Helios Towers Plc (LON:HTWS) reported fourth-quarter results that exceeded expectations across new additions, profits and free cash flow, according to a Thursday report from Jefferies.
The telecommunications infrastructure company delivered revenue growth of 5.9% year-over-year in the quarter, while earnings before interest, taxes, depreciation and amortization increased 15% year-over-year. Recurring free cash flow grew 2.4% in the period.
For the full year 2025, Helios posted free cash flow of approximately $66 million on a last-12-months basis, representing a 249% increase year-over-year. The company beat EBITDA estimates by roughly 40 basis points and exceeded recurring free cash flow projections by about 17%.
Helios added 413 tenancies in the fourth quarter, consisting of 125 sites and 288 colocations. The additions brought the company’s tenancy ratio to 2.2 times for fiscal 2025, up 0.1 times year-over-year. Return on invested capital reached 13.5% for the year.
For 2026, Helios provided guidance targeting organic net tenancy additions of 2,000 to 2,500, compared to company consensus of 2,301. The company expects adjusted EBITDA of $510 million to $525 million, versus consensus estimates of $520.3 million.
Discretionary capital expenditure is projected at $110 million to $140 million, with a midpoint of $125 million. This represents an increase from consensus expectations of $162.2 million for total capex.
Jefferies noted the higher capex reflects continued strong customer demand and supports growth forecasts.
Recurring free cash flow guidance stands at $210 million to $225 million, compared to consensus of $207.1 million.
Helios plans to execute a $51 million share buyback in 2026, representing the remaining balance of a previously announced $75 million program. The company also guided for a fiscal year dividend of $25 million.
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Source : za.investing.com
