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ATN International Q2 2026: The Tower Sale Made the Quarter - Operating Economics Did Not

Published August 14, 202627 min read·TickerFile Research · ATN International, Inc. (ATNI)

The single transaction that defines ATN International's second quarter did not appear in any line item of the income statement until it was already closed. On June 2, 2026 - three weeks before quarter-end - Commnet Wireless and its affiliates completed the initial closing of a sale of approximately 214 tower sites to an affiliate of Everest Infrastructure Partners for $267.7 million in cash. The remaining $30 million of consideration arrives in installments over the next eleven months, bringing the total deal to $297 million, and the company has already taken the $230.9 million non-cash gain that flowed through "Disposition of assets, transfers and contingent consideration" in the quarter. GAAP net income of $186.5 million and diluted earnings per share of $10.71 are the result. The same quarter's revenue grew 1.8% to $184.5 million. GAAP net income printed because of the tower; the operating business did not generate it.

There are two ways to read Q2 2026. The first reads the headline: a small-cap rural telecom that reported $10.71 in diluted earnings per share and saw its stock touch a 52-week high of $33.41 the day of the print. The second reads what the management of a controlled-company rural-telecom and infrastructure operator actually does with $268 million of new cash and a $230.9 million non-cash gain. On that read, the quarter's substantive story is the deleveraging: net debt fell from $448.0 million at year-end to $181.4 million at quarter-end, and the net-debt ratio dropped from 2.36x trailing-twelve-month Adjusted EBITDA to 0.91x. The tower transaction turned a leveraged rural operator into a near-net-cash one in a single quarter. The board raised the share repurchase authorization to $30 million the same week - a 100% increase - and lifted the quarterly dividend 5.5% to $0.29. The story of Q2 2026 is not the headline. It is the balance sheet.

The underlying operating economics are far thinner than the GAAP print suggests. Quarterly revenue of $184.5 million grew 1.8% year over year; Adjusted EBITDA, the non-GAAP measure the company itself uses to evaluate the business, was $49.7 million, up 9% on a 200-basis-point margin expansion to 26.9%. International Telecom Adjusted EBITDA grew 6.7% to $35.5 million; US Telecom Adjusted EBITDA grew 4.5% to $19.1 million. Carrier Services revenue - the segment lever ATN has been pulling since it wound down its own US retail mobility business in late 2024 - grew 9.3% to $36.3 million, the only double-digit revenue line in the quarter. Communication services revenue ex-carrier was largely flat: total fixed revenue of $112.9 million was down 0.2% year over year, mobility revenue of $27.1 million was up 3.1%, and construction revenue collapsed from $2.2 million to $0.8 million because the company said it has now "substantially completed" the FirstNet build for AT&T. The operating story is a controlled-company rural telco in the middle of a multi-year pivot from government-funded capital programs and wholesale mobility to carrier services and high-speed broadband - a pivot that, ex-tower, neither accelerates nor disappoints.

The market has paid for the tower transaction. ATN shares closed at $31.87 on August 13, 2026, up roughly 130% from the 52-week low of $13.86 set on October 13, 2025, and just under the August 10 intraday high of $33.41. The stock now trades at 0.93x trailing-twelve-month revenue, 3.5x trailing-twelve-month Adjusted EBITDA, 0.82x book value, and 1.02x tangible book. A peer rural telecom that just printed $10.71 of GAAP earnings - almost all of it a non-recurring tower gain - is not "cheap on trailing earnings" so much as "fairly priced for the post-tower balance sheet." The 3.6% dividend yield and 6% buyback authorization cushion the multiple without anchoring it. The company guides 2026 Adjusted EBITDA to $183–193 million, down from a prior $190–200 million range that was revised after the tower sale removed roughly $7 million of expected run-rate EBITDA. The bear case is that the post-tower operating run-rate is closer to $180 million than $190 million, the high-speed broadband homes-passed base of 523,000 is growing 21% year over year but converting to subscribers at a 27% take-rate, and the rural telecom comp set trades on EBITDA, not on cash. The bull case is that the balance sheet is now investment-grade, the dividend is compounding at a five-percent rate, and the management team has roughly $300 million of dry powder to redeploy at a sub-1.0x EV/EBITDA multiple. The thesis is not the tower. The thesis is what gets bought next.