IHS Towers reports $844 million H1 2026 revenue as MTN takeover nears final stage

IHS Holding, one of Africa’s largest independent owners, operators, and developers of shared telecommunications infrastructure, delivered higher revenue and stronger cash generation in the first half of 2026, supported by favorable foreign exchange movements, continued commercial growth and lower interest costs, even as rising power expenses and portfolio disposals weighed on earnings.

The telecom infrastructure company reported $844 million in revenue from continuing operations for the six months ended June 30, 2026, representing 8.16% growth from $780.3 million in the corresponding period of 2025.

IHS Towers grows revenue as naira strengthens

IHS Towers’ first-half revenue benefited significantly from favorable foreign exchange movements, particularly the appreciation of the Nigerian naira against the U.S. dollar. In the second quarter alone, currency translation contributed $52.5 million to revenue, including a $40.7 million benefit from the naira.

Nigeria remained the company’s largest market, generating $583.3 million in first-half revenue, up from approximately $531.8 million a year earlier. Second-quarter Nigerian revenue rose 14.5% year-on-year to $298.3 million, although organic revenue declined 1.1% as lower foreign exchange resets partly offset continued growth in colocation, lease amendments, new sites and escalations.

Across the business, IHS Towers ended June with 37,672 towers and 55,205 tenants, while its colocation rate improved to 1.47x. Lease amendments increased by 6,688 year-on-year to 46,766, highlighting continued demand for additional services from its telecom customers.

Power costs pressure Darwish’s H1 earnings

Despite the revenue growth, IHS Towers’ Adjusted EBITDA for the first half stood at $514.0 million, compared with $501.1 million in the first half of 2025, based on the reported first- and second-quarter figures. The second-quarter result was pressured by higher power generation costs, which increased by $38.7 million year-on-year, largely because of higher global power prices linked to the conflict in the Middle East.

The company reported a combined first-half profit of approximately $69.5 million, compared with approximately $61.4 million in the first half of 2025. However, the second quarter swung to a $7.5 million loss from $32.3 million in profit a year earlier, as higher cost of sales and administrative expenses outweighed revenue gains.

Administrative expenses in the second quarter included $50 million in accelerated share-based payment and long-term employee benefit expenses following the proposed acquisition of IHS Towers by MTN Group.

Darwish strengthens cash flow as MTN deal advances

Cash generation remained a key strength during the first half. IHS Towers generated approximately $447 million in cash from operations, while adjusted levered free cash flow reached approximately $230.6 million, compared with $204.0 million in the first half of 2025. The second-quarter ALFCF increased 5.9% to $57.1 million, supported by lower interest payments following the repayment and refinancing of high-interest debt.

IHS Towers reshapes portfolio ahead of MTN deal
Founded by Sam Darwish in 2001, IHS Towers has grown into the world’s third-largest independent telecom tower firm. Total assets declined by 2.97% from $4.49 billion to $4.36 billion. This comes as the company also continued to reshape its portfolio. It completed the sale of its 51% stake in I-Systems in a $452.6 million deal to TIM S.A. in May and the disposal of its Latin American tower operations to Macquarie Asset Management in August.

The Latam business was presented as a discontinued operation following the planned disposals. Accumulated losses narrowed from $6.8 billion to $6.73 billion, reflecting a reduction in the company’s accumulated deficit.

The results come as IHS Towers advances toward a major ownership transition. Shareholders approved the proposed acquisition of IHS Towers by MTN Group at an extraordinary general meeting in August, with the transaction expected to close in 2026, subject to the remaining closing conditions.

Darwish said the company delivered another strong quarter, pointing to solid revenue growth and ALFCF generation, while describing the proposed MTN acquisition as an important step in the Group’s evolution.