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1. Company Snapshot

1.a. Company Description

Helios Towers plc, an independent tower company, acquires, builds, and operates telecommunications towers and passive infrastructure.It provides site space to mobile network operators and other telecommunications providers that in turn provide wireless voice and data services to consumers and businesses.The company also offers comprehensive tower-related operational services, including site selection, site preparation, maintenance, security, and power management.


As of December 31, 2021, it operated a network of 9,560 sites and 18,776 tenancies in Tanzania, the Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal, and Madagascar.The company was founded in 2009 and is based in London, the United Kingdom.

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1.b. Last Insights on HTWS

Helios Towers' recent performance was driven by strong Q3 2025 earnings, surpassing operational targets, and a significant shareholder returns plan. The company reported stronger-than-expected results and unveiled a $400 million plan, including a $75 million share buyback, indicating confidence in its long-term fundamentals. Analysts have reiterated their Buy ratings, citing growth strategy and revised forecasts. A fair value estimate of £1.83 reflects steady confidence in the company's outlook. Growing interest in Africa, driven by demographics and technology, also supports the company's prospects.

1.c. Company Highlights

2. Helios Towers' H1 2025 Results: Strong Tenancy Growth and Cash Flow Generation

Helios Towers reported a robust financial performance in H1 2025, with key metrics demonstrating the company's ability to drive growth and expand its profitability. The company's revenue growth was accompanied by a 9% year-on-year increase in EBITDA, reaching a level that is on track to meet the full-year guidance of $460 million to $470 million. The EPS came out at -0.04491, missing estimates of 0.04. The company's free cash flow generation accelerated, with a $40 million upward swing year-on-year to $30 million, driven by adjusted EBITDA expansion and the timing of discretionary CapEx.

Publication Date: Aug -23

📋 Highlights
  • Free Cash Flow Surge: H1 2025 free cash flow rose $40M YoY to $30M, driven by EBITDA growth and CapEx timing.
  • Tenancy Growth Acceleration: Achieved 1,200 tenancy adds and 190 new sites, expanding ratio to 2.11 (target 2.2 by 2026).
  • EBITDA & ROIC Expansion: EBITDA up 9% YoY to $235M (H1), with ROIC hitting 14% and projected 0.5-1% annual growth.
  • Guidance Reinforced: 2025 EBITDA guidance maintained at $460–$470M; free cash flow seen at $40–$60M.
  • Debt Refinancing Flexibility: Secured lower debt costs via lender renegotiation, preserving covenant terms and extending tenure.

Operational Highlights

The company's operational performance was equally impressive, with over 1,200 tenancy additions, including 190 new sites, and a tenancy ratio expansion to 2.11. This growth is expected to continue, with the company reaffirming its full-year guidance for 2,000 to 2,500 tenancy adds. The CEO noted that the company has a strong pipeline for the second half of the year, with a lot of activity from multiple customers, and expects to see tenancy growth in all markets.

Valuation and Return Metrics

To understand what's priced into Helios Towers' stock, we can look at various valuation metrics. The company's P/S Ratio stands at 1.96, while the EV/EBITDA ratio is 9.75. Additionally, the ROIC is reported at 14%, which is a positive sign, although the ROE is negative at -54.64%. The Net Debt / EBITDA ratio is 4.68, indicating a relatively high level of debt. The Free Cash Flow Yield is 2.86%, which is a relatively attractive metric.

Growth Outlook and Capital Allocation

The CEO is confident about the next 5 years and beyond, citing global megatrends such as population growth, telecom subscriber growth, and data consumption growth in Africa and the Middle East. The company's priority order for capital allocation remains organic growth, cash flow generation, and deleveraging, potential shareholder remuneration, and M&A. The company will host its Capital Markets Day in London on November 6, where it will present its updated 5-year strategic plan and enhanced capital allocation framework.

Debt Management and Refinancing

The company has demonstrated its ability to manage its debt effectively, renegotiating with its lender group to reduce the cost of debt on one of its term loan facilities. The company is also exploring options to refinance its convertible bonds in 2027, including another convertible, high-yield bonds, or a combination of both.

3. NewsRoom

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How Recent Analyst Forecasts Are Shaping the Helios Towers Investment Story

Nov -30

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What Developments Are Driving a New Narrative for Helios Towers Investors?

Nov -16

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Helios Towers PLC (HTWSF) Q3 2025 Earnings Call Highlights: Strong Tenancy Growth and Strategic ...

Nov -06

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Helios Towers beats Q3 forecast, unveils $400 million shareholder returns plan

Nov -06

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Private Equity and Africa: Lawani Sees Growing Interest

Nov -03

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How Recent Moves Are Rewriting the Story for Helios Towers Investors

Nov -02

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Looking at the Narrative for Helios Towers After Recent Market and Analyst Shifts

Oct -18

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Why Analysts See the Helios Towers Story Shifting Amid New Forecasts and Changing Risks

Oct -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.00%)

6. Segments

Telecommunications Towers

Expected Growth: 9%

Helios Towers plc's 9% growth in Telecommunications Towers is driven by increasing mobile penetration, data usage, and network densification in Africa. Growing demand for 4G and 5G services, coupled with government initiatives to expand digital infrastructure, fuels tower demand. Additionally, the company's strategic acquisitions and partnerships have expanded its tower portfolio, contributing to revenue growth.

7. Detailed Products

Tower Colocation

Helios Towers plc provides shared passive infrastructure to wireless operators, enabling them to deploy their active equipment on Helios Towers' sites.

Build-to-Suit

Helios Towers plc designs, builds, and operates custom-built towers to meet the specific needs of wireless operators.

Small Cell Solutions

Helios Towers plc offers small cell solutions to provide high-capacity, low-power wireless coverage in urban areas.

Managed Services

Helios Towers plc provides managed services to support the operation and maintenance of wireless networks.

Power as a Service

Helios Towers plc offers power solutions to support the operation of wireless networks, including diesel generators, batteries, and renewable energy systems.

8. Helios Towers plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Helios Towers plc operates in a niche market with high barriers to entry, reducing the threat of substitutes. However, the increasing adoption of alternative technologies could pose a moderate threat to the company's services.

Bargaining Power Of Customers

Helios Towers plc's customers are primarily large telecommunications companies, which have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Helios Towers plc relies on a few large suppliers for equipment and services, giving them some bargaining power. However, the company's scale and market position mitigate this threat.

Threat Of New Entrants

The high capital requirements and regulatory hurdles in the tower infrastructure industry make it difficult for new entrants to challenge Helios Towers plc's market position.

Intensity Of Rivalry

The tower infrastructure industry is highly competitive, with several established players competing for market share. Helios Towers plc must continuously innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 103.75%
Debt Cost 6.23%
Equity Weight -3.75%
Equity Cost 6.23%
WACC 6.23%
Leverage -2766.76%

11. Quality Control: Helios Towers plc passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NOS

A-Score: 7.5/10

Value: 7.5

Growth: 5.2

Quality: 5.8

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

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Orange Belgium

A-Score: 5.3/10

Value: 5.8

Growth: 4.3

Quality: 2.7

Yield: 0.6

Momentum: 8.5

Volatility: 9.7

1-Year Total Return ->

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Helios Towers

A-Score: 5.2/10

Value: 3.0

Growth: 8.4

Quality: 4.8

Yield: 0.0

Momentum: 9.0

Volatility: 6.0

1-Year Total Return ->

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Gamma Communications

A-Score: 4.9/10

Value: 4.5

Growth: 7.2

Quality: 7.7

Yield: 2.5

Momentum: 0.0

Volatility: 7.3

1-Year Total Return ->

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LINK Mobility

A-Score: 4.6/10

Value: 5.8

Growth: 8.7

Quality: 3.1

Yield: 0.0

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
VEON

A-Score: 4.3/10

Value: 7.8

Growth: 2.0

Quality: 5.6

Yield: 0.0

Momentum: 6.5

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.59$

Current Price

1.59$

Potential

-0.00%

Expected Cash-Flows