Q2 2025 Netel Holding AB (publ) Earnings Call Transcript
Key Points
- Netel Holding AB (LTS:0AAB) reported an increased order backlog of SEK4.1 billion, indicating strong future business prospects.
- The telecom division saw a 3% increase in sales, driven by positive trends in Sweden and Germany.
- The company successfully expanded its geographical reach and customer base, including a significant EUR90 million contract with Enviatel in Germany.
- The sale of the Finnish operations, which were operating at a loss, allows Netel Holding AB (LTS:0AAB) to focus on core markets in Sweden and Norway and growth markets in Germany and the UK.
- Netel Holding AB (LTS:0AAB) secured new framework agreements and contracts across various divisions, including a SEK330 million agreement with Aeon in Sweden, enhancing its market position.
- The high proportion of projects in the startup phase negatively impacted profitability, with an EBITDA margin of 5.2% during the quarter.
- Sales in the infra services division decreased by 29.8% compared to a strong comparative quarter last year.
- The power division experienced a 3.5% decrease in sales due to project starts and changes in the product mix.
- The company reported a negative growth of 7.7% in sales for the quarter, with a year-to-date sales figure just below last year.
- The higher working capital and negative operating cash flow led to an increased leverage ratio of 3.4 times, indicating financial strain.
Welcome to Netel Q2 report for 2025. (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. My name is Jeanette Reuterskiold. I'm CEO and President of Netel. With me today I have Fredrik Helenius, our CFO.
In the second quarter, we continue to have a large proportion of projects in the startup phase across all divisions. However, telecom has increased its volumes, primarily due to a positive trend in Sweden and Germany.
The high proportion of product start has also negatively impacted profitability since initial activities need to be performed in our products before we can start deliveries and invoicing. The major contracts that we are now commencing include, for example, Elvis power stations in Norway, a new framework agreement with Glitre
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