Nigeria’s Economic Reforms Fuel IHS Towers’ Strong Q3 Performance, Lifting 2025 Outlook
IHS Towers, the largest independent operator of shared communications infrastructure in Africa, has delivered strong third-quarter results, largely fueled by Nigeria’s recent economic reforms and a strengthening naira. The New York Stock Exchange-listed company raised its full-year 2025 guidance following impressive performance metrics across its African operations. Chairman and CEO Sam Darwish praised the Nigerian government’s initiatives, noting that “the current administration has done a great job stabilizing the economy, increasing reserves, strengthening the currency, and reducing business red tape.”
In Nigeria, the company’s largest market, revenue climbed 10.6% year-on-year to $268.0 million. This growth was driven by organic expansion, new site additions, and favorable currency movements against the U.S. dollar. Across IHS Towers’ global operations, revenue rose 8.3% year-on-year to $455.1 million, despite a 3% reduction from the disposal of its Kuwait operations in late 2024. The company credited strong contributions from colocation services, lease amendments, fiber deployment, and other escalators for its consistent growth.
Profitability metrics also showed healthy gains. Adjusted EBITDA increased by 6.3% year-on-year to $261.5 million, while the EBITDA margin remained steady at 57.5%. Net income for the period totaled $147.4 million, signaling robust underlying operational performance. Favorable foreign exchange movements, particularly the strengthening of the Nigerian naira, contributed to these gains, highlighting the importance of Nigeria’s economic stability for the company’s bottom line.
IHS Towers’ cash flow performance was equally impressive. Adjusted Levered Free Cash Flow surged 81.2% to $157.8 million, reflecting improved management strategies and the re-phasing of interest payments after the company’s bond refinancing in November 2024. Cash from operations grew 42.3% to $259.6 million, while total capital expenditure increased 16.3% to $77.3 million due to maintenance and network expansion projects. The company’s net leverage ratio improved to 3.3x, well within its target range.
Looking ahead, IHS Towers raised its full-year 2025 outlook, buoyed by strong Nigeria performance and favorable currency trends. Organic revenue in Nigeria rose $12.2 million, or 5% year-on-year, driven by foreign exchange resets and escalations. Revenue growth from colocation, lease amendments, and new sites outweighed declines linked to diesel price adjustments and site churn following MTN Nigeria’s contract renewals. Analysts and investors are now closely watching Nigeria’s economic policies, which have played a key role in sustaining IHS Towers’ growth trajectory.
source: Arise