Helios Towers (HTWS) H2 2024 earnings summary

Executive summary

• Achieved record tenancy additions and strong organic top-line and bottom-line growth in 2024, inflecting to positive and growing free cash flow for the first time after years of investment.

• Business model leverages multi-tenant telecom towers across Africa and the Middle East, supporting robust, predictable cash flows and closing the digital infrastructure gap in high-growth regions.

• Tenancy additions of 2,481 (+9% YoY), mainly in Tanzania and Oman, raised the tenancy ratio to 2.05 by end-2024, with a strategic target of 2.2 by 2026.

• Surplus-free cash flow of $19 million in 2024, a $100 million year-on-year improvement, with leverage reduced to 3.98x and a credit rating upgrade to BB- by S&P.

• Focus for 2025 is on operational growth, cash flow expansion, and further leverage reduction, with guidance for 2,000-2,500 new tenancies and free cash flow of $40-60 million.

Financial highlights

• 2024 revenue grew 10% year-on-year to $792 million, Adjusted EBITDA up 14% to $421 million, and ROIC increased by 1 percentage point to 12.9%.

• Free cash flow swung from negative $81 million in 2023 to positive $19 million in 2024.

• Adjusted EBITDA growth has compounded at 26% annually over the past 10 years.

• CapEx for 2024 was $169 million, with $93 million for growth and $42 million non-discretionary; 2025 CapEx guidance is $150-180 million.

• Net leverage decreased by 0.4x to 3.98x, with over $400 million in available funds and 92% of debt at fixed rates.

Outlook and guidance

• 2025 guidance: 2,000-2,500 new tenancies, adjusted EBITDA of $460-470 million, CapEx of $150-180 million, and free cash flow of $40-60 million.

• Leverage expected to fall to 3.5x by end-2025, with surplus-free cash flow projected to double or triple from 2024 levels.

• Capital allocation will prioritize organic growth and deleveraging, with potential for shareholder distributions from 2026.