IHS Towers revenue rises 6% as favorable currency translation offsets organic decline

IHS Holding (NYSE:IHS), one of the world's largest independent telecommunications infrastructure developers, reported a 6% increase in first-quarter revenue from continuing operations, as favorable foreign exchange movements masked a slight decline in organic growth.

The London-based company, which operates extensively across Africa and the Middle East, generated $415.4 million in revenue for the period ended March 31, 2026.

The results exclude its Latin American segment, which has been reclassified as discontinued operations.

While the company faced a 3.7% inorganic headwind following the sale of its Rwanda operations in late 2025, an 11.4% tailwind from currency translation—specifically the strengthening of the Nigerian Naira against the U.S. dollar—pushed reported figures higher.

On an organic basis, revenue slipped 1.7%.

Despite a 3.7% increase in constant currency revenue—fueled by new site builds, colocation, and lease amendments—growth was hampered by lower revenue from power indexation and contractual foreign exchange resets.

Profitability showed improvement alongside the top-line growth.

Adjusted EBITDA rose 6.4% to $268.7 million, with the company reporting total net income of $77 million for the quarter.

Adjusted Levered Free Cash Flow (ALFCF) saw a more significant jump, climbing 15.8% to $173.5 million, which management attributed primarily to reduced interest payments.

Capital expenditure for the quarter fell 5.3% to $41.4 million.

The decline was largely driven by the timing and phasing of discretionary spending rather than a fundamental pull-back in infrastructure investment.

Cash generated from operations remained healthy at $244.9 million, providing the company with liquidity as it navigates a shifting portfolio that now excludes its previously held assets in Rwanda and focuses on high-growth emerging markets.