IHS Holding Limited (IHS Towers) has reported Q2 2025 results ahead of expectations, raising full-year guidance. Revenue was $433.3 million, down 0.5% year-on-year but up 2.1% excluding the Kuwait disposal.
Organic growth was 11.1%, driven by new sites, colocation, lease amendments, and escalators, partially offset by foreign exchange impacts, notably the Nigerian Naira devaluation.
Adjusted EBITDA was $248.5 million with a stable 57.3% margin. Net income was $32.3 million versus a $124.3 million loss in Q2 2024, aided by lower finance costs from currency stabilization. Cash from operations rose to $254.8 million, though Adjusted Levered Free Cash Flow fell to $54 million due to re-phased interest payments.
Capex dropped 13.8% to $46.3 million. Operationally, towers totaled 39,184 and tenants 59,743, with a 1.52x colocation rate.
Strategic actions included agreeing to sell IHS Rwanda for $274.5 million, repaying $154 million in high-interest debt, and securing a new $300M revolving credit facility. Guidance for 2025 now targets revenue of $1.70-$1.73 billion, Adjusted EBITDA of $985 million -$1.005 billion, and ALFCF of $390 million -$410 million, despite the Rwanda sale impact.
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated: “Our positive momentum continued in the second quarter, with strong performances across our key metrics of revenue, Adjusted EBITDA and ALFCF, in combination with a continued reduction in Total Capex.
Given our encouraging year-to-date progress, together with sustained macroeconomic stability across our markets, we are also pleased to be raising our full year 2025 guidance across all key metrics.
“Our improved outlook reflects what we believe are the benefits of the solid commercial progress we have made, as well as our strong focus on financial discipline, which is delivering sustained improvements in our profitability and cash flow generation.
“We remain excited by the significant growth prospects across our footprint, which are supported by the ongoing rollout of 5G across our markets. Our confidence is underpinned by the positive backdrop within our largest market, Nigeria, bolstered by the ongoing stability of the Naira as well as the carrier tariff rate increases that our Nigerian customers announced earlier this year.”
Speaking further, he said: “During the second quarter, we have also taken further actions to strengthen our balance sheet by repaying certain debt, lowering our interest costs and extending maturities.
“During the quarter we repaid two of our highest interest rate facilities in Nigeria and Brazil, which combined resulted in a net reduction in debt of $154 million. Our consolidated net leverage ratio of 3.4x, down 0.5x compared to the second quarter of 2024, remains in the lower half of our target 3.0x-4.0x range.
“Our de-leveraging will be supplemented by the proceeds we expect to receive from the disposal of our Rwanda operations, which we signed during the quarter. In the near term, we expect to continue prioritizing paying down debt, but as we approach the bottom of our leverage target, we may also consider allocating excess capital to other uses, including share buybacks and/or introducing a dividend policy.”