Helios Towers Tops Q4 Expectations, Upping 2026 Capex Forecast

Helios Towers Plc (LON:HTWS) delivered a strong showing for the fourth quarter, surpassing analyst projections in key areas like new site additions, earnings, and free cash flow. The telecom infrastructure provider's recent results highlight a healthy operational tempo as it expands its footprint.

Specifically, Helios registered a 5.9% increase in year-over-year revenue for Q4, while EBITDA jumped 15% over the same period. Recurring free cash flow also moved up by 2.4%, keeping the momentum alive heading into 2026.

Looking back at the full year of 2025, the company reported free cash flow of roughly $66 million on a trailing 12-month basis, marking a striking 249% increase compared to the prior year. It also beat EBITDA estimates by approximately 40 basis points and topped free cash flow forecasts by nearly 17%.

In terms of network expansion, Helios added 413 tenancies last quarter-comprising 125 new tower sites and 288 colocations. This progress nudged the company's tenancy ratio up by 0.1, finishing the year at 2.2 times. Return on invested capital reached a solid 13.5% for the year, reflecting efficient deployment of capital.

Looking ahead, Helios projected net organic tenancy additions between 2,000 and 2,500 for 2026, aligning closely with consensus figures. Adjusted EBITDA guidance was set between $510 million and $525 million, just brushing consensus expectations of $520.3 million.

Capital expenditures for the year are expected in the range of $110 million to $140 million, with a midpoint of $125 million. Interestingly, this is below the consensus capex forecast of $162.2 million, yet still represents a step up from recent levels, indicating management's confidence in sustained customer demand and network growth.

Free cash flow recurring guidance was revised to $210 million to $225 million, slightly higher than the consensus of $207.1 million. Additionally, Helios announced plans to execute the remaining $51 million of a previously announced $75 million share buyback program and forecast a $25 million dividend for the fiscal year.

Helios Towers appears to be riding a wave of telecom infrastructure demand, with solid financial metrics and clear growth ambitions. Whether these numbers will translate to sustained investor enthusiasm in a market sensitive to capex spending remains closely watched.