Helios Towers Reports Strong Q1 2025 Results, Reaffirms Guidance
Why we think this is good
Helios Towers delivered a solid set of Q1 2025 results, with Adjusted EBITDA growing 9% year-on-year and the company reaffirming its full-year guidance. The company's strong operational and financial performance, supported by over 600 tenancy additions year-to-date, is a positive sign. While the RNS mentions some broader macroeconomic uncertainties, the overall tone is optimistic, and the company's deleveraging and cash flow generation are encouraging.
Key Points
- Adjusted EBITDA increased 9% year-on-year to $111.1m
- Reaffirmed full-year guidance for 2,000 - 2,500 tenancy additions, Adjusted EBITDA of $460m - $470m, and free cash flow of $40m - $60m
- Sites and tenancies increased 2% and 9% year-on-year, respectively
- Credit ratings upgraded by S&P, Fitch, and Moody's
- Net leverage decreased to 4.0x from 4.4x a year earlier
Summary
Helios Towers delivered a solid set of Q1 2025 results, with Adjusted EBITDA increasing 9% year-on-year to $111.1m, driven by tenancy growth and margin accretive tenancy ratio expansion. The company reaffirmed its full-year guidance, with expectations of 2,000 - 2,500 tenancy additions, Adjusted EBITDA of $460m - $470m, and free cash flow of $40m - $60m.
The results were underpinned by strong operational performance, with sites and tenancies increasing 2% and 9% year-on-year, respectively. The company also saw its credit ratings upgraded by S&P, Fitch, and Moody's, reflecting its consistently strong operating performance and deleveraging efforts. Net leverage decreased to 4.0x, down from 4.4x a year earlier.