Eltel (ELTEL) Q1 2026 earnings summary

Executive summary

• Achieved the strongest first quarter in a decade, with net sales up 12.8% to EUR 191.3 million and adjusted EBITA more than tripling to EUR 3.1 million, marking eleven consecutive quarters of profitability improvement.

• Emerging Services now represent 23% of revenue, up from 6% a year ago, with Finland leading growth, especially in solar PV and data center projects.

• Major new contracts include a EUR 25 million data center grid connection for Hyperco and a EUR 60 million renewed frame agreement with Elisa in Finland.

• Orderbook value reached approximately EUR 1.2 billion, supported by new contracts and a broader customer base.

Financial highlights

• Group net sales increased over 13% year-over-year to EUR 191.3 million, driven by the power business and strong performance in Finland.

• Adjusted EBITA more than tripled to EUR 3.1 million, with margin improving to 1.6% from 0.5% year-over-year.

• Gross profit improved to EUR 22.9 million, though gross margin declined to 12.0% due to service mix shift.

• Net debt increased to EUR 168.6 million, with leverage ratio at 3.2x (rolling 12 months), impacted by refinancing and tax deferral repayment.

• Group average FTE reduced to 3,691, reflecting increased use of partners and structural changes.

Outlook and guidance

• Financial targets remain unchanged: adjusted EBITA margin of 5%, growth between 2% and 4%, and leverage between 1.5 and 2.5.

• Management reiterates confidence in reaching a 5% profitability target within 12–18 months, supported by strong Q1 performance.

• Expectation that data center solutions will become the largest contributor within Emerging Services by 2026.

• No expectation to sustain Finland's 29% growth rate throughout the year; growth is project-driven.

• Megatrends such as digitalization, electrification, and climate change expected to drive long-term growth.