ATN International NASDAQ: ATNI reported higher second-quarter revenue and adjusted EBITDA, citing growth across its international and U.S. operations, while a partial sale of its U.S. tower portfolio materially strengthened its cash position and reduced leverage.
Total revenue rose 2% year over year to $184.5 million in the second quarter. Excluding lower construction revenue and the expiration of a government subsidy in the U.S. Virgin Islands, revenue increased 3%, Chief Financial Officer Carlos Doglioli said.
Adjusted EBITDA increased nearly 9% from the prior-year period to $49.7 million, while adjusted EBITDA margin expanded to 27%. President and CEO Naji Khoury said the company’s segments delivered positive revenue and adjusted EBITDA growth, with consolidated margin improving by approximately 170 basis points year over year.
Tower Sale Drives Reported Profit and Improves Balance Sheet
ATN recorded operating income of $240 million during the quarter, primarily reflecting a $230 million gain associated with the initial closing of the U.S. tower portfolio sale. Excluding the gain and $6.3 million in transaction-related charges, operating income was approximately $16.1 million, Doglioli said.
Net income attributable to ATN stockholders was approximately $167 million, or $10.71 per diluted share, compared with a net loss of $7 million, or $0.56 per share, in the second quarter of the prior year. The reported profit included the gain from the tower transaction.
The initial tower-sale closing generated $268 million in cash proceeds. ATN used $68 million to repay amounts outstanding under its CoBank revolver facility and ended the quarter with $332 million in cash equivalents and restricted cash, up $215 million from year-end.
Total debt declined to $513 million, and the company’s net leverage ratio improved to 0.91 times from 2.36 times at the end of 2025. Doglioli said roughly two-thirds of ATN’s outstanding debt is at the subsidiary level and is non-recourse to the parent company.
ATN expects additional tower-sale closings over the next 10 months, with the potential for up to $30 million in further proceeds from sites deferred at the initial closing.
International Operations Expand Margins
International segment revenue increased 1.4% to $96 million, while adjusted EBITDA rose 6.6% to $35.5 million. Adjusted EBITDA margin expanded 180 basis points to 36.9%.
Excluding the impact of the U.S. Virgin Islands government support that expired at the end of 2025, international revenue grew approximately 3%, according to Doglioli.
Khoury said Guyana’s oil- and gas-driven economic expansion is supporting stronger broadband demand, rising penetration and continued migration of mobile customers from prepaid to postpaid plans. The company covers more than three-quarters of households in Guyana with fiber and is using fixed wireless in remote or lower-density areas where it is more efficient.
In the Cayman Islands, ATN is expanding its fiber footprint and gaining share in consumer and enterprise markets, including through several recent enterprise wins. In the U.S. Virgin Islands, the company is beginning to upgrade portions of its hybrid fiber-coaxial network to fiber, while taking what Khoury described as a disciplined approach to the pace and economics of the transition.
ATN also concluded a memorandum of understanding with Google to become a strategic partner facilitating access to Google’s new subsea cables in Bermuda, which are expected to go live during the second half of 2027.
U.S. Business Focuses on Fiber, Fixed Wireless and Government Funding
Revenue in ATN’s U.S. segment, which includes Alaska and the Southwest markets of New Mexico and the Four Corners region, increased slightly more than 2% year over year to $88 million. Growth in carrier services and fixed-business revenue more than offset lower construction revenue and the effects of the tower-sale closing.
Excluding construction revenue and the tower-sale effects, U.S. segment revenue grew 4%. Adjusted EBITDA rose 4.5% to $19 million, and adjusted EBITDA margin increased 50 basis points to 21.6%.
The tower-sale closing reduced U.S. segment revenue by about $500,000 from lost tower rents and increased costs by a similar amount, producing an approximately $1 million net impact on adjusted EBITDA. Doglioli said ATN expects a similar impact in the remaining months of 2026, which is included in its outlook.
Khoury said Alaska’s current revenue base is primarily derived from carrier and business customers, while the company sees its main growth opportunity in residential service. ATN plans to expand networks, replace legacy copper infrastructure and improve commercial execution to support higher residential penetration.
Across Alaska and the Southwest, the company is deploying fiber and fixed wireless technologies and pursuing government-supported broadband infrastructure opportunities. Khoury said approximately $150 million in Broadband Equity, Access, and Deployment, or BEAD, funding is expected to become available in ATN’s footprint later this year and into 2027.
Outlook Reaffirmed; Capital Returns Expanded
ATN reaffirmed its full-year 2026 adjusted EBITDA outlook of $183 million to $193 million, including the effects of the initial tower-portfolio sale closing. The company also maintained its expectation for capital expenditures, net of reimbursable spending, of $105 million to $115 million.
Capital expenditures totaled $38.3 million during the first six months of the year, down $3.8 million from the prior-year period. Reimbursable capital spending was $27 million, compared with $46 million a year earlier, which Doglioli attributed to the variable timing of government programs.
During the quarter, ATN increased its quarterly cash dividend 5.5% to $0.29 per share. In late July, its board expanded the company’s share-repurchase authorization to $30 million.
Khoury, who said he had spent his first three months as CEO visiting ATN’s markets and meeting employees, customers and stakeholders, said the company has experienced management teams, infrastructure assets and longstanding customer relationships. He said ATN remains focused on operating discipline, execution, profitable growth, margin improvement, cash-flow generation and balance-sheet health.
About ATN International (NASDAQ:ATNI)
ATN International, Inc 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.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider ATN International, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ATN International wasn't on the list.
While ATN International currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
Get This Free Report
