IHS Holding Limited demonstrates robust financial performance in Q2 2025, generating $433.3 million in revenue while strengthening balance sheet position through strategic debt reduction and operational efficiency improvements across African markets.
The telecommunications infrastructure provider achieved 11.1% organic growth driven by new site deployments, increased colocation services, and successful lease amendments despite challenging foreign exchange conditions. Nigerian Naira stabilization contributed significantly to improved financial performance compared to previous quarters.
Adjusted EBITDA reached $248.5 million with stable 57.3% margins, while net income of $32.3 million represents substantial improvement from $124.3 million losses in Q2 2024. Enhanced performance reflects successful cost management strategies and reduced finance costs from currency stabilization efforts.
Chairman and CEO Sam Darwish highlighted sustained momentum across key performance metrics including revenue growth, profitability improvements, and cash flow generation. “Our encouraging year-to-date progress, combined with macroeconomic stability across our markets, supports our decision to raise full-year 2025 guidance.”
Strategic balance sheet strengthening included $154 million debt repayment from high-interest facilities in Nigeria and Brazil, reducing consolidated net leverage ratio to 3.4x from previous year’s 3.9x. This deleveraging positions the company within target range while improving financial flexibility.
The company operates 39,184 towers serving 59,743 tenants across African markets, maintaining 1.52x colocation rate that demonstrates strong market demand for telecommunications infrastructure. Tower portfolio expansion continues supporting mobile network operators’ coverage and capacity requirements.
Rwanda operations divestiture for $274.5 million provides additional resources for debt reduction and strategic investments in core markets. Proceeds allocation priorities include debt repayment while considering share buybacks and potential dividend policy as leverage approaches target levels.
Nigerian market performance benefits from carrier tariff increases announced earlier in 2025, supporting revenue growth and margin improvements. Naira stability enables more predictable financial planning and reduced foreign exchange volatility impacts on operations.
Capital expenditure declined 13.8% to $46.3 million, reflecting operational efficiency improvements and optimized investment allocation. Cash flow from operations increased to $254.8 million, demonstrating strong underlying business fundamentals.
Full-year 2025 guidance revision targets revenue of $1.70-$1.73 billion, Adjusted EBITDA of $985 million-$1.005 billion, and Adjusted Levered Free Cash Flow of $390 million-$410 million. These projections reflect confidence in business trajectory despite Rwanda divestiture impact.
5G network rollout across IHS markets creates additional growth opportunities as mobile operators upgrade infrastructure for enhanced service delivery. Tower infrastructure requirements increase with 5G deployment, supporting long-term demand for IHS services.
The company’s strategic focus on financial discipline and operational excellence delivers sustained profitability improvements while maintaining market leadership position across African telecommunications infrastructure sector.
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