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- **Revenue Beat**: Q3 revenue of $455 million (+7% organic) exceeded expectations, driven by Nigeria and Brazil growth.
- **Profit Margin Expansion**: Adjusted EBITDA margin rose to 57.5%, with ALFCF up 81% YoY to $158 million.
- **Strategic Win in Brazil**: 3,000-site deal with TIM to boost LatAm growth, with 11% organic revenue rise.
- **Debt Reduction Progress**: Leverage down to 3.3x (target 3x by year-end), supported by $175 million Rwanda sale proceeds.
- **FX Tailwind**: Stronger naira and real contribute 10% organic growth, offsetting power cost increases.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue of $455 million exceeded expectations, driven by 9% constant currency growth from CPI escalators, colocations, and new sites. Organic growth was 7% despite a 3% headwind from the Kuwait disposal.
- **Profitability**: Adjusted EBITDA reached $261 million (57.5% margin), up 6% YoY, reflecting cost control and FX tailwinds. ALFCF surged 81% YoY to $158 million.
- **Balance Sheet Strength**: Consolidated net leverage ratio improved to 3.3x (down 0.6x YoY), with $950 million liquidity post-Rwanda sale proceeds.
- **Strategic Priorities**: Focus on deleveraging, organic growth in Nigeria and Brazil, AI integration, and potential dividend/share buyback after reaching 3x leverage.

**【CFO Financial Commentary】**
- **Revenue Breakdown**: Nigeria contributed $268 million (11% YoY growth), Brazil grew 13% YoY, and Sub-Saharan Africa saw 13% revenue rise. FX tailwinds (naira appreciation) added $15 million to revenue.
- **Cost Management**: Adjusted EBITDA margin expanded 20bps QoQ to 57.5%, despite higher diesel and power costs. ALFCF conversion rate improved to 60.4%.
- **CapEx**: $77 million (16% YoY increase) focused on Nigeria's 5G rollout and Brazil's 3,000-site deal with TIM.
- **Guidance Update**: Full-year 2025 targets raised to $1.72-1.75 billion revenue, $995-1.015 billion EBITDA, and $400-420 million ALFCF, driven by FX strength and organic growth.

**【Q&A Highlights】**
- **Brazil Expansion**: New 3,000-site deal with TIM (500 sites in 2 years) underscores 11% organic growth in LatAm, with EBITDA margin up 560bps YoY.
- **Nigeria Market Dynamics**: Carriers (MTN, Airtel) report 53-63% revenue growth, enabling capex moderation. IHS added 1,750 lease amendments Q3, offsetting 510 vacated tenants.
- **Capital Allocation**: Post-Rwanda sale, leverage expected at 3.1x by year-end. Plans to update dividend/buyback policy at FY25 results, with focus on 3-4x leverage target.
- **FX Sensitivity**: Guidance assumes NGN 1,535/USD for 2025, translating to 10% organic growth (midpoint). Power cost pass-through limits EBITDA impact of diesel price declines.

IHS Holding Limited (IHS) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

IHS

IHS fundamentals

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