IHS Holdings Q3 revenue rises 8.3% to $455.1m

IHS Holding Limited, the global heavyweight in shared communications infrastructure with one of the world’s largest tower portfolios, reported revenue of $455.1 million for the period ended September 30, up 8.3% from $420.3 million a year earlier, even as the December 2024 sale of its 70% stake in IHS Kuwait shaved off about $12.8 million in top-line contributions shifts despite the prior year’s divestiture of its Kuwait operations.

Organic revenue climbed 6.6%, propelled by constant currency growth of 8.7% and a 4.7% tailwind from stronger foreign exchange translations—particularly the Nigerian naira’s 3.7% quarterly appreciation against the U.S. dollar. Key drivers included surging colocation deals, lease amendments, new site builds, fiber-optic expansions, and built-in escalators, though partially tempered by adjustments to power-indexed pricing.

Adjusted EBITDA rose 6.3% to $261.5 million, holding a healthy 57.5% margin in line with the prior quarter, while the headline income flipped to a $147.4 million gain from a $205.7 million loss last year. Cash generation supercharged, with operating cash flow jumping 42.3% to $259.6 million and adjusted levered free cash flow (ALFCF) soaring 81.2% to $157.8 million—thanks to efficiency tweaks and a refinancing-related rephasing of interest payments.

Capital expenditures ticked up 16.3% to $77.3 million, reflecting ramped-up maintenance and tower upgrades, but the company’s net leverage ratio improved to a comfortable 3.3x, down 0.6x year-over-year and snug within its 3.0x-4.0x target band.

Operationally, IHS Towers ended the quarter with 39,025 towers—up organically year-on-year—hosting 57,691 tenants for a colocation ratio of 1.48x, alongside 42,221 lease amendments that underscore deepening client ties.

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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.” he stated

The upbeat performance prompted IHS to lift its full-year 2025 guidance, now projecting revenue of $1.72 billion to $1.75 billion and adjusted EBITDA of $995 million to $1,015 million, citing year-to-date strength and continued FX tailwinds. Investors can tune in to the earnings call today at 8:30 a.m. ET for deeper dives, with supplemental slides available on the company’s investor site.

Strategically, IHS inked a landmark tower-sharing pact with Brazil’s TIM S.A. in early October, extending their alliance to potentially add up to 3,000 sites nationwide, starting with a minimum of 500 deployments to bolster 4G/5G coverage in underserved areas. On the divestiture front, the firm sealed the $274.5 million sale of its entire Rwandan operations—encompassing about 1,467 towers—to Paradigm Tower Ventures last month, streamlining its footprint toward higher-return assets while unlocking capital for core markets like Nigeria, Brazil, and Côte d’Ivoire.

“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.”

As Africa’s mobile data demand surges—projected to hit 108% SIM penetration across IHS’s nine markets by year-end—these moves position the tower operator to capitalize on the continent’s digital boom, even as it navigates currency volatility and regulatory headwinds. With USD liquidity meeting operational needs and naira stability holding firm, analysts see IHS as a resilient play in emerging-market telecom infrastructure.