Eltel AB (ELTEL) AI Stock Analysis

• Market Cap: kr1.41B
• Dividend Yield: N/A
• Average Volume (3M): 49.14K
• Price to Earnings (P/E): 59.0
• Beta (1Y): 0.25
• Revenue Growth: -6.38%
• EPS Growth: N/A
• Country: SE
• Employees: 3,956
• Sector: Communication Services
• Sector Strength: 97
• Industry: Engineering & Construction
• EPS (TTM): 0.23
• Shares Outstanding: 156,736,790
• 10 Day Avg. Volume: 37,496
• 30 Day Avg. Volume: 49,144
• PEG Ratio: -0.58
• Price to Book (P/B): 0.83
• Price to Sales (P/S): 0.16
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): kr830.22M

• Rating: 48 Neutral
• Price Target: kr9.00 ▼(-2.39% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is held back primarily by fragile fundamentals—very thin profitability and higher leverage despite a 2025 turnaround—plus a very high P/E. Consistently positive cash flow and a neutral-to-slightly constructive technical setup provide partial offset.

Positive Factors

Consistent positive cash generation

Positive and recurring operating cash flow, with free cash flow around SEK 24m and ~82% conversion in 2025, provides a durable source to fund working capital, modest capex, and gradual deleveraging. Sustained cash generation supports operations through project cycles and underpins solvency over 2–6 months.

Return to operating profitability

A recovery to positive operating results and modest revenue growth indicates improved execution and pricing discipline. Sustained improvement in EBIT margin to ~2.4% suggests the company can deliver projects more profitably, which if maintained supports margin normalization and reduces tail-risk from prior losses.

Full-lifecycle field services and recurring contracts

A business model combining project delivery and multi-year maintenance contracts creates diversified, recurring revenue and long-term customer ties. Framework agreements and on-call services produce predictable workload and hide revenue volatility from project timing, supporting stability over quarters and across investment cycles.

Negative Factors

Very thin net profitability

A net margin around 0.3% offers a very small buffer against cost inflation, project overruns or pricing pressure. Thin profitability limits internal capital for growth or debt repayment and makes results highly sensitive to execution, increasing structural business risk if project complexity rises.

Marked increase in leverage

A higher debt-to-equity ratio materially reduces financial flexibility and raises interest and refinancing risk. With modest profits and limited retained earnings, elevated leverage constrains the company's ability to absorb shocks, pursue strategic investments, or bid competitively on large projects without increasing funding costs.

Modest free cash flow relative to revenue

Although FCF is positive, its modest scale versus revenue and recent volatility reduces the margin of safety. Limited absolute cash generation constrains reinvestment, makes deleveraging slower, and heightens sensitivity to working-capital swings or delayed project payments, elevating medium-term liquidity risk.

Eltel AB Business Overview & Revenue Model

Company Description

Eltel AB (ELTEL) is a leading Nordic provider of technical services for the telecommunications and energy sectors. With a focus on network services, Eltel specializes in the installation, maintenance, and operation of critical infrastructure, including mobile and fixed-line telecommunications networks, as well as electrical grids. The company operates across various sectors, providing solutions that enhance connectivity and energy efficiency, and serves both public and private customers throughout the Nordic region.

How the Company Makes Money

Eltel generates revenue primarily through its service contracts in the telecommunications and energy sectors. The company earns money by providing installation and maintenance services for telecommunication networks, including fiber optics and mobile infrastructure, as well as electrical grid services, such as construction and maintenance of power lines and substations. Key revenue streams include long-term contracts with major telecommunications operators and utility companies, project-based work, and ongoing maintenance agreements. Eltel's partnerships with prominent industry players, along with its ability to deliver comprehensive solutions tailored to customer needs, are significant factors contributing to its earnings.

Eltel AB Financial Statement Overview

Summary

Operational results are improving with a return to a small profit in 2025, and cash flow is consistently positive. However, profitability remains very thin, the company has a recent history of losses, and leverage increased sharply in 2025—raising financial risk if execution or margins slip.

Income Statement

Revenue has been broadly stable with modest growth in 2025 (+3.2%) after a small decline in 2024, but profitability has been inconsistent. The company swung from sizable losses in 2022–2024 to a small profit in 2025, helped by improved operating profitability (EBIT margin ~2.4% vs. negative in prior years). However, net profitability remains very thin in 2025 (~0.3% net margin), indicating limited cushion against cost pressure or project execution issues.

Balance Sheet

Leverage has increased meaningfully, with debt-to-equity rising to ~1.37 in 2025 from below 0.75 in 2024, reducing financial flexibility. Equity also declined versus prior years, while assets increased, suggesting a more debt-supported balance sheet. The balance sheet is not distressed based on the provided figures, but the trend points to higher risk if operating results weaken again.

Cash Flow

Cash generation is a relative strength: operating cash flow and free cash flow are positive across all reported years, including 2025 (free cash flow ~24m). Free cash flow has been choppy (down modestly in 2025 and 2024 after a strong 2023), but cash flow has generally tracked earnings with free cash flow at ~82% of net income in 2025. The main weakness is that cash flow remains modest relative to the scale of revenue, leaving less room for volatility or higher financing needs.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	833.13M	828.70M	850.10M	823.60M	812.60M
Gross Profit	107.07M	91.90M	75.60M	74.70M	88.10M
EBITDA	50.22M	13.70M	24.80M	25.90M	45.40M
Net Income	2.24M	-29.70M	-7.90M	-14.90M	4.30M
Balance Sheet
Total Assets	653.22M	585.40M	624.30M	621.70M	630.80M
Cash, Cash Equivalents and Short-Term Investments	43.65M	21.30M	24.70M	47.90M	32.30M
Total Debt	218.64M	135.00M	124.90M	172.90M	154.10M
Total Liabilities	484.91M	396.10M	400.60M	410.20M	402.90M
Stockholders Equity	159.94M	181.30M	216.10M	204.10M	220.20M
Cash Flow
Free Cash Flow	24.04M	25.10M	29.60M	12.30M	17.90M
Operating Cash Flow	29.24M	27.50M	34.00M	16.40M	22.30M
Investing Cash Flow	-5.09M	-6.60M	-4.30M	-3.90M	-2.90M
Financing Cash Flow	-1.22M	-24.00M	-52.30M	3.10M	-13.70M

Eltel AB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.22
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:ELTEL, the sentiment is Negative. The current price of 9.22 is above the 20-day moving average (MA) of 9.09, above the 50-day MA of 9.12, and below the 200-day MA of 9.29, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 46.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SE:ELTEL.

Eltel AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYGGP	72 Outperform	kr2.01B	14.95	―	1.24%	4.25%	127.31%
INSTAL	64 Neutral	kr8.78B	20.20	8.12%	2.67%	-3.68%	-48.79%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
VESTUM	51 Neutral	kr3.48B	-24.33	-0.85%	―	-27.41%	49.11%
ELTEL	48 Neutral	kr1.41B	58.96	0.72%	―	-6.38%	―
FG	46 Neutral	kr1.22B	-14.32	―	―	8.40%	-101.19%
WBGR.B	43 Neutral	kr561.00M	-0.77	-56.98%	―	-0.02%	-50.72%

Eltel AB Corporate Events

Eltel lifts margins and order book as new energy and data centre business gains momentum

Eltel reported a strong fourth quarter for 2025, with net sales up 5.7% to EUR 239 million and gross margin improving to 13.7%, as adjusted EBITA rose to EUR 8.3 million and cash flow from operations strengthened. For the full year, net sales dipped 1.3% to EUR 817.8 million, but profitability improved markedly, with adjusted EBITA nearly doubling and EBIT turning positive, supported by margin gains, lower items affecting comparability and continued cost discipline.

The group’s strategy to grow “New business” in data centers, solar PV and battery storage gained traction, accounting for over 11% of net sales, driven particularly by Finland, while Sweden delivered strong growth in classic telecommunications and public infrastructure. Despite ongoing weakness in telecommunications in Denmark and Norway, Eltel expanded its order book to EUR 1.2 billion, secured key contracts such as the Caruna smart meter rollout and sees itself well positioned to reach a 5% profitability margin target within 12 to 18 months as demand for critical infrastructure and energy transition-related services grows.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.50 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.

Eltel to Present Full-Year 2025 Results in February

Eltel AB will publish its full-year 2025 financial report on 13 February 2026 and will host a combined webcast and teleconference later the same morning, where President and CEO Håkan Dahlström and CFO Tarja Leikas will present the results in English. The event, aimed at investors, analysts and media, will include a Q&A session and offer access to presentation materials and a recording afterward, underscoring the company’s focus on transparency and active engagement with capital markets stakeholders.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.50 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.

Eltel Wins Bondholder Backing for Amendments to EUR 130 Million Secured Notes

Eltel AB has secured bondholder approval to amend certain terms of its EUR 130 million senior secured floating rate bonds following the successful completion of a written procedure initiated in December 2025. A sufficient quorum was reached and the required majority of bondholders voted in favour of the proposal, clearing the way for the changes and prompting Eltel to pay a consent fee to eligible bondholders via Euroclear Sweden later in January, a step that underscores ongoing active management of its capital structure and engagement with creditors.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.50 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.

Eltel Seeks Bondholder Approval for New EUR 60m Guarantee Facilities to Support Growth

Eltel AB has launched a written procedure seeking bondholder approval to amend the terms of its EUR 130 million senior secured callable floating rate bonds so it can establish up to EUR 60 million in additional unsecured bank and insurance guarantee facilities, offering a consent fee to those voting in favour. The move is part of a broader strategic review aimed at streamlining the business and supporting growth in project-based segments such as photovoltaic solar technology and data centers, where external guarantees are often required to secure contracts and manage cash flows; aligning bond terms with the company’s super senior revolving credit facility is intended to provide greater financing flexibility, and the largest bondholders have already signalled support, suggesting a smooth approval process when the voting runs from 30 December 2025 to 15 January 2026.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.50 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.

Eltel Wins Finland’s Largest Smart Metering Contract from Caruna

Eltel’s Finnish operations have secured a EUR 23.7 million contract from electricity distributor Caruna to replace smart meters across Caruna’s entire distribution network, in what is described as the largest smart metering project in Finland by geographic scope and contract value. The programme, scheduled to start in early 2026 with mass installations running from 2027 to 2029, strengthens Eltel’s position in the Nordic smart grid and critical infrastructure services market and underscores the company’s role in supporting the region’s broader digitalisation and energy transition efforts.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.50 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.

Eltel AB to List EUR 130 Million Bonds on Nasdaq Stockholm

Eltel AB has issued senior secured floating rate bonds worth EUR 130 million, with a total framework of EUR 240 million, on the Swedish bond market. These bonds, maturing in June 2029, will be listed on Nasdaq Stockholm’s Corporate Bond list, enhancing Eltel’s financial flexibility and market presence.

The most recent analyst rating on (SE:ELTEL) stock is a Hold with a SEK9.00 price target. To see the full list of analyst forecasts on Eltel AB stock, see the SE:ELTEL Stock Forecast page.