Eltel (ELTEL) Q4 2024 earnings summary

Executive summary

• Adjusted EBITDA/EBITA more than doubled in Q4 2024 to EUR 5.7 million, with full-year adjusted EBITA at EUR 10.5 million and margin rising to 1.3% from 0.2% year-over-year.

• Net sales declined 2.5% to EUR 828.7 million for 2024, mainly due to the divestment of High Voltage Poland; organic growth was 1.8%.

• Orderbook reached EUR 1.2 billion at year-end, with EUR 308 million in new contracts signed in Q4.

• Major contracts signed in Finland, Sweden, and Norway, including a EUR 73.5 million solar park in Finland.

• Ongoing restructuring in Norway and legacy contract challenges in Finland continue to impact results.

Financial highlights

• Gross profit increased to EUR 28 million in Q4 2024, with a 21% year-over-year improvement for the full year.

• Adjusted EBITDA for 2024 was EUR 45.2 million, up from EUR 31.8 million; operating result (EBIT) was EUR -18.0 million, mainly due to EUR -28.5 million in items affecting comparability.

• Leverage improved to 2.5x net debt/adjusted EBITDA, meeting the target.

• Net debt increased to EUR 114 million, mainly due to fleet renewal.

• Net working capital improved to negative EUR 61.3 million from negative EUR 49.8 million.

Outlook and guidance

• Group targets: adjusted EBITDA/EBITA margin of 5%, annual growth of 2-4%, and leverage of 1.5-2.5x.

• Majority of revenue from the Taler Energia solar project expected in 2025.

• No dividend proposed for 2024; payout policy subject to leverage target.

• CEO confident in continued positive development for 2025, supported by a strong orderbook.

• Demand in power expected to increase post-2025, with public infra compensating for lower telco demand.