchase program to $30 million. These actions underscore our confidence in the long-term outlook for the business and our continued commitment to returning capital to shareholders. Turning now to slide 12 for our outlook for 2026. We reaffirm our full year 2026 Adjusted EBITDA to be in the range of $183 million-$193 million, which includes the impact of the initial closing of the U.S. tower portfolio sale. We also expect capital expenditures, net of reimbursable spending, to remain in the range of $105 million-$115 million for the year. Overall, the organization delivered another quarter of solid execution and continued to make meaningful progress against our strategic priorities, which remain improving margins, expanding cash flow generation, and maintaining a healthy balance sheet.

[Carlos Doglioli, CFO at ATN International]

With that financial overview, I will now turn the call to the operator to open it up for questions.

[Operator]

Thank you. At this time, we will conduct the question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile the Q&A roster. I'm showing no questions at this time. I would now like to turn it back to Naji for closing remarks.

[Naji Khoury, President and CEO at ATN International]

Thank you again for joining us today and for your continued interest in ATN. We look forward to connecting with many of you at upcoming conferences and to providing an update on our continued progress during our third quarter 2026 earning call in November. Thank you.

[Operator]

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Participants

Executives

• Michele Satrowsky, SVP and Head of Investor Relations and Treasury
• Naji Khoury, President and CEO
• Carlos Doglioli, CFO