Helios Towers Plc ((GB:HTWS)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Helios Towers Plc showcased a robust performance, marked by significant growth in key financial metrics such as tenancy, EBITDA, and free cash flow. The company also reported improved financial ratings and reduced leverage. However, there are indications of slowing growth in certain markets, notably Oman.
Strong Tenancy Growth
Helios Towers reported a substantial increase in tenancy, with over 1,200 additions year-to-date, including 190 new sites. This expansion has elevated the tenancy ratio to 2.11, reflecting a year-on-year increase of 0.1x, underscoring the company’s successful growth strategy.
Significant EBITDA and Free Cash Flow Increase
The company achieved a 9% year-on-year increase in EBITDA, reaching $226 million for the first half of 2025. Additionally, free cash flow saw a remarkable $40 million upward swing year-on-year, amounting to $30 million, highlighting the company’s strong cash generation capabilities.
Improved Financial Position
Helios Towers has strengthened its financial standing by reducing net leverage to 3.8, a decrease of 0.4 year-on-year. The company’s credit ratings have also improved, with Moody’s affirming a B1 rating with a positive outlook and Fitch upgrading to BB-.
Record H1 Surplus Free Cash Flow Generation
The company achieved a record surplus in free cash flow generation for the first half of the year. The guidance for free cash flow remains strong, with expectations set between $40 million and $60 million, potentially doubling or tripling from the previous year.
Moderating Growth in Certain Markets
While overall growth remains strong, the Oman market is showing signs of saturation, which may affect the dynamics of tenancy growth. This moderation could impact future expansion strategies in the region.
Forward-Looking Guidance
Helios Towers has reaffirmed its confidence in meeting fiscal year 2025 targets. The company anticipates adding 2,000 to 2,500 tenancies and generating $460 million to $470 million in EBITDA. Free cash flow is expected to range from $40 million to $60 million, with net leverage trending towards 3.5 by year-end. A Capital Markets Day is scheduled for November 6 in London to discuss the next five-year strategic plan.
In summary, Helios Towers Plc’s earnings call highlighted a strong financial performance with significant growth in key areas, despite some challenges in specific markets. The company’s forward-looking guidance remains optimistic, with plans for continued expansion and strategic development.