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1. Company Snapshot

1.a. Company Description

Iron Mountain Incorporated (NYSE: IRM), founded in 1951, is the global leader for storage and information management services.Trusted by more than 225,000 organizations around the world, and with a real estate network of more than 90 million square feet across approximately 1,450 facilities in approximately 50 countries, Iron Mountain stores and protects billions of valued assets, including critical business information, highly sensitive data, and cultural and historical artifacts.Providing solutions that include secure records storage, information management, digital transformation, secure destruction, as well as data centers, cloud services and art storage and logistics, Iron Mountain helps customers lower cost and risk, comply with regulations, recover from disaster, and enable a more digital way of working.

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1.b. Last Insights on IRM

Iron Mountain Incorporated's recent performance faced challenges due to high interest expenses, despite a stable core storage and records management business. The company's aggressive data center investments have yielded positive results, with a 4-year CAGR of +20% in Growth Businesses. However, Alberta Investment Management Corp reduced its stake by 8.0%, and Atria Investments Inc trimmed its holdings by 11.4%. The company's Q3 2025 earnings call revealed strong performance, with record Revenue, Adjusted EBITDA, and AFFO. A hold rating was assigned due to its premium valuation.

1.c. Company Highlights

2. Iron Mountain's Q3 2025 Earnings: A Strong Performance Across Business Segments

Iron Mountain's third-quarter 2025 revenue reached an all-time high of $1.8 billion, a 13% increase, driven by strength across its business. Adjusted EBITDA grew 16% to $660 million, and AFFO increased 18% to $393 million. The earnings per share (EPS) came out at $0.54, missing analyst estimates of $1.29. The company's data center business saw 33% revenue growth, with a strong outlook supporting over 25% growth in 2026. The asset life cycle management business had 65% reported and 36% organic growth.

Publication Date: Nov -06

📋 Highlights
  • Record Q3 Revenue: Iron Mountain achieved $1.8 billion revenue, a 13% increase from prior year, driven by robust performance across all business segments.
  • Strong Adjusted EBITDA Growth: EBITDA surged 16% to $660 million, with AFFO rising 18% to $393 million, reflecting operational efficiency.
  • Data Center Momentum: The business saw 33% revenue growth, supported by a 25%+ growth outlook for 2026 and a $714 million U.S. Treasury contract.
  • ALM Business Expansion: Asset Lifecycle Management reported 65% total growth (36% organic), with revenue guidance raised to $600 million for 2025.
  • Dividend Increase & Backlog: The Board approved a 10% dividend hike, while $250 million in revenue backlog beyond 2027 underscores sustained growth trajectory.

Business Segment Performance

The data center business is expected to continue its growth trajectory, with 450 megawatts expected to be energized over the next 24 months. The company has seen an uptick in leasing, particularly from hyperscale customers, with 36 megawatts leased in Chicago. The asset life cycle management business performed strongly, with growth year-on-year and sequentially. Iron Mountain secured a significant contract with the U.S. Treasury Department worth up to $714 million over 5 years for digitization services, demonstrating its capabilities in the ALM space.

Outlook and Guidance

Revenue is expected to be approximately $1.8 billion in the fourth quarter, up 14% from last year, with adjusted EBITDA of around $690 million and AFFO of $415 million. The company expects $600 million in revenue from its Asset Lifecycle Management (ALM) business, up from previous guidance, driven by 36% organic growth. Iron Mountain's Board of Directors authorized a 10% increase in the quarterly dividend, reflecting the company's confidence in its growth prospects.

Valuation and Growth Prospects

With a P/E Ratio of 717.78 and an EV/EBITDA of 24.91, Iron Mountain's valuation suggests that the market has high expectations for its growth prospects. The company's data center CapEx will continue to gradually rise, and the 25% revenue growth for data centers next year is already contracted for and leased. Analysts estimate next year's revenue growth at 9.7%. The Dividend Yield stands at 3.06%, providing a relatively stable return for investors.

Key Takeaways

Iron Mountain's strong performance across its business segments, driven by growth in data centers and ALM, positions the company for continued success. The significant contract wins and increasing dividend payout further reinforce its growth prospects. However, the high valuation multiples suggest that the market has already priced in a significant portion of the company's growth potential.

3. NewsRoom

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Could This Be the Best Way to Invest in AI Without Buying a Single Chip Stock?

Nov -27

Source: fool.com

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Iron Mountain Inc. Investigated for Securities Fraud; Block & Leviton Encourages Investors Who Have Lost Money to Contact the Firm

Nov -19

Source: globenewswire.com

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Iron Mountain Incorporated (IRM) Presents at J.P. Morgan 2025 Ultimate Services Investor Conference Transcript

Nov -18

Source: seekingalpha.com

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Alberta Investment Management Corp Has $4.61 Million Stake in Iron Mountain Incorporated $IRM

Nov -17

Source: defenseworld.net

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4 High-Yield Real Estate Stocks to Buy as Investors Get Defensive

Nov -13

Source: marketbeat.com

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AGF Management Ltd. Takes $819,000 Position in Iron Mountain Incorporated $IRM

Nov -12

Source: defenseworld.net

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Iron Mountain to Present at Financial Conference

Nov -11

Source: businesswire.com

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Atria Investments Inc Sells 569 Shares of Iron Mountain Incorporated $IRM

Nov -11

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.58%)

6. Segments

Global RIM Business

Expected Growth: 4.5%

Iron Mountain's global records and information management services are expected to grow driven by increasing demand for secure storage and retrieval of sensitive business information, as well as the company's expanding digital solutions and services.

Corporate and Other

Expected Growth: 6.3%

Iron Mountain’s Corporate and Other segment growth is driven by increasing adoption of digital transformation, data analytics, and information governance, particularly in highly regulated industries, such as finance and healthcare.

Global Data Center Business

Expected Growth: 13.6%

Iron Mountain’s global data center business is driven by increasing cloud adoption, data localization, and rising demand for colocation services, resulting in a high growth rate.

7. Detailed Products

Iron Cloud

A cloud-based data management platform that enables customers to store, manage, and analyze their data in a secure and scalable environment.

Data Centers

Secure, compliant, and highly available data center facilities that provide customers with a reliable infrastructure for their IT operations.

Records Management

A comprehensive records management solution that enables customers to manage their physical and digital records throughout their lifecycle.

Shredding and Destruction

Secure shredding and destruction services that enable customers to dispose of sensitive documents and materials in a secure and compliant manner.

Data Restoration

A comprehensive data restoration service that enables customers to recover data from damaged or corrupted media.

Tape Storage

A secure and scalable tape storage solution that enables customers to store large volumes of data in a cost-effective manner.

Cloud Backup and Recovery

A cloud-based backup and recovery solution that enables customers to protect their data and ensure business continuity.

8. Iron Mountain Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Iron Mountain Incorporated has a low threat of substitutes due to its unique services and solutions in the information management industry.

Bargaining Power Of Customers

Iron Mountain Incorporated has a medium bargaining power of customers due to the presence of large and established customers, but the company's diversified customer base and long-term contracts mitigate this risk.

Bargaining Power Of Suppliers

Iron Mountain Incorporated has a low bargaining power of suppliers due to its large scale of operations and diversified supplier base.

Threat Of New Entrants

Iron Mountain Incorporated has a low threat of new entrants due to the high barriers to entry in the information management industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

Iron Mountain Incorporated operates in a moderately competitive industry, with a few large players competing for market share, but the company's strong brand and diversified services help to mitigate this risk.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 98.59%
Debt Cost 4.91%
Equity Weight 1.41%
Equity Cost 8.83%
WACC 4.97%
Leverage 6986.77%

11. Quality Control: Iron Mountain Incorporated passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Iron Mountain

A-Score: 5.2/10

Value: 4.7

Growth: 4.1

Quality: 4.2

Yield: 7.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

84.31$

Current Price

84.31$

Potential

-0.00%

Expected Cash-Flows