What ATN International (ATNI) Said on Its Q3 Earnings Call

Key Points

• ATN expects 2026 adjusted EBITDA at the high end of or modestly above its $183 million–$193 million guidance, while keeping capital expenditure guidance at $105 million–$115 million. Third-quarter revenue was flat at $183 million and adjusted EBITDA was $50 million, despite the tower portfolio sale.
• International growth offset weakness in the U.S. International revenue rose 2% and segment adjusted EBITDA climbed 9%, while U.S. revenue declined 2%; management said tower-sale effects reduced quarterly rent revenue and added operating costs.
• Net income attributable to ATN stockholders rose to about $19 million from $4 million, though a foreign-entity tax benefit was nonrecurring. The company ended the quarter with $351 million in cash and a net leverage ratio of 0.94 times, down from 2.36 times at year-end 2025.

ATN International NASDAQ: ATNI expects full-year adjusted EBITDA to land at the high end of or modestly above its previous guidance range, after third-quarter revenue and adjusted EBITDA held steady despite the sale of its U.S. tower portfolio.

The telecommunications company reported third-quarter revenue of $183 million, flat from a year earlier, and adjusted EBITDA of $50 million. Chief Executive Officer Naji Khoury said international performance and continued improvement in the U.S. business, particularly in Alaska, helped offset the impact of the tower sale.

ATN had previously forecast 2026 adjusted EBITDA of $183 million to $193 million. It maintained its forecast for full-year capital expenditures, net of reimbursable spending, at $105 million to $115 million.

Profit Rises Despite Tower Sale Impact

Operating income increased 32% to $13 million, primarily because of lower depreciation and amortization and smaller losses on asset dispositions, Chief Financial Officer Carlos Doglioli said. Those factors partially offset higher service costs associated with the tower sale.

Net income attributable to ATN stockholders rose to approximately $19 million, or $1.09 per diluted share, from about $4 million, or $0.18 per diluted share, a year earlier. Doglioli attributed the improvement to higher operating income, lower interest expense and a larger tax benefit.

During the question-and-answer session, Doglioli said the third-quarter tax benefit was a nonrecurring item related to a foreign entity. He said ATN’s regular tax rate is between 15% and 20%, while annual cash taxes remain around $4 million to $5 million.

Adjusted EBITDA margin was 27.3%, unchanged from the prior-year quarter. Excluding the tower sale’s impact, adjusted EBITDA would have risen 6%, according to management.

International Growth Offsets U.S. Revenue Decline

International revenue rose 2% to $97 million, while segment adjusted EBITDA increased 9% to $36 million. The segment’s adjusted EBITDA margin expanded by 240 basis points to 37.4%.

Doglioli said growth in ancillary communications services and certain nonrecurring items in carrier services and mobility helped offset the previously disclosed loss of government support in the U.S. Virgin Islands. He said ATN faces one more quarter of unfavorable year-over-year comparisons related to that loss. Favorable operating expense timing also contributed to margin expansion.

In the U.S. segment, revenue fell 2% to $86 million. Growth in carrier services and fixed business revenue partially offset the tower sale’s impact and lower construction activity. Segment adjusted EBITDA was approximately $19 million, with a 21.7% margin, consistent with the second-quarter level after the sale.

Doglioli said the sale resulted in $1.4 million in foregone tower rent revenue and $1.5 million in additional operating costs during the quarter. He expects a similar impact in the fourth quarter. Additional tower-site closings could generate up to $30 million in proceeds over the next seven months, he said.

Competition and Subscriber Trends

Khoury said competition has intensified primarily in broadband and prepaid mobile services. He identified the U.S. Virgin Islands as a market with particularly heightened broadband competition, while noting that Starlink had not had a significant impact on ATN’s business so far, specifically in the Caribbean.

International postpaid subscribers increased 4%, while a billing system upgrade was the primary driver of a quarterly prepaid subscriber loss, Khoury said. The international high-speed broadband footprint, measured by homes passed, grew 4% from a year earlier.

In the U.S., high-speed broadband homes passed increased 4% and subscribers rose 7% year over year. Khoury said growth occurred in both Alaska and the Southwest, citing improved fiber uptake and penetration alongside lower customer churn.

Balance Sheet and Capital Spending

ATN ended the quarter with $351 million in cash, cash equivalents and restricted cash, while total debt declined to $538 million. Its net leverage ratio improved to 0.94 times from 2.36 times at the end of 2025, primarily reflecting debt reduction enabled by proceeds from the initial tower sale closing.

For the first nine months of 2026, operating cash flow fell to $77 million from $98 million a year earlier, primarily because of working capital timing. Capital expenditures were $66 million, up $5 million, while reimbursable capital spending declined to $35 million from $67 million amid variable timing for government programs.

Doglioli said ATN paid a quarterly dividend of $0.29 per share on October 9. The full $30 million authorized under its expanded share repurchase program remained available as of September 30.

About ATN International (NASDAQ:ATNI)

ATN International, Inc is a telecommunications company that provides wireless, broadband, wireline, and related communications services. Through its operating businesses, the company offers mobile voice and data, internet access, fixed-line telephone service, video, enterprise connectivity, and managed network solutions.

ATN focuses on serving rural, remote, and underserved communities where communications infrastructure may be limited. Its operations have included wireless and broadband networks in the United States, as well as telecommunications businesses in international markets such as Bermuda and the Caribbean.

The company was founded in 1987 and was formerly known as Atlantic Tele-Network, Inc It adopted the name ATN International to reflect the broader scope of its telecommunications operations.

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