IHS (IHS) Q2 2026 earnings summary

Executive summary

• Revenue from continuing operations rose 10.4% year-over-year to $429M, driven by FX gains, organic growth, and colocation, with discontinued Latam operations contributing $42M before disposal.

• Adjusted EBITDA declined 1.3% year-over-year to $245M, impacted by disposals and higher power generation costs.

• Adjusted Levered Free Cash Flow (ALFCF) increased 5.9% year-over-year to $57.1M, reflecting improved financial discipline and lower interest payments.

• Net loss for the period was $7.5M, compared to a profit of $32.3M in the prior year, due to increased costs and administrative expenses.

• Shareholders approved the acquisition by MTN Group, with the transaction expected to close in 2026.

Financial highlights

• Revenue from discontinued operations (Latam segment) fell 5.9% year-over-year to $42.4M due to the I-Systems disposal.

• Cash from operations was $202.1M, down from $254.8M year-over-year.

• Capex fell 15.2% year-over-year to $39.2M, reflecting a narrowed focus on capital allocation.

• Net leverage ratio improved to 2.8x from 3.4x a year ago.

• Cash and cash equivalents at period end: $1,093.4M.

Outlook and guidance

• Strong liquidity position with $1,093M in cash and $300M undrawn RCF, excluding proceeds from Latam towers disposal received in August 2026.

• The acquisition by MTN Group is on track to close in 2026, pending remaining conditions.

• Continued focus on financial discipline, cash flow generation, and deleveraging.

• Management expects continued commercial execution and stable FX environment to support future performance.