IHS (IHS) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2025 results with revenue of $440M, Adjusted EBITDA of $253M, and ALFCF of $150M, all up significantly year-over-year and in line with expectations and full-year guidance reiteration.

• Benefited from macroeconomic stability in key markets, continued secular growth trends, and operational focus, with positive momentum from 2024 carrying into 2025.

• Net income was $30.7M, a turnaround from a $1,557.3M loss in Q1 2024, mainly due to lower finance costs and FX gains.

• Announced the sale of IHS Rwanda for up to $274.5M, following prior disposals in Kuwait and Peru, streamlining the portfolio and raising targeted capital.

• CapEx and leverage were reduced, supporting a strong liquidity position and future capital allocation flexibility.

Financial highlights

• Q1 2025 revenue grew 5.2% year-over-year to $440M, with organic growth of 25.6%, offsetting currency depreciation and Kuwait disposal.

• Adjusted EBITDA reached $253M, up 36.4% year-over-year, with a margin of 57.5%, an increase of 1,320 basis points.

• ALFCF was $150M, up 247.7% year-over-year, driven by improved profitability and interest payment rephasing.

• CapEx was $44M, down 17.8% year-over-year, reflecting a narrowed focus on capital allocation.

• Cash from operations was $216.3M, up 132.6% year-over-year.

Outlook and guidance

• Full-year 2025 guidance reiterated: revenue $1,680M–$1,710M, Adjusted EBITDA $960M–$980M, ALFCF $350M–$370M, CapEx $260M–$290M.

• Guidance reflects non-renewal of 1,050 sites with MTN Nigeria and no contribution from Kuwait/Peru disposals.

• ALFCF expected to step down in Q2 due to interest payment timing, but on track for $350M–$370M for 2025.

• Net leverage ratio target maintained at 3.0x–4.0x.

• Assumes reduced Nigerian withholding tax (10% to 2%) and ~500 new build-to-suit sites.