TOWR - Strong 4Q, Fiber Drives FY26F Upside

KBVS Update
Monday, 6 April 2026

TOWR - Strong 4Q, Fiber Drives FY26F Upside
(Reiterate BUY - TP: IDR700)

4Q25: Fiber-led growth and lower interest costs lift earnings. FY25 EBITDA reached IDR11.0 tn (+2.5% yoy), inline with expectations on 4.6% revenue growth despite higher CoR. 4Q25 strengthened, with EBITDA +8.5% qoq and revenue +10.6% qoq. Net profit jumped 24.3% qoq to IDR1.1 tn, driven by lower interest costs, lifting FY25 earnings above expectations (108%) and highlighting margin resilience.

FY26F: Fiber expansion underpins growth re-acceleration. FTTT continues to anchor growth, with FY25 revenue at IDR2.9 tn (+12.4% yoy), lifting contribution to 22.1%. Momentum is supported by expanding homepasses (1.81 mn) and Remala Abadi integration. Into FY26F, non-tower revenue leads (+12.0% yoy), while tower leasing grows modestly (+1.7% yoy) on incremental EXCL tenancies, driving total revenue +5.2% yoy to IDR14.0 tn.

Margins: Favorable mix to contain cost pressures. Shift to higher-margin fiber offsets cost pressures, with CoR growth contained (+4.9% yoy). EBITDA is set to rise 3.8% yoy to IDR11.8 tn, while lower funding costs lift FY26F net profit to IDR3.9 tn (+7.1% yoy) and margins to 28.1%.

Reiterate BUY with TP of IDR700, based on 7.3x FY26F EV/EBITDA (-0.8SD 5yrs-historical mean).

Regards,
Steven Gunawan - KBVS Research