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Helios Towers (GB:HTWS)
LSE:HTWS
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Helios Towers (HTWS) AI Stock Analysis

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GB:HTWS

Helios Towers

(LSE:HTWS)

Rating:64Neutral
Price Target:
130.00p
▲(9.24%Upside)
Helios Towers' strong momentum and positive earnings call insights are major positives. However, the high debt levels and overvaluation concerns weigh down the stock's overall attractiveness. The technical indicators suggest continued upward momentum, which, combined with strategic progress, supports a moderately positive outlook.
Positive Factors
Financial Performance
Helios reported a strong Q4, notably a +13% FCF beat, and a $100mn FCF swing YoY into positive US$ territory.
Guidance and Growth
Guidance for 2025e is reassuring, with targeted volume growth of +8%, EBITDA uplift of +10%, and a ROIC target of 14%.
Leverage and Cash Flow
Falling leverage and the shift to generating positive clean free cash flow are the next drivers of the equity story.
Negative Factors
Market Dependence
Helios' net tenancy additions are heavily reliant on the 'Big Three' markets of DRC, Tanzania, and Oman.
Operational Challenges
Potential timing and power fluctuations could impact revenue growth despite a +11% YoY increase.

Helios Towers (HTWS) vs. iShares MSCI United Kingdom ETF (EWC)

Helios Towers Business Overview & Revenue Model

Company DescriptionHelios Towers (HTWS) is a telecommunications infrastructure company specializing in the construction, acquisition, and operation of telecommunications towers and related infrastructure. Operating primarily in Africa and the Middle East, Helios Towers provides critical infrastructure that enables mobile network operators (MNOs) to deliver wireless communication services. The company plays a key role in enhancing mobile connectivity by offering tower-sharing solutions to multiple MNOs on a single site, promoting cost efficiency and network expansion.
How the Company Makes MoneyHelios Towers makes money primarily through leasing space on its towers to mobile network operators (MNOs) under long-term contracts. The company's revenue model is based on multi-tenant leasing agreements where MNOs pay recurring fees to use the infrastructure. This model allows Helios Towers to generate stable and predictable revenue streams. Additionally, Helios Towers may engage in build-to-suit projects where they design and construct towers for specific clients, further enhancing their revenue base. Strategic partnerships with MNOs and market expansion into high-growth regions also contribute significantly to the company's earnings.

Helios Towers Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 5.50%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook, with significant achievements in EBITDA growth, free cash flow generation, and strategic progress in tenancy growth. These positive aspects were slightly offset by challenges related to power price impacts on revenue and the need for increased site additions. Overall, the company's performance and future prospects appear strong.
Q1-2025 Updates
Positive Updates
Consistent EBITDA Growth
The company has achieved 10 consecutive years of EBITDA growth with a 26% CAGR since 2015, despite various macroeconomic challenges.
Strong Free Cash Flow Generation
Free cash flow came in at $2 million for the quarter, marking a $29 million year-on-year improvement, and last 12 months' surplus free cash flow is $48 million.
Tenancy Growth and Strategic Progress
668 tenancies were added in Q1 2025, progressing towards the strategic goal of a 2.2 tenancy ratio by 2026.
Credit Rating Upgrades
The company's credit ratings were upgraded by Fitch and S&P to BB minus, with a positive outlook from Moody's, reflecting strong operational execution.
Revenue and Currency Stability
67% of revenue is in hard currency, with 70% of EBITDA in hard currency, providing stability against currency fluctuations.
Negative Updates
Revenue Growth Partially Offset
Revenue growth of 5% year-on-year was partially offset by power price de-escalations in Tanzania and DRC.
Increase in Site Additions Needed
While there was an increase of 251 sites year-on-year, there is an implied need for 450-500 site additions for the year to meet targets.
Company Guidance
In the Q1 2025 earnings call, Helios Towers provided comprehensive guidance across several key financial metrics. The company reported a strong start to the year, with EBITDA growing by 9% year-on-year, reaching $111 million for the quarter. They also added 668 tenancies, bringing the total to over 30,000, and increased their tenancy ratio to 2.09, on target for their 2026 goal of 2.2. Free cash flow improved significantly, swinging to a $2 million surplus for the quarter, with a last 12-month surplus of $48 million. The company reaffirmed its full-year guidance of 2,000 to 2,500 tenancy additions, 10% EBITDA growth, $40 million to $60 million surplus free cash flow, and a deleveraging target to around 3.5x net leverage. ROIC expanded by another percentage point to 13.8%, and they anticipate reaching their FY25 target of 14%. Their balance sheet remains strong, with net leverage below four times and improved credit ratings from major agencies. The company highlighted their ongoing strategy to increase shareholder returns starting in 2026, reflecting on their robust business model, which has delivered consistent EBITDA growth over the past decade.

Helios Towers Financial Statement Overview

Summary
Helios Towers demonstrates strong revenue growth and improved profitability in 2024 with notable operational efficiency. However, significant financial risk persists due to high leverage and historical net losses. Positive cash flow generation is a promising aspect, yet the balance sheet's leverage remains a concern.
Income Statement
72
Positive
Helios Towers has shown a consistent increase in total revenue over the years, with a notable 9.85% growth from 2023 to 2024. The gross profit margin for 2024 is 48.36%, indicating strong profitability at the gross level. The net profit margin improved dramatically from -13.88% in 2023 to 4.23% in 2024, reflecting better cost management and operational efficiency. However, the company has a history of net losses, which is a concern. The EBIT margin for 2024 is 30.60%, and the EBITDA margin is 48.17%, both indicating strong operational efficiency in the current year.
Balance Sheet
35
Negative
The company's balance sheet shows high leverage, with a debt-to-equity ratio of 415.06 in 2024, indicating significant financial risk. Stockholders' equity has been volatile, impacting the equity ratio, which stands at only 0.20% in 2024. The return on equity (ROE) improved to 712.77% in 2024, driven by a small equity base and improved profitability, but this high ROE may not be sustainable due to the high debt level.
Cash Flow
68
Positive
Operating cash flow has been positive and grew to $198.3 million in 2024, demonstrating strong cash generation capabilities. The free cash flow turned positive in 2024 at $53.9 million, marking a significant improvement from the negative free cash flow in prior years. The operating cash flow to net income ratio is 5.92, suggesting robust cash generation relative to net income. However, the free cash flow to net income ratio is 1.61, indicating room for improvement.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue792.00M721.00M560.70M449.10M414.00M
Gross Profit383.10M270.60M194.80M153.80M147.90M
EBITDA381.50M282.00M208.80M198.40M224.90M
Net Income33.50M-100.10M-171.40M-156.20M-36.70M
Balance Sheet
Total Assets2.33B2.20B2.14B1.93B1.43B
Cash, Cash Equivalents and Short-Term Investments161.00M106.60M119.60M528.90M428.70M
Total Debt1.95B1.89B1.80B1.48B1.12B
Total Liabilities2.29B2.24B2.10B1.77B1.30B
Stockholders Equity4.70M-68.30M8.30M168.00M130.30M
Cash Flow
Free Cash Flow53.90M-49.50M-196.70M-134.60M-64.20M
Operating Cash Flow198.30M147.20M51.10M35.90M59.50M
Investing Cash Flow-149.70M-195.80M-381.50M-407.60M-123.50M
Financing Cash Flow4.50M43.20M-74.60M474.00M271.50M

Helios Towers Technical Analysis

Technical Analysis Sentiment
Positive
Last Price119.00
Price Trends
50DMA
119.46
Positive
100DMA
111.99
Positive
200DMA
105.14
Positive
Market Momentum
MACD
0.10
Positive
RSI
52.66
Neutral
STOCH
40.40
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:HTWS, the sentiment is Positive. The current price of 119 is below the 20-day moving average (MA) of 120.23, below the 50-day MA of 119.46, and above the 200-day MA of 105.14, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 52.66 is Neutral, neither overbought nor oversold. The STOCH value of 40.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:HTWS.

Helios Towers Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
£7.16B25.759.48%1.11%6.56%2630.77%
68
Neutral
£21.45B20.438.29%363.27%-2.23%22.78%
67
Neutral
£20.87B8.78-7.22%5.58%-0.59%-489.50%
65
Neutral
£1.86B10.55-12.53%253.51%2.88%-455.44%
64
Neutral
$1.27B49.55
6.88%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HTWS
Helios Towers
119.00
-7.40
-5.85%
GB:BT.A
BT Group plc
222.70
90.31
68.22%
GB:VOD
Vodafone
85.06
15.56
22.39%
GB:AAF
Airtel Africa Plc
195.00
89.17
84.26%

Helios Towers Corporate Events

Financial Disclosures
Helios Towers to Announce H1 2025 Financial Results on July 31
Neutral
Jul 3, 2025

Helios Towers has announced that it will release its financial results for the first half of 2025 on July 31, 2025. The company will host a conference call for analysts and institutional investors to discuss these results, which reflects its ongoing commitment to transparency and engagement with stakeholders.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Regulatory Filings and Compliance
Helios Towers Announces Change in Major Shareholdings
Neutral
Jul 1, 2025

Helios Towers PLC has announced a change in major holdings, with the Abu Dhabi Investment Authority reducing its voting rights from 3.167054% to 2.8479%. This adjustment reflects a disposal of voting rights, potentially impacting the company’s shareholder dynamics and market perception. The change was officially notified on June 27, 2025, following the crossing of the threshold on June 25, 2025.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Delistings and Listing ChangesBusiness Operations and Strategy
Helios Towers Announces Block Listing for 25 Million Shares
Positive
Jul 1, 2025

Helios Towers has announced a block listing application for 25 million ordinary shares to be admitted to the Official List of the FCA and traded on the LSE’s main market. This move is aimed at facilitating the exercise of share options and vesting of awards under the company’s Employee Incentive Plan and Global Share Purchase Plan, potentially enhancing its capital structure and employee engagement.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Helios Towers Announces Executive Share Awards Under Incentive Plan
Neutral
Jun 18, 2025

Helios Towers plc announced the grant of awards under its Employee Incentive Plan 2019, involving the conditional award of nil-cost options to receive shares. This move, involving key executives such as the CEO and CFO, highlights the company’s commitment to aligning management incentives with shareholder interests and could potentially impact its operational focus and market positioning.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Helios Towers Announces Director Role Change
Positive
May 16, 2025

Helios Towers has announced a change in director responsibilities, with Dana Tobak, CBE, appointed as a member of the Audit Committee effective 15 May 2025. This strategic move is part of the company’s ongoing efforts to strengthen its governance structure, potentially enhancing its operational efficiency and industry positioning.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Helios Towers’ AGM Sees Unanimous Approval of Resolutions
Positive
May 15, 2025

Helios Towers held its 2025 Annual General Meeting where all proposed resolutions were passed. Key resolutions included the approval of the annual financial statements, election and re-election of directors, and authorization of political donations and securities allotment. The successful passage of these resolutions reflects strong shareholder support and positions the company to continue its strategic operations and growth in the telecommunications infrastructure sector.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £1.40 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

Business Operations and Strategy
Helios Towers Sees Change in Major Holdings
Neutral
May 9, 2025

Helios Towers PLC has announced a change in its major holdings, with the IFC African, Latin American and Caribbean Fund LP reducing its stake in the company. This move reflects a disposal of voting rights, decreasing from a previous 4.80% to 3.99%. The change in holdings may impact the company’s shareholder dynamics but does not indicate a shift in the investment strategy of the International Finance Corporation, which remains an affiliate entity.

Business Operations and StrategyFinancial Disclosures
Helios Towers Reports Strong Q1 2025 Performance and Credit Rating Upgrades
Positive
May 8, 2025

Helios Towers reported strong financial and operational performance for Q1 2025, with a 9% year-on-year increase in Adjusted EBITDA and a 5% rise in revenue, driven by tenancy growth. The company also saw credit rating upgrades from S&P, Fitch, and Moody’s, reflecting its robust business model and consistent performance. Despite macroeconomic uncertainties, Helios Towers remains confident in its outlook, reaffirming its full-year guidance and focusing on capital-efficient growth, deleveraging, and free cash flow generation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025