ATN Sees 2026 EBITDA at High End or Above Range

ATN International Inc. (Nasdaq: ATNI) said it expects full-year 2026 adjusted EBITDA to finish at the high end, or modestly above, its previously communicated range of $183 million to $193 million, after international growth and improved operating leverage supported third-quarter profitability. The outlook includes a $7 million impact from the initial closing of the company’s U.S. tower portfolio sale.

For the three months ended September 30, revenue was essentially unchanged at $183.2 million. Adjusted EBITDA was also nearly flat at $50.0 million, with the adjusted EBITDA margin holding at 27.3%. GAAP operating income rose 32% to $12.9 million, while diluted earnings increased 500% to $1.09 per share.

The reported results reflected the effect of the tower transaction on ATN’s U.S. operations. Excluding the sale’s impact, the company said U.S. communications services revenue would have increased 1% and the segment’s adjusted EBITDA would have risen 2% year over year.

International operations drive growth

International Telecom revenue increased 2% to $96.9 million, supported by mobility, carrier services, fixed business services and other ancillary offerings. Those gains offset pressure from the end of a subsidy program in the U.S. Virgin Islands.

The segment’s adjusted EBITDA rose 9% to $36.3 million, while its margin expanded to 37.4% from 35.0% a year earlier. ATN attributed the improvement to higher revenue and favorable timing of operating expenses.

International high-speed broadband customers were flat year over year at approximately 133,000, while homes passed with speeds of at least 100 Mbps increased 4% to 274,000. Postpaid subscribers grew 4% to 65,000, but prepaid subscribers declined 4% to 314,000. Consumer services accounted for 69% of segment revenue.

Tower sale weighs on U.S. comparisons

U.S. Telecom revenue declined 2% to $86.3 million, and adjusted EBITDA fell 11% to $18.7 million. The segment’s adjusted EBITDA margin contracted to 21.7% from 24.0%, including a nearly $3 million impact from the tower portfolio sale. Carrier services revenue was also affected by the transaction, creating a more difficult year-over-year comparison.

The U.S. business continued to expand its broadband footprint. High-speed homes passed increased 4% to 259,000, and high-speed broadband subscribers rose 7% to approximately 6,000. Business and carrier services generated 75% of segment revenue. The presentation also identified more than $100 million of potential funding under the U.S. Broadband Equity, Access and Deployment program, without specifying the timing or certainty of awards.

Liquidity strengthens after tower transaction

ATN received $268 million of initial cash proceeds from the U.S. tower portfolio sale during the second quarter. At September 30, the company had $351.5 million of cash, cash equivalents and restricted cash, compared with total debt of $537.5 million. Its non-GAAP net leverage ratio stood at 0.94 times, down from 2.36 times a year earlier.

About 70% of outstanding debt was held at subsidiaries and was non-recourse to the parent. ATN also reported $237 million of available capacity under undrawn revolving credit facilities.

Cash flow from operations was $77 million for the first nine months of 2026, down from $98 million a year earlier, primarily because of working-capital timing. The company maintained its full-year capital expenditure outlook of $105 million to $115 million, net of reimbursable spending, as it continues targeted network investment and seeks to use available government funding.

ATN expanded its share-repurchase authorization to $30 million in July and said it has distributed $67 million in common dividends since 2022. The quarterly dividend was increased 5.5% in June 2026.

The company’s outlook remains subject to the completion of subsequent tower-sale closings and decisions on how to deploy the proceeds. Other uncertainties identified in the presentation include ATN’s ability to replace U.S. tower-related revenue, retain and expand its subscriber base, execute fiber expansion plans, manage network and operating costs, secure government funding, and address regulation, competition, supplier dependence, macroeconomic pressure and severe weather risks.