IHS (IHS) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 2025 results ahead of expectations, with robust revenue, adjusted EBITDA, and ALFCF, prompting a full-year 2025 guidance raise across all key metrics.

• Strong organic growth driven by colocation, lease amendments, new sites, and escalators, partially offset by FX impacts, especially Naira devaluation.

• Continued focus on organic growth, efficiency, and disciplined capital allocation, with further asset disposals and debt reduction initiatives.

• Liquidity stood at $833M, including a newly refinanced $300M undrawn revolving credit facility.

Financial highlights

• Q2 2025 revenue was $433.3M, down 0.5% year-over-year, but up 2.1% excluding Kuwait; organic revenue grew 11.1%.

• Adjusted EBITDA reached $248.5M with a margin of 57.3%, stable year-on-year.

• ALFCF was $54M, down 19.2% year-over-year, reflecting higher interest payments and re-phasing post-bond refinancing.

• CapEx was $46.3M, down 13.8% year-on-year, mainly due to reduced investment in Latam and Nigeria.

• Net leverage ended at 3.4x, down from 3.9x a year ago.

Outlook and guidance

• Full-year 2025 guidance raised: revenue $1.7–$1.76B, adjusted EBITDA $985M–$1.005B, ALFCF $390M–$410M, CapEx $240M–$270M.

• Guidance reflects removal of Rwanda business contribution, assuming disposal completes in H2 2025.

• Organic revenue growth expected at ~11% at midpoint, with improved constant currency assumptions and lower FX headwinds.

• Consolidated net leverage ratio target maintained at 3.0x–4.0x.