Sweden's Eltel Q2 profitability improves on strength in key markets

Eltel AB

21/07/2026 07:12

    

    Overview
  
Sweden-based infrastructure services provider's Q2 net sales fell 0.7% yr/yr to EUR 199.6 mln
Adjusted EBITA for Q2 more than doubled yr/yr, driven by profitability gains in key markets
Company secured new contracts worth EUR 217 mln in Q2, boosting orderbook for future quarters

    

    Outlook
  
Company says grid connection bottlenecks in Denmark are delaying renewable energy projects
Eltel expects continued strong tendering activity, mainly in data centers and Solar PV installations

    

    Result Drivers
  
NORWAY TURNAROUND - Co said profitability gains were led by improved performance in Norway, citing operational and commercial excellence and higher utilization
MARGIN MANAGEMENT - Profitability improvement in Finland and Sweden attributed to margin management and operational performance despite lower net sales in Finland
CASH FLOW IMPROVEMENT - Improved cash flow driven by strong customer payment behavior and project completions, according to CEO

    
Company press release: ID:nMFN6DNxdX

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Sales
Miss
EUR 199.60 mln
EUR 209.50 mln (2 Analysts)
Q2 EPS
 
EUR 0
 
Q2 Net Income
 
-EUR 500,000
 
Q2 EBIT
 
EUR 4.20 mln
 

    

    Analyst Coverage
  
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the integrated telecommunications services peer group is "buy"
Wall Street's median 12-month price target for Eltel AB is SEK14.00, about 8.5% above its July 20 closing price of SEK12.90
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

    

    Reuters Recommended Reads
  
July 21 - Wartsila Q2 order intake jumps 33% to record high on data centres
July 21 - Sweden's Alfa Laval Q2 sales rise 6%, beat estimates
July 20 - Switzerland's Belimo H1 revenue rises on data center demand

    
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)