Helios Towers Plc delivered fourth-quarter results that exceeded market expectations across several operational and financial measures, the company said in its most recent trading update. Revenue rose 5.9% year-over-year in the quarter, while EBITDA increased 15% from the prior year. Recurring free cash flow was also higher, growing 2.4% during the period.
On a trailing 12-month basis the company generated roughly $66 million of free cash flow for fiscal 2025, a 249% increase year-over-year. Management outperformed consensus on multiple metrics, beating EBITDA estimates by about 40 basis points and surpassing recurring free cash flow forecasts by roughly 17%.
Operationally, Helios added a total of 413 tenancies in the quarter - comprising 125 new sites and 288 colocations - lifting its tenancy ratio to 2.2 times for fiscal 2025, an increase of 0.1 times compared with the prior year. Return on invested capital for the year reached 13.5%.
Looking to fiscal 2026, the company provided forward guidance that targets organic net tenancy additions in the range of 2,000 to 2,500, set against a company consensus point of 2,301. Adjusted EBITDA is guided to $510 million to $525 million, compared with consensus estimates of $520.3 million.
Helios outlined discretionary capital expenditure of $110 million to $140 million for 2026, with a midpoint of $125 million. The company said this capex projection represents an increase from consensus expectations of $162.2 million for total capex. Jefferies noted that the higher capex projection reflects ongoing strong customer demand and that the investment supports the company’s growth forecasts.
Recurring free cash flow guidance for 2026 is set at $210 million to $225 million, versus consensus of $207.1 million.
On capital allocation, 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 to a fiscal year dividend of $25 million.
The update shows Helios continuing to expand tenancy and generate improving cash returns while increasing discretionary investment to support demand. The company’s guidance balances growth-oriented capex with shareholder distributions through buybacks and dividends.