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Date

Wednesday, November 5, 2025 at 8:30 a.m. ET

Call participants

President and Chief Executive Officer — William L. Meaney

Executive Vice President and Chief Financial Officer — Barry A. Hytinen

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Takeaways

Total revenue – $1.8 billion in revenue for fiscal Q3 2025 (period ended September 30, 2025), up 13% on a reported basis, setting an all-time quarterly record due to volume gains and retention in physical storage, digital, data center, and asset lifecycle management (ALM).

Adjusted EBITDA – $660 million in adjusted EBITDA for fiscal Q3 2025, up 16%, with adjusted EBITDA margin expanding by 110 basis points to 37.6%, driven by improvements in data center and ALM segments.

Adjusted funds from operations (AFFO) – AFFO (non-GAAP) was $393 million for fiscal Q3 2025, up 18%, reaching a record, with AFFO per share of $1.32 in the third quarter, up 17% year over year for AFFO per share (non-GAAP).

Dividend increase – Board approved a 10% rise, marking the third consecutive 10% increase for the January payout.

Physical storage growth – The physical storage business grew at a mid-single-digit rate.

Digital solutions – Achieved record double-digit revenue growth; launched the Insight DXP 2.0 platform, and secured a new five-year contract with the U.S. Treasury Department worth up to $714 million, with execution beginning in 2025.

Data center segment – Revenue reached $204 million for fiscal Q3 2025, up 33% year on year for total data center revenue, with a 52.6% adjusted EBITDA margin and new net leases including a 36-megawatt contract in Chicago.

ALM segment – Revenue increased 65% to $169 million in fiscal Q3 2025, with organic growth of 36%, supported by cross-selling, new enterprise wins, and acquisitions like ACT Logistics in Australia.

Commercial wins – Won new medical records contracts in Europe, and expanded digital and ALM relationships with major global customers across multiple regions.

Capital allocation – Invested $472 million in growth CapEx in fiscal Q3 2025 and $42 million in recurring CapEx; ended period with net lease-adjusted leverage of 5.0x.

Debt issuance – Raised €1.2 billion in a highly oversubscribed offering with a fixed 4.75% coupon maturing in 2034.

Updated guidance – Management reaffirmed full-year outlook and projects fiscal Q4 2025 reported revenue of about $1.8 billion, up 14%, adjusted EBITDA of $690 million, and AFFO of $415 million in the fourth quarter.

Summary

Iron Mountain (IRM 2.50%) reported record quarterly results across revenue, adjusted EBITDA (non-GAAP), and AFFO (non-GAAP) for fiscal Q3 2025, attributing performance to differentiated momentum in its data center, digital solutions, and ALM businesses. The company’s portfolio mix now relies on growth segments for two-thirds of overall revenue expansion and expects those to approach 30% of total revenue exiting 2025. The recently secured five-year, $714 million U.S. Treasury digitization contract is a significant win, further supporting a strong forward pipeline.

CEO Meaney said, “We are capitalizing on robust data center industry demand with 33% revenue growth in Q3 and a strong outlook that supports more than 25% growth in 2026, based on our currently signed leases.”

Management described the data center backlog as underwritten by “hyperscale customers having the highest credit quality,” emphasizing portfolio confidence through 2027 and beyond.

Reflecting a volume-led organic growth model and “enterprise volume-led” profitability expansion.

Growth CapEx is targeted to support pre-leased, high-credit projects, especially in data centers, with guidance that “our data center CapEx will continue to gradually rise” according to Barry A. Hytinen in alignment with forward leasing pipelines.

Retention rates have continued to rise in recent quarters, shrinking permanent withdrawals and terminations, which, while pressuring rate, support improved annuity revenue visibility.

The balance sheet was further strengthened by an oversubscribed €1.2 billion debt raise, with a fixed 4.75% coupon maturing in 2034.

Industry glossary

ALM (Asset lifecycle management): End-to-end management, decommissioning, and remarketing of IT assets for institutional and enterprise customers.

RIM (Records and information management): Physical and digital storage, retention, and destruction services for regulated corporate and institutional records.

DXP (Digital experience platform): AI-powered content management and workflow system enabling secure and automated digital document handling.

Full Conference Call Transcript

William L. Meaney: Thank you, Mark, and thank you all for joining us to discuss our third quarter results. We are pleased to report that our team has delivered another quarter of record financial performance and double-digit growth. We achieved an all-time high for quarterly revenue, adjusted EBITDA, and AFFO driven by strength across our business. Revenue increased 13% to $1.8 billion, adjusted EBITDA grew 16% to $660 million, and AFFO increased 18% to $393 million. Our exceptional performance in the third quarter is a result of our team’s unwavering focus on meeting our customers’ needs with innovative solutions and consistent execution of our strategic priorities.

We are delivering revenue growth in our physical storage business, achieving record revenue in Q3 driven by consistent volume growth and higher retention rates as well as revenue management. Our digital solutions business is building momentum. We are winning new contracts with our AI-powered digital solutions across industry verticals and drove record revenue in continued double-digit growth in the third quarter. We are capitalizing on robust data center industry demand with 33% revenue growth in Q3 and a strong outlook that supports more than 25% growth in 2026, based on our currently signed leases.

Additionally, we saw a nice uptick in Q3 leasing and into Q4, which together with our pipeline puts us in a good position to execute against our portfolio capacity of 1.3 gigawatts. We are driving substantial growth in our asset lifecycle management business, increasing revenue with existing customers and winning new business through cross-selling resulting in 65% reported and 36% organic growth in the third quarter. And we expanded profitability with adjusted EBITDA increasing 16% and margin improving 110 basis points as compared to last year. This clearly shows that we have strong momentum behind our commitment to sustain industry-leading revenue and earnings growth.

Our portfolio of growth businesses, including data center, digital, and ALM, drove two-thirds of our revenue growth in the quarter or eight percentage points on a consolidated basis. This will remain an important tailwind going forward as the growth portfolio further increases as a percentage of total revenue expected to be nearly 30% of total revenue exiting 2025. This is on top of the strength in our physical storage business, which is growing at a mid-single-digit rate and will contribute approximately five points of consolidated growth in 2025.

The momentum across our business, as I just highlighted, along with our foundation of established relationships and trust with over 240,000 customers, comprehensive solutions offering, reputation for security, and a global footprint firmly position us to deliver our growth commitment for the foreseeable future. Based on our strong outlook and excellent 2025 results, our Board of Directors authorized an increase of our quarterly dividend by 10%. Let me now share some recent commercial wins that illustrate the strength of our synergistic business model. First, in Records Management in Europe, we were selected as the single vendor for medical record storage for a hospital that has been a customer for more than fifteen years, displacing a competitor.

Additionally, we secured a new customer with a public sector entity that can no longer manage and store its records in-house. Both of these deals were attributed to our strong reputation for secure records and our proven ability to provide efficient and cost-effective services. In our Digital Solutions business, we continue to win new business with our DXP platform. In late October, we successfully launched our Insight DXP 2.0 platform. The new platform offers enhanced content management and smart document processing, an easy-to-use secure platform with workflow tools, and AI agents. This will allow the customer to make faster and more insightful decisions as well as eliminate obsolete and duplicative data to save costs.

And as it relates to our digital award with the Department of Treasury, in September, Iron Mountain was awarded a new long-term contract for digitization services. This new five-year contract with a value of up to $714 million expands our current scope of work, subsuming the contract awarded to us in April. This is a significant win for Iron Mountain, and we are thrilled to continue supporting the United States government on this efficiency opportunity. We are currently executing under the new agreement and collaborating with the department on steps, whilst preparing for the high seasonal volume expected in the spring of 2026. Let me now turn to our data center business.

The data center market remains very strong, and we have seen leasing activity and pipeline pickup as hyperscalers resume their focus on building out inference and cloud capacity. We leased 13 megawatts in the quarter, including a couple of larger enterprise deals with financial services firms. And in early Q4, a key hyperscaler leased our entire 36-megawatt Chicago site, transferring and expanding the customer’s previous lease of 25 megawatts in London for a net incremental 11 megawatts leased. This is a great outcome for the customer who is looking to transfer to the Chicago market, and for us, given the strong interest we have in the London location they are vacating.

This London site has the power coming online in 2026. We have high confidence in sustaining our data center revenue growth with the levels we have achieved over the past few years. This is underwritten by our pre-leasing backlog, strong pipeline, as well as 450 megawatts which is available for sale and will be energized over the next eighteen to twenty-four months. These assets coming online within the next two years have a collective capacity, which is the size of our current operating portfolio. The large and expanding pipeline for these assets is from hyperscale customers having the highest credit quality.

Turning to our asset lifecycle management business, as we previously shared, ALM represents a major growth opportunity for Iron Mountain. The market is very large and highly fragmented, and we are well-positioned to capitalize on growth through expanding business with existing customers, gaining new customers through our cross-selling efforts, and strategic acquisitions to expand our capabilities and geographic footprint. Our results in Q3 show that we are successfully capitalizing on this meaningful opportunity. And consistent with our strategy, in September, we acquired ACT Logistics, which further strengthens our ALM market leadership position in Australia. Let me now share some of our recent ALM wins that support our confidence in the long-term opportunity.

A leading financial services company with more than 200,000 employees globally has selected Iron Mountain as its ALM partner for the first time, building on our decades-long partnership for records management and digital solutions. Our established relationship, strong reputation for security and compliance, and global footprint were important factors in winning this deal. And a global company headquartered in Germany has engaged Iron Mountain to support a key decommissioning and remarketing program across six data centers in the U.S., Europe, and the Asia Pacific region. Iron Mountain has also provided records management, digital, and data center colocation services for this customer over many years.

We are pleased to extend our solutions thanks to our ALM team’s operational scale and robust sustainability reporting capabilities, which are a critical requirement for this project. This relationship demonstrates the power of our synergistic business model, where we successfully cross-sold all of our key lines of business to a long-term customer. In conclusion, I am proud of the exceptional results our dedicated mountaineers have continued to deliver in 2025 and what that means to our shareholders as we announce another increase in our dividend of 10%. As you heard today, our record results are a testament to our strategic focus on customer needs, innovative solutions, and consistent execution.

Our strong business momentum continues to build, and a tremendous growth opportunity continues to lie ahead of us. We are just scratching the surface of the $165 billion total addressable market for our services. With that, I will turn the call over to Barry.

Barry A. Hytinen: Thanks, Bill, and thank you all for joining us to discuss our results. As you have heard this morning, our team continues to successfully execute our strategy, driving strong revenue and earnings growth in the third quarter. We achieved record revenue of $1.75 billion, up $197 million year on year. This was an increase of 13% on a reported basis, 12% on a constant currency basis, and 10% on an organic growth basis in the quarter. Total storage revenue was $1.03 billion, up $97 million year on year and up 9% on an organic basis. Total service revenue was $721 million, up $100 million from last year and up 10% on an organic basis.

Adjusted EBITDA of $660 million was an all-time quarterly record and expanded $92 million or 16% year on year. This was $10 million ahead of the projection we provided on our last call, driven by operational strength and productivity across the business. Adjusted EBITDA margin was 37.6%, up 110 basis points year on year, which primarily reflects improved margins in our data center and ALM businesses. We continue to be pleased with our team’s ability to deliver meaningful operating leverage, achieving an incremental flow-through margin of 47%, consistent with last quarter. AFFO was $393 million, up $61 million. This was also an all-time quarterly record and represented strong growth of 18% as compared to last year.

And AFFO on a per-share basis was $1.32, up 17% to last year. Now turning to segment performance. In our global RIM business, we achieved record quarterly revenue of $1.34 billion, an increase of $78 million. RIM reported growth was 6%, including organic growth of 5% year on year. This was driven by revenue management, higher digital revenue, and consistent organic volume. Stored revenue growth increased 5% on an organic basis and was up 6% absent a decline in clutter revenue. As we discussed last year, clutter’s peak revenue was in 2024 before we began the actions to improve profitability.

Global RIM organic service revenue was up 4.7% in the quarter, similar to last quarter, improving retention and consistent levels of destruction pressured revenue growth. All other services increased 7% on an organic basis, reflecting strong growth in our digital business. As it relates to the multi-year Department of Treasury contract, we recognized revenue of approximately $2 million in the third quarter and expect $4 million in the fourth quarter prior to building into tax season in the half of next year. In the third quarter, we began to staff up to ensure we are fully ready to support the significant ramp in this contract.

Global RIM adjusted EBITDA increased $29 million to $598 million, yielding an adjusted EBITDA margin of 44.7%. Turning to our acquisition in India. We are very pleased with CRC’s performance, with integration ahead of plan. In the quarter, CRC added $6 million to revenue, including $1.2 million to storage revenue along with 7.4 million cubic feet of volume. For modeling purposes, it is important to note that while the margin for our storage business in India is similar to our margin in the U.S. and Europe, the price per cube is approximately 20% of our company average. As a result, the inclusion of CRC lowered our storage ASP about 100 basis points in the quarter.

Turning to our global data center business. Total data center revenue was $204 million in the third quarter, an increase of $51 million or 33% year on year. Organic storage rental growth increased 32% driven by lease commencements and positive pricing trends. In the third quarter, new commencements were three megawatts, we renewed nearly 300 leases for a total of 11 megawatts. Pricing remains strong with renewal pricing spreads up 14-19% on a cash and GAAP basis respectively. Third-quarter data center adjusted EBITDA was $107 million, up $41 million year on year. Adjusted EBITDA margin was 52.6%, up 900 basis points from the third quarter of last year.

Improved pricing, recent commencements, and operating leverage were the key drivers of the margin expansion in the quarter. In the fourth quarter, we expect data center revenue growth in excess of 30%. We have high visibility to this forecast as we are commencing 36 megawatts of new leases. This will also drive meaningful EBITDA growth in the period despite beginning to lap a significant step-up in data center margin, which commenced in the fourth quarter of last year. Turning to asset lifecycle management. Total ALM revenue was $169 million, an increase of $66 million or 65% year over year. On an organic basis, we delivered 36% growth.

The strong performance was driven by our team’s operational execution, particularly strong growth in our enterprise volume and component pricing trends. Our recent acquisitions are performing well and contributed $30 million to revenue. Regarding our acquisition of ACT Logistics, I should note this was completed in September and contributed less than $2 million to revenue in the third quarter. For modeling purposes, we expect the business will contribute revenue of approximately $7 million to our full-year results. From a profitability perspective, our team drove expanded ALM margins in the quarter through improved operating performance across the business and acquisition synergies. Turning to capital allocation.

We remain focused on growing the dividend and investing in high-return opportunities that drive double-digit growth while maintaining our strong balance sheet. In light of our performance in 2025 and outlook for AFFO, our Board increased our dividend by 10% effective with the January payout. This will mark the fourth consecutive year in which we increased the dividend and the third consecutive 10% increase. This aligns with our commitment to growing the dividend while maintaining a payout ratio of low 60s as a percentage of AFFO per share. In terms of capital investments, we invested $472 million of growth CapEx and $42 million of recurring CapEx in the third quarter.

Turning to the balance sheet with strong EBITDA performance, we ended the quarter with net lease-adjusted leverage of 5.0 times, in line with our expectations for both the quarter and year-end. Reflecting our strong credit profile, our team successfully raised €1.2 billion in a considerably over-subscribed debt offering, achieving a 4.75% fixed coupon maturing in 2034. We appreciate the continued long-term support of our fixed-income investors. And now turning to our outlook. With strong performance in the third quarter, we are well on track for the year and are pleased to reiterate our full-year guidance ranges.

For the fourth quarter, we expect revenue of approximately $1.8 billion, an increase of 14% to last year on a reported basis, and up over 12% on a constant currency basis. Adjusted EBITDA of approximately $690 million, an increase of 14% to last year on a reported basis, and up 12% on a constant currency basis. AFFO of approximately $415 million, an increase of 13% to last year on a reported basis, and up 10% on a constant currency basis, and AFFO per share of approximately $1.39, an increase of 12% to last year on a reported basis, and up 9% on a constant currency basis.

In conclusion, our team has delivered excellent year-to-date results, driving industry-leading double-digit revenue and earnings growth with record-setting performance across our business. We have strong momentum and significant long-term growth in front of us. I would like to express my thanks to our entire team for their best-in-class customer stewardship and commitment to Iron Mountain. And with that, operator, would you please open the line for Q&A?

Operator: Thank you. We will now begin the question and answer session. At this time, we will pause momentarily to assemble our roster. And the first question will be from George Tong from Goldman Sachs. Please go ahead.

George Tong: Hi, thanks. Good morning. I wanted to dive into your new $714 million five-year contract with the U.S. 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?

William L. Meaney: Good morning, George, and thanks for the question. Yes, first, we are really excited to have the opportunity to work for the federal government on this project for the IRS. As you can expect, it will be linear with slight growth as you go forward as people get added to the taxpayer role over that five-year contract. So it is not front-loaded per se. But there is a seasonality aspect to do with tax season, right, which is generally in the spring for most people.

So we do expect a ramp, and we have already started building the capacity obviously upfront in terms of putting the people through the necessary clearance process so that they are ready to go when the season starts. But I think first and foremost is the thing that we are super excited about. It is another proof point in terms of technology that we built with this DXP platform, which as you remember, goes back to when we were the AIML partner of the year, seven years ago, with Google. So to me, it is another proof point that what we built really resonates with customers.

And in this particular case, the IRS, which is very sophisticated on these types of things.

Operator: And the next question will come from Eric Luebchow from Wells Fargo. Please go ahead.

Eric Luebchow: Great. Wanted to touch on the ALM business. Looks like you expect about $600 million of revenue this year. I think that is a slight uptick from what you guided last quarter. And I wanted to kind of break down what you are seeing on volume versus price. We have seen a pretty significant increase in memory pricing recently in the last couple of months. Just wondering if you are 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. Thank you.

Barry A. Hytinen: Hi, Eric. Good morning. Thanks for the question. ALM continues to be very strong as you point out. And I would say, you are correct. We are expecting now for the business to deliver approximately $600 million that is up some from our guidance last quarter. If anything, we were probably being a little bit conservative with numbers last quarter in light of the growth trajectory the business has been on. But look, 36% organic growth, and we are expecting something in that same vicinity again in the fourth quarter. So very strong performance coming out of the team, and it is volume-led and it is also enterprise volume-led, as I mentioned on the call.

And I think that is the important part as we build the business, that enterprise business, as you know, is the higher margin business, and that is helping drive improved profitability that we mentioned on the call and that you see in our results as well, Eric. You mentioned memory pricing. Certainly, pricing for some components on the data center decommissioning side has continued to rise. As you know, that can be very subject to change and really component by component. So we have seen some increases on memory. We have seen some increases on hard drives, but not everything is moving in the same, let us say, velocity.

And as we get into next year, we will be happy to update you on what we are seeing as it relates to commodity prices at that time. But we are basically using a current view of pricing for the fourth quarter as we traditionally do.

Operator: Thanks. Thank you. And the next question will be from Tobey Sommer from Truist. Please go ahead.

Tobey Sommer: Thank you. I was wondering if you could elaborate a bit on the data center pipeline and demand across both enterprise and hyperscalers as we have turned the page into next year.

William L. Meaney: Thanks, Tobey, for the question. So first is, as I said in my remarks, we have seen, in fact, we started seeing it even in August as I pointed out in the last call, a shift back to our largest hyperscale customers back to inference and cloud build-out. And you could see that in our leasing both in the quarter and then as we ended Q4 with the leasing out the 36 megawatts in the Chicago site for a customer that was originally taking 25 megawatts in London. So we are starting to see definitely an uptick on that.

And then more broadly, if I look at the pipeline that we are building for the 450 megawatts that get energized over the next twenty-four months, again, the depth of that pipeline and the number of our customers coming back to that for cloud build-out and inference is very marked versus the first half of 2025.

Operator: And the next question will be from Brendan Lynch from Barclays. Please go ahead.

Brendan Lynch: Great. Thank you for taking my question. I just wanted to follow-up on the treasury contract. If I heard you correctly, it is 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?

William L. Meaney: Thanks for the question, Brendan. It is volume. Right? In other words, we have agreed pricing with the treasury. And it just is dependent on volume and which forms that they actually send to us. But I have to say is that, obviously, preparing for tax season, so the team’s been working very closely with the treasury. And the feedback from the customer in terms of what we are able to do with our models has been very positive.

Operator: Thank you. And our next question is from Shlomo H. Rosenbaum from Stifel. Please go ahead.

Shlomo H. Rosenbaum: Hi, thank you very much for taking my question. I just wanted to go back to some of the data center leasing. It is certainly heartening to see we are 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 twelve months that could really spur the near-term leasing activity?

I am 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 is going to be lit up pretty soon.

William L. Meaney: Morning, Shlomo, thanks for the question. Yeah. So I am going a little bit maybe granular in the 450 megawatts that I said that gets energized over the next twenty-four months because I think that is really the capacity that people start focused on. If I even go a little bit deeper on that, in the next eighteen months, 150 megawatts gets energized. So there is another follow-on 200 megawatts the following six months for the total 450. And the reason why I am parsing it out, 18 megawatts, if you can appreciate, is that most of our customers are the large hyperscale customers, which are almost a build-to-suit. I mean, there is a customization on that.

So it is really kind of the eighteen-month window up to a twenty-four-month window that they look at because that is the time that is required to get the design to their specification and, obviously, construct. So to answer your question, yes. I mean, I think we feel really good over the as we enter into ’26 and we look at the first eighteen months, we have 250 megawatts that we can be in active conversations with our customers and deliver almost in their minds immediately. And then if you look six months beyond that, we are almost doubling that again. We are adding another 200 megawatts on top of that.

And then if I take a step back, as we say, the 25% revenue growth next year for data centers is already in the bag. I mean, this is stuff that we have already contracted for leased. And then if I look at that 250 over the next eighteen months with another 200 to follow the six months later, the total 450 is we feel really good about our ability to be able to maintain that kind of revenue growth as we get into ’27 and beyond. And, Shlomo, I will just add a couple of more granular points to support that is the assets that we have coming on that are energizing our fantastic markets.

If you look at what we have got in London, we have over 20 megawatts energizing soon. We have got Virginia, we have 28 megawatts. We have got quite a few megawatts energizing soon in Madrid, Miami, Amsterdam. So these are really Tier one markets. And then as you get to the outer timeframe that Bill was speaking about, you get into some very large capacity in Richmond, which, as you know, is a significantly growing development zone as considerable capacity spills over from Northern Virginia into that market.

The other thing I will just add is, as Bill was referring to, the backlog that we have for revenue even beyond 2027 is like $250 million of revenue that will be coming. That is just on the already pre-leased. So we feel like we have got a very good growth trajectory going forward for leasing, Shlomo.

Operator: Thank you. And the next question will be from Andrew Steinerman from JPMorgan. Please go ahead.

Andrew Steinerman: Hi, it is Andrew. Could you comment anything on kind of really forward-looking CapEx targets, kind of multi-year? Obviously, you raised your dividend here. I am just really thinking that in the data center industry, there is a real shift towards these more mega projects and just wanted to know the CapEx approach in 2026 and beyond you might be doing to prepare for those opportunities?

William L. Meaney: Good morning, Andrew. Thanks for the question. So let me I will start and then have Barry comment more from the detail in terms of what that means for CapEx. But I mean to ask your the driver I think behind your question is, are we going to participate in these large language model campus build-out, you know, the one gigawatt? And for sure, we look at large campuses. But our target focus is for the inference and the cloud build-out. Now that is not saying that, you know, on some of our campuses that we are looking at, say, you know, five north of 500 megawatts. Could someone come in and say they want to develop large language models?

Yeah. That is a possibility. But we are not chasing that market because the nature of our customers and our is really about building out cloud infrastructure and inference. And, Andrew, I would just add that while we have not given guidance for next year, a couple of thoughts on capital. Look, we continue to build out our pre-leased backlog, naturally we will be spending CapEx on that. And as we have a very forward very positive forward look on the pipeline for additional leasing, you should probably anticipate that our data center CapEx will continue to gradually rise some with that expectation on additional leasing. So the key point, I think, is we really are building to pre-leased assets.

Right? We are not speculatively building. So it is capital that is going to very high return contracts that we have already signed with that are very long-term with some of the highest credit quality clients you can have. I mean, think about companies that have $500 billion or more market cap.

Operator: Thank you. And the next question will be from Kevin Damien McVeigh with UBS. Please go ahead.

Kevin Damien McVeigh: Great. Thanks. For the one example where 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.

William L. Meaney: Kevin, thanks for the question. It is not usual, but I have to say that we are always happy to do that because as you noticed that, you know, in the Wall Street Journal polling recently, we won the most customer-focused or centric company in the publicly listed companies in the U.S. And that is kind of testament. This is a proof point in terms of the way we work with our customers because this particular customer saw their loads shift and Chicago was a more important market for them in the near future than London was. So we said, yeah, we can accommodate that for them, and we were able to do that.

So we had a very happy customer. I will say from our standpoint, it also was very good. I mean, the Chicago market is a very interesting market, but we took a customer that was going to do 25 megawatts in London and upsold them effectively to 36 megawatts in Chicago. And then the space they are vacating in London in the flower state, actually, you know, there is a very we have very strong interest in that 25 megawatts and always have. And the pricing has actually improved since they have shifted over to Chicago. So, it is a win-win for everyone, but it does not happen often. But, you know, we are very customer-centric as a company.

So if we can help a customer in that way, then we do our level best to do that. And what I would add, Kevin, just to make sure you are clear on this is the client had not commenced in London, right? So we were still in the process of building out that site. And so you would not anticipate seeing this sort of activity on deployments that have already commenced in sites. And the other thing I will just note is in light of the timing, it is a very good asset for us to be able to lease at higher prices going forward.

Operator: Thank you. The next question is from Nathan Crossett from BNP. Please go ahead.

Nathan Crossett: Hey, good morning. Just on the RIM storage business, can you comment on what you are expecting for volumes and pricing into 4Q and next year? Thank you.

Barry A. Hytinen: Hi, Nate. From a volume perspective, as you saw, our organic volume in physical storage continued to rise, you know, very much in line with our trends of I think it was 30, 40 basis points in the quarter. We continue to have a positive outlook for organic volume, and that includes next year and frankly for the foreseeable future. Our team continues to find ways to consolidate additional volume from our existing client base. Obviously, as you know, we win new clients, particularly in some of the emerging markets. And as we talked about so often, the volume that we bring in is very much an annuity stream.

The average box is staying with us for nearly fifteen years, and that has not changed. From a revenue standpoint, we continue to anticipate revenue management actions in that kind of mid-single-digit range. And that would be the case for the fourth quarter as well. I will just note, we are now lapped over the clutter storage headwind. As I mentioned in the prepared remarks, that was the peak volume in the peak revenue in the third quarter of last year.

The other thing I will just mention since it has not come up yet, but you asked about the quarters is we have assumed that FX is a little bit more challenging on a sequential basis as you have probably seen the dollar has strengthened recently. So that is embedded in our guidance as well, which I think speaks to the fact that we have got a very nice outlook in light of projecting 14% revenue growth in the fourth quarter.

Operator: Thank you. And the next question is a follow-up from Shlomo H. Rosenbaum with Stifel. Please go ahead.

Shlomo H. Rosenbaum: Hey, thank you for taking the follow-up. Barry, I just want to get into kind of the mix of revenue, both storage and service gross margins were down sequentially. And I assume that it is mixed because that is usually what is going on. But I wanted to ask if you can confirm that and just give us a little bit more detail on the sequential movement?

Barry A. Hytinen: Thanks, Shlomo. Yes. So if I break it down between the two, on storage, it is mostly about data center, particularly power. As you know, as our clients draw more power and commence, that is a pass-through. So we generate revenue, but we do not generate incremental profit. So if it was not for Power, it would then up actually. And so then the other thing that I should mention on storage is data center is, as I talked about before, is a lower gross margin for us on storage as a company. But as you know, it is a very accretive EBITDA margin, and the team is just doing phenomenally well with profitability in data centers.

You saw the margins up to 52% plus. And that is also with the headwind of Power. Just as a reminder on the EBITDA margin. On service, what you saw there in terms of the decline is, as you said, it is much about mix. It is all mix. So the ALM business continues to perform very strong as you saw the growth that we have been delivering both year on year and sequentially. As well as digital. And as we talked about before, both of those are generally kind of lower margin businesses for us than our average service.

And lastly, I will just point out, with better retention rates, we have less permanent withdrawals and terminations, and that is a bit of a headwind to rate as well. But obviously, that is a very good story for the long term in light of seeing retention continue to rise over the last few quarters. You, Shlomo. And ladies and gentlemen, this concludes our question and answer session.

Operator: And the Iron Mountain Third Quarter 2025 Earnings Conference Call. Thank you for attending today’s presentation. You may now disconnect.