Eltel (ELTEL) Q1 2025 earnings summary

Executive summary

• Achieved seventh consecutive quarter of year-over-year adjusted EBITA improvement, with major profitability gains in Q1 2025 and strong performance in Sweden, Denmark, Germany, and Finland, while Norway remains a challenge.

• Strategic progress in renewable energy, e-mobility, and public infrastructure, with broadened customer base, significant new contracts, and enhanced focus on green energy projects.

• Net sales declined by 3.8% year-over-year to EUR 169.6 million, with organic growth of 0.6%-0.7% driven by Sweden.

• All segments except Norway improved profitability; Norway continued restructuring and cost reduction.

• Net result improved to EUR -2.7 million from EUR -30.5 million in Q1 2024.

Financial highlights

• Adjusted EBITA improved by nearly EUR 5 million year-over-year to EUR 0.9 million in Q1, with margin at 0.5%.

• Gross profit increased by 20% to EUR 22.2 million.

• Cash flow from operating activities rose sharply to EUR 17.5 million, up by over EUR 22 million year-over-year.

• Net debt reduced to EUR 103.6 million from EUR 160 million a year ago; leverage at 2.1x, within target range.

• Adjusted EBITDA increased to EUR 7.8 million from EUR 3.6 million in Q1 2024.

Outlook and guidance

• Financial targets: adjusted EBITA margin 5%, annual growth 2–4%, leverage 1.5–2.5x net debt/adjusted EBITDA, and dividend payout subject to leverage target.

• Management expects continued profitability improvement, with Norway targeted for further operational recovery.