Data Centers

All articles tagged with "Data Centers"

7 articles

PEG 10-K Analysis: $26M FCF, $25B Capex, and the Funding Gap Nobody Models

Public Service Enterprise Group earned $26 million in free cash flow in FY2025. The company just committed to a $22.5-25.5 billion capital plan requiring $4.8 billion per year — a 47% increase from current levels. The 10-K reveals the debt-funded share of investment rises from 38% to 53% at plan-level spending, creating hidden leverage acceleration masked by the headline net debt/EBITDA improvement. Meanwhile, PSEG Power's genuine 4.7x earnings improvement is invisible behind GAAP volatility, and New Jersey's permanent summer shutoff moratorium has pushed bad debt reserves to 11.6% of gross receivables — 2-3x the utility industry norm.

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AMT 10-K Analysis: The Hidden Cross-Subsidy Funding American Tower's AI Pivot

American Tower reported 5.1% revenue growth in FY2025, but the 10-K reveals the US tower business — 49% of revenue — generated just $0.6M in incremental revenue. All growth came from Africa (+17.8%), data centers (+13.9%), and Europe. At 18.0x P/FFO, the market is pricing a growth transition story funded by an 8.4x capital intensity cross-subsidy from towers to data centers — while $12.2B in debt matures in 2027-2028 at higher rates.

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