January-March 2025
- Net sales EUR 169.6 million (176.3), a decrease of 3.8%. Organic growth1) was 0.6%
- Adjusted EBITDA EUR 7.8 million (3.6)
- Adjusted EBITA2) EUR 0.9 million (-4.0) and adjusted EBITA margin 0.5% (-2.3)
- Adjusted EBITA2) in segments3) EUR 3.7 million (-0.3) and adjusted EBITA margin in segments3) 2.2% (-0.2)
- Items affecting comparability4) EUR -0.6 million (-23.2)
- Operating result (EBIT) EUR 0.3 million (-27.2) and EBIT margin 0.2% (-15.4)
- Net result EUR -2.7 million (-30.5)
- Earnings per share EUR -0.02 (-0.20), basic and diluted
- Cash flow from operating activities EUR 17.5 million (-4.9)
- Net debt EUR 103.6 million (114.9)
Significant events during and after the reporting period
- Net sales as well as other financial numbers during the comparable quarter in 2024 included High Voltage Poland.
- During the first quarter, Eltel signed new contracts with a combined value of about EUR 145.7 million (108.4 excluding High Voltage Poland) and the value of the total orderbook5) was EUR 1.3 billion. Read more on page 12.
- On 15 January, it was announced that Ingrid Therese Tjøsvold had been appointed new Managing Director for Eltel Norway. Ingrid commenced in the role on 10 February.
- On 6 February, it was announced that Eltel had been selected to construct Finland's second largest solar power plant for Taaleri Energia, valued at EUR 73.5 million.
- On 8 April, it was announced that Lars Nilsson, Managing Director of Eltel Sweden and member of Eltel's Group Management Team, from 16 August will pursue opportunities outside the company.
- On 28 April, it was announced that Eltel has signed a frame agreement with the Norwegian Defence Materiel Administration for installation and material, valued at EUR 8.4 million.
Key figures
EUR million | Jan-Mar 2025 | Jan-Mar 2024 | Jan-Dec 2024 |
Net sales | 169.6 | 176.3 | 828.7 |
Net sales growth, % | -3.8% | -6.4% | -2.5% |
Adjusted EBITDA | 7.8 | 3.6 | 45.2 |
Adjusted EBITA2) | 0.9 | -4.0 | 10.5 |
Adjusted EBITA margin, % | 0.5% | -2.3% | 1.3% |
Adjusted EBITA2), segments3) | 3.7 | -0.3 | 22.6 |
Adjusted EBITA margin, % segments3) | 2.2% | -0.2% | 2.8% |
Operating result (EBIT) | 0.3 | -27.2 | -18.0 |
Net working capital | -76.3 | -59.0 | -61.3 |
Net debt | 103.6 | 114.9 | 114.0 |
Number of employees, average, FTE | 3,992 | 4,885 | 4,550 |
1) Organic growth is adjusted for currency effects.
2) Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 25-26 for definitions of the key ratios.
3) Adjusted EBITA and margin for segments have been restated in comparative periods according to the new segment structure. See page 24 for more information.
4) See reconciliation of segment results on page 20 for more information.
5) 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
I am happy to report yet another quarter with improved adjusted EBITA, - the seventh in a row YoY. Given the seasonality of our business, Q1 2025 was comparatively strong. We had a positive adjusted EBITA driven by improved gross profit. To me this improvement to EUR 22.2 million (18.5) is proof of our successful strategy execution. We have also made good progress in new business, with 6.0% (2.0%) share of revenue, with improved margins.
In the first quarter, net sales were flat with growth in Sweden and we signed new contracts valued at about EUR 145.7 million (108.4). Of all contracts signed in the first quarter, about 17% of the value relates to new business offerings and we see a steady inflow of new customers.
Also worth highlighting is that our cash flow from operating activities improved by EUR 22.4 million and the net working capital by EUR 17.3 million. The net debt is lower at EUR 103.6 million (114.9) leading to a leverage of 2.1 (3.5).
In Finland we had a strong growth in our green energy transition related business in Power, such as the Taaleri Energia solar park. However, lower volumes in Communication, due to lower customer investment in FTTH, fiber-to-the-home, left net sales on a flat level. Operational and commercial excellence have contributed to a very positive profitability development in both business areas, with an adjusted EBITA margin improving to 2.7% (-0.5).
In Sweden we had a solid growth driven mainly by positive development in public infra within Communication. In Power we saw growth driven by solar, which was offset by lower volumes in the Smart Grids business. Sweden also had a good profitability improvement resulting in a more than doubled adjusted EBITA margin of 2.8% (1.0). The main factors behind the positive profitability development were increasing margins in both Communication and Power.
Net sales in the newly combined segment Denmark & Germany were flat. Communication is still facing a decline in net sales in Denmark whereas Power is growing, especially in BESS (Battery Energy Storage System), which is developing strongly. In Germany net sales increased slightly. The segment showed a strong profitability with an adjusted EBITA margin of 7.9% (4.2), which is attributed to both a favorable business mix and a strong focus on operational excellence.
Norway is still struggling with decreasing net sales. Revenue from a broader customer base was steadily increasing but could not fully compensate for declining volumes in traditional telecommunication. A newly signed contract with the Norwegian Defence Materiel Administration verifies Eltel's role as an important supplier of infrastructure and services critical to society.
Q1 2025 is the best first quarter for a long time and with such strong profitability improvement we are off to a good continuation of the year. Executing on our strategy has clearly yielded results. I am confident that by keeping up the transformation of our business with the current speed, we will reach a very solid financial position.
Håkan Dahlström, President and CEO
For further information, please contact:
Tarja Leikas, CFO
Phone: +358 40 730 77 62, tarja.leikas@eltelnetworks.com
Alexandra Kärnlund, Director, Communications
Phone: +46 70 910 0903, alexandra.karnlund@eltelnetworks.com
This information is information that Eltel AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 30 April 2025.
About Eltel
Eltel is the leading service provider for critical infrastructure in the Nordics. Our 4,500 colleagues across the Nordics, Germany and Lithuania enable the digitalization and electrification of society by providing services and turnkey solutions for high performing communication and power networks and renewable energy. The head office is located in Sweden and Eltel's shares are listed on Nasdaq Stockholm. In 2024 the total net sales amounted to EUR 828.7 million. Read more at www.eltelnetworks.com.
