SBA Communications (SBAC) CEO Brendan Cavanagh addressed the Goldman Sachs Communacopia + Technology Conference 2026, outlining the company's growth strategy tied to spectrum auctions and 5G expansion. The session closed with the stock at $186.74, down 1.03%, and a market capitalization of $20 billion.
Cavanagh emphasized the importance of spectrum, particularly the upcoming upper C-band auction in mid-2027, which will offer 160 MHz. He noted that the outcome of this auction will significantly impact future network activity. Other spectrum bands under evaluation include 2.7 GHz, 1.6 GHz, 4.4 GHz, and 7 GHz, with a total of roughly 800 MHz estimated to be needed.
The company's capital allocation priorities include acquisitions and new builds, share repurchases, deleveraging, and dividend growth. SBA Communications has recently completed the acquisition of 7,000 towers from Millicom in Central America, with minimum 15-year lease terms. The company is also focusing on enhancing its position in key markets and exiting those where it is subscale.
Cavanagh discussed the progress of U.S. carrier build-outs for 5G, noting that one carrier has been particularly active in 2026 with amendments, upgrades, and infill leasing. Mid-band 5G completion levels vary, with the leading carrier at 90% and the weakest at 65% to 70%. The company is also exploring edge computing to address challenges related to power consumption in data centers.
SBA Communications' international operations have seen elevated churn, particularly in Brazil due to carrier consolidation. Tanzania is highlighted as the company's highest-returning and best-performing market, with a population expected to double over the next decade. The company's network traffic is currently 90% or more downlink, but future 6G traffic, driven by AI-enabled applications, is projected to shift toward heavy uplink use, possibly 45% to 50% or more.
Cavanagh also addressed the potential of satellite and femtocells, expressing skepticism about femtocells as a wholesale solution. He believes that a macro-based terrestrial component will be essential for future networks, providing new customer potential. The company's gross profit margin stands at 74%, with EBITDA of $1.83 billion over the last twelve months. Dividend yield is 2.68%, with seven consecutive years of increases.
