Eltel AB: Half-year report January-June 2025

April-June 2025

• Net sales EUR 201.0 million (216.0), a decrease of 6.9%. Organic growth¹⁾ was -5.4%
• Gross profit EUR 22.5 million (21.7) and gross margin 11.2% (10.0)
• Adjusted EBITDA EUR 10.3 million (8.4)
• Adjusted EBITA²⁾ EUR 2.5 million (0.5) and adjusted EBITA margin 1.2% (0.2)
• Items affecting comparability⁴⁾ EUR -0.5 million (0.0)
• Operating result (EBIT) EUR 2.0 million (0.5) and EBIT margin 1.0% (0.2)
• Net result EUR -0.8 million (-2.7)
• Earnings per share EUR -0.01 (-0.02), basic and diluted
• Cash flow from operating activities EUR -7.8 million (-2.2)

January-June 2025

• Net sales EUR 370.6 million (392.3), a decrease of 5.5%. Organic growth¹⁾ was -2.7%
• Gross profit EUR 44.7 million (40.2) and gross margin 12.1% (10.2)
• Adjusted EBITDA EUR 18.0 million (12.0)
• Adjusted EBITA²⁾ EUR 3.4 million (-3.5) and adjusted EBITA margin 0.9% (-0.9)
• Items affecting comparability⁴⁾ EUR -1.1 million (-23.1)
• Operating result (EBIT) EUR 2.3 million (-26.7) and EBIT margin 0.6% (-6.8)
• Net result EUR -3.4 million (-33.2)
• Earnings per share EUR -0.03 (-0.22), basic and diluted
• Cash flow from operating activities EUR 9.7 million (-7.1)
• Net debt EUR 144.6 million (127.9)

Significant events during and after the reporting period

• During the second quarter, Eltel signed new contracts with a combined value of about EUR 104 million (317) and the value of the total orderbook⁵⁾ was EUR 1.2 billion.
• On 8 May, it was announced that Klas Elmberg was appointed as the new Managing Director for Eltel Sweden and member of the Group Management Team assuming his role on 1 August.
• On 28 May, it was announced that Yathukulan Kankesan was appointed as the new Managing Director for Eltel Denmark &Germany and member of the Group Management Team from 1 August, replacing Claus Metzsch Jensen.
• On 16 June, the successful issue of new bonds amounting to EUR 130 million was announced and on 25 June, the completion of settlement for tender offer and cancellation of repurchased hybrid bonds was announced. Read more on page 11.
• On 24 June, it was announced that Eltel Finland and Hyperco signed a datacenter contract valued at EUR 16 million.
• On 30 June, it was announced that Eltel Sweden and E.ON. signed a frame agreement for connection and metering services valued at approximately EUR 24.6 million and on 8 July another frame agreement with E.ON., was announced, valued at approximately EUR 18 million.

Key figures

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	201.0	216.0	370.6	392.3	828.7
Net sales growth, %	-6.9%	3.8%	-5.5%	-1.1%	-2.5%
Gross profit	22.5	21.7	44.7	40.2	91.8
Gross margin, %	11.2%	10.0%	12.1%	10.2%	11.1%
Adjusted EBITDA	10.3	8.4	18.0	12.0	45.2
Adjusted EBITA2)	2.5	0.5	3.4	-3.5	10.5
Adjusted EBITA margin, %	1.2%	0.2%	0.9%	-0.9%	1.3%
Adjusted EBITA2), segments3)	5.9	3.7	9.6	3.4	22.6
Adjusted EBITA margin, % segments3)	2.9%	1.8%	2.6%	0.9%	2.8%
Operating result (EBIT)	2.0	0.5	2.3	-26.7	-18.0
Net working capital	-59.2	-54.3	-59.2	-54.3	-61.3
Net debt	144.6	127.9	144.6	127.9	114.0
Number of employees, average, FTE	3,932	4,717	3,962	4,801	4,550

1. Organic growth is adjusted for currency effects and divestments. Net sales as well as other figures in the income statement during January-June 2024 included High Voltage Poland.
2. Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 26-27 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 25 for more information.
4. See reconciliation of segment results on page 5 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 pleased to report that the trajectory of improved profitability continued in Q2, marking the eighth consecutive quarter of improved adjusted EBITA year-on-year. The profitability improvement was mainly attributed to enhanced operational and commercial excellence, but also to an increasing share of new business with better margins. In Q2, 10% of total net sales came from new business, such as renewable energy and Data Center, which is more than 100% growth year-on-year.

The Group's adjusted EBITA improved by EUR 2.0 million to EUR 2.5 million (0.5) and the adjusted EBITA margin improved to 1.2% (0.2). The positive development is driven by improved gross profit both in absolute numbers and percentages. Equally important though, is that all segments contributed to the improved profitability in Q2.

We saw a strong growth in Sweden but a decline in the other segments. It is clear that global uncertainty has caused some delays in decision-making. At the same time, the geopolitical situation paves the way for an enhancement of critical infrastructure, as resilient and robust networks are crucial in our current and future societies. The effect of this is visible in our Swedish business.

Other megatrends driving and affecting Eltel's business are digitalization, electrification, and climate change impacting all segments. In Eltel Finland, our operations in new business showed strong growth in Q2. Especially the Solar PV* and Data Center business had a strong development, although not fully compensating for the decline in Communication caused by the slowdown in the rollout of fiber-to-the-home. Profitability wise, Finland shows a positive trend, reporting its seventh consecutive quarter of improved adjusted EBITA.

Sweden also showed increasing revenue from Solar PV, although the largest volume increase came from the public infrastructure operations. Sweden presents its seventh consecutive quarter of year-on-year net sales growth and the 13th consecutive quarter of improved adjusted EBITA. Both Communication and Power contributed to the profitability improvements in Q2.

In Denmark & Germany, we saw positive development in Power although it did not compensate for the reduced net sales in Communication. However, the strong focus on operational excellence paved the way for continued profitability improvement.

In Norway, the persistent focus on operational excellence started to yield results and is noticeable both in operational performance indicators and in an improvement of the adjusted EBITA margin. Net sales decreased, as expected, due to continued lower volumes in telecom. The restructuring process, which began in 2024, was completed in Q2.

Towards the end of the quarter, we carried out a comprehensive refinancing of the entire debt portfolio. The newly issued four- year senior bond of 130 million euros was well received by the market. Supported by this refinancing, as well as the tailwinds from the strong megatrends mentioned, we are well-positioned for future growth. With the team in place, steady improvement of our profitability, continuous broadening of our customer base and strong growth in new business, I am very confident about Eltel's future development.

Håkan Dahlström, President and CEO

For further information, please contact:
Alexandra Kärnlund, Director, Communications
Phone: [phone], [e-mail]

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.

This information is information that Eltel is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-07-24 08:00 CEST.