Iron Mountain Incorporated

Customer retention in the physical records business has consistently exceeded 90%, and FY2025 storage rental revenue of $4.05B reflects a recurring base that has grown every year since FY2020. Signed data center leases underwrite more than 25% data center revenue growth in FY2026, adding contracted backlog visibility to the already sticky core.

Physical records and information management accounts for roughly 70% of FY2025 consolidated revenue, with data center, digital solutions, and asset lifecycle management collectively growing more than 30% in FY2025. The portfolio is actively diversifying but remains meaningfully concentrated in a single service category.

The United States represents approximately two-thirds of consolidated revenue as of FY2025, with the United Kingdom at roughly 7% and the remainder spread across more than 60 countries. Operations are genuinely global, but single-country exposure above 60% is a meaningful concentration.

Iron Mountain's physical records vaults demonstrate inherent operating leverage: incremental document volume in existing facilities carries near-zero marginal cost, contributing to an adjusted EBITDA margin of 38.3% in Q4 FY2025, the company's highest reported. Data center construction requires substantial capital outlay before lease-revenue recognition, limiting company-wide operating leverage as the business mix shifts.

Physical records storage is operationally non-discretionary: healthcare, legal, and financial services customers must retain documents under regulatory mandate, making the service effectively non-cancellable. Data center leases carry 10-plus year terms with hyperscale tenants, and the combination of regulatory-mandate revenue and long-term contracted leases makes the revenue base structurally defensive.