Sam Darwish’s IHS reports $440 million in Q1 2025 revenue

Key Points

• IHS posted $439.6 million in Q1 2025 revenue, up 5.24% year-on-year, powered by strong organic growth, lease escalations, and tenant additions.
• Net income reached $30.7 million, reversing a $1.56 billion loss, while adjusted EBITDA surged 36.4% to $252.6 million, reflecting operational resilience.
• The group added 800 sites and 1,375 tenants year-on-year, excluding asset sales, and targets up to $1.71B full-year revenue, aided by 5G rollout and Nigerian tax relief.

IHS Holding, one of Africa’s largest independent owners, operators, and developers of shared telecommunications infrastructure, kicked off 2025 on a positive note, rebounding from a double-digit revenue decline in 2024, driven by the sharp devaluation of the Nigerian naira.

Led by U.S.-Nigerian executive Sam Darwish, the telecom infrastructure giant reported modest revenue growth in the first quarter of 2025, fueled by robust organic expansion and disciplined financial management. The performance underscored IHS’s resilience amid persistent currency headwinds and ongoing portfolio adjustments.

IHS rebounds sharply with earnings surge

In the first quarter of 2025, IHS Towers posted a 5.24 percent year-on-year revenue rise to $439.6 million, fueled by 25.6 percent organic growth from FX resets, power indexation, escalations, and higher revenue from tenants, lease amendments, and new sites. This growth offset headwinds from a 13.8 percent Nigerian naira depreciation and the 2024 Kuwait exit.

The company returned to profitability, recording $30.7 million in net income—reversing a $1.56 billion loss a year earlier. Adjusted EBITDA jumped 36.4 percent to $252.6 million, lifting the margin to 57.5 percent, driven by tighter financial controls and easing naira impact.

Darwish unlocks value via strategic divestments

IHS ended the quarter with 39,212 towers and 59,606 tenants, achieving a 1.52x colocation rate. Lease amendments climbed to 39,705, driven by 5G and fiber upgrades. Excluding asset sales in Kuwait and Peru, IHS added 800 sites and 1,375 net tenants year-on-year.

Chairman and CEO Sam Darwish expressed confidence in IHS’s momentum heading into 2025, citing steady gains in profitability and cash flow. “Our performance reflects disciplined capital allocation and value-driven asset sales,” he said. “The $274.5 million Rwanda divestment exemplifies our focus on unlocking portfolio value, cutting leverage, and fueling growth—especially as 5G rollout and Nigerian stability improve our outlook.”

Darwish projects growth as 5G gains ground

Founded by Sam Darwish in 2001, IHS Towers has grown into the world’s third-largest independent telecom tower firm. With Darwish holding a 4.17 percent stake, the company remains a central player in Africa’s digital infrastructure expansion. As of March 31, 2025, total assets rose 3.25 percent to $4.42 billion, up from $4.28 billion at year-end 2024. Accumulated losses edged down 0.48 percent to $6.89 billion, reflecting improved capital efficiency.

Buoyed by a strong first quarter, IHS forecasts full-year revenue of $1.68–$1.71 billion, with 12 percent organic growth. It plans to roll out 500 new build-to-suit sites—400 in Brazil—supported by $260–$290 million in capex. With a leaner portfolio, reduced withholding tax in Nigeria, and a sharp focus on profitability and cash flow, IHS is positioned to fortify its balance sheet and accelerate growth across key emerging markets.