Eltel posts strongest Q1 in a decade as Nordic energy and data projects drive growth

Eltel AB ( (SE:ELTEL) ) has shared an update.

Eltel reported its strongest first-quarter results in a decade, with net sales rising 12.8% year-on-year to EUR 191.3 million and adjusted EBITA more than tripling to EUR 3.1 million, even though margins remain relatively low. Growth was driven primarily by Finland, where solar PV and data centre projects offset weaker communications, while Norway delivered its fourth consecutive quarter of profitability improvement and Sweden’s telecom gains compensated for lower power volumes.

Emerging services, including renewable energy, data centre solutions and energy storage, continued to gain traction, representing a growing share of contract value and sales and underpinning Eltel’s strategic shift toward higher-growth infrastructure segments. The group expanded its order book with about EUR 102.8 million in new contracts during the quarter and subsequent wins such as a EUR 25 million grid connection for Hyperco’s Finnish data centre and a EUR 60 million frame agreement with Elisa, although cash flow was pressured by a large tax deferral repayment and net debt increased following refinancing that reclassified hybrid capital as debt.

More about Eltel AB

Eltel AB is a Nordic field service provider specialising in power and communication infrastructure, delivering grid connections, telecommunications networks, smart meters, solar PV and data centre solutions across Finland, Sweden, Norway, Denmark and Germany. The company focuses on both traditional network services and fast-growing emerging segments such as renewable energy, data centre connectivity, energy storage and e-mobility, serving utilities, telecom operators and public-sector clients in the region.

Average Trading Volume: 43,590

Technical Sentiment Signal: Buy

Current Market Cap: SEK1.43B

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