Q2 2026 Netel Holding AB (publ) Earnings Call Transcript
Key Points
- Netel Holding AB (FRA:2CR) reported a strong order backlog of SEK3.7 billion, with SEK1.2 billion expected to be completed within the year, indicating a solid pipeline of future work.
- The proposed merger with Infrea is expected to create a leading Northern European infrastructure service company with significant synergies and strategic advantages.
- The company is experiencing strong growth in its power segment, particularly in Norway, with a 20% increase in the quarter.
- Netel Holding AB (FRA:2CR) has secured new contracts with significant clients such as Swedavia and the Swedish Transport Administration, enhancing its market position.
- The company maintains a flexible business model, allowing it to adapt to market changes, particularly in the telecom sector, where it has secured new framework agreements.
- Net sales and adjusted EBITDA have declined year-over-year, with net sales dropping from SEK775 million to SEK725 million and adjusted EBITDA from SEK39 million to SEK24 million.
- The telecom segment is facing challenges due to lower volumes, resulting in a 22% decrease in sales, impacting overall profitability.
- The company is undergoing restructuring, including winding up a subsidiary acquired in 2022, which has incurred additional costs.
- Operating cash flow was negative at minus SEK31 million in the second quarter, reflecting the need for working capital in early project phases.
- The competitive environment remains challenging, with high competition for new contracts, potentially impacting pricing and margins.
Welcome to Netel Q2 Report for 2026. (Operator Instructions)
Now I will hand the conference over to CEO and President Jeanette Reuterskiold; and CFO Fredrik Helenius. Please go ahead.
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Good morning, and welcome to our presentation of our second quarter's results. My name is Jeanette Reuterskiold, and I'm President and CEO of Netel. And with me, I have usually Fredrik Helenius, our CFO.
During today's presentation, I will start by running through the key developments in the second quarters, as well as information about announced intended merger with Infrea.
I will also give you a market update and highlights from our recent business wins in the quarter, and Fredrik will then, as usual, go through the financials in more detail before I make a short summary and we open up for questions.
NetTrails performance in the second quarter followed the normal seasonal pattern with increased product
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