IHS Holding Limited

IHS

Equity

ISIN KYG4701H1092 / Valor 113842388

New York Stock Exchange, Inc (2025-11-21)

USD 6.28-0.32%

IHS Holding Limited
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About company

IHS Holding Limited, operating under the brand IHS Towers, is a prominent player in the telecommunications infrastructure industry, focusing on the ownership, operation, and development of shared communications infrastructure. The company primarily serves leading mobile network operators (MNOs) and other communications service providers, leveraging deep customer relationships and operational excellence to expand its presence. With a strategy that combines organic growth and strategic acquisitions, IHS Towers has executed 22 transactions to bolster its market footprint. As of now, the company operates in 11 markets across Africa, Latin America, and the Middle East, positioning itself as the third largest independent TowerCo globally by tower count. It boasts market leadership in seven of these regions and is distinguished as the only independent multinational operator in five markets. This extensive reach and significant role in the telecommunications sector underscore IHS Towers' critical contribution to enhancing mobile and internet connectivity in diverse and often underserved regions around the world.

Summarized from source with an LLMView SourceSector: Telecommunications

Revenue Performance

Revenue for the second quarter of 2025 was $433.3 million, a slight decrease of 0.5% year-on-year. Excluding the disposal of Kuwait operations, revenue increased by 2.1%. Organic growth reached 11.1%, driven by 9.9% constant currency growth, supported by increased revenue from Colocation, Lease Amendments, New Sites, and escalators.

Adjusted EBITDA and Income

Adjusted EBITDA stood at $248.5 million, a 0.9% decrease year-on-year, or a 1.5% increase excluding Kuwait disposal. The Adjusted EBITDA margin remained stable at 57.3%, reflecting continued financial discipline. The company reported an income of $32.3 million for the period, a significant improvement from a loss of $124.3 million in the same quarter last year.

Cash Flow and Capital Expenditure

Cash from operations was $254.8 million, marking a 68.1% increase year-on-year. Adjusted Levered Free Cash Flow (ALFCF) was $54.0 million, a decline of 19.2% due to a re-phasing of interest payments following the November 2024 bond refinancing. Total capital expenditure decreased by 13.8% to $46.3 million, highlighting efforts to improve cash flow generation.

Net Leverage Ratio

The consolidated net leverage ratio improved to 3.4x, down from 3.9x in the second quarter of 2024. This reduction aligns with the company’s target range of 3.0x-4.0x, demonstrating progress in debt management and financial stability.

Full Year 2025 Outlook

IHS Holding Limited has raised its full-year 2025 guidance, driven by strong operating performance and favorable foreign currency movements. The updated revenue guidance ranges from $1.700 billion to $1.730 billion, while Adjusted EBITDA is expected to be between $985 million and $1.005 billion. The company anticipates continued organic growth and improved cash flow conversion rates.

Strategic Initiatives

The company announced the disposal of 100% of IHS Rwanda to Paradigm Tower Ventures for an enterprise value of $274.5 million. Additionally, IHS repaid high-interest debt facilities in Nigeria and Brazil, reducing overall debt by $154 million. A new $300 million revolving credit facility was established, with the option to increase to $400 million, enhancing financial flexibility through Q3 2028.

Summarized from source with an LLMView Source

Key figures

119%1Y

-13.1%3Y

%5Y

Performance

52.5%1Y

58.3%3Y

56.6%5Y

Volatility