New York Stock Exchange–listed IHS Towers, Africa's largest independent communications infrastructure provider, has posted stronger-than-expected third-quarter earnings and upgraded its full-year 2025 guidance, driven largely by improved performance in Nigeria.
Speaking to thousands of Wall Street investors during the earnings call, Sam Darwish, Chairman and CEO, praised Nigeria's economic direction, noting that government actions have strengthened investor confidence.
According to him, the current administration "has done a great job stabilizing and improving the country's economic outlook by increasing reserves, strengthening the currency, and reducing business red tape. So, we are upbeat about Nigeria."
Nigeria Leads as Revenue Rises 10.6%
Revenue from Nigeria rose 10.6% year-on-year to $268.0 million, supported by solid organic growth and favorable Naira movements. Nigeria remains the Group's largest market.
Group Revenue Up 8.3% Despite Kuwait Exit
Across the Group, revenue increased 8.3% to $455.1 million. This came despite a 3% revenue impact from the discontinuation of Kuwait operations in 2024.
Organic revenue grew 6.6%, boosted by colocation demand, lease amendments, new tower sites, fiber services, and escalators. A 4.7% FX gain—mainly from Naira appreciation—further strengthened results.
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Stronger Profitability, Higher Cash Flow
Adjusted EBITDA rose 6.3% to $261.5 million, with net income reaching $147.4 million.
Adjusted Levered Free Cash Flow surged 81.2% to $157.8 million following improved cash-flow management and interest-payment adjustments after the 2024 bond refinancing.
Operating cash flow grew 42.3% to $259.6 million.
Capex and Leverage Position
Capital expenditure increased 16.3% to $77.3 million due to scheduled maintenance and augmentation projects.
The company's net leverage improved to 3.3x, well within its target range of 3.0x–4.0x.
Nigeria's Organic Growth Remains Strong
Nigeria delivered $12.2 million in organic revenue growth (up 5%), driven by FX resets and escalations. Gains from colocation and new sites offset churn related to MTN Nigeria's planned exit from approximately 1,050 sites under a renewed contract.
An improved average Naira rate of ₦1,523/$1 (vs. ₦1,601/$1 in 2024) contributed an additional non-core gain of $13.5 million.
Outlook Raised for 2025
With strong year-to-date performance and favorable FX trends, IHS Towers has revised its full-year 2025 guidance upward as it continues to expand network infrastructure across its markets.
