New York Stock Exchange-listed IHS Towers, the largest independent owner, operator, and developer of shared communications infrastructure in Africa, has posted stronger-than-expected third-quarter performance, with Nigeria emerging as the key driver of growth.
The company, which operates over 40,000 towers globally, said revenue from its Nigerian operations increased 10.6 percent year-on-year to $268 million, reflecting robust organic growth and favorable currency movements.
Speaking during the company’s earnings call, Issam Darwish, chairman and CEO of IHS Towers, praised recent policy reforms in Nigeria, noting improved macroeconomic stability under the current administration.
“The current Nigerian administration has done, in our opinion, a great job in stabilising and improving the economic outlook of the country as they increase reserves and strengthen the currency, while reducing red tape for businesses, among other fundamental actions. So, we are upbeat about Nigeria,” Darwish told Wall Street investors and analysts.
In a statement, the company disclosed that its Nigeria unit, its largest operation, delivered solid results despite sectoral headwinds. Organic revenue rose by $12.2 million, up 5 percent year-on-year, driven mainly by foreign exchange resets and escalations, which more than offset a reduction in diesel-linked revenues.
Read also: Nigeria’s biggest banks top Africa’s 300 finance champions
It said, “Growth in colocation, lease amendments, and new sites also bolstered performance, while churn from approximately 1,050 sites vacated by MTN Nigeria as part of renewed contracts in 2024 had a limited impact.”
“A stronger naira further boosted results, with an average exchange rate of N1,523/$1 in Q3 2025 compared to N1,601/$1 in the same period last year. This currency appreciation contributed a non-core increase of $13.5 million (5.6 percent year-on-year),” the company said.
Across the group, revenue grew 8.3 percent year-on-year to $455.1 million, despite a 3 percent drag from the sale of its Kuwait operations in late 2024. Organic growth of 6.6 percent, driven by colocation, lease amendments, new sites, and fiber, was further supported by a 4.7 percent FX benefit, particularly from Nigeria’s currency appreciation.
Adjusted EBITDA rose by 6.3 percent to $261.5 million, maintaining a strong 57.5 percent margin, while net income climbed to $147.4 million. The company’s adjusted levered free cash flow surged 81.2 percent to $157.8 million, reflecting improved cash management and refinancing benefits from a November 2024 bond restructuring.
Operational cash flow increased 42.3 percent to $259.6 million, while total capital expenditure rose 16.3 percent to $77.3 million due to maintenance and augmentation projects. The firm’s net leverage ratio improved to 3.3x, well within its 3.0x–4.0x target range.
On the back of its strong nine-month performance and favorable currency trends, IHS Towers raised its full-year 2025 guidance, signaling continued confidence in its African markets, particularly Nigeria.
With consistent policy support, improved liquidity, and stable forex trends, IHS Towers expects Nigeria to remain a cornerstone of its global growth trajectory.
“We continue to see Nigeria as a key growth market, supported by proactive economic reforms and sustained infrastructure demand,” Darwish noted.
