ATN International Q1 Earnings Call Highlights
by Scott Moore · The Cerbat GemATN International (NASDAQ:ATNI) executives said the company began 2026 with improved performance across both its U.S. and international operations, posting year-over-year gains in revenue, operating income, and Adjusted EBITDA, while reiterating its full-year outlook and providing updates on a planned tower portfolio sale.
New CEO outlines early priorities and capital allocation focus
Michele Satrowsky, Senior Vice President and Head of Investor Relations and Treasury, opened the call alongside ATN’s new Chief Executive Officer Naji Khoury and Chief Financial Officer Carlos Doglioli.
Khoury, who said he joined only “a few weeks” prior to the call, did not provide a detailed operating update but shared initial observations from visiting teams across markets. He said he is “encouraged” by ATN’s operating foundation and “meaningful business momentum,” while also seeing opportunities “to simplify the way we operate,” which he believes can help optimize performance across segments.
Khoury also emphasized disciplined capital allocation, including the company’s planned use of proceeds related to the sale of its power portfolio. He said ATN still expects to use approximately $70 million of initial proceeds to repay the outstanding balance on its revolving credit facility, which he said would help maintain liquidity and financing flexibility. For remaining proceeds, Khoury said the company is evaluating options that could include investments in existing operations and select growth opportunities, with more detail expected in the months ahead.
First-quarter results show revenue growth and margin expansion
Doglioli said management was “pleased with how the year started,” citing improved performance across both operating segments. Total revenue for the first quarter was $182 million, up nearly 2% from a year earlier. Excluding construction revenue and the impact of a previously announced loss of a high-cost support subsidy, Doglioli said core telecom revenue increased 3% year over year, driven primarily by higher business, carrier services, and ancillary revenue that helped offset the subsidy-related decline.
Operating income was $11.7 million, up $9 million versus the prior-year period. Doglioli attributed the improvement to revenue growth, cost management efforts, and reduced depreciation and amortization expense.
The company reported a net loss attributable to ATN stockholders of $3 million, or $0.29 per share, improving from a net loss of $9 million, or $0.69 per share, in the year-ago quarter.
Adjusted EBITDA totaled $49 million, up 10% year over year, and Adjusted EBITDA margin improved by 200 basis points to 26.7%. Doglioli said the margin expansion reflected ATN’s “continued focus on cost discipline and margin expansion.”
Doglioli also noted restructuring and reorganization expenses of approximately $2 million in the first quarter, with an expected additional $1 million to $2 million in the second quarter. He said these actions are embedded in the company’s Adjusted EBITDA outlook.
Segment results: steady international growth; domestic profitability improves
In the international segment, Doglioli said ATN delivered “steady top-line growth and margin expansion.” Revenue increased 2% to $96 million, while Adjusted EBITDA rose 6% to $34 million. The revenue increase reflected growth in carrier services and ancillary revenue, along with increases in business and postpaid consumer mobility subscribers, which Doglioli said offset declines in prepaid mobility subscribers. Fixed consumer revenue declined year over year due to the “anticipated end of the government support in the USVI,” he said.
On a like-to-like basis, Doglioli said international segment revenue grew 3% after normalizing for the support revenue impact. Adjusted EBITDA margin in the segment increased 140 basis points to 35.7% from 34.3% in the prior-year period, which he attributed to higher revenue and lower costs.
In the domestic segment, revenue was $86 million, up about 2% year over year. Adjusted EBITDA increased 11% to $19 million. Doglioli said higher carrier services revenue—driven by progress in key projects—along with increased fixed business revenue more than offset the absence of construction revenue in the quarter. Normalizing for construction, domestic segment revenues were up 3% year over year, he said.
Doglioli also highlighted subscriber trends. ATN’s base of high-speed broadband homes passed expanded year over year, “largely due to a fixed wireless deployment in Alaska during the second half of 2025,” and high-speed subscribers increased year over year, driven by improved penetration in the company’s Guyana fiber network. Mobility subscribers were up slightly, with postpaid growth offsetting slight prepaid declines related to billing system conversions.
Balance sheet and cash flow; capex pacing remains within annual guidance
ATN ended the quarter with $123 million in cash, cash equivalents, and restricted cash, up $6 million from year-end. Total debt was $570 million, up $5 million from the end of 2025. The net debt ratio improved to 2.3x from 2.36x, which Doglioli said benefited from higher Adjusted EBITDA. He added that approximately three-quarters of outstanding debt sits at the subsidiary level and is non-recourse to the ATN parent.
Net cash from operating activities decreased by approximately $6 million compared to the first quarter of last year, primarily due to higher working capital needs related to the timing of certain government program payments, according to Doglioli.
Capital expenditures were $21 million, flat year over year. Reimbursable capital expenditures declined to $14 million from $22 million a year earlier. Doglioli said ATN manages capital spending on an annual basis and expects capex to remain within the company’s guided range for 2026.
Tower sale timing and 2026 outlook; BEAD seen as longer-dated opportunity
Doglioli reiterated the company’s expectations for its planned Commnet tower sale. He reminded investors that ATN’s Commnet subsidiaries signed an agreement in February to sell a portfolio of 214 towers and related operations in the southwestern U.S. for up to $297 million. ATN remains on track for an initial closing in the second quarter with expected gross cash proceeds of $250 million to $270 million. Additional closings totaling $27 million to $47 million are anticipated over the following 12 months tied to construction and operational milestones.
Excluding any impact from the tower transaction, ATN reiterated its expectation that full-year 2026 Adjusted EBITDA will increase modestly from 2025, in the range of $190 million to $200 million. Following the initial tower sale closing, Doglioli said ATN expects a reduction in annual Adjusted EBITDA of approximately $6 million to $8 million and plans to reassess and update its full-year outlook after the initial closing.
ATN also reiterated its expectation for full-year 2026 capital expenditures, net of reimbursable spending, to be in the range of $105 million to $150 million.
During the Q&A, Sidoti analyst Greg Burns asked why ATN stopped disclosing total broadband homes passed and subscribers. Doglioli said the prior metric included “legacy products” that the company is actively decommissioning, and management believes focusing on “high-speed” paths—where it is investing—is more appropriate.
Burns also asked about the pace of monetization of ATN’s network investments. Doglioli said management believes monetization has been positive, pointing to year-over-year revenue growth, while noting “additional competition,” especially in mobility. Khoury added that ATN is also focused on migrating customers from its copper network and said he was “not worried” about the company’s ability to add fiber subscribers.
Asked about BEAD and other government subsidy programs, Doglioli said ATN is working through programs previously discussed and referenced a range “of a couple hundred million bucks.” He also said the company has provisional BEAD awards of around $140 million in total between the Southwest and Alaska, which could provide access to around 10,000 homes, plus additional locations along routes to those areas. However, Doglioli said BEAD is expected to be more of an opportunity in coming years and is “not going to have any significant impact on 2026.”
In closing remarks, Khoury said ATN started the year “on a good note” and reiterated his focus on simplifying operations, sharpening execution, and maintaining disciplined capital allocation to support long-term value creation.
About ATN International (NASDAQ:ATNI)
ATN International, Inc (NASDAQ: ATNI) is a diversified provider of telecommunications services that operates through a combination of wireless, wireline and broadband networks. Headquartered in Beverly, Massachusetts, the company offers a range of voice and data solutions to residential, commercial and wholesale customers. Its core offerings include long-distance voice services, fixed-line telephony, broadband internet access and network infrastructure solutions.
Through its business segments, ATN delivers tailored communications products to underserved markets across the Caribbean, Latin America, parts of the Pacific and select rural regions of the United States.