Helios Towers Q4 performance exceeds expectations, raises 2026 capital expenditure guidance

Investing.com – According to Jefferies’ Thursday report, Helios Towers Plc (LON:HTWS) announced Q4 results that exceeded expectations in new tenants, profit, and free cash flow.

This telecom infrastructure company’s Q4 revenue increased by 5.9% year-over-year, and EBITDA (earnings before interest, taxes, depreciation, and amortization) grew by 15% YoY. Recurring free cash flow increased by 2.4% during this period.

For the full year 2025, Helios’ free cash flow over the past 12 months is approximately $66 million, a 249% increase YoY. The company’s EBITDA surpassed expectations by about 40 basis points, and recurring free cash flow exceeded expectations by approximately 17%.

In Q4, Helios added 413 new tenants, including 125 sites and 288 co-located tenants. These new tenants brought the company’s tenant ratio for fiscal 2025 to 2.2 times, up 0.1 times YoY. The annual return on invested capital reached 13.5%.

For 2026, Helios provided an organic net tenant addition guidance of 2,000 to 2,500, with consensus expectations at 2,301. The company expects adjusted EBITDA to be between $510 million and $525 million, compared to consensus of $520.3 million.

Discretionary capital expenditure is expected to be between $110 million and $140 million, with a midpoint of $125 million. This is higher than the consensus total capital expenditure of $162.2 million.

Jefferies noted that higher capital expenditure reflects sustained strong customer demand and supports growth forecasts.

The recurring free cash flow guidance is between $210 million and $225 million, compared to consensus expectations of $207.1 million.

Helios plans to execute a $51 million share repurchase in 2026, which is the remaining part of the previously announced $75 million buyback program. The company also provided a $25 million fiscal year dividend guidance.

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