Helios Towers raises full-year guidance, shares jump

7th May 2026 09:43

(Sharecast News) - Helios Towers raised its 2026 guidance after a strong first quarter on Thursday, as tenancy growth drove double-digit increases in revenue and adjusted EBITDA.

The FTSE 250 mobile tower company said revenue rose 12% to $229.2m in the three months ended 31 March, from $203.8m a year earlier.

Adjusted EBITDA increased 14% to $127.2m from $111.1m, while the adjusted EBITDA margin improved by one percentage point to 56%, supported by tenancy ratio expansion.

Operating profit rose to $81.8m from $76.6m, with adjusted EBITDA growth partly offset by higher depreciation.

Return on invested capital increased to 14.5% from 13.8%.

Chief executive Tom Greenwood said the first-quarter performance highlighted "structural growth momentum" across Helios Towers' markets.

"Demand for data and connectivity across Africa and the Middle East remains exceptionally strong, with our mobile operator customers accelerating investment, driving significantly increased demand for our infrastructure," he said.

Tenancies increased 11% year-on-year to 33,350, while the tenancy ratio improved to 2.22 times from 2.09 times.

Helios Towers recorded 1,406 tenancy additions year-to-date, including 246 sites, with sites and tenancies ending the period at 14,992 and 33,350 respectively.

The group said its business was underpinned by future contracted revenues of $5.3bn, around 70% of which came from investment-grade customers, with an average remaining initial life of 6.7 years.

Recurring free cash flow fell to $9.7m from $16.9m, as adjusted EBITDA growth was offset by working capital movements, which the company said reflected normal variability in customer payment timing.

Discretionary capital additions were $37.9m, driven by the year-to-date tenancy additions.

Net leverage fell to 3.5 times from 4.0 times a year earlier.

Helios Towers also said it had strengthened its balance sheet.

In April, it refinanced its 2028 term loan through the issue of $500m of 6.750% senior notes due 2031, reducing the group's cost of debt by about 40 basis points to 6.7% and extending average maturities by one year.

In May, it raised a $250m three-year term loan to manage its 2027 convertible bond and for general corporate purposes.

The facility remained undrawn, leaving the group with more than $500m in cash and available debt facilities.

The company upgraded its full-year guidance, citing a strong site and tenancy pipeline from investment-grade and blue-chip customers.

It said it now expected 3,000 to 3,500 tenancy additions in 2026, up from previous guidance of 2,000 to 2,500.

Adjusted EBITDA guidance was raised to $515m to $530m from $510m to $525m, with a $5m uplift expected in 2026 due to rollout timing.

Helios Towers said the additional 1,000 tenancies were expected to deliver more than $15m of annualised adjusted EBITDA from 2027.]

Recurring free cash flow guidance was increased to $215m to $230m from $210m to $225m.

Discretionary capital expenditure guidance was raised to $180m to $210m from $110m to $140m, reflecting a $70m uplift for incremental tenancies.

Guidance for a $51m share buyback and a $25m dividend was unchanged.

"Our tenancy pipeline this year is significant and we are upgrading our financial and operational 2026 guidance," Greenwood said.

"We now target a record 3,000 to 3,500 tenancy additions for 2026, increasing by 1,000 compared to prior guidance, and all meeting our disciplined return thresholds."

At 0925 BST, shares in Helios Towers were up 15.17% at 234p.

Reporting by Josh White for Sharecast.com.

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