IHS · IHS Holding Limited

IHS Holding Limited delivered strong Q1 2026 results with revenue from continuing operations up 6.0% year-over-year to $415.4 million, primarily fueled by a $44.7 million non-core benefit from Naira appreciation (4.9% stronger average rate), which added $26.7 million to Nigeria's contribution. Organic revenue dipped 1.7% due to lower foreign exchange resets and power indexation from the stronger Naira, partially offset by tenant growth, lease amendments, new sites, and escalations; this followed MTN Nigeria contract renewals involving ~1,050 site vacancies. Inorganic revenue fell on the October 2025 Rwanda disposal. Nigeria revenue rose to $285.0 million (up from $271.4 million), SSA to $130.4 million (from $120.7 million). Gross margins held steady as power costs ($85.6 million) aligned with revenue growth. Administrative expenses surged to $120.7 million from $52.7 million, driven by $73.7 million staff costs (including $33.1 million accelerated share-based payments and long-term incentives tied to February 2026 MTN merger announcement), $9.2 million business combination costs, and $5.5 million withholding tax impairment. Finance income jumped to $116.6 million (from $18.3 million) on $102.8 million unrealized FX gains from Naira strength on intercompany loans. Adjusted EBITDA climbed 6.3% to $268.7 million, with segment margins solid (Nigeria 64.1%, SSA 59.5%). Net income attributable to owners reached $75.8 million ($0.22 diluted EPS), versus $33.1 million ($0.10) last year. Operating cash flow strengthened to $228.6 million, boosting cash to $940.5 million (excluding $26 million held-for-sale). Latam (discontinued) revenue grew 9% to $51.8 million but carried $29.9 million held-for-sale impairment. Key strategic moves include completed I-Systems sale to TIM S.A. (May 2026), pending Latam towers sale to Macquarie ($952 million enterprise value), and MTN merger at $8.50/share, subject to approvals and cash thresholds met via divestitures. Portfolio shrank to 37,641 towers (-1,571 YoY, post-Rwanda), tenants to 54,854 (colocation 1.46x), with 5,593 new lease amendments.