IRM · 10-Q · 2026Q2 · Full report
Operating Margin Drivers
IRON MOUNTAIN INC · 2026-08-05 · Importance 64 · Surprise 56 · In source text
Six-month 2026 operating income increased 49.5% year over year to $768.8 million, while operating expenses increased 14.6% to $3,196.5 million against 20.0% revenue growth. Adjusted EBITDA increased 18.8% to $1,435.0 million, but Adjusted EBITDA margin declined 40 basis points to 36.2% because of revenue-mix changes, partly offset by favorable overhead management. Global RIM Business Adjusted EBITDA margin decreased 70 basis points to 43.6% because of revenue mix, while Global Data Center Business margin increased 60 basis points to 52.2% from lease commencements, improved pricing, and cost containment. Higher pass-through power costs partly offset the data-center margin improvement.
Key facts
- Adjusted EBITDA for the three months ended June 30, 2026: $727,018 thousand, up $98,630 thousand or 15.7% vs prior year. source
- Adjusted EBITDA for the six months ended June 30, 2026: $1,434,957 thousand, up $226,663 thousand or 18.8% vs prior year. source
- FFO (Nareit) for the three months ended June 30, 2026: $226,676 thousand; for six months: $491,291 thousand. source
- FFO (Normalized) for the three months ended June 30, 2026: $303,732 thousand; for six months: $596,429 thousand. source
- Global RIM Business segment Adjusted EBITDA for six months ended June 30, 2026: $1,238,430 thousand, up $95,813 thousand vs prior year; segment Adjusted EBITDA Margin 43.6% (down 70 bps driven by revenue mix). source
- Global Data Center Business segment Adjusted EBITDA for six months ended June 30, 2026: $270,106 thousand, up $83,024 thousand vs prior year; segment Adjusted EBITDA Margin 52.2%, up 60 basis points reflecting lease commencements, improved pricing and cost containment, partially offset by higher pass-through power costs. source
- Adjusted EBITDA Margin for the three months ended June 30, 2026: 35.8%. source
- Adjusted EBITDA Margin for the six months ended June 30, 2026: 36.2%, a decrease of 40 basis points year-over-year driven by changes in revenue mix, offset by favorable overhead management. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +11.2% | Adjusted EBITDA for the six months ended June 30, 2026: $1,434,957 thousand, up $226,663 thousand or 18.8% vs prior year. |
| operating_income | positive | realized | +4.9% | Adjusted EBITDA for the three months ended June 30, 2026: $727,018 thousand, up $98,630 thousand or 15.7% vs prior year. |