Helios Towers raises 2027 tenancy outlook after Q3 beat

Helios Towers Plc reported third-quarter results that exceeded expectations and raised its 2026 guidance to the top end of previous ranges while pointing to stronger growth in 2027.

The company now expects to add approximately 4,000 tenancies in 2026, up from its prior range of 3,500 to 4,000. Adjusted EBITDA guidance was increased to around $535 million from the previous range of $520 million to $535 million.

Recurring free cash flow is now expected to exceed $235 million for the year, compared to the earlier range of $220 million to $235 million.

For 2027, Helios Towers indicated it expects to add more than 3,000 additional tenancies, above the consensus estimate of approximately 2,500.

In the third quarter, the company added about 924 tenancies, including roughly 418 sites and 506 colocations. The additions were primarily driven by Tanzania and the Democratic Republic of Congo, along with growth in Madagascar and Malawi.

This brought the tenancy ratio to approximately 2.3 times and increased return on invested capital to 14.2% on a trailing twelve-month basis.

Third-quarter revenue grew 17% year-over-year while adjusted EBITDA increased 13% year-over-year. The company said margins declined by about 200 basis points due to higher fuel costs, which are passed through to customers in revenue.

Recurring free cash flow for the quarter totaled $27.9 million, down from the previous quarter due to seasonal working capital changes.

The company’s 2030 targets remain unchanged.