Eltel Interim report January-September 2026

July–September 2026

• Net sales EUR 196.2 million (208.2), a decrease of 5.8%. Organic growth¹⁾ was -6.6% 
• Gross profit EUR 27.7 million (27.8) and gross margin 14.1% (13.3) 
• Adjusted EBITA²⁾ EUR 11.0 million (9.1) and adjusted EBITA margin 5.6% (4.3) 
• Items affecting comparability³⁾ EUR -1.0 million (-0.3) 
• Operating result (EBIT) EUR 10.1 million (8.8) and EBIT margin 5.1% (4.2) 
• Net result EUR 8.7 million (3.0) 
• Earnings per share EUR 0.05 (0.02), basic and diluted 
• Cash flow from operating activities EUR 0.5 million (-19.1) 

January–September 2026

• Net sales EUR 587.0 million (578.8), an increase of 1.4%. Organic growth¹⁾ was 0.2% 
• Gross profit EUR 75.3 million (72.5) and gross margin 12.8% (12.5) 
• Adjusted EBITA²⁾ EUR 19.7 million (12.4) and adjusted EBITA margin 3.4% (2.2) 
• Items affecting comparability³⁾ EUR -2.3 million (-1.3) 
• Operating result (EBIT) EUR 17.4 million (11.1) and EBIT margin 3.0% (1.9) 
• Net result EUR 6.4 million (-0.4) 
• Earnings per share EUR 0.04 (-0.02), basic and diluted 
• Cash flow from operating activities EUR -15.2 million (-9.4), including EUR 15.8 million repayment of tax deferral in Sweden 
• Net debt EUR 179.0 million (171.6) 

Significant events during and after the reporting period

• During the third quarter, Eltel signed new contracts with a combined value, TCV, of EUR 680.7 million (176.2) and the value of the total orderbook⁴⁾ was EUR 1.7 billion (1.2). 
• On 26 August, it was announced that Eltel acquired EWII's street lighting business in Denmark, strengthening its market position in Jutland and expanding its offering within public lighting infrastructure. 
• On 8 September, it was announced that Eltel Norway had been awarded a long-term partnership agreement with Telenor Norway, as sole supplier of contracting services for network expansion, maintenance and upgrades. The agreement is expected to generate revenue of more than EUR 475 million over the initial five-year term, with a potential total contract value estimated at EUR 1 billion including option years. 
• On 11 September, it was announced that Eltel had been awarded a frame agreement with KONSTANT in Denmark valued at EUR 73 million. The agreement strengthens Eltel's position in the Danish power market and covers maintenance and expansion of the electricity distribution network. 
• On 13 October, it was announced that Eltel Sweden had signed the framework agreement with Vattenfall Eldistribution announced on 8 June 2026, following the conclusion of the appeal process. The initial four-year period amounts to a contract value of approximately EUR 137.5 million and the total contract value, including the option years, amounts to EUR 275 million. 

Key figures

1. Organic growth is adjusted for currency effects and acquisitions.
2. Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 24–25 for definitions of the key ratios.
3. See reconciliation of segment results on page 21 for more information.
4. Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the agreement.

Comments by the CEO: ”Highest profitability since 2015 and record high orderbook.”

I am delighted to report a third quarter that clearly demonstrates the consistent progress we are making in building a more profitable Eltel. Our focus on commercial excellence and operational efficiency is delivering results. Adjusted EBITA reached EUR 11.0 million, with an adjusted EBITA margin of 5.6%. Both are our highest quarterly levels since 2015. 

At the same time, I would have liked to see a stronger development in net sales, which declined by 5.8% to EUR 196.2 million. Lower fiber rollout volumes and a reduced contribution from major projects continued to affect our business. Meanwhile, cash flow from operating activities improved substantially compared to the same quarter last year. 

Since restoring growth remains an important priority, it is a clear sign of strength to see that during the quarter we signed contracts with a combined value of EUR 680.7 million, compared to EUR 176.2 million a year earlier. Our orderbook reached a record high EUR 1.7 billion at the end of the quarter, up from EUR 1.2 billion (in the previous year). The partnership agreement with Telenor in Norway contributed significantly to the positive development of the order book. The strong sales development continued after the quarter with the final signing of the service and maintenance agreement with Vattenfall in Sweden. Approximately 90% of the orderbook increase relates to service and maintenance contracts, which enhances our ability to plan ahead and optimize the organization. 

Our task is now to prepare and build capabilities to turn this strong commercial momentum into future profitable delivery and growth. Volumes related to the new contracts will gradually increase from the first quarter next year, but the full net sales effect of the newly signed contracts will only be visible from the third quarter of 2027. 

In Finland we continued to demonstrate our ability to improve profitability in a changing market. Although Communication volumes continued to decline, stronger operational efficiency in both Communication and Power lifted the adjusted EBITA margin above 10%. Following the decline in fiber-to-the-home, FTTH, volumes from the peak levels seen in previous years, we are adjusting the organization. This was initiated during the quarter and is expected to be completed before year-end. Alongside this adjustment, we are building our position in data centers, where activity increased and we secured our first major Finnish contract for work inside a data center. 

In Sweden we also improved profitability, driven by telecommunications, public infrastructure and defense. These areas continued to develop positively, although they could not fully offset the lower Power volumes following the closure of Smart meter projects. After the end of the quarter, the conclusion of the appeal process enabled us to sign the agreement with Vattenfall Eldistribution. Valued at approximately EUR 275 million, including option years, this is our largest contract in Sweden to date and marks a significant expansion of our Swedish Power business. 

The constraints in the Danish power grid continued and Denmark & Germany has had a challenging quarter, with lower volumes and profitability. Declining Communication activity continued to weigh on performance, despite positive contributions from Smart meters. With the new EUR 73 million agreement with KONSTANT we strengthen our position significantly and are geared up to capture future opportunities in the Danish power market. 

In Norway we continued to improve profitability by operational excellence, digitalization and higher utilization. Emerging services grew, driven by Data center solutions, although lower telecommunications volumes continued to put pressure on the revenue. With the new long-term partnership with Telenor Norway we have the orderbook needed for a strong profitable growth. This is our largest contract win ever: Based on expected volumes, the agreement will generate revenue of more than EUR 475 million over the initial five-year period, with a potential total contract value of EUR 1 billion including all option years. 

I am very pleased to see this strong customer confidence in Eltel and, looking ahead, the long-term need for our capabilities will only increase. Digitalization and electrification are increasing the demand for connectivity and new power solutions, while geopolitical challenges reinforce the importance of resilient critical infrastructure. In February 2026, I stated that I was confident that we would reach our profitability target of 5% within 12 to 18 months’ time and now, with this positive development, I remain confident that we will reach this target.

Håkan Dahlström, President and CEO