IHS Towers Delivers Strong Q2 2025, Raises Full-Year Guidance on African Growth and 5G Momentum

IHS Towers, one of the world’s largest independent owners, operators, and developers of shared communications infrastructure, published its second quarter 2025 results this morning for the three-month period ended 30 June 2025. As of market close last night, the company had a market cap of $2.26 billion.

This was another strong quarter for IHS, with performance ahead of expectations and the company raising its full year 2025 guidance across all key metrics despite incorporating the estimated financial impact of the Rwanda disposal, reflecting the benefit of strong year-to-date execution, favourable FX movements, and macroeconomic stability across key markets.

Q2 highlights

• Revenue of $433.3m, down 0.5%, but up 2.1% excluding the Kuwait disposal; guidance up from $1,680-$1,710m to $1,700-$1,730m.
  • Organic growth of 11.1% driven by 9.9% constant currency growth and FX reset benefits.
• Adjusted EBITDA of $248.5m, down 0.9% year-on-year or up 1.5% excluding Kuwait; guidance up from $960-$980m to $985-$1,005m
  • Adjusted EBITDA Margin of 57.3%, reflecting continued financial discipline.
• ALFCF was $54.0m (down 19.2%) driven by the re-phasing of interest payments following the November 2024 bond refinancing; guidance up from $350-$370m to $390-$410m
• Total Capex of $255.9 million down 56.3% year-on-year, reflecting a narrowed focus on capital allocation; guidance down from $260-$290m to $240-$270m.
• Cashflow from operations was $254.8m, consolidated net leverage ratio of 3.4x, down 0.5x year-on-year.

The company has also made successful strategic and operational progress:

• Announced agreement to dispose of 100% of IHS Rwanda for $274.5 million as part of ongoing shareholder value initiatives.
• Reduced net debt by $154 million through repayment of high-interest debt facilities in Nigeria and Brazil.
• Replaced existing $300 million revolving credit facility due to expire in October 2026 with a new facility extendable to $400 million, available through Q3 2028.
• Reduced volatility of the Naira, with minimal devaluation (0.3% versus the USD) and sufficient USD availability.
• Continued organic growth in towers (39,184) and tenants (59,743) and lease amendments (40,078), with colocation rate up to 1.52x.

“Our positive momentum continued in the second quarter, with strong performances across revenue, Adjusted EBITDA and ALFCF, alongside reduced capex. Given our progress and sustained macroeconomic stability, we are pleased to raise our full year 2025 guidance across all key metrics — even after factoring in the Rwanda disposal. We remain excited by the growth prospects across our footprint, supported by 5G rollouts and a stabilizing Naira. As we near the bottom of our leverage target, we may consider capital returns, including share buybacks or a dividend policy.”

– Sam Darwish, Chairman and CEO, IHS Towers