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1. Company Snapshot

1.a. Company Description

IHS Holding Limited, together with its subsidiaries, owns, operates, and develops shared telecommunications infrastructure in Africa, Latin America, Europe, and the Middle East.It offers colocation and lease agreement, build-to-suit, fiber connectivity, and rural telephony solutions.The company serves mobile network operators, internet service providers, broadcasters, security functions, and private corporations.


IHS Holding Limited was founded in 2001 and is based in London, the United Kingdom.

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1.b. Last Insights on IHS

Recent positive drivers behind IHS Holding Limited's performance include: * Successful pricing of a dual tranche senior notes transaction, raising $1.2 billion in funding at attractive yields (Business Wire, Dec 4, 2024) * Completion of the sale of its Kuwait operations to Zain Group for an enterprise value of $230 million, reducing debt and improving financial flexibility (Business Wire, Dec 24, 2024) * Signing of a definitive agreement to sell its 70% interest in IHS Kuwait, including 1,675 sites and an additional 700 sites managed in Kuwait, to Zain Group (Business Wire, Dec 2, 2024) * Strong competitive advantages stemming from unique locations and wide economies of scale, despite Nigeria's high inflation, unemployment, and infrastructure gaps (Bloomberg, Oct 9, 2024)

1.c. Company Highlights

2. IHS Holding's Q3 2025 Earnings: A Strong Performance

IHS Holding delivered a robust third-quarter 2025 performance, with revenue reaching $455 million, an 8.3% year-over-year increase driven by CPI escalators, colocation lease amendments, and new sites. Adjusted EBITDA was $261 million, with a margin of 57.5%, reflecting the company's ongoing commitment to cost control. Earnings per share (EPS) came in at $0.44, significantly beating estimates of $0.1. The strong financial performance was underscored by the company's effective strategy, centered on driving organic growth, enhancing efficiency, and maximizing cash flow generation.

Publication Date: Nov -29

📋 Highlights
  • Revenue Growth:: Q3 2025 revenue reached $455 million, up 8.3% YoY, driven by CPI escalators, colocation amendments, and new sites.
  • Adjusted EBITDA Margin Expansion:: EBITDA hit $261 million with a 57.5% margin, reflecting 6% YoY margin improvement due to cost control.
  • ALFCF Surge:: Adjusted free cash flow (ALFCF) jumped 81% YoY to $158 million, with full-year guidance raised to $400–$420 million.
  • Debt Reduction:: Net leverage ratio dropped to 3.3x (down 0.6x YoY), with pro forma leverage expected to reach ~3.1x by year-end.
  • Latin America Growth:: LATAM saw 11% YoY organic revenue growth, with towers and tenants each rising 68.9% versus Q3 2024.

Segment Performance

The company's segment performance was equally impressive, with Nigeria revenue increasing 11% year over year, driven by healthy MNO activity and FX tailwinds. The Sub-Saharan African segment saw revenue growth of 13%, while segment adjusted EBITDA decreased just over 1% year over year. In LATAM, towers and tenants grew by 68.9% and 68.9% respectively, versus third quarter 2024, leading to 11% organic growth year over year. As Sam Darwish, CEO, noted, "We're pleased to report another quarter of strong results, ahead of expectations, with strong performance across all our key metrics."

Guidance and Outlook

IHS Holding is raising its full-year 2025 guidance, expecting revenue in the range of $1.72 to $1.75 billion, adjusted EBITDA in the range of $995 million to $1.015 billion, and ALFCF in the range of $400 million to $420 million. The new guidance reflects a more favorable FX environment and assumes an organic revenue growth rate of 10% at the midpoint. Analysts estimate next year's revenue growth at 3.2%, which may be conservative given the company's historical performance.

Valuation

With a P/E Ratio of 20.61 and an EV/EBITDA of -6.56, the market appears to be pricing in a certain level of growth. The company's Free Cash Flow Yield is 27.47%, indicating a strong ability to generate cash. However, the ROE is -28.61%, which may be a concern. The Net Debt / EBITDA ratio is -3.81, indicating a healthy debt position.

Capital Allocation

The company is focused on its capital allocation strategy, with a focus on growth CapEx, debt, and shareholder returns. IHS Holding expects to possibly do a little more growth CapEx in the last couple of years, but moderately so. The company's pro forma leverage is expected to be around 3.1 times by the end of the year, and it aims to continue deleveraging organically after that.

3. NewsRoom

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IHS Holding: Downgrade To Hold As Profit Growth Outlook Is No Longer Attractive

Nov -28

Source: seekingalpha.com

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Wall Street Analysts See a 40.17% Upside in IHS Holding (IHS): Can the Stock Really Move This High?

Nov -27

Source: zacks.com

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Why IHS Holding Stock Won the Market on Wednesday

Nov -12

Source: fool.com

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IHS Holding Limited (IHS) Q3 2025 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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Dow Jumps More Than 400 Points; IHS Holding Posts Upbeat Q3 Results

Nov -12

Source: benzinga.com

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IHS Holding (IHS) Tops Q3 Earnings and Revenue Estimates

Nov -12

Source: zacks.com

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IHS Towers Completes Sale of Rwanda Operations to Paradigm Tower Ventures

Oct -09

Source: businesswire.com

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IHS Brazil Signs New Site Agreement with TIM S.A.

Oct -08

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.87%)

6. Segments

Lease Component

Expected Growth: 1.8%

IHS Holding Limited's 1.8% Lease Component growth is driven by increasing demand for tower infrastructure in emerging markets, expansion of 4G and 5G networks, and strategic acquisitions. Additionally, the company's focus on cost optimization and operational efficiency has led to improved margins, contributing to the growth of the Lease Component segment.

Services Component

Expected Growth: 2.2%

IHS Holding Limited's Services Component growth of 2.2% is driven by increasing demand for tower maintenance and managed services, expansion into new markets, and growing need for network infrastructure upgrades. Additionally, the company's focus on cost optimization and operational efficiency has contributed to the growth.

7. Detailed Products

Telecom Tower Infrastructure

IHS Holding Limited provides telecom tower infrastructure solutions, offering a range of services including site acquisition, design, construction, and maintenance of telecom towers.

Colocation Services

IHS Holding Limited offers colocation services, providing secure, reliable, and scalable data center infrastructure for customers to house their IT equipment.

Fibre Optic Network

IHS Holding Limited designs, builds, and operates fibre optic networks, providing high-speed and reliable connectivity to customers.

Small Cell Solutions

IHS Holding Limited offers small cell solutions, providing compact and discreet wireless communication solutions for urban and rural areas.

Managed Services

IHS Holding Limited provides managed services, including network monitoring, maintenance, and repair, to ensure optimal network performance.

Site Acquisition and Management

IHS Holding Limited provides site acquisition and management services, including site identification, acquisition, and management of telecom sites.

8. IHS Holding Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

IHS Holding Limited operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

IHS Holding Limited has a diversified customer base, reducing the bargaining power of individual customers.

Bargaining Power Of Suppliers

IHS Holding Limited has a moderate level of dependence on its suppliers, but has implemented strategies to mitigate this risk.

Threat Of New Entrants

IHS Holding Limited operates in a capital-intensive industry with high barriers to entry, reducing the threat of new entrants.

Intensity Of Rivalry

IHS Holding Limited operates in a highly competitive industry with several established players, increasing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 97.04%
Debt Cost 9.63%
Equity Weight 2.96%
Equity Cost 9.63%
WACC 9.63%
Leverage 3279.08%

11. Quality Control: IHS Holding Limited passed 1 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

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Growth: 4.3

Quality: 2.7

Yield: 0.6

Momentum: 8.5

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IHS Holding

A-Score: 4.6/10

Value: 8.2

Growth: 2.8

Quality: 6.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

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Quality: 3.1

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A-Score: 3.9/10

Value: 7.5

Growth: 6.3

Quality: 3.6

Yield: 0.0

Momentum: 5.5

Volatility: 0.7

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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

7.51$

Current Price

7.51$

Potential

-0.00%

Expected Cash-Flows