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

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GB:HTWS

Helios Towers

(OTC:HTWS)

Rating:65Neutral
Price Target:
133.00p
▼(-6.99% Downside)
Helios Towers' overall stock score is driven by strong technical momentum and positive earnings call sentiment, indicating a solid strategic position. However, financial risks from high leverage and valuation concerns due to a high P/E ratio moderate the score.

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

Helios Towers Business Overview & Revenue Model

Company DescriptionHelios Towers plc, an independent tower company, acquires, builds, and operates telecommunications towers and passive infrastructure. It provides site space to mobile network operators and other telecommunications providers that in turn provide wireless voice and data services to consumers and businesses. The company also offers comprehensive tower-related operational services, including site selection, site preparation, maintenance, security, and power management. As of December 31, 2021, it operated a network of 9,560 sites and 18,776 tenancies in Tanzania, the Democratic Republic of Congo, Congo Brazzaville, Ghana, South Africa, Senegal, and Madagascar. The company was founded in 2009 and is based in London, the United Kingdom.
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:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial and strategic position for Helios Towers, with significant growth in tenancy and financial metrics, improved financial ratings, and a clear long-term growth strategy. However, the company must remain vigilant of macroeconomic challenges and potential market saturation risks.
Q2-2025 Updates
Positive Updates
Strong Tenancy Growth and Financial Performance
Helios Towers reported strong tenancy growth with over 1,200 additions year-to-date, including 190 new sites. The tenancy ratio expanded to 2.11, up 0.1 year-on-year, with strong momentum towards the 2.2 target by 2026. EBITDA increased by 9% year-on-year, and free cash flow saw an upward swing of $40 million, reaching a record $30 million for H1 2025.
Improved Financial Ratings and Cost of Debt
Moody's affirmed a B1 rating with a positive outlook, while Fitch upgraded to BB-. The company also reduced its cost of debt from 7.2% to 6.9% through refinancing, enhancing its financial position.
Consistent Long-term Growth and Strategic Outlook
Helios Towers achieved 10 consecutive years of double-digit adjusted EBITDA growth, averaging a 25% annual growth rate since 2015. The company reaffirmed its full-year guidance and is on track for significant long-term value creation through its Capital Markets Day strategic plans.
Negative Updates
Macroeconomic Challenges and Risk Outlook
Despite strong performance, the company faces global macroeconomic challenges such as inflation, currency movements, and global shocks like COVID-19 and oil price fluctuations, requiring resilience and adaptability in its business model.
Potential Market Saturation
As the company continues to expand, there is a potential risk of market saturation in certain regions, which may impact future growth prospects if not managed carefully.
Company Guidance
During the Helios Towers H1 2025 results call, CEO Tom Greenwood announced that the company is firmly on track to achieve its FY '25 guidance, indicating a positive outlook across several key metrics. The company reported a 9% year-on-year increase in EBITDA, reaching $226 million for the first half of 2025, and expanded its return on invested capital (ROIC) by a percentage point to 14%. Free cash flow saw a significant upward swing of $40 million year-on-year, resulting in a surplus of $30 million, with expectations to reach between $40 million to $60 million by year-end. The net leverage ratio continued its downward trend to 3.8, a reduction of 0.4 from the previous year. The company also reaffirmed its full-year guidance, expecting to add 2,000 to 2,500 tenancies, achieve $460 million to $470 million in EBITDA, and continue deleveraging towards a net leverage ratio of 3.5. Helios Towers has successfully reduced its cost of debt to 6.9% from 7.2%, following some refinancing of term loans. Looking ahead, the company is preparing for its Capital Markets Day on November 6, where it plans to discuss its enhanced capital allocation policy and five-year strategic plan.

Helios Towers Financial Statement Overview

Summary
Helios Towers shows strong revenue growth and improved profitability in 2024, with a significant improvement in net profit margin. However, the high leverage and volatile equity pose financial risks, despite positive cash flow generation.
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 Price143.00
Price Trends
50DMA
123.96
Positive
100DMA
120.11
Positive
200DMA
108.30
Positive
Market Momentum
MACD
4.03
Negative
RSI
76.44
Negative
STOCH
97.13
Negative
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 143 is above the 20-day moving average (MA) of 130.51, above the 50-day MA of 123.96, and above the 200-day MA of 108.30, indicating a bullish trend. The MACD of 4.03 indicates Negative momentum. The RSI at 76.44 is Negative, neither overbought nor oversold. The STOCH value of 97.13 is Negative, 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£8.28B31.979.48%1.95%6.56%2630.77%
75
Outperform
£19.91B18.968.29%3.97%-2.23%22.78%
65
Neutral
£1.50B58.85
6.88%
61
Neutral
£21.07B8.78-7.22%4.03%-0.59%-489.50%
60
Neutral
$47.27B4.55-11.27%4.14%1.88%-40.90%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:HTWS
Helios Towers
143.00
31.00
27.68%
GB:BT.A
BT Group plc
205.70
64.58
45.76%
GB:VOD
Vodafone
87.80
13.36
17.95%
GB:AAF
Airtel Africa Plc
228.40
113.22
98.30%

Helios Towers Corporate Events

Business Operations and StrategyFinancial Disclosures
Helios Towers Reports Strong H1 2025 Results, Prepares for New Strategic Phase
Positive
Jul 31, 2025

Helios Towers announced strong financial results for the first half of 2025, with a 9% year-on-year growth in Adjusted EBITDA and a $40 million increase in free cash flow. The company reported a 7% increase in revenue, driven by tenancy growth, and a 1% rise in operating profit. The results reflect the company’s robust business model and strategic focus on tenancy additions and long-term contracted revenues. Helios Towers is on track to meet its full-year guidance and is preparing to unveil a new five-year strategy at its upcoming Capital Markets Day, aiming to maximize value for stakeholders.

The most recent analyst rating on (GB:HTWS) stock is a Buy with a £2.55 price target. To see the full list of analyst forecasts on Helios Towers stock, see the GB:HTWS Stock Forecast page.

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: Aug 21, 2025