IHS Holding Limited Q2 FY2025 earnings call

• Delivered strong Q2 results ahead of expectations with growth in revenue, adjusted EBITDA, and ALFCF.
• Repaid $154 million of high-interest debt, lowering the weighted average cost of debt by 100 basis points.
• Priorities include continuing to pay down debt while growing organically, disciplined capital allocation, integrating technology and AI for efficiencies, assessing growth opportunities, and considering further disposal activity.
• Positive macroeconomic and ForEx backdrop, especially in Nigeria, with 5G rollout, MNO tariff increases, and stable Naira supporting sustained growth.

In the second quarter of 2025, the Nigeria segment had revenue of $260 million, with organic growth over 10%. Segment adjusted EBITDA was $171 million, and the margin was 65.5%. The Sub-Saharan African segment saw 18% revenue growth but adjusted EBITDA decreased 4%. The LatAm segment achieved 6% organic growth, with segment adjusted EBITDA increasing 0.5% and the margin up 260 basis points. Revenue contribution details: Nigeria segment's revenue was $260 million, Sub-Saharan Africa had revenue growth, and LatAm had 6% organic growth.

• Raised full-year 2025 guidance: Revenue expected in the range of $1.7 billion to $1.73 billion (a $20 million uplift from previous guidance), adjusted EBITDA in the range of $985 million to $1.005 billion (a $25 million uplift), ALFCF in the range of $390 million to $410 million (a $40 million uplift), and CapEx in the range of $240 million to $270 million (a $20 million reduction from previous outlook).
• Consolidated net leverage ratio target of 3 to 4x remains unchanged, and expects net leverage to be at the low end of the range by year-end, supplemented by proceeds from the Rwanda disposal.

• Forward-looking statements involve known and unknown risks, uncertainties, and other factors difficult to predict and beyond control, including those in the Risk Factors section of Form 20-F and other SEC filings. Actual results may differ materially from forward-looking statements.

Q: Wanted to ask about the new lease amendments and colocation strength, and what to expect for the rest of the year.

A: Colocations were similar to Q1, with 467 new ones, and lease amendments expected to continue with normal activity, primarily in Nigeria and Brazil.

Q: Asked about the impact of moving pieces on organic growth heading into 2026 and positive offsets.

A: Expect continued strength in colocations and lease amendments, with positive leasing activity in Nigeria, Brazil, and Sub-Saharan Africa, and positive carrier environments in those markets.

Q: Followed up on the guide for 2025, organic growth, and capital allocation factors.

A: Organic elements come from leasing activity, cost-saving initiatives, and balance sheet actions like paying down debt. 3x net leverage is a comfortable level for the business in its current state.

Q: Inquired about total debt target and EBITDA mix by geography.

A: No specific debt target, and EBITDA mix by geography is dependent on disposals, with no set target currently, focusing on profitability, cash flow, and balance sheet to deliver shareholder value.

Q: Had questions on Nigeria's roaming agreement impact, upstreaming in H1, and interest cost outlook.

A: Roaming agreement impact on IHS is immaterial and included in guidance; upstreaming from Nigeria continued at pace with $158 million through the half year; focusing on repaying expensive debt and optimizing interest rates, with no forecasted interest rates provided yet.