ATN International signals stable 2025 revenue outlook and refined EBITDA guidance while advancing fiber network expansion

Earnings Call Insights: ATN International (ATNI) Q3 2025

MANAGEMENT VIEW

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CEO Brad Martin highlighted that "the 3% revenue growth and 9% increase in adjusted EBITDA year-over-year demonstrates the positive momentum we've been building and the effectiveness of our operational efficiency initiatives." Martin indicated continued execution of ATN's strategic plan, with strong performance in both international and U.S. segments. He noted, "In our International segment, we continue to make steady progress on our key priorities: enhancing mobile networks, improving service quality and driving operational efficiency." On the domestic front, Martin described "tangible benefits from our investments in carrier and enterprise solutions," with new site activations and improved operational execution in Alaska. He underscored ongoing broadband infrastructure expansion and government-funded projects as central to ATN's U.S. growth strategy.

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CFO Carlos Doglioli reported, "Total revenues for the third quarter were $183.2 million, representing a 3% increase from $178.5 million in the prior year quarter." Doglioli also stated, "Net income attributable to ATN stockholders for the third quarter was $4.3 million or $0.18 per share. This compares with the prior year's net loss of $32.7 million or $2.26 per share." He added that "adjusted EBITDA increased 9% to $49.9 million compared to $45.7 million in the prior year quarter."

OUTLOOK

* The company is "refining our adjusted EBITDA guidance for full year 2025, while reaffirming our other key financial metrics." Revenue, excluding construction revenue, is expected to be in line with 2024's results of $725 million. Adjusted EBITDA is expected to be flat to slightly above 2024's result of $184 million. Capital expenditures are projected in the range of $90 million to $100 million net of reimbursements, down from $110.4 million in 2024. Net debt ratio is expected to remain flat with full year 2024 at approximately 2.54x, with potential for slight improvement exiting 2025. The company anticipates "minor reorganization and restructuring costs anticipated to be less than $1 million" in the fourth quarter.

FINANCIAL RESULTS

* ATN reported total revenues of $183.2 million for the third quarter. Operating income improved to $9.8 million from an operating loss of $38.4 million in the same quarter last year, which included a $35.3 million goodwill impairment charge. Net income attributable to ATN stockholders was $4.3 million, or $0.18 per share. Adjusted EBITDA rose to $49.9 million. Cash, cash equivalents, and restricted cash increased to $119.6 million at quarter end, up from $89.2 million at year-end 2024. Total debt was $579.6 million, resulting in a net debt ratio of 2.47x, improving sequentially from 2.58x at the end of the second quarter. Capital expenditures for the first nine months totaled $60.9 million, net of $67.3 million in reimbursable capital spending. The company maintained its quarterly dividend of $0.275 per share.

Q&A

* Gregory Burns, Sidoti & Company: "Are you being impacted in any way by the government shutdown? Is it affecting any -- awards for government subsidy programs or maybe like the rural health care market in Alaska? Are you seeing any impact from the shutdown in any of those areas?" CEO Brad Martin: "We've not seen any impact with regard to payments on programs, subsidies that we typically participate in. And we expect no impact here really through Q4...things like permitting, we do a lot on Bureau brand management lands. Permitting things into '26 to pose some challenges. But as of right now, no."
* Gregory Burns, Sidoti & Company: "Is it not delaying any like new awards? Or is there any other impact to maybe new business development?" CEO Martin: "BEAD is still in the review cycle under [NTIA] expected results from that will be in January. So we're expecting those schedules to be held. But no, no impact does it yet."
* Gregory Burns: "You kind of mentioned maybe better pipeline conversion or execution in Alaska. Can you just maybe talk about some of the initiatives...what you've done and what you're seeing there in terms of results?" CEO Martin: "We've had a new team in Alaska. There has been new management in the last year...we have been in the process of working with key partnerships. Keep partnerships with the LEO operators to help address more of the -- some of the rural health care opportunities...that's some of the progress we're seeing here this year."
* Gregory Burns: "In terms of cash flow...are you okay with where the leverage is on the business? Or do you want to bring that down? Or do you have other priorities for the improved cash flow that you're seeing?" CFO Doglioli: "We're happy with the way the cash flow is trending as you say, the operating cash flow is doing well. And with a more normalized level of CapEx, we expect to continue to trend leverage down."

SENTIMENT ANALYSIS

* Analyst tone was neutral, focusing on operational impacts, government funding, and the trajectory of cash flow and leverage. The questions were direct, seeking clarity on risk and execution but did not express overt skepticism or concern.
* Management maintained a confident and steady tone, consistently emphasizing execution, operational improvement, and financial discipline. CEO Martin and CFO Doglioli both used language affirming confidence in current strategy and financial performance. Management's tone remained consistent with previous quarters, using phrases such as "We remain confident in our execution capabilities and our path towards sustainable long-term value creation."
* Compared to the previous quarter, both management and analysts sustained a similar level of confidence and engagement, with no notable shifts in tone or sentiment.

QUARTER-OVER-QUARTER COMPARISON

* Guidance for 2025 revenue and adjusted EBITDA remains reaffirmed, with revenue expected in line with 2024 and adjusted EBITDA expected to be flat to slightly above the prior year. The previous quarter's guidance mirrored this outlook.
* The current quarter's tone and confidence level from management are consistent with the previous quarter, with a continued focus on operational efficiency, cost containment, and strategic fiber network investment.
* Analysts' questions shifted slightly to operational execution impacts (Alaska, government funding), cash flow, and leverage, compared to prior questions which included more on competitive dynamics and macro policy impacts.
* Capital discipline and cost containment remain front and center, with an explicit update on restructuring costs and capital allocation strategies.

RISKS AND CONCERNS

* CEO Martin noted ongoing monitoring of federal broadband policy developments and funding mechanisms, including BEAD, and the potential impact of permitting delays into 2026. Geopolitical developments and hurricane season in Caribbean markets were also cited as factors being closely watched, with business continuity and network resilience as key priorities.
* Management emphasized the importance of "careful approach to capital deployment while positioning ATN for additional infrastructure opportunities."
* Analysts raised concerns about government shutdowns, potential subsidy delays, and business development impacts, but management reported no current or near-term adverse effects.

FINAL TAKEAWAY

ATN International's third quarter saw steady operational and financial improvement, with revenue and adjusted EBITDA gains supporting management's reaffirmed and slightly refined 2025 guidance. Progress in both domestic and international segments, new leadership in Alaska, and a disciplined approach to capital allocation underpin management's confidence in sustainable long-term value creation. The company remains focused on operational excellence, cost control, and strategic investments in fiber and broadband infrastructure, while closely monitoring policy and regulatory developments to mitigate future risks.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/atni/earnings/transcripts]

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