IHS Holding Limited has released its financial results for the second quarter (Q2) ended June 30, 2025. The company is one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count.
Its revenue of $433.3 million decreased 0.5 percent year-on-year (YoY), or increased 2.1 percent excluding the impact of the disposal of the Company’s Kuwait operations in December 2024.
Organic growth of 11.1 percent was driven by 9.9 percent Constant Currency growth, with the remainder being the net benefit of foreign exchange (FX) resets and power indexation. Constant currency growth was driven by increased revenue from Colocation, Lease Amendments, New Sites and escalators. This strong growth was partially offset by the 9 percent impact from the movement of foreign exchange rates, including the Naira versus the U.S. dollar.
Adjusted EBITDA of $248.5 million decreased 0.9percent year-on-year, or increased 1.5percent excluding the impact of the Kuwait disposal. Adjusted EBITDA Margin of 57.3percent was stable year-on-year, highlighting continued financial discipline. Income for the current period was $32.3 million.
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Adjusted Levered Free Cash Flow (ALFCF) of $54 million, a 19.2 percent decline, driven by a re-phasing of interest payments between quarters following November 2024 bond refinancing. Cash from operations was $254.8 million.
Capital expenditure (Total Capex) of $46.3 million was down 13.8percent year-on-year, reflecting actions taken to improve cash flow generation.
Repaid high-interest debt facilities in Nigeria and Brazil, which combined resulted in a net reduction in debt of $154 million, were in line with the strategic priority to maximise free cash flow generation and reduce overall Group debt
Sam Darwish, IHS Towers Chairman and Chief Executive Officer, stated, “Our positive momentum continued in the second quarter, with strong performances across our key metrics of revenue, Adjusted EBITDA and ALFCF, in combination with a continued reduction in Total Capex.
“Given our encouraging year-to-date progress, together with sustained macroeconomic stability across our markets, we are also pleased to be raising our full-year 2025 guidance across all key metrics. Our improved outlook reflects what we believe are the benefits of the solid commercial progress we have made, as well as our strong focus on financial discipline, which is delivering sustained improvements in our profitability and cash flow generation”.
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“We remain excited by the significant growth prospects across our footprint, which are supported by the ongoing rollout of 5G across our markets. Our confidence is underpinned by the positive backdrop within our largest market, Nigeria, bolstered by the ongoing stability of the Naira as well as the carrier tariff rate increases that our Nigerian customers announced earlier this year,” Darwish said.
“During the second quarter, we have also taken further actions to strengthen our balance sheet by repaying certain debt, lowering our interest costs and extending maturities. During the quarter, we repaid two of our highest interest rate facilities in Nigeria and Brazil, which combined resulted in a net reduction in debt of $154 million.
“Our consolidated net leverage ratio of 3.4x, down 0.5x compared to the second quarter of 2024, remains in the lower half of our target 3.0x-4.0x range. Our de-leveraging will be supplemented by the proceeds we expect to receive from the disposal of our Rwanda operations, which we signed during the quarter. In the near term, we expect to continue prioritising paying down debt, but as we approach the bottom of our leverage target, we may also consider allocating excess capital to other uses, including share buybacks and/ or introducing a dividend policy,” the CEO further said.
