Q1 2026 Eltel AB Earnings Call Transcript
Key Points
- Eltel AB (FRA:E5E) reported strong growth in the first quarter, with a more than 10% increase in organic net sales driven primarily by Finland.
- The company achieved its 11th consecutive quarter of improved profitability, marking the best first quarter performance in a decade.
- Emerging services, including renewable energy storage and e-mobility, now account for 23% of revenue, up from 6% a year ago.
- Significant contracts were secured, such as a EUR25 million data center contract with Hypercom and a EUR60 million frame agreement with Elisa.
- Norway showed a positive trend with four consecutive quarters of improved profitability, contributing significantly to the EBITDA improvement.
- The gross margin declined to 12% year-on-year despite strong revenue growth, attributed to a different service mix.
- Denmark's communication business continues to face a downturn, leading to a decision to right-size the organization.
- The company experienced a weaker operating cash flow compared to last year's Q1, influenced by seasonality and project phasing.
- The renewable energy market is softer than a year ago, with some projects being postponed.
- Profitability in Denmark and Germany declined due to a weaker sales mix, particularly in the communication sector.
A warm welcome to this presentation of Eltel's first quarter results.
My name is Alexandra Kärnlund. I am Communications Director at Eltel.
The presentation will be held by our CEO and President, Håkan Dahlström, and our CFO, Tarja Leikas.
(Operator Instructions)
With that, I'd like to hand over to you, HÃ¥kan and Tarja. (Operator Instructions)
¥¶ -
Thank you, Alexandra. Good morning, all.
I would like to start with talking a little bit about Eltel today.
We are the leading Nordic service provider in critical infrastructure.
We deliver installations, upgrade and maintenance services. Within the area of power and communication.
The area that we have been active in for 25 years is what we talk about as classic services. And here we serve a broad range of customers in the public and private sectors, from network owners and operators to the industry.
During the last years, we have also established ourselves as
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