Telecom operator ATN International reported second-quarter adjusted EBITDA of $190 million, up 9% year-over-year, while reaffirming full-year 2026 guidance between $183 million and $193 million. Total revenue reached $728 million, a 2% increase from the prior year, with adjusted EBITDA margins expanding by 170 basis points.
The company recorded operating income of $240 million, including a $230 million gain from a tower sale. ATN received $268 million in cash from the initial close of a tower portfolio sale and expects an additional $41 million from a spectrum sale next year. Of the tower proceeds, $68 million was used to reduce outstanding bank debt, leaving $240 million in undrawn credit capacity. Outstanding debt stood at $513 million, with a leverage ratio of 0.91 times.
Capital expenditures totaled $38 million in the first half of 2026, excluding $27 million in reimbursable spending, with a normalized long-term run rate of 10% to 15% of revenues. Full-year CapEx guidance was reaffirmed between $105 million and $115 million, net of reimbursable spending.
The board raised the quarterly dividend by 5.5% to $0.29 per share, marking 29 consecutive years of uninterrupted payouts. It also doubled the share repurchase authorization to $30 million. ATN’s stock closed at $30.94, reflecting a trailing P/E ratio of 2.95 and a one-year return of 102%, with a dividend yield of 3.79%.
The company operates in two segments: international operations in the Caribbean and other regions, and U.S.-based services in Alaska and the Southwest. International segment revenue is split roughly 70% consumer and 30% enterprise, with 273,000 homes passed and 135,000 connected, for a penetration rate of 49.5%. Guyana, where ATN is the incumbent fixed-line provider, saw GDP growth near 20% due to recent oil and gas discoveries, with fiber replacing copper across three-quarters of the country. The Cayman Islands unit is expanding fiber coverage, targeting 20%, 30%, and 40% penetration within its footprint over the coming years.
In the U.S., ATN serves 251,000 homes with a 2.4% penetration rate, focusing on fixed-line and commercial services. The company has secured $150 million in provisional BEAD awards, primarily in Alaska, and over $200 million in total grant funding. An overhaul of Alaska’s OSS and BSS platform is set to conclude in 2026, with a new Alaska CEO appointed following the conference.
ATN views low Earth orbit satellite providers like Starlink as both partners and competitors, noting that fiber remains superior in dense areas due to capacity limitations of satellite beams.
