Helios Towers Posts Strong FY 2025 Results Ahead of Guidance, Launches New Strategy and Shareholder Returns

Helios Towers FY 2025: double‑digit growth, surging cash flow, and shareholder returns on the table

Helios Towers has delivered a strong set of results for the year ended 31 December 2025, beating expectations and kicking off a new five‑year plan, IMPACT 2030. Tenancies and margins moved up, cash generation accelerated, leverage came down, and the company has now put buybacks and dividends into guidance. For a business built on long‑term, CPI‑linked tower contracts, this is exactly the kind of steady, compounding progress investors like to see.

Headline numbers investors should know

Metric	FY 2025	FY 2024	Change
Revenue	US$854.1 million	US$792.0 million	+7.8%
Adjusted EBITDA (profit proxy used by towercos)	US$471.1 million	US$421.0 million	+12.0%
Adjusted EBITDA margin	55%	53%	+2ppt
Operating profit	US$286.0 million	US$242.3 million	+18.0%
Profit after tax	US$39.4 million	US$27.0 million	+US$12.4 million
Recurring free cash flow (RFCF)	US$207.5 million	US$147.9 million	+40.3%
Free cash flow	US$66.4 million	US$18.7 million	+249%
Cash generated from operations	US$480.5 million	US$397.2 million	+21.0%
Return on invested capital (ROIC)	13.5%	12.9%	+0.6ppt
Net leverage	3.4x	4.0x	-0.6x
Total tenancies	31,944	29,406	+9%
Tenancy ratio (tenants per site)	2.17x	2.05x	+0.12x

Adjusted EBITDA strips out non‑cash and one‑off items to show underlying operating performance; recurring free cash flow is the cash available after leases, tax and interest, before growth capex.

What drove the outperformance? More tenants, better margins, strong contracts

Helios added a record 2,538 tenancies and 421 sites in the year, lifting the tenancy ratio to 2.17x at year‑end. Management says the 2.2x target was achieved over a year early, underlining healthy lease‑up across the portfolio. Because colocations are high margin, this pushed the Adjusted EBITDA margin up 2 percentage points to 55%.

Crucially, the model is anchored by long‑term, inflation‑protected contracts. The group ended 2025 with US$5.3 billion of contracted future revenue (average remaining life 6.6 years), and about 70% of that is with investment grade customers. Seventy‑one percent of Adjusted EBITDA is generated in hard currency or pegged markets, and customer contracts include CPI and power price escalators – handy insulation against inflation and fuel volatility.

Cash flow compounding and disciplined capital allocation

Cash from operations rose 21% to US$480.5 million, recurring free cash flow climbed 40% to US$207.5 million, and free cash flow more than tripled to US$66.4 million. That is the cash compounding investors want to see as the platform fills up.

• Discretionary capex was US$138.3 million, focused on 2,117 colocations, 421 site builds and power upgrades.
• Net leverage fell to 3.4x (from 4.0x), sitting within the company’s 2.5x‑3.5x medium‑term range.
• Cost of debt held at 7.1%, helped by an October 2025 repurchase of US$120 million of convertible bonds below par, which also eliminated 41 million potentially dilutive shares.
• Credit ratings moved up: S&P and Fitch both BB‑ in 2025; Moody’s upgraded to Ba3 in February 2026.

Operationally, power uptime hit 99.99% despite weak grids in several markets, and Helios invested US$11 million in grid, solar and battery solutions in 2025 (US$44 million since 2022) as part of Project 100, cutting scope 1 and 2 carbon emissions per tenant by 10% versus baseline.

2026 guidance and the new IMPACT 2030 plan

Management launched IMPACT 2030 in November and has put tangible cash returns into the mix.

• FY 2026 Adjusted EBITDA: US$510‑US$525 million.
• FY 2026 recurring free cash flow: US$210‑US$225 million (assumes c.US$20 million working capital outflow).
• Capex: US$110‑US$140 million to support 2,000‑2,500 tenancy additions and further power efficiency upgrades.
• Shareholder returns: US$51 million buyback (remaining from a US$75 million authorisation) and a US$25 million dividend (intended to be paid one‑third in FY 2026 and two‑thirds in FY 2027).

Across 2026‑2030, Helios is targeting more than US$1.3 billion of recurring free cash flow, deploying over US$0.5 billion into high‑return organic growth, returning at least US$0.4 billion to shareholders, and expanding ROIC to 15‑20%. The plan also sets an ambition for at least 9% Adjusted EBITDA CAGR over the period.

Why this matters for equity holders

• Visibility of cash flows: US$5.3 billion contracted revenue with 6.6 years average remaining life provides a sturdy base.
• Structural growth: mobile coverage and data demand in Helios’s nine African and Middle Eastern markets continue to rise, feeding multi‑year tenancy expansion.
• Operating leverage: each incremental colocation is highly margin accretive, helping margins and ROIC climb.
• Shift to distributions: buybacks and a dividend formalise the move from build‑out to harvest, supported by lower leverage and rising free cash flow.
• Balance sheet momentum: ratings upgrades and a 0.6x reduction in net leverage offer scope for cheaper capital and flexibility.

Points to watch (it’s not all sunshine)

• Customer concentration: the top four multinational MNOs represented 72.3% of revenue in 2025. Relationships are long term, but concentration is a real exposure.
• Tax charge volatility: tax expense jumped to US$96.6 million (from US$17.2 million), partly due to prior‑year effects and deferred tax movements. Keep an eye on cash tax versus P&L tax.
• Macro and FX: while 71% of EBITDA is hard‑currency, several markets remain inflationary and subject to regulatory change. Malawi remains hyperinflationary under IAS 29.
• Leverage still elevated: 3.4x is improved, but at the top end of the stated range. Delivery on 2026 cash generation and buybacks will need continued discipline.
• Regulatory and tax audits: the notes list a number of outstanding tax assessments in Tanzania, DRC and Congo Brazzaville. No material provisions are booked, but timing and outcomes are uncertain.

Operational detail worth a glance

• Sites ended at 14,746; total tenancies 31,944; year‑end tenancy ratio 2.17x.
• Segment margins remain robust: Middle East & North Africa 74%, East & West Africa 68%, Central & Southern Africa 52%.
• Future contracted revenue by 2026 alone totals US$731.4 million, reinforcing near‑term visibility.

My take: a confident pivot to compounding returns

These results read like a textbook inflection: scale built, lease‑up accelerating, margins edging higher, cash flow compounding, leverage easing, and now capital returning to shareholders. The early delivery of the 2.2x tenancy objective (year‑end ratio reported at 2.17x) shows execution is landing in the field, not just on slides.

Risks remain around taxation, regulation and customer concentration, and the tax line’s swing this year is a reminder that reported earnings can be noisy in these markets. Even so, the cash metrics did the talking in 2025, and 2026 guidance points to more of the same with a growing shareholder payout. If management can keep adding 2,000‑2,500 tenancies a year while holding the cost of debt and nudging ROIC up, IMPACT 2030 has every chance of doing what it says on the tin.

Net‑net: a positive update with substance. For investors comfortable with the geographies, Helios Towers is leaning into its cash generation and starting to share more of it with owners.