SBA Communications CFO Marc Montagner Eyes 2028 Growth Inflection

SBA Communications expects a significant growth inflection in 2028 and 2029, driven by an anticipated U.S. carrier capital expenditure rebound, upcoming 6G deployments, and emerging wireless use cases, according to comments at Citi's 2026 Global TMT Conference.

The wireless tower operator is currently navigating a cyclical trough as major U.S. carriers pull back spending following peak 5G network buildouts. This subdued environment stands in sharp contrast to the aggressive infrastructure spending cycle recorded between 2022 and 2023.

"We believe that capital allocation is a key driver to create long-term shareholder value. Last year we spent half a billion dollars buying back shares at an average stock price of $200. We’re trading to below $190 today, so you can assume that we like buying shares at that level," said Marc Montagner, Chief Financial Officer, SBA Communications, at the conference.

Current Trough and Carrier Capex Dynamics

U.S. carrier capital expenditures currently run at approximately 15% of revenue, down sharply from the 25% levels observed during the peak 5G rollout period. This contraction has temporarily slowed tower leasing activity for operators like SBA Communications.

Despite the domestic capex slowdown, the company maintains strong cash generation metrics. SBA Communications generates about $1.95 billion of EBITDA available for capital allocation and produces approximately $700 million in annual free cash flow after funding maintenance capital expenditures, dividends, interest expenses, and taxes.

International Portfolio Realignment

To optimize its operational footprint during the domestic capex lull, SBA Communications has advanced a strategic review of its international business launched in February 2024. The initiative focuses on exiting subscale or consolidation-risked foreign markets.

Key portfolio actions under this review include:

• Asset sales in the Philippines and Canada
• Market exits in Argentina and Colombia
• The $1 billion acquisition of Millicom’s Central American tower portfolio

What Lies Ahead for Wireless Infrastructure

The strategic repositioning highlights how infrastructure providers manage cyclical cash flows ahead of next-generation wireless cycles. By pairing share repurchases below $190 with disciplined international exits, executive management aims to preserve balance sheet strength while positioning the portfolio for the projected 2028 demand inflection tied to 6G and advanced data consumption.