IHS Towers Raises 2025 Outlook on Robust Q3 Performance and Deleveraging Progress

Quarterly Financial Results Outpace Expectations, Driving Guidance Revision

IHS Holding Limited delivered third quarter 2025 financial results that exceeded forecasts across all major metrics. The company reported revenue of $455.1 million—an 8.3% increase over the prior year, despite a headwind from the sale of its Kuwait business in late 2024. Adjusted EBITDA grew to $261.5 million (up 6.3% year-on-year) while Adjusted Levered Free Cash Flow (ALFCF) surged 81.2% to $157.8 million, signaling both operating strength and effective cost controls.

Significant Improvement in Cash Flow and Profitability

IHS saw its cash from operations rise 42.3% to $259.6 million for the quarter, supported by stronger working capital management and increased operating income. Net income swung positive, hitting $147.4 million versus a loss in the previous year, aided by lower administrative expenses and foreign exchange gains. These financial improvements have allowed IHS to raise full-year 2025 guidance, with expected revenue now in the $1.72–$1.75 billion range and Adjusted EBITDA between $995–$1,015 million.

Regional Performance: Broad-Based Revenue Growth

The quarter’s momentum was broad-based. Nigeria delivered a 10.6% year-on-year revenue jump (to $268 million) and a 6.7% rise in segment EBITDA, while Latin America and SSA (Sub-Saharan Africa) saw revenues climb by 13.3% and 13.2% respectively. EBITDA margin held steady overall at 57.5%. Capital expenditure for the quarter was $77.3 million, up 16.3%—reflecting stepped-up maintenance and augmentation investments in Nigeria and SSA.

Deleveraging On Track and Capital Structure Strengthening

IHS’s net leverage ratio dropped to 3.3x, a decrease of 0.6x from last year, landing within management’s target range (3.0x–4.0x). The reduction was further reinforced by the post-quarter-end sale of IHS Rwanda, adding financial flexibility as the company looks at potential future shareholder returns through dividends or buybacks.

Operational Expansion: New Sites, Strategic Partnerships, and Emerging Markets Focus

Operational highlights include the signing of a new agreement with TIM S.A. in Brazil to develop up to 3,000 sites (starting with at least 500), underscoring IHS’s role in 5G rollouts across key growth regions. In addition, the divestment of the Rwandan operations (for $274.5 million) is part of ongoing efforts to streamline the business and maximize value.

Organic growth remains strong with net new towers and lease amendments added, though the company managed some churn related to customer transitions in Nigeria. The impact from these site transitions is expected to be financially limited going forward.

Currency Trends Provide a Tailwind

Foreign exchange, especially the appreciation of the Nigerian Naira (3.7% during the quarter), added $13.5 million to revenues and $8.3 million to EBITDA for the Nigeria segment, highlighting the importance of currency stability in IHS’s financial performance.

Revised Full-Year 2025 Outlook Signals Confidence

The raised guidance reflects management’s confidence, citing a strong year-to-date trajectory and favorable foreign exchange conditions. Growth expectations now include a nearly 10% organic revenue increase (at mid-point) for the year.

Key Takeaways: Deleveraging and Execution Position IHS for Further Growth

Strong Q3 financials and successful strategic initiatives reinforce IHS Towers’ capacity for cash flow generation, disciplined capital allocation, and organic growth in emerging markets. With the company on track to approach the lower end of its net leverage target by year-end, shareholders can anticipate possible policy developments regarding dividends or buybacks in the coming quarters. Investors watching the infrastructure sector may see IHS’s execution and regional exposure as key differentiators—especially as demand for 5G and connectivity continues to climb across its markets.

Contact Information:

If you have feedback or concerns about the content, please feel free to reach out to us via email at support@marketchameleon.com.

About the Publisher - Marketchameleon.com:

Marketchameleon is a comprehensive financial research and analysis website specializing in stock and options markets. We leverage extensive data, models, and analytics to provide valuable insights into these markets. Our primary goal is to assist traders in identifying potential market developments and assessing potential risks and rewards.

NOTE: Stock and option trading involves risk that may not be suitable for all investors. Examples contained within this report are simulated and may have limitations. Average returns and occurrences are calculated from snapshots of market mid-point prices and were not actually executed, so they do not reflect actual trades, fees, or execution costs. This report is for informational purposes only, and is not intended to be a recommendation to buy or sell any security. Neither Market Chameleon nor any other party makes warranties regarding results from its usage. Past performance does not guarantee future results. Please consult a financial advisor before executing any trades. You can read more about option risks and characteristics at theocc.com.

The information is provided for informational purposes only and should not be construed as investment advice. All stock price information is provided and transmitted as received from independent third-party data sources. The Information should only be used as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments and trading strategies. The Company does not guarantee the accuracy, completeness or timeliness of the Information.

Disclosure: This article was generated with the assistance of AI