Eltel Half-year report January-June 2026: Continued profitability improvement and large contract awards
April–June 2026
- Net sales EUR 199.6 million (201.0), a decrease of 0.7%. Organic growth1) was -1.7%
- Gross profit EUR 24.7 million (22.5) and gross margin 12.4% (11.2)
- Adjusted EBITA2) EUR 5.5 million (2.5) and adjusted EBITA margin 2.8% (1.2)
- Items affecting comparability3) EUR -1.4 million (-0.5)
- Operating result (EBIT) EUR 4.2 million (2.0) and EBIT margin 2.1% (1.0)
- Net result EUR -0.5 million (-0.8)
- Earnings per share EUR -0.00 (-0.01), basic and diluted
- Cash flow from operating activities EUR 3.4 million (-7.8)
January–June 2026
- Net sales EUR 390.8 million (370.6), an increase of 5.4%. Organic growth1) was 4.0%
- Gross profit EUR 47.7 million (44.7) and gross margin 12.2% (12.1)
- Adjusted EBITA2) EUR 8.6 million (3.4) and adjusted EBITA margin 2.2% (0.9)
- Items affecting comparability3) EUR -1.4 million (-1.1)
- Operating result (EBIT) EUR 7.3 million (2.3) and EBIT margin 1.9% (0.6)
- Net result EUR -2.3 million (-3.4)
- Earnings per share EUR -0.02 (-0.03), basic and diluted
- Cash flow from operating activities EUR -15.7 million (9.7), including EUR 15.8 million repayment of tax deferral in Sweden
- Net debt EUR 170.1 million (144.6), increase due to the hybrid bond (classified as equity) being replaced during the refinancing with a bond (classified as debt)
Significant events during and after the reporting period
- During the second quarter, Eltel signed new contracts with a combined value, TCV, of about EUR 217 million (104) and the value of the total orderbook4) was EUR 1.2 billion (1.2).
- On 2 April, it was announced that Eltel has been awarded a contract valued at EUR 25 million to build the grid connection for Hyperco’s Data Center in Lohja, Finland.
- On 29 April, it was announced that Eltel has signed a new frame agreement with Elisa in Finland valued at EUR 60 million, covering network construction and maintenance.
- On 8 June, it was announced that Eltel received a contract award decision from Vattenfall in Sweden worth EUR 275 million. The contract was appealed during the standstill period. The contract award constitutes Eltel’s largest contract to date.
- On 3 July, it was announced that Eltel has been awarded a contract valued at EUR 20 million to build the grid connection for FCDC’s Data Center in Karjaa, Finland.
- On 3 July, it was announced that Eltel has been awarded a EUR 34 million transmission line contract by Fingrid. This is the largest single transmission line project to date in Finland in Eltel's history.
- On 13 July, it was announced that Eltel has signed an expanded agreement with GlobalConnect for complete fiber installations in Denmark, worth EUR 13 million.
Key figures
| EUR million | Apr-Jun 2026 | Apr-Jun 2025 | Jan-Jun 2026 | Jan-Jun 2025 | Jan-Dec 2025 |
| Net sales | 199.6 | 201.0 | 390.8 | 370.6 | 817.8 |
| Net sales growth, % | -0.7% | -6.9% | 5.4% | -5.5% | -1.3% |
| Gross profit | 24.7 | 22.5 | 47.7 | 44.7 | 105.1 |
| Gross margin, % | 12.4% | 11.2% | 12.2% | 12.1% | 12.9% |
| Adjusted EBITDA | 12.7 | 10.3 | 23.1 | 18.0 | 50.4 |
| Adjusted EBITA2) | 5.5 | 2.5 | 8.6 | 3.4 | 20.7 |
| Adjusted EBITA margin, % | 2.8% | 1.2% | 2.2% | 0.9% | 2.5% |
| Operating result (EBIT) | 4.2 | 2.0 | 7.3 | 2.3 | 19.4 |
| Net working capital | -31.5 | -59.2 | -31.5 | -59.2 | -60.4 |
| Net debt | 170.1 | 144.6 | 170.1 | 144.6 | 141.9 |
| Number of employees, average, FTE | 3,686 | 3,932 | 3,688 | 3,962 | 3,894 |
- Organic growth is adjusted for currency effects.
- Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 23–24 for definitions of the key ratios.
- See reconciliation of segment results on page 20 for more information.
- 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: ”Continued profitability improvement and large contract awards.”
I am pleased that we continue to improve the profitability, in line with our number one priority. I am especially happy about Eltel Norway’s great contribution to the improved profitability. With an adjusted EBITA margin of 5%, the Norwegian team has performed an impressive turn around.
Group adjusted EBITA doubled to EUR 5.5 million (2.5), corresponding to an adjusted EBITA margin of 2.8% (1.2). Adjusted EBITA increased clearly year-on-year, with Norway, Finland and Sweden contributing to the positive profitability development, marking the twelfth consecutive quarter of year-on-year profitability improvement.
Net sales declined slightly by EUR 1.5 million, or 0.7%, to EUR 199.6 million (201.0). However, with new contracts signed for a combined value of EUR 217 million (104), in relation to the net sales of EUR 199.6 million, we strengthen our position for growth in the coming quarters. On top of this, we also have received a contract award decision from Vattenfall worth EUR 275 million and even if this has been appealed, I am optimistic about a favorable outcome.
To the achievements this quarter, I’d also like to add an improved cash flow, supported by strong payment behavior from our customers and effective collection of receivables. In addition, the completion and closing of certain projects had a positive impact on cash levels, further strengthening our liquidity position.
Finland succeeded to improve profitability despite lower net sales and significant shift in the business mix, demonstrating strong operational performance and margin management. Customer engagement remained high, with strong tendering activity and active negotiations mainly in data centers and Solar PV installations. The Hallanvahti solar park, where Eltel has a turnkey delivery, is now in full production, and a 10-year maintenance contract has been signed.
Sweden continued its positive development, supported by high volumes in services related to telecommunications, public infrastructure and defense. Within Power net sales declined, reflecting project endings in Smart meters and Solar PV. The received award decision by Vattenfall constitutes Eltel’s largest contract to date, covering service and maintenance of Vattenfall’s electricity network. Despite the appeal, we are continuing to plan and prepare the delivery, which we estimate will be delayed by 2-6 months.
In Denmark, we implemented efficiency improvement actions to mitigate the effects of the continued volume decline in Communication. Both net sales and profitability were below expectations, even though the signed contract with GlobalConnect regarding nationwide fiber installations was a welcome addition to the segment. The German part of the segment made a solid delivery and strengthened both growth and profitability versus last year but could not compensate for the decline in the Danish part. Grid connection bottlenecks at Energinet, the Danish national electricity and gas transmission system operator, is delaying renewable energy projects in Denmark, creating timing uncertainty for Eltel as engineering and construction work is deferred.
Norway delivered an impressive improvement in the quarter and was the largest contributor to the Group’s improved profitability. Focused efforts to diversify the customer base, combined with operational and commercial excellence, have delivered clear results. Increased digitalization and automation, together with higher utilization, have also contributed to the turnaround.
Our continuous positive development demonstrates our ability to adapt to volume changes and to continue improving profitability through consistent execution. We have now improved the profitability for twelve consecutive quarters, but we have more to do. We will continue to prioritize profitability and expand in new customer segments as well as in Emerging Services.
In the Q4 report 2025 I stated that I was confident that we would reach our profitability target of 5% within 12 to 18 months. The positive development during the first half of 2026 strengthens my confidence in achieving this target.
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
About Eltel
Eltel is one of the leading service providers for critical infrastructure in the Nordics. Our 3,800 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.
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 2026-07-21 08:00 CEST.