Overview Key strengths Key risks Leading position in rented storage space and information management services Aggressive financial policy that relies on debt to fund large growth capital expenditure (capex) and shareholder distributions Strong profitability, with S&P Global Ratings-adjusted EBITDA margin in the low-40% area Multiyear restructuring initiatives such as Project Matterhorn reduce S&P Global Ratings-adjusted EBITDA and keep leverage elevated above 6x High rate of reoccurring revenue, with high switching cost, and multiyear contracts. Asset lifecycle management business is exposed to computer component price volatility Fast-growing data center segment, with high percentage of leased or pre-leased capacity Secular decline of paper records could pose a long-term threat to records management segment IRM's leverage has been elevated at mid-6x in 2024
