IHS Towers Stock Jumps After Record Trading on NYSE

Beulah Godfrey

May 12, 2025
3 min read

On May 7, IHS Towers saw over 3 million shares traded on the New York Stock Exchange. This marked the company’s busiest trading day in nearly two years. Its share price also rose 9.7%, closing at $5.70.

This surge shows that investors now trust telecom infrastructure companies more. Nigeria’s top telcos, MTN and Airtel, are bouncing back after tough years. Their recovery is helping IHS attract more attention.

In 2024, Nigeria made up 58.3% of IHS’s total revenue. MTN Nigeria and Airtel Nigeria brought in 57% of that amount. This link means that IHS’s growth depends heavily on how well both telcos perform.

As MTN and Airtel return to profit in 2025, investors are betting big on IHS. The recent approval of new tariff rates by the Nigerian Communications Commission (NCC) is helping. Higher tariffs will boost telcos’ earnings and allow more investment in infrastructure.

IHS Stock Outperforms Tech Sector in 2025

Since January, IHS Towers’ stock has jumped over 51%. It started the year at around $4 and reached $5.94 by May 7. That’s the highest level since September 2023.

Strong Q4 2024 results also fueled this rise. IHS reported $437.8 million in revenue and $0.73 earnings per share. These numbers beat analysts’ expectations. The company credited its success to renewed contracts with MTN and Airtel and tighter cost control.

In 2024, IHS locked in 72% of its revenue under long-term contracts. These deals offer more stability and lower risk for investors. MTN and Airtel rely on IHS towers to grow their 4G and 5G networks.

As mobile data use increases, telcos need more tower support. IHS plans to build 500 new towers in 2025. Many of these will improve mobile internet in Nigeria’s rural areas.

In March 2025, MTN Nigeria and Airtel Africa signed a tower-sharing deal. This move allows both telcos to grow their networks without building new towers themselves.

That’s good news for IHS. The deal means more tower use, more revenue, and stronger partnerships. As telcos try to spend less, they rely more on shared infrastructure.

IHS CEO Sam Darwish recently increased his stake in the company by $7.75 million. His total holdings rose from $56.21 million to $64 million by early May.

This move shows a strong belief in IHS’s future. Investors see this as a good sign. It adds to the growing trust in IHS’s long-term plan.

Challenges Remain

Despite its growth, IHS still faces risks. The company operates heavily in Nigeria, where the naira has lost value. This currency drop, along with changing lease terms, has hurt profits in the past.

But new deals with MTN and Airtel in 2024 have fixed some of these issues. These deals now include better pricing and protect IHS from rising energy costs.

The company also deals with local challenges. These include vandalism, stolen equipment, and sudden shutdowns of tower sites. Currency changes also affect daily operations.

The company says it remains committed to solving these problems and serving its clients across Africa.

Despite these setbacks, investors are showing faith in IHS Towers. The company’s solid contracts, steady income, and bold expansion plans are paying off. Its rising stock price and trading volume show that global investors see IHS as a key player in Africa’s digital growth.