Helios Towers (HTWS) Q1 2026 TU earnings summary

Executive summary

• Delivered strong Q1 2026 operational and financial performance, exceeding market expectations and supported by robust tenancy additions and an upgraded outlook for FY 2026.

• Business model demonstrated resilience, with sustained Adjusted EBITDA growth and ROIC expansion despite macroeconomic volatility.

• Record tenancy pipeline and disciplined capital allocation position the business for continued organic growth and attractive shareholder returns.

• Added over 1,400 tenancies year-to-date, including 246 new sites, with a tenancy ratio of 2.2, driven by strong customer investment cycles.

• Early momentum in the IMPACT 2030 strategic cycle reinforces confidence in long-term growth.

Financial highlights

• Q1 2026 Adjusted EBITDA grew 14% year-over-year to $127.2 million; margin up 1ppt to 56%.

• Revenue increased 12% year-over-year to $229.2 million, driven by tenancy additions, escalators, and favorable FX.

• Operating profit rose by $5.2 million to $81.8 million, partially offset by higher depreciation.

• Recurring free cash flow declined by $7.2 million to $9.7 million due to working capital movements.

• Net leverage reduced by 0.5x year-over-year to 3.5x, with further deleveraging expected.

Outlook and guidance

• Upgraded FY 2026 guidance: 3,000–3,500 tenancy additions (prior: 2,000–2,500), Adjusted EBITDA of $515 million–$530 million (prior: $510 million–$525 million), recurring free cash flow of $215 million–$230 million (prior: $210 million–$225 million).

• Discretionary capex guidance increased to $180 million–$210 million (prior: $110 million–$140 million).

• Shareholder distribution program maintained at $76 million for FY 2026.

• Guidance assumes $20 million net working capital outflow.

• Share buyback and dividend targets unchanged at $51 million and $25 million, respectively.