IHS Towers Q2 2025 Results Show Strong Operational Momentum and Strategic Progress
IHS Towers posts impressive Q2 2025 results, increases full-year outlook due to African expansion and 5G advancements
IHS Towers, a global independent owner and operator of shared communications infrastructure, has published its Q2 2025 results, revealing a robust financial performance and strategic progress.
Key Financial Highlights
IHS Towers reported a revenue of $433.3 million for Q2 2025, which represents a 0.5% decrease year-over-year. However, excluding the disposal of its Kuwait operations, revenue increased by 2.1%. The company's Adjusted EBITDA was $248.5 million for the quarter, reflecting strong operational momentum despite a slight decline compared to the previous year.
Cash from operations rose significantly to $254.8 million, a 68.1% increase from the previous year. Despite various operational and financial adjustments, Adjusted Levered Free Cash Flow (ALFCF) was $54.0 million.
Strategic Progress
The financial performance of IHS Towers exceeded internal expectations, driven by strong operational momentum and financial discipline. The company has made strategic renewals, such as the long-term lease agreement with Airtel Zambia and the sale of its Rwandan operations for $274.5 million.
IHS Towers continued its sustainability efforts by rolling out solar-powered towers to reduce diesel usage, contributing to environmental sustainability and cost efficiency. The colocation rate for IHS Towers is now up to 1.52x, demonstrating the demand for its services.
The company raised its full-year 2025 outlook across all key metrics, reflecting improved confidence in its strategic path. IHS Towers reduced net debt by $154 million through repayment of high-interest debt facilities in Nigeria and Brazil. The company replaced an existing $300 million revolving credit facility with a new facility extendable to $400 million, available through Q3 2028.
Despite growth in Sub-Saharan Africa, the company faces challenges such as currency volatility and regulatory shifts, necessitating ongoing hedging strategies. IHS Towers, a region where 5G rollouts are underway and the Naira is stabilizing, is excited by the growth prospects across its footprint.
The company is considering capital returns, including share buybacks or a dividend policy, as they near the bottom of their leverage target. Total Capex for Q2 was $255.9 million, a decrease of 56.3% year-on-year.
In conclusion, IHS Towers' Q2 2025 results demonstrate a company with strong operational momentum, strategic progress, and a positive outlook for the future. The company's focus on sustainability, growth, and financial discipline positions it well for continued success in the rapidly evolving communications infrastructure industry.
[1] IHS Towers Press Release, Q2 2025 Results [2] IHS Towers Financial Statements, Q2 2025 [3] IHS Towers Press Release, Sale of IHS Rwanda [4] IHS Towers Press Release, Q2 2025 Revenue Update [5] IHS Towers Sustainability Report, Q2 2025
IHS Towers, experiencing strategic progress in telecoms and finance, is considering capital returns such as share buybacks or a dividend policy, as they near the bottom of their leverage target, demonstrating its focus on business growth. In the technology sector, IHS Towers continued its sustainability efforts by rolling out solar-powered towers, reducing diesel usage and contributing to environmental sustainability, as well as cost efficiency.
