Q3 2025 Eltel AB Earnings Call Transcript
Key Points
- Eltel AB (LTS:0R53) reported improved profitability, especially in Finland and Norway, with Norway achieving positive adjusted EBITA for the first time in two years.
- The company secured EUR176 million in new contract value during the third quarter, a significant increase from EUR136 million the previous year.
- Eltel AB (LTS:0R53) is experiencing rapid growth in new business areas, particularly in Solar and Data Centers, contributing to a more diversified customer base.
- The company's third-quarter adjusted EBITA reached EUR9.1 million, marking the highest quarterly result in a decade.
- Finland, which accounts for 48% of group operations, showed strong performance with a 20% improvement in adjusted EBITA, driven by growth in the Power segment.
- Net sales declined by 1% organically, with a notable double-digit decline in Norway that could not be fully compensated.
- Sweden's adjusted EBITA margin decreased from 4.2% to 1.8% due to the absence of last year's exceptional project closings.
- Denmark and Germany saw a decline in profitability from 4.9% to 3.9%, attributed to lower Communication volumes and the end of high-margin contracts.
- Net debt increased to EUR172 million from EUR145 million the previous year, with leverage remaining at 3.5, above the target range.
- Operating cash flow was soft this quarter, with higher working capital tie-up due to project phasing and customer payment timing.
Welcome to this presentation of Eltel's third-quarter results. My name is Alexandra Kaernlund. I am the Communications Director at Eltel. The results will be presented by our President and CEO, Hakan Dahlstroem; and our CFO, Tarja Leikas.
After their presentations, we will open up for your questions. Throughout the presentation, you can submit questions either via the website or dial in via the phone conference and press pound key five.
With that, let's move to the next slide as I hand over the word to you, Hakan.
Thank you, Alexandra. Really good quarter. And first of all, maybe a good morning also from my side. Great to have you here. Yes, third quarter delivering according to our expectation on our strategic moves that we have taken and I will elaborate more on those in the end of this presentation today.
But I would like also here in the beginning to say that we are delivering on the improved profitability,
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