Helios Towers (HTWS) Q1 2025 TU earnings summary

Executive summary

• Achieved strong operational and financial performance in Q1 2025, with 668 tenancy additions year-to-date and 9% Adjusted EBITDA growth, marking the 10th consecutive year of EBITDA growth despite macroeconomic challenges.

• Transitioned from a high-investment phase to surplus free cash flow generation, supporting a new capital allocation focus on shareholder returns from 2026 onward.

• Credit ratings upgraded by S&P and Fitch to BB-, Moody's outlook raised to positive, reflecting deleveraging and strong performance.

• Business underpinned by $5.3 billion in contracted revenues, 99% from multinational MNOs, with an average contract life of 6.9 years.

• Africa and the Middle East remain high-growth markets, with unique mobile subscribers growing at 5% per year and data consumption expected to quadruple over five years.

Financial highlights

• Revenue grew 5% year over year to $204 million, driven by tenancy growth and partially offset by lower power prices.

• Adjusted EBITDA increased 9% year over year to $111 million, with margin up 2 percentage points to 55%.

• Operating profit rose 14% year over year to $77 million.

• Free cash flow improved by $29 million year over year to $2 million in Q1 2025; last 12 months' surplus free cash flow reached $48 million.

• Net leverage reduced by 0.4x year over year to 4.0x; net debt at $1,769 million as of March 2025.

Outlook and guidance

• FY 2025 guidance reaffirmed: 2,000–2,500 tenancy additions, Adjusted EBITDA $460 million–$470 million, capex $150 million–$180 million, free cash flow $40 million–$60 million, and net leverage target of 3.5x by year-end.

• CapEx guidance unchanged at $150 million–$180 million, with $50 million non-discretionary.

• Free cash flow expansion expected to support potential shareholder distributions from 2026.

• Expect continued strong lease-up in Oman and more site additions in 2025 compared to the previous year.