Q2 2026 Sitios Latinoamerica SAB de CV Earnings Call

Speaker #2: Good morning, ladies and gentlemen. Welcome to the Sites Latin, Q2, 2026 earnings call. We would like to inform that all attendees will only be listened to the conference during the presentation and for this call we kindly ask you to send any questions directly to our IR team.

[Company Representative] (Sitios Latinoamérica): Good morning, ladies and gentlemen. Welcome to the Sitios Q2 2026 earnings call. We would like to inform that all attendees will only be listening to the conference during the presentation. For this call, we kindly ask you to send any questions directly to our IR team. Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects, operational and financial projections, and goals are the beliefs and assumptions of company's exclusive board and the current information available to the company. These statements may involve risks and uncertainties as they relate to the future events, and therefore depend on circumstances that may or may not occur. Investors should be aware of events related to the macroeconomic scenario, the industry, and other factors could cause results to differ materially from those expressed in the respective forward-looking statements.

Speaker #2: Before proceeding, we would like to clarify that any statements that may be made during this conference call regarding the company's business prospects operational and financial projections and goals are the beliefs and assumptions of companies exclusive board and the currently information available to the company.

Speaker #2: These statements may involve risks and uncertainties as they relate to the future events and therefore depend or circumstances that may or may not occur.

Speaker #2: Investors should be aware of events related to the macroeconomic scenario, the industry, and other factors could cause results to the fewer materially from those expressed in the respective forward-looking statements.

[Company Representative] (Sitios Latinoamérica): Present at this conference, we have Mrs. Camila Mora, CFO, and Mr. Luis Diaz, COO. Now I will turn the conference over to Mrs. Camila Mora. Please, you may begin your conference.

Speaker #2: Present at this conference we have Mrs. Camila Mora, CFO, and Mr. Luis Diaz, COO. Now I will turn the conference over to Mrs. Camila Mora.

Speaker #2: Please, you may begin your conference.

Speaker #3: Good morning, everyone. Thank you for joining us today. Before discussing our currently results, I would like to briefly address two important aspects that provide context for our performance.

Camila Mora: Good morning, everyone. Thank you for joining us today. Before discussing our quarterly results, I would like to briefly address two important aspects that provide context for our performance. First, as we anticipated, the appreciation of the Mexican peso against the US dollar, in which an important part of our revenue are generated and other regional currency against the Mexican peso continue to impact our reported financial results during the quarter. Since all our revenue are generated outside Mexico and translated into Mexican peso for reporting purposes, the foreign exchange effect marks the underlying strength of our business, which remain stronger than what reported figures suggest. To provide a clearer view of our operating performance, we will refer throughout this call to our results on a constant currency basis whenever discussing growth rates. Second, we continue to make solid progress in executing our operational strategy.

Speaker #3: First, as we anticipated, the appreciation of the Mexican peso against the US dollar in which an important part of our revenue are regenerated, and other regional currency against the Mexican peso continue to impact our reported financial results during the quarter.

Speaker #3: Since all our revenue are generated outside Mexico and translated into Mexican peso for reporting purposes, the foreign exchange effect marks the underlying straight of our business.

Speaker #3: Which remain stronger than what reported figures suggest. To provide a clearer view of our operating performance, we will refer throughout this call to our results on a constant currency basis whenever discussing growth rates.

Speaker #3: Second, we continue to make solid progress in executing our operational strategy, demand of high-quality passive infrastructure across Latin America, remain healthy, and we continue to expand our portfolio while increasing the utilization of our existing performance.

Camila Mora: Demand of high-quality passive infrastructure across Latin America remain healthy, and we continue to expand our portfolio while increasing the utilization of our existing infrastructure. We continue expanding our portfolio by adding 364 new sites during the quarter and 1,253 new sites over the last 12 months, reaching a total of 37,989 sites and a total of 48,652 individual site agreements in equivalent. At the same time, we continue improving the quality of our portfolio through higher tenancy levels. Our consolidating tenancy ratio reached 1.28 tenants per tower, supported by the consistent growth across most of our operations. Higher tenancy remains one of the key drivers of operating leverage and long-term value created for Sitios. Brazil remained our largest contributor to portfolio expansion, maintaining its positive leasing momentum, increasing its tenancy ratio to 1.36, marking seven consecutive quarters sequential improvement.

Speaker #3: We continue expanding our portfolio by adding 364 new sites during the quarter and 1,253 new sites over the last 12 months. Reaching a total of 37,989 sites and a total of 48,652 individual site agreements and equivalents.

Speaker #3: We continue at the same time we continue improving the quality of our portfolio through a higher tenancy levels. Our consolidating tenancy ratio reached 1.28 tenants per tower, supported by the consistent growth across most of our operations.

Speaker #3: Higher tenancy remains one of the key drivers of operating leverage and long-term value created for sites. Brazil remain our largest contributor to portfolio expansion, maintaining its positive listing momentum, increasing its tenancy ratio to 1.36, marking seven consecutive quarters sequential improvement, while Central America continue to deliver the stronger improvement in tenancy reaching 1.33x.

Camila Mora: While Central America continued to deliver the stronger improvement in tenancy reaching 1.33x. This trend reforce the quality of our assets and our ability to generate increasing returns from our existing infrastructure. Turning to our financial performance, reported revenue continued to be affected by current exchange translation. However, on a constant currency basis, total revenue increased 21.3% year over year, while tower lease revenue grew 17.9%, reflecting the continued expansion of our portfolio together with higher leasing activity across the region. EBITDA also continued to demonstrate the resilience of our business model, despite the translation effect on reported figures. Profitability remained strong across our operation. Brazil once again delivered outstanding performance, maintaining an EBITDA margin above 90% of the seventh consecutive quarter. While the Andean Region continued to improve both profitability and operating efficiency. Overall, our regional operation continues to demonstrate the scalability and operating level of our business.

Speaker #3: This trend reports the quality of our assets and our ability to generate increasing returns from our existing infrastructure. Turning to our financial performance, reported revenue continue to be affected by foreign exchange translation, however, on a constant currency basis total revenue increased 21.3% year over year, while tower list revenue grew 17.9%, reflecting the continue expansion of our portfolio together with higher leasing activity across the region.

Speaker #3: EBITDA also continue to demonstrate the resilience of our business model, despite the translation effect on reported figures. Profitability remain strong across our operation. Brazil once again deliver outstanding performance, maintaining an EBITDA margin about 90% of the seven consecutive quarters.

Speaker #3: While the Andean region continue to improve both profitability and operating efficiency. Overall, our regional operation continue to demonstrate the scalability and operating level of our business.

Camila Mora: Regarding our balance sheet, we continue to maintain a disciplined financial strategy. Our debt profile remains stable, with no material changes during the quarter, and our liquidity position provides sufficient flexibility to continue executing our growth strategy while maintaining prudent capital structure. Looking ahead, while we remain very constructive in the long-term fundamentals of the business, we are moderating our expectation for the remainder of the year. The pace of construction has remained healthy across our markets. However, the timing of certain customer deployment has shifted, leading us to modestly adjust our full-year expectation for new sites additions. As a result, we now expect to deliver approximately 1,800 new sites during 2026, modestly below our original guidance. Importantly, customer activities remain robust. Our project pipeline continues to be healthy, and we expect construction activity to remain strong as we move into the year.

Speaker #3: Regarding our balance sheet, we continue to maintain a disciplined financial strategy, our debt profile remains stable, with no material changes during the quarter, and our liquidity position provides sufficient flexibility to continue executing our growth strategy while maintaining prudent capital structure.

Speaker #3: Looking ahead, while we remain very constructive in the long-term fundamentals of the business, we are moderating our expectation for the remainder of the year.

Speaker #3: The piece of construction has remained healthy across our markets. However, the timing of certain customer deployment has shift, leading us to modestly adjust our full-year expectation for new sites addition.

Speaker #3: As a result, we now expect to deliver approximately 1,800 new sites during 2026, modestly below our original guidance. Importantly, customer activity remain robust. Our project pipeline continues to be healthy, and we expect construction activity to remain strong as we move into the year.

Camila Mora: The structural drivers and demands, including increasing mobile data consumption, network densification, and continued 5G rollouts, remain firmly in place, giving us confidence that our expansion strategy continue to be well supported. We also expect to maintain EBITDA margin at our, or around 90% levels, supported by the operating leverage of our business, while keeping our consolidated tenancy ratio around current levels of approximately 1.28x as we continue executing our leasing strategy. We remain focused on disciplined execution, profitable growth, and creating long-term values for our shareholders. The combination of continued portfolio expansion and a stable tenancy should continue supporting sustainable cash flow generation over the coming years. Thank you all for joining us today. We appreciate your continuing interest in Sitios. If you have any question following call today, please feel free to contact our investor relations team.

Speaker #3: The structural drivers and demands, including increasing mobile data consumption, network densification, and continued 5G rollouts, remain firmly in place, giving us confidence that our expansion strategy continues to be well supported.

Speaker #3: We also expect to maintain EBITDA margin at our art or around 90% levels, supported by the operating leverage of our business, while keeping our consolidated tenancy ratio around current levels of approximately 1.28x as we continue executing our leasing strategy.

Speaker #3: We remain focused on discipline execution, profitable growth, and creating long-term values for our shareholders. The combination of continue portfolio expansion and stable tenancy should continue supporting sustainable cash flow generation over the coming years.

Speaker #3: Thank you all for joining us today. We appreciate you continuing your interest in sites. If you have any question following call our investor relationship team.

Speaker #3: We will be more than happy to answer your question and provide an additional information that you might require.

Camila Mora: We will be more than happy to answer your question and provide additional information that you might require.

Speaker #1: No questions will be attended during this call. Please direct any question to our investor relations team. No questions will be attended during this call.

[Company Representative] (Sitios Latinoamérica): No questions will be attended during this call. Please direct any question to our investor relations team. No questions will be attended during this call. Please kindly ask the investors to address any question directly to our IR team. Sitios LatAm conference is now closed. We thank you for your participation and wish you a nice day.

Speaker #1: Please kindly ask the investors to address any question directly to our IR team. Sities Latin Conference is now closed. We thank you for your participation and wish you a nice day.

Operator: Goodbye