Eltel (ELTEL) Q4 2025 earnings summary

Executive summary

• Achieved the strongest Q4 in a decade, with net sales up 5.7% year-over-year to EUR 239.0 million and adjusted EBITA/EBITDA up to EUR 8.3 million, marking ten consecutive quarters of improvement.

• Full-year adjusted EBITA/EBITDA nearly doubled to EUR 20.7 million, with margin rising to 2.5% from 1.3% and net sales at EUR 817.8 million.

• Sweden delivered 25.7% Q4 net sales growth, driven by public infrastructure and Smart Grids, while Finland offset declines in fiber with growth in power, solar, and data center services.

• New business areas, including data center and solar, contributed 16% of Q4 net sales and 11% for the full year.

• Norway achieved positive EBITDA/EBITA for the second consecutive quarter after significant restructuring and cost reductions.

Financial highlights

• Q4 adjusted EBITA/EBITDA reached EUR 8.3 million (3.5% margin), the best Q4 in a decade; full-year adjusted EBITA/EBITDA doubled to EUR 20.7 million.

• Gross profit increased by 18% to EUR 32.7 million in Q4 and reached EUR 105.1 million for the year.

• Group EBITDA/EBITA margin improved to 2.5% for the full year.

• Workforce reduced by 445 employees year-over-year, reflecting operational scaling and portfolio changes.

• Cash flow from operating activities was EUR 41.4 million in Q4 and EUR 32.0 million for the year.

Outlook and guidance

• Confident in reaching the 5% adjusted EBITA/EBITDA margin target within 12–18 months, driven by operational and commercial excellence.

• Long-term targets include annual growth of 2–4% and leverage of 1.5–2.5x net debt/adjusted EBITDA.

• Market for classic telco operator investments expected to remain soft in 2026, but adaptability and diversification into new services are expected to support profitability.

• No dividend proposed for 2025; payout policy subject to leverage target.