Eltel AB: Full-year report January-December 2025

October-December 2025

• Net sales EUR 239.0 million (226.1), an increase of 5.7%. Organic growth¹⁾ was 4.0%
• Gross profit EUR 32.7 million (27.7) and gross margin 13.7% (12.2)
• Adjusted EBITA²⁾ EUR 8.3 million (5.7) and adjusted EBITA margin 3.5% (2.5)
• Items affecting comparability⁴⁾ EUR 0.0 million (-1.6)
• Operating result (EBIT) EUR 8.3 million (4.2) and EBIT margin 3.5% (1.9)
• Net result EUR 3.6 million (3.9)
• Earnings per share EUR 0.02 (0.02), basic and diluted
• Cash flow from operating activities EUR 41.4 million (38.9)

January-December 2025

• Net sales EUR 817.8 million (828.7), a decrease of 1.3%. Organic growth¹⁾ was -0.6%
• Gross profit EUR 105.1 million (91.8) and gross margin 12.9% (11.1)
• Adjusted EBITA²⁾ EUR 20.7 million (10.5) and adjusted EBITA margin 2.5% (1.3)
• Items affecting comparability4) EUR -1.3 million (-28.5)
• Operating result (EBIT) EUR 19.4 million (-18.0) and EBIT margin 2.4% (-2.2)
• Net result EUR 3.2 million (-29.1)
• Earnings per share EUR 0.00 (-0.21), basic and diluted
• Cash flow from operating activities EUR 32.0 million (27.5)
• Net debt EUR 141.9 million (114.0), increase due to the hybrid bond (classified as equity) was replaced during the refinancing with a bond (classified as debt)

Significant events during and after the reporting period

• During the fourth quarter, Eltel signed new contracts with a combined value, TCV, of about EUR 190.1 million (308.0) and the value of the total orderbook⁵⁾ was EUR 1.2 billion (1.2).
• On 15 October, it was announced that Eltel will redeem its outstanding subordinated sustainability-linked capital securities (hybrid bond). The redemption date was 11 November 2025.
• On 9 December, it was announced that Eltel publishes bond prospectus and applies for listing its bonds on Nasdaq Stockholm. On 19 December a written procedure was initiated and on 15 January 2026 the successful completion of Written Procedure was announced.
• On 18 December, it was announced that Eltel Finland has been selected by Caruna to replace smart meters across the company's entire network. The contract value is EUR 23.7 million.

Key figures

EUR million	Oct-Dec 2025	Oct-Dec 2024	Jan-Dec 2025	Jan-Dec 2024
Net sales	239.0	226.1	817.8	828.7
Net sales growth, %	5.7%	-5.9%	-1.3%	-2.5%
Gross profit	32.7	27.7	105.1	91.8
Gross margin, %	13.7%	12.2%	12.9%	11.1%
Adjusted EBITDA	16.0	14.2	50.4	45.2
Adjusted EBITA2)	8.3	5.7	20.7	10.5
Adjusted EBITA margin, %	3.5%	2.5%	2.5%	1.3%
Adjusted EBITA2), segments3)	11.2	9.0	32.1	22.6
Adjusted EBITA margin, % segments3)	4.7%	4.0%	3.9%	2.8%
Operating result (EBIT)	8.3	4.2	19.4	-18.0
Net working capital	-60.4	-61.3	-60.4	-61.3
Net debt	141.9	114.0	141.9	114.0
Number of employees, average, FTE	3,781	4,226	3,894	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 27-28 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 26 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 announce that the fourth quarter concluded the year on a highly positive note, with a total net sales increase of 5.7% to EUR 239.0 (226.1) million and improved profitability with an adjusted EBITA of EUR 8.3 million (5.7). We have now achieved adjusted EBITA improvements for ten consecutive quarters, demonstrating that our strategic initiatives are delivering. We improved our margins every quarter year-on-year, broadened our customer base and strengthened our position in new services. Growth within these services played a key role in our performance in Q4 and will be even more important going forward.

I am proud of how our organization has embraced and implemented our strategy. This was particularly visible in our New business, including Data Center, Solar PV and Battery Energy Storage Systems, BESS, which accounted for 11.3% of our net sales. Finland was especially successful in capturing opportunities in these areas. Sweden, on the other hand, led the way in broadening our customer base in Classic business, which is essential for the consistent delivery of financial performance.

In Finland, significant growth in Power compensated for declining volumes in Communication, resulting in increased net sales and improved profitability in the fourth quarter. A significant part of net sales originated from New business, especially from Solar PV and Data Center. Ending the year on such a good note paves way for continuous progress.

Sweden ended the year with a fantastic growth, and improved profitability in both Communication and Power. The consistent growth in Sweden was mainly driven by high demand in public infrastructure and increased market share in classic telecommunications. With a strong orderbook, Sweden is well positioned for continuous growth opportunities going forward.

In spite of growth and improved profitability in Germany, net sales decreased slightly in our Denmark & Germany segment. In Denmark we had a positive development of our Power services, especially in Battery Energy Storage Systems, BESS, but also in streetlighting. The growth in Power is, however, not fully compensating for declining volumes in Communication. Throughout the year, measures have been taken to mitigate the weaker Communication performance in Denmark, including rightsizing of the operations. On a positive note, sales efforts resulted in a major increase in the total contract and orderbook value.

In Norway, our efforts to expand the customer base are yielding positive results, especially in offshore and defense. There is also an increased demand for maintenance and upgrade services from a wide range of customers. This positive development is, however, not mitigating the decline in telecommunications. Our continuous focus on margin and profitability rather than on volumes has now resulted in two quarters in a row with improved profitability. We see clear effects of the turnaround and going forward an increasing focus will be on growth.

We are well positioned to develop our leading role in critical infrastructure, which becomes increasingly important given both geopolitical developments and other external factors such as climate change. In the previous quarter I lifted our colleagues' dedication after the storm Amy in Norway and this time I want to highlight the impressive and relentless work performed by more than 100 of our technicians in Finland in connection to the major storm Hannes that hit Finland in December.

Increased orderbook combined with a promising market outlook, especially when it comes to our new and adjacent business in data centers, solar and energy storage provides strong confidence for the future. 2025 was the year when Eltel really started to gain momentum, as our strategic initiatives bore fruit on all markets and growth in New business accelerated. As progress is picking up speed, I am confident that we will reach our profitability target of 5% within 12 to 18 months.

None of this would have been, and will continue to be, possible without the dedicated efforts of our people. I want to thank all my engaged colleagues throughout Eltel. Thank you all for securing the critical infrastructure of our society - every day. The work you do is more important and more urgent than ever.

Håkan Dahlström, President and CEO

For further information, please contact:
Tarja Leikas, CFO
Phone: [phone], [e-mail]

Alexandra Kärnlund, Director, Communications
Phone: [phone], [e-mail]

This information is information that Eltel is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2026-02-13 08:00 CET.

About Eltel
Eltel is the leading service provider for critical infrastructure in the Nordics. Our 4,000 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 2025 the total net sales amounted to EUR 817.8 million. Read more at www.eltelnetworks.com.