Iron Mountain Inc Q3 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: George K. Tong - Goldman Sachs Group Inc - Analyst : I wanted to dive into your new $714 million five-year contract with the US Treasury Department. You mentioned expectations of high seasonal volumes in the spring of 2026. Can you talk more about the planned phasing of revenues, including whether the contract will ramp linearly across five years or whether it will be front-end loaded into 2026? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 05, 2025 / 1:30PM, IRM.N - Q3 2025 Iron Mountain Inc Earnings Call

Question: Eric Luebchow - Wells Fargo Securities LLC - Analyst : Great. I wanted to touch on the ALM business. It looks like you expect about $600 million of revenue this year. I think that's a slight uptick from what you guided last quarter. And I wanted to kind of break down what you're seeing on volume versus price. We've seen a pretty significant increase in memory pricing recently in the last couple of months. Just wondering if you're starting to see that flow through at all in your results and how that could potentially influence growth rates as we look forward into 2026.

Question: Tobey Sommer - Truist Securities - Analyst : I was wondering if you could elaborate a bit on the data center pipeline and demand across both enterprise and hyperscalers as we've turned the page into next year.

Question: Brendan Lynch - Barclays Services Corp - Analyst : I just wanted to follow up on the treasury contract. If I heard you correctly, it's up to $714 million over five years. Can you talk about what would get you to the high end versus what might be the low end of what you might be able to capture?

Question: Shlomo Rosenbaum - Stifel, Nicolaus & Company Inc - Analyst : Bill, I just want to go back to some of the data center leasing. It's certainly heartening to see we're starting to pick up in terms of the rate of leasing from the last few quarters to what you saw a little bit of an improvement now. I was just wondering, can you talk about how much energy capacity is expected to be energized in the next 12 months that could really spur like the near-term leasing activity? I'm trying to figure out over here is, are we going to start to go back to those quarters where you had some really large leasing numbers in the near term based on some of the stuff that's going to be lit up pretty soon?

Question: Andrew Steinerman - J.P. Morgan Chase & Co - Analyst : It's Andrew. Could you comment anything on kind of really forward-looking CapEx targets kind of multiyear? Obviously, you raised your dividend here. I'm just really thinking that in the data center industry, there's a real shift towards these more mega projects. And just wanted to know the CapEx approach in '26 and beyond you might be doing to prepare for those opportunities.

Question: Kevin McVeigh - UBS AG - Analyst : Great. The one example, I think it was a net 11 megawatts leased. I guess when a client shifts like that, I guess, what drives that decision? And given kind of how diversified you folks are, would you expect more of that going forward? I wanted to start there, if possible.

Question: Nate Crossett - Exane SA - Analyst : Just on the RIM storage business, can you comment on what you're expecting for volumes and pricing into 4Q and next year?

Question: Shlomo Rosenbaum - Stifel, Nicolaus & Company Inc - Analyst : Barry, I just want to get into kind of the mix of revenue. Both storage and services gross margins were down sequentially. And I assume that it's mix because that's usually what's going on, but I want to ask if you can confirm that and just give us a little bit more detail on the sequential movement.