IHS Holding Limited Reports Fourth Quarter and Full Year 2025 Financial Results

SOLID FULL YEAR 2025 REVENUE GROWTH AND FREE CASH FLOW GENERATION

LONDON–(BUSINESS WIRE)–IHS Holding Limited (NYSE: IHS) (“IHS Towers” or the “Company”), one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, today reported financial results for the fourth quarter and full year ended December 31, 2025.

CONSOLIDATED HIGHLIGHTS – FOURTH QUARTER AND FULL YEAR 2025

The table below sets forth the select financial results for the three months and twelve months ended December 31, 2025 and 2024:

FULL YEAR 2025

Financial Highlights

• Revenue, from continuing operations, of $1,582.0 million (which excludes revenue of $193.5 million for the Latam segment now presented within discontinued operations) increased by 3.6%Organic revenue growth was 10.1%, driven by 6.9% Constant Currency^(d) growth, with continued growth in revenue from Colocation, Lease Amendments and New Sites, with the remainder a result of foreign exchange (“FX”) resets and power indexation. Constant Currency growth was driven by increased revenue from Colocation, Lease Amendments, New Sites, fiber and escalators. The organic increase was partly offset by a 2.8% headwind from adverse movements of FX rates used to translate the results of our operations, including the Nigerian Naira (“NGN” or “Naira”) versus the U.S. dollar (“USD”)
• Adjusted EBITDA of $1,012.3 million grew 9.0% year-on-year. Income for the period was $126.8 million
• Adjusted Levered Free Cash Flow (“ALFCF”) was $448.1 million, an increase of 47.3%. Cash from operations was $983.0 million
• Capital expenditure (“Total Capex”) of $246.4 million was down 3.7% year-on-year
• Full year 2025 financial results ahead of, or within, guidance across all metrics
• Consolidated net leverage ratio^(e) of 3.1x, down 0.6x year-on-year, within the target of 3.0x-4.0x

Strategic and Operational Highlights

• Announced the proposed sale of IHS Towers to MTN Group Limited in February 2026 at an enterprise value^(f) of $6.2 billion
• In February 2026, the Company agreed to sell its Latin America tower operations to Macquarie Asset Management at an enterprise value^(f) of approximately $952 million, and its 51.0% stake in I-Systems to TIM S.A. at an enterprise value^(f) of approximately $453 million
• Sold IHS Rwanda to Paradigm Tower Ventures as part of the strategic initiatives targeted at shareholder value creation
• Repaid high interest debt facilities in both Nigeria and Brazil, which combined resulted in a net reduction in debt of $154 million, in line with strategic priority to maximise free cash flow generation and reduce overall Group debt
• Continued reduction in volatility of the NGN with 6.7% appreciation versus the USD during the year. USD availability remains in line with business requirements
• Towers of 37,590 with Tenants of 54,874 at the end of the fourth quarter, leading to a Colocation Rate of 1.46x. Lease Amendments increased during the period to 43,999

FOURTH QUARTER 2025

Financial Highlights

• Revenue, from continuing operations, of $397.8 million (which excludes revenue of $49.7 million for the Latam segment now presented within discontinued operations) increased 1.2% year-on-year
• Organic revenue declined 2.9% year-on-year despite a Constant Currency increase of 2.3%, which was more than offset by a reduction in revenues related to foreign exchange resets and power indexation. Constant Currency growth was driven by increased revenue from Colocation, Lease Amendments, New Sites, fiber and escalators. The organic decline was more than offset by a 9.9% benefit from favorable movements of FX rates used to translate the results of our operations, including the Nigerian Naira versus the U.S. dollar
• Adjusted EBITDA increased 1.4% year-on-year to $249.8 million. Loss for the current period was $83.5 million primarily due to an impairment of discontinued operations in our Latam segment, partially offset by a gain from disposal on the sale of IHS Rwanda
• ALFCF of $86.5 million, a 19.3% decrease year-on-year, was primarily driven by a re-phasing of interest payments between quarters following the November 2024 bond refinancing. Cash from operations decreased 27.5% to $252.3 million
• Total Capex of $79.1 million, decreased 4.3% year-on-year

Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, “We delivered a strong fourth quarter, completing a year of solid revenue growth and profitability, robust free cash flow generation and continued consolidated net leverage reduction. Our full‑year results reflect disciplined execution, sustained commercial momentum, and the resilience of our operations across key markets.

Looking ahead, the proposed sale of IHS Towers to MTN represents the next step in our long‑standing partnership with MTN. The transaction brings together Africa’s largest mobile network operator with one of the continent’s leading digital infrastructure platforms, highlighting the deep connection we have built with the markets we serve across Africa.”

Full Year 2026 Outlook Guidance

In light of the proposed sale of IHS Towers to MTN Group Limited, announced on February 17, 2026, the Company is not providing full year 2026 financial guidance.

RESULTS OF OPERATIONS FOR THE FOURTH QUARTER AND FULL YEAR 2025

Impact of Naira foreign exchange movements

In 2025, the Naira exchange rate to the U.S. dollar has been relatively stable compared to 2023 and 2024. The rates used in the preparation of our financial statements are shown below:

Compared to the same period in 2024, the Naira rate used to translate the results of our Nigeria operations positively impacted revenue and segment Adjusted EBITDA in the fourth quarter of 2025 by $28.8 million and $18.2 million, respectively. The foreign exchange resets in some of our contracts partially offset these impacts. The appreciation of the Naira in the fourth quarter of 2025 resulted in unrealized foreign exchange gains of $49.2 million on U.S. dollar denominated intercompany loans advanced to our Nigerian operations. The unrealized gains and losses are recorded in finance income and finance costs respectively, although Group net assets are not impacted since equal and opposite gains and losses are recorded in equity on the retranslation of the Nigerian operations’ assets and liabilities (which include these loans).

Results for the three months ended December 31, 2025 versus 2024

On February 11 and 17, 2026, the Group announced agreements to sell its 51.0% stake in I-Systems to TIM S.A. and its Latin American tower operations to Macquarie Asset Management, respectively. The Latin American tower operations and I-Systems disposal groups were classified as held for sale at December 31, 2025. These disposal groups comprised the entire Latam reportable segment and therefore this segment was presented as a discontinued operation. Accordingly, the description of revenue from continuing operations is now presented separately from the description of revenue from discontinued operations and Adjusted EBITDA Margin is only presented for individual segments. Other key performance indicators, including Adjusted EBITDA and ALFCF, continue to reflect the performance inclusive of the Latin America segment as the associated IFRS measures of earnings and cash from operations continue to include results from discontinued operations.

Revenue from continuing operations

Revenue from continuing operations for the three month period ended December 31, 2025 (“fourth quarter”) was $397.8 million, an increase of 1.2% year-on-year, despite a 5.8% inorganic revenue headwind from the disposal of the Company’s Kuwait operations in December 2024. Organic revenue^(a) decreased by $11.6 million (2.9%) driven by a reduction in revenues related to foreign exchange resets and power indexation, largely as a result of the appreciation of the Naira versus the U.S. dollar. This more than offset the continued growth in revenues from Tenants, Lease Amendments and New Sites, in addition to the benefit of escalations, and came despite the impact of Churn related to the approximately 1,050 sites MTN Nigeria agreed to vacate as part of the renewed and extended contracts with MTN Nigeria, signed during the third quarter of 2024. Inorganic revenue^(a) decreased by $22.7 million, due to the disposal of operations in Kuwait and Rwanda in December 2024 and October 2025, respectively. The decrease in organic revenue was more than offset by the non-core^(a) impact of favorable movements in foreign exchange rates used to translate the results of foreign operations of $38.9 million, or 9.9%, of which $28.8 million was due to the appreciation of the Naira.

Refer to the revenue component of the segment results section of this discussion and analysis for further details.

Revenue from discontinued operations

Revenue from the Latin America segment for the three month period ended December 31, 2025, presented within discontinued operations, was $49.7 million, an increase of 11.4% year-on-year.

Towers, tenants and lease amendments

For the fourth quarter, there was a year-on-year net decrease in Towers of 1,639 (or a year-on-year net decrease of 172 Towers when excluding the impact of the Rwanda disposal), resulting in total Towers of 37,590 at the end of the period. The decrease primarily resulted from the divestiture of 1,467 Towers in Rwanda in October 2025. The addition of 580 New Sites year-on-year, was more than offset by 732 Churned and 20 decommissioned sites. Tenants declined 4,469 year-on-year including the divestiture of 3,041 from Rwanda, and a reduction of 3,836 from Churn. The Churn was inclusive of 2,576 tenants in the third quarter of 2025, which reflected an updated agreement with our smallest Key Customer in Nigeria, T2 (previously known as 9mobile), signed during the third quarter of 2025. It was agreed that T2 would vacate our sites in exchange for a contractual commitment to settle portions of its historic overdue balances through July, 2027. As a result, total Tenants were 54,874 at the end of the fourth quarter, with a Colocation Rate of 1.46x, a reduction of 0.02x from the third quarter of 2025, reflecting the impact of the Rwanda disposal. Excluding the impact of these two items, we added a net 1,148 new tenants year-on-year. Year-on-year, we added 4,328 Lease Amendments, driven by continued incremental demand for ancillary services, resulting in total Lease Amendments of 43,999 at the end of the fourth quarter.

Adjusted EBITDA

Adjusted EBITDA for the fourth quarter of $249.8 million increased 1.4% year-on-year reflecting the increase in revenue described above. Cost of sales increased $5.7 million year-on-year, primarily driven by increases in staff costs ($3.4 million), other costs ($2.6 million), site rental costs ($0.9 million) and tower repairs and maintenance costs ($0.8 million), which were partly offset by a decrease in power generation costs ($1.9 million). Cost of sales contained an increase in regulatory fees of $10.3 million year-on-year, which reflected a non-recurring regulatory fee cost accrual release recognized in the fourth quarter of 2024 within the SSA segment, compared to a normalized cost level in the fourth quarter of 2025. This was offset by a reduction in other cost of sales relating to a non-recurring write-down of inventory within the Nigeria segment during the fourth quarter of 2024, with no associated write down during the fourth quarter of 2025. The $0.6 million increase in administrative expenses included within Adjusted EBITDA reflects cost saving initiatives broadly offset increases related to the appreciation of the Naira, which is used to translate the results of our Nigeria operations.

Income/(loss) for the period

Loss for the period in the fourth quarter of 2025 was $83.5 million, compared to income of $243.1 million for the fourth quarter of 2024. This $326.6 million year-on-year decrease in income was primarily due to an impairment of discontinued operations in our Latam segment of $394.6 million and an $85.5 million unfavorable movement in net finance income/(costs), partially offset by a gain from disposal of $177.7 million for the sale of our 100% interest in IHS Rwanda during October 2025, compared to a gain from disposal of $83.9 million from the disposal of our Kuwait subsidiary in the fourth quarter of 2024.

Cash from operations

Cash from operations for the fourth quarter of 2025 was $252.3 million, compared to $348.8 million for the fourth quarter of 2024. The decrease primarily reflected a lower level of working capital inflow of $54.1 million in addition to a decrease in operating income before working capital movements of $42.4 million.

ALFCF

ALFCF for the fourth quarter of 2025 was $86.5 million, compared to $107.1 million for the fourth quarter of 2024. The decrease in ALFCF primarily reflects an increase of $15.1 million in net interest paid (driven by a re-phasing of interest payments between quarters following the November 2024 bond refinancing), an increase in maintenance capex of $3.7 million and an increase in income tax paid of $2.5 million. This was partially offset by a decrease in withholding tax incurred of $10.7 million.

SEGMENT RESULTS

Revenue and Adjusted EBITDA by segment

Set out below are revenue and segment Adjusted EBITDA for each of our reportable segments, for the three month periods ended December 31, 2025 and 2024:

Nigeria

Fourth quarter revenue increased 4.0% year-on-year to $269.1 million. Organic revenue decreased by $18.6 million, a decrease of 7.2% year-on-year, driven largely by a reduction in revenues linked to foreign exchange resets and diesel prices as a result of the appreciation of the Naira versus the US Dollar during the period, which more than offset the growth primarily driven by escalations. Continued growth in revenue from Colocation and Lease Amendments was partially offset by Churn related to the approximately 1,050 sites MTN Nigeria agreed to vacate as part of the renewed and extended contracts with MTN Nigeria, signed during the third quarter of 2024. The decrease in organic revenue was more than offset by favorable movements in foreign exchange rates used to translate the results of foreign operations, with an average Naira rate of ₦1,453 to $1.00 in the fourth quarter of 2025 compared to an average rate of ₦1,629 to $1.00 in the fourth quarter of 2024. This led to a non-core increase of $28.8 million, or 11.1% year-on-year.

Tenants decreased by 2,695 year-on-year, with growth of 763 from Colocation and 44 from New Sites, more than offset by 3,502 Churn, which was inclusive of 2,576 tenants in the third quarter of 2025 which reflected an updated agreement with our smallest Key Customer, T2. It was agreed that T2 would vacate our sites in exchange for a contractual commitment to settle portions of its historic overdue balances through July, 2027. Lease Amendments increased by 2,928 driven by continued incremental demand for ancillary services.

Segment Adjusted EBITDA for the fourth quarter increased 9.5% year-on-year to $169.7 million, resulting in an Adjusted EBITDA Margin of 63.0%. The year-on-year increase in segment Adjusted EBITDA for the fourth quarter primarily reflects the increase in revenue described above, combined with a decrease in cost of sales and administrative expenses included within segment Adjusted EBITDA. During the fourth quarter the decrease in costs was primarily driven by a year-on-year decrease relating to a non-recurring write-down of inventory during the fourth quarter of 2024, with no associated write down during the fourth quarter of 2025, in addition to decreases in the cost of diesel and electricity ($3.0 million), and partly offset by increases in staff costs ($4.3 million), other expenses ($3.0 million), and tower repairs and maintenance costs ($1.1 million), with these movements enhanced by the appreciation of the Naira, which is used to translate the results of our Nigeria operations.

SSA

Fourth quarter revenue increased 3.6% year-on-year to $128.7 million, despite a 10.1% inorganic revenue headwind related to the disposal of operations in Rwanda in October 2025. Organic revenue increased by $7.0 million, or 5.6%, led by growth in new Tenants, Colocations and New Sites and escalations, partially offset by lower revenues from foreign exchange resets. The overall increase in revenue was also driven by an increase in non-core revenues as a result of positive movements in foreign exchange rates of $10.0 million, or 8.1%.

Tenants decreased by 2,528 year-on-year, primarily due to the divestiture of 3,041 in Rwanda. Other than this disposal, tenants increased by 513 driven by increases of 555 from Colocation and 169 from New Sites, partially offset by a decrease of 211 from Churn, while Lease Amendments increased by 550.

Segment Adjusted EBITDA for the fourth quarter declined 8.6% year-on-year to $73.8 million, resulting in an Adjusted EBITDA Margin of 57.4%, with the increase in revenue described above more than offset by an increase in costs included within segment Adjusted EBITDA. The decrease also reflects the 10.1% inorganic headwind relating to the disposal of operations in Rwanda in October 2025, and increases in regulatory fees of $9.8 million, largely relating to a non-recurring regulatory fee cost accrual release relating to a review of current and historic license obligations recognized in the third quarter of 2024, compared to a normalized cost level in the third quarter of 2025, in addition to increases in power generation costs ($1.5 million).

Refer to note 31 in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025 for further information on the disposal of the Rwanda business.

MENA

On December 19, 2024, the Company completed the disposal of its 70% interest in IHS Kuwait Limited, which contributed $10.1 million and $7.3 million of revenue and segment Adjusted EBITDA, respectively, in the fourth quarter of 2024. The revenue from the fourth quarter of 2024 is included within inorganic revenue.

Following completion of the Kuwait Disposal in December 2024, the Towers, Tenants and Lease Amendments were deconsolidated as of December 31, 2024.

Refer to note 31.2 in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for further information on the disposal of the Kuwait business

Latam

Fourth quarter revenue increased 11.4% year-on-year to $49.7 million which included organic growth of 3.1% in the quarter, or $1.4 million, driven by continued growth in Tenants, Lease Amendments, New Sites, fiber and CPI escalations. This was enhanced by the non-core impact of favorable movements in foreign exchange rates of $3.7 million, or 8.3%.

Tenants increased by 754 year-on-year, including 367 from New Sites and 510 from Colocation, while Lease Amendments increased by 850.

Fourth quarter segment Adjusted EBITDA decreased 1.4% to $36.6 million for a segment Adjusted EBITDA Margin of 73.6%, as the increase in revenue during the period, was more than offset by an increase in costs included within Adjusted EBITDA.

Contacts

Enquiry: Investor

Contact Info:
IHS Towers

1 Cathedral Piazza

123 Victoria Street

London, SW1E 5BP

United Kingdom

[email protected]

Enquiry: Journalist

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Teneo

The Carter Building

11 Pilgram Street

London, EC4V 6RN

United Kingdom

[email protected]

Enquiry: Other

Contact Info:
IHS Towers

1 Cathedral Piazza

123 Victoria Street

London, SW1E 5BP

United Kingdom

+442081061600

[email protected]

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