THIRD QUARTER RESULTS AHEAD OF EXPECTATIONS ACROSS ALL KEY METRICS
FULL YEAR 2025 GUIDANCE RAISED ON STRONG YEAR-TO-DATE PERFORMANCE
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 third quarter ended September 30, 2025.
CONSOLIDATED HIGHLIGHTS – THIRD QUARTER 2025
The table below sets forth the select financial results for the three months ended September 30, 2025 and 2024:
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Three months ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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Change(b) |
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$’million |
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$’million |
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% |
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Revenue |
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455.1 |
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420.3 |
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8.3 |
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Adjusted EBITDA(a) |
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261.5 |
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246.0 |
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6.3 |
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Income/(loss) for the period |
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147.4 |
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(205.7 |
) |
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171.7 |
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Cash from operations |
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259.6 |
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182.4 |
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42.3 |
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ALFCF(a) |
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157.8 |
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87.1 |
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81.2 |
| (a) |
Adjusted EBITDA and ALFCF are non-IFRS financial measures. See “Use of Non-IFRS financial measures” for additional information, definitions and a reconciliation to the most comparable IFRS measures. |
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| (b) |
In December 2024, the Company completed the disposal of its 70% interest in IHS Kuwait Limited. IHS Kuwait Limited contributed $12.8 million and $8.1 million to revenue and Adjusted EBITDA, respectively, in the third quarter of 2024. |
Financial Highlights
- Revenue increased 8.3% year-on-year to $455.1 million, despite a 3.0% inorganic revenue headwind from the disposal of the Company’s Kuwait operations in December 2024
- Organic revenue growth of 6.6% reflects Constant Currency(c) growth of 8.7% and the benefit of foreign exchange (“FX”) resets, partially offset by a reduction in revenues related to power indexation. Constant currency growth was driven by increased revenue from Colocation, Lease Amendments, New Sites, fiber and escalators. This strong growth was supplemented by a 4.7% benefit from favorable 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 increased 6.3% year-on-year to $261.5 million, despite a 3.3% headwind from the Kuwait disposal. Adjusted EBITDA Margin of 57.5% was in line with the second quarter of 2025. Income for the current period was $147.4 million
- Adjusted Levered Free Cash Flow (“ALFCF”) of $157.8 million, a 81.2% increase, driven by actions taken to improve free cash flow generation and supplemented by a re-phasing of interest payments between quarters following November 2024 bond refinancing. Cash from operations increased 42.3% to $259.6 million
- Capital expenditure (“Total Capex”) of $77.3 million, increased 16.3% year-on-year, reflecting the phasing of maintenance and augmentation capital expenditure
- Consolidated net leverage ratio(d) of 3.3x, down 0.6x year-on-year, within the target of 3.0x-4.0x
- Full year 2025 guidance raised, reflecting strong year-to-date performance and favorable FX movements
Strategic and Operational Highlights
- Signed a new site agreement with TIM S.A. in October 2025, which further extends the two companies’ partnership in Brazil and aims to build up to 3,000 sites, with an initial minimum deployment of 500 sites
- Completed the disposal of 100% of IHS Rwanda to Paradigm Tower Ventures in October 2025, at an enterprise value(e) of $274.5 million, as part of the strategic initiatives targeted at shareholder value creation
- Continued reduction in volatility of the Naira with 3.7% appreciation versus the USD during the quarter. USD availability remains in line with business requirements
- Continued year-on-year organic growth in Towers (39,025), with Tenants of 57,691 at the end of the third quarter and a Colocation Rate of 1.48x. Lease Amendments increased during the period to 42,221
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, “We delivered another strong quarter with solid revenue growth, profitability and free cash flow generation, building on the momentum we saw in the first half of the year. These positive results reflect disciplined execution, continued commercial progress and the strength of our operations across our key markets. Our year-to-date achievements, combined with a supportive macro environment, gives us the confidence to again raise guidance for full year 2025 across all key metrics.”
As we look forward, we remain excited by the substantial opportunities for growth across our markets. Our recently announced expanded partnership with TIM in Brazil to develop up to 3,000 new sites is directly aligned with our excitement around the rollout of 5G within our footprint and reinforces our confidence in our positioning to capture the rising demand for digital infrastructure. This confidence is further supported by the positive conditions in our largest market, Nigeria, driven by sustained Naira positivity and an improving telecoms environment for our customers following carrier tariff increases.”
During the third quarter, we continued to advance our deleveraging efforts, reducing our consolidated net leverage ratio to 3.3x – down 0.6x year-on-year and well within our 3.0x-4.0x target range. This improvement has been further supported by the proceeds received from the Rwanda disposal shortly after quarter end. As we move towards the end of 2025 and near the lower end our leverage target, we will continue to prioritize leverage reduction, but may subsequently consider allocating excess capital to other uses, including introducing a dividend policy and / or share buybacks. With a solid foundation and supportive market dynamics, we remain confident in creating long‑term value.”
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(c) |
“Constant Currency” combines the impact from CPI escalation, New Sites, new Colocation, new Lease Amendments, fiber and other revenues, as captured in organic revenue. Refer to “Item 5. Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for the definition of organic revenue and additional information. |
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(d) |
Consolidated net leverage ratio is a non-IFRS financial measure. See “Use of Non-IFRS financial measures” for additional information, definition and a reconciliation to the most comparable IFRS measure. |
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(e) |
Enterprise value is defined as anticipated consideration to be received on a borrowings and cash free basis. |
Full Year 2025 Outlook Guidance
The following full year 2025 guidance is based on a number of assumptions that management believes to be reasonable and reflects the Company’s expectations as of November 12, 2025. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information.
The Company’s outlook is based on the following:
- Increased revenue, Adjusted EBITDA(a) and ALFCF(a) driven by strong year-to-date performance and favorable foreign currency exchange rate movements
- Organic revenue year-on-year growth of approximately 10% (at the mid-point of the revenue guidance range) driven by strong year-to-date Constant Currency growth and now reflects a modestly lower contribution from FX resets (given the revised currency assumptions below) and power indexation (given lower diesel prices), both recognized within organic revenue
- Guidance inclusive of the contribution from the Company’s Rwanda operations up until the completion of its disposal on October 9, 2025
- Average foreign currency exchange rates to 1.00 U.S. dollar for January 1, 2025, through December 31, 2025, for key currencies: (a) 1,535 Nigerian Naira; (b) 5.65 Brazilian Real (c) 0.88 Euros (d) 18.05 South African Rand
- Approximately 600 build-to-suit sites, of which approximately 400 sites in Brazil
- Consolidated net leverage ratio(a) target of 3.0x-4.0x
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Metric |
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Previous Range |
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New Range |
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Revenue |
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$1,700M – $1,730M |
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$1,720M – $1,750M |
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Adjusted EBITDA(a) |
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$985M – $1,005M |
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$995M – $1,015M |
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Adjusted Levered Free Cash Flow(a) |
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$390M – $410M |
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$400M – $420M |
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Total Capex |
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$240M – $270M |
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$240M – $270M |
| (a) |
Adjusted EBITDA, ALFCF and consolidated net leverage ratio are non-IFRS financial measures. See “Use of Non-IFRS financial measures” for additional information and a reconciliation to the most comparable IFRS measures. We are unable to provide a reconciliation of Adjusted EBITDA (and similarly for consolidated net leverage ratio which is calculated based on Adjusted EBITDA) and ALFCF to income/(loss) and cash from operations, respectively, presented above on a forward-looking basis without an unreasonable effort, due to the uncertainty regarding, and the potential variability, of these costs and expenses that may be incurred in the future, including, in the case of Adjusted EBITDA, share-based payment expense, finance costs, insurance claims and gain on disposal of subsidiary, and in the case of ALFCF, cash from operations, net movement in working capital and maintenance capital expenditures, each of which adjustments may have a significant impact on these non-IFRS measures. |
RESULTS OF OPERATIONS
Impact of Naira foreign exchange movements
In 2025, the Naira exchange rate to the U.S. dollar has been relatively stable compared to 2023 and 2024. The rates used in the preparation of our financial statements are shown below:
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Closing Rate |
Closing Rate Movement (a) |
3- Month Average Rate |
Average Rate Movement (a) |
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₦:$ |
$:₦ |
₦:$ |
$:₦ |
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June 30, 2023 |
752.7 |
— |
508.0 |
— |
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September 30, 2023 |
775.6 |
(2.9)% |
767.7 |
(33.8)% |
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December 31, 2023 |
911.7 |
(14.9)% |
815.0 |
(5.8)% |
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March 31, 2024 |
1,393.5 |
(34.6)% |
1,315.9 |
(38.1)% |
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June 30, 2024 |
1,514.3 |
(8.0)% |
1,391.8 |
(5.4)% |
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September 30, 2024 |
1,669.1 |
(9.3)% |
1,601.0 |
(13.1)% |
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December 31, 2024 |
1,546.0 |
8.0% |
1,628.5 |
(1.7)% |
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March 31, 2025 |
1,538.1 |
0.5% |
1,526.7 |
6.7% |
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June 30, 2025 |
1,543.0 |
(0.3)% |
1,580.8 |
(3.4)% |
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September 30, 2025 |
1,486.5 |
3.7% |
1,523.2 |
3.6% |
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(a) |
Movements presented for each period are between that period’s rate and the preceding period rate and are calculated as percentage of the period’s rate. |
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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 third quarter of 2025 by $13.5 million and $8.3 million, respectively. The foreign exchange resets in some of our contracts partially offset these impacts. The appreciation of the Naira in the third quarter of 2025 resulted in unrealized foreign exchange gains of $73.9 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 September 30, 2025 versus 2024
Revenue
Revenue for the three month period ended September 30, 2025 (“third quarter”) was $455.1 million, an increase of 8.3% year-on-year, despite a 3.0% inorganic revenue headwind from the disposal of the Company’s Kuwait operations in December 2024. Organic revenue(a) increased by $27.6 million (6.6%) as a result of continued growth in revenues from Tenants, Lease Amendments and New Sites, in addition to the benefit of foreign exchange resets and escalations, and a reduction in revenues related to power indexation. This growth was partially offset by 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 $12.8 million, due to the disposal of operations in Kuwait in December 2024. The increase in organic revenue was supplemented by the non-core(a) impact of favorable movements in foreign exchange rates used to translate the results of foreign operations of $19.9 million, or 4.7%, of which $13.5 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.
For the third quarter, there was a year-on-year net decrease in Towers of 1,625 (or a year-on-year net increase of 53 Towers when excluding the impact of the Kuwait disposal), resulting in total Towers of 39,025 at the end of the period. The decrease primarily resulted from the divestiture of 1,678 Towers in Kuwait in December 2024. The addition of 756 New Sites year-on-year, was partially offset by 691 Churned and 12 decommissioned sites. Tenants declined 2,624 year-on-year including the divestiture of 1,700 from Kuwait, and a reduction of 3,529 from Churn. The Churn was inclusive of 2,576 tenants in the third quarter of 2025, reflecting an updated agreement with our smallest Key Customer in Nigeria, 9mobile. It has been agreed that 9mobile will vacate our sites starting in the third quarter of 2025 in exchange for a contractual commitment to settle portions of its historic overdue balances through July, 2027. This is expected to result in limited financial impact over the coming years. As a result, total Tenants were 57,691 at the end of the third quarter, with a Colocation Rate of 1.48x, in line with the third quarter of 2024. Excluding the impact of these two items, we added 1,652 net new tenants year-on-year. Year-on-year, we added 2,832 Lease Amendments, driven by continued incremental demand for ancillary services, resulting in total Lease Amendments of 42,221 at the end of the third quarter.
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(a) |
Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for the definition of organic revenue, inorganic revenue and non-core and additional information. |
Adjusted EBITDA
Adjusted EBITDA for the third quarter was $261.5 million, resulting in an Adjusted EBITDA Margin of 57.5%. Adjusted EBITDA increased 6.3% year-on-year in the third quarter reflecting the increase in revenue described above. Cost of sales increased $22.2 million year-on-year, primarily driven by increases in regulatory fees of $9.0 million versus the prior period, reflecting a non-recurring regulatory fee cost accrual release recognized in the third quarter of 2024 within the SSA segment, compared to a normalized cost level in the third quarter of 2025. Additionally, increases in power generation costs ($6.7 million), tower repairs and maintenance costs ($3.2 million) and staff costs ($2.3 million), which together more than offset a decrease in site rental costs ($1.6 million). The $2.9 million reduction in administrative expenses included within Adjusted EBITDA was primarily driven by cost saving initiatives which more than offset an expense of $3.1 million reflecting an adjustment associated with the updated agreement with our smallest Key Customer in Nigeria, discussed above.
Income for the period
Income for the period in the third quarter of 2025 was $147.4 million, compared to a loss of $205.7 million for the third quarter of 2024. This was primarily driven by a $353.6 million favorable movement in net finance income/(costs). This resulted from the impact of changes in the Naira exchange rate in the respective quarters on U.S. dollar-denominated intercompany loans advanced to our Nigerian operations. In the third quarter of 2025, the Naira continued to stabilize, with an average exchange rate of ₦1,523 to the U.S dollar. Administrative expenses also decreased by $34.5 million, although this was offset by an increase in cost of sales, as discussed above.
Cash from operations
Cash from operations for the third quarter of 2025 was $259.6 million, compared to $182.4 million for the third quarter of 2024. The increase primarily reflected a $57.8 million improvement in working capital in addition to an increase in operating income of $19.4 million.
ALFCF
ALFCF for the third quarter of 2025 was $157.8 million, compared to $87.1 million for the third quarter of 2024. The increase in ALFCF was primarily due to a decrease of $57.8 million in net interest paid driven by a re-phasing of interest payments between quarters following the November 2024 bond refinancing and a decrease in withholding tax paid of $5.3 million. This was partially offset by an increase in maintenance capex of $14.9 million.
SEGMENT RESULTS
Revenue and Adjusted EBITDA by segment
Set out below are revenue and segment Adjusted EBITDA for each of our reportable segments, for the three month periods ended September 30, 2025 and 2024:
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Revenue |
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Adjusted EBITDA |
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Three months ended September 30, |
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Three months ended September 30, |
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2025 |
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2024 |
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Change |
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2025 |
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2024 |
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Change |
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$’million |
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$’million |
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% |
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$’million |
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$’million |
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% |
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Nigeria |
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268.0 |
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242.3 |
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10.6 |
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169.6 |
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158.9 |
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6.7 |
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SSA |
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135.9 |
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120.1 |
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13.2 |
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80.0 |
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81.0 |
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(1.3 |
) |
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Latam |
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51.2 |
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45.1 |
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13.3 |
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41.2 |
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33.8 |
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21.8 |
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MENA |
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— |
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12.8 |
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(100.0 |
) |
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— |
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8.1 |
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(100.0 |
) |
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455.1 |
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420.3 |
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290.8 |
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281.8 |
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Unallocated corporate expenses(a) |
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— |
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— |
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— |
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(29.3 |
) |
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(35.8 |
) |
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18.2 |
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Total |
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455.1 |
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420.3 |
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8.3 |
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261.5 |
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246.0 |
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6.3 |
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(a) |
Unallocated corporate expenses primarily consist of costs associated with centralized Group functions including Group executive, finance, HR, IT, legal, tax and treasury services. |
Nigeria
Third quarter revenue increased 10.6% year-on-year to $268.0 million, driven by organic growth during the period and supplemented by favorable movements in the Naira versus the U.S. dollar. Organic revenue increased by $12.2 million, an increase of 5.0% year-on-year, driven primarily by foreign exchange resets and escalations, which more than offset a reduction in revenues linked to diesel prices. Continued growth in revenue from Colocation, Lease Amendments and New Sites 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 increase in organic revenue was supplemented by favorable movements in foreign exchange rates used to translate the results of foreign operations, with an average Naira rate of ₦1,523 to $1.00 in the third quarter of 2025 compared to an average rate of ₦1,601 to $1.00 in the third quarter of 2024. This led to a non-core increase of $13.5 million, or 5.6% year-on-year.
Tenants decreased by 2,534 year-on-year, with growth of 783 from Colocation and 98 from New Sites, more than offset by 3,415 Churn, which was inclusive of 2,576 tenants in the third quarter of 2025 reflecting an updated agreement with our smallest Key Customer, 9mobile. It has been agreed that 9mobile will vacate our sites starting in the third quarter of 2025 in exchange for a contractual commitment to settle portions of its historic overdue balances through July, 2027. This is expected to result in limited financial impact over the coming years. Lease Amendments increased by 1,904 driven by continued incremental demand for ancillary services.
Segment Adjusted EBITDA for the third quarter increased 6.7% year-on-year to $169.6 million, resulting in an Adjusted EBITDA Margin of 63.3%. The year-on-year increase in segment Adjusted EBITDA for the third quarter primarily reflects the increase in revenue described above, partly offset by an increase in cost of sales and administrative expenses included within segment Adjusted EBITDA. During the third quarter the increase in costs was primarily driven by a year-on-year increase within other expenses of $3.1 million reflecting an adjustment associated with the updated agreement with our smallest Key Customer, discussed above, as well as increases in the cost of diesel and electricity ($2.7 million) and tower repairs and maintenance costs ($2.4 million), with increases enhanced by the appreciation of the Naira, which is used to translate the results of our Nigeria operations.
SSA
Third quarter revenue increased 13.2% year-on-year to $135.9 million, primarily driven by movements in organic revenue, which increased by $10.4 million, or 8.6%, 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 $5.5 million, or 4.5%.
Tenants increased by 646 year-on-year, including 649 from Colocation and 114 from New Sites, partially offset by a decrease of 117 from Churn, while Lease Amendments increased by 240.
Segment Adjusted EBITDA for the third quarter declined 1.3% year-on-year to $80.0 million, resulting in an Adjusted EBITDA Margin of 58.8%. The year-on-year decrease in segment Adjusted EBITDA for the third quarter primarily reflected a $16.9 million increase in costs included within Adjusted EBITDA, which more than offset the increase in revenue. The increase in costs was primarily driven by increases in regulatory fees of $9.5 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 ($3.7 million) and tower repairs and maintenance costs ($0.6 million).
Latam
Third quarter revenue increased 13.3% year-on-year to $51.2 million and was primarily driven by organic growth of 11.2% in the quarter, or $5.1 million, driven by continued growth in Tenants, Lease Amendments, New Sites, fiber and CPI escalations. This was supplemented by the non-core impact of favorable movements in foreign exchange rates of $1.0 million, or 2.1%.
Tenants increased by 961 year-on-year, including 506 from New Sites and 455 from Colocation, while Lease Amendments increased by 960.
Third quarter segment Adjusted EBITDA increased 21.8% to $41.2 million for a segment Adjusted EBITDA Margin of 80.5%, primarily driven by the increase in revenue during the period, as well as a reduction in costs included within Adjusted EBITDA. The reduction in costs was driven by a decrease in staff costs ($1.2 million) and other costs ($2.0 million), partially offset by increases in tower repairs and maintenance costs ($0.9 million) and power generation costs ($0.9 million).
MENA
On December 19, 2024, the Company completed the disposal of its 70% interest in IHS Kuwait Limited, which contributed $12.8 million and $8.1 million of revenue and segment Adjusted EBITDA, respectively, in the third quarter of 2024. The revenue from the third quarter of 2024 is included within inorganic revenue.
As of the end of the third quarter of 2024, the MENA segment had 1,675 Towers, 1,697 Tenants and 272 Lease Amendments. Following completion of the Kuwait Disposal in December 2024, these Towers, Tenants and Lease Amendments were deconsolidated as of December 31, 2024.
Refer to note 31.2 in our Annual Report on Form 20-F for the fiscal year ended December 31, 2024 for further information on the disposal of the Kuwait business
CAPITAL EXPENDITURE
Set out below is the capital expenditure for each of our reporting segments for the three month periods ended September 30, 2025 and 2024:
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Three months ended |
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September 30, |
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September 30, |
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2025 |
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2024 |
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Change |
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$’million |
|
$’million |
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% |
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|
|
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Nigeria |
|
40.8 |
|
21.4 |
|
92.0 |
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SSA |
|
13.8 |
|
11.3 |
|
21.6 |
|
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Latam |
|
22.7 |
|
31.8 |
|
(28.7 |
) |
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MENA |
|
— |
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0.8 |
|
(100.0 |
) |
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Other |
|
— |
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1.2 |
|
(100.0 |
) |
|
Total Capex |
|
77.3 |
|
66.5 |
|
16.3 |
|
During the third quarter of 2025, capital expenditure (“Total Capex”) was $77.
Contacts
Enquiry: Investor
Contact Info:
IHS Africa (UK) Limited
1 Cathedral Piazza
123 Victoria Street
London, SW1E 5BP
United Kingdom
[email protected]
Enquiry: Journalist
Contact Info:
Teneo
The Carter Building,
11 Pilgrim St,
London, EC4V 6RN
United Kingdom
[email protected]
Enquiry: Other
Contact Info:
IHS Africa (UK) Limited
1 Cathedral Piazza
123 Victoria Street
London, SW1E 5BP
United Kingdom
+442081061600
[email protected]
