Netel Holding AB (NETEL) AI Stock Analysis

• Market Cap: kr197.44M
• Dividend Yield: N/A
• Average Volume (3M): 302.61K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -13.07%
• EPS Growth: -372.35%
• Country: SE
• Employees: 837
• Sector: Technology
• Sector Strength: 88
• Industry: Telecommunications Services
• EPS (TTM): -1.21
• Shares Outstanding: 48,511,870
• 10 Day Avg. Volume: 285,731
• 30 Day Avg. Volume: 302,611
• PEG Ratio: -0.01
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.08
• P/FCF Ratio: -3.55
• 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): 0.59
• Revenue Forecast (FY): kr2.86B

• Rating: 43 Neutral
• Price Target: kr4.00 ▼(-19.52% Downside)
• Action: Reiterated Date: 02/08/26
• Date: Action: Reiterated 02/08/26

The score is primarily driven by deteriorating financial performance (losses, weaker margins, higher leverage, and negative operating/free cash flow). Technicals reinforce the downside trend with the price below key moving averages and negative MACD, while valuation provides limited offset because the negative P/E reflects ongoing losses and no dividend yield is available.

Positive Factors

Contract-driven recurring revenue

Netel’s B2B contract model, with project work plus multi-year service and framework agreements, creates a structural revenue base that can smooth cycles. Recurring maintenance and lifecycle services tend to be steadier and higher-margin over time, supporting predictable cashflows if tender wins persist.

Diversified critical-infrastructure services

Operating across telecom and power infrastructure and offering end-to-end planning, build and maintenance reduces reliance on a single market. This sector diversification and full-lifecycle capability make Netel better positioned to capture repeat work from customers upgrading networks and to adapt to shifting capex between sectors.

Underlying positive EBITDA in 2025

Positive EBITDA indicates core operational capacity to generate operating profits before depreciation and non-cash items. That suggests the business retains scalable service delivery and could restore net profitability through revenue stabilization, margin recovery and tighter cost control, making turnaround feasible over months.

Negative Factors

Revenue decline and margin deterioration

A decline in revenue alongside a move to negative gross profit signals structural execution or pricing issues on projects. Volatile and deteriorating margins reduce earnings resilience in cyclical tender markets and imply the company may struggle to translate top-line work into sustainable profits without operational fixes.

Negative operating and free cash flow

Large negative operating and free cash flows weaken liquidity and force reliance on external funding or asset sales. Inconsistent cash conversion across years heightens financing risk, can constrain bidding for new contracts, and reduces room for strategic investments until cash generation stabilizes.

Rising leverage and weakened balance sheet

Increasing leverage with eroding equity and negative returns on equity lowers financial flexibility. Higher debt burdens amplify refinancing and interest risks, making the company more vulnerable to continued cash-flow weakness and reducing its ability to absorb project overruns or bid aggressively for new framework contracts.

Netel Holding AB Business Overview & Revenue Model

Company Description

Netel Holding AB provides Infranet services within mobile, fixed, and power networks in Sweden, Norway, Finland, and Germany. It provides Infranet project management services for the construction and maintenance of physical telecom, broadband, and power networks. The company is involved in the planning, permit management, construction, installation, roll-out, commissioning, and integration of mobile data network systems; logistics services; designs fiber networks; upgrade of coaxial networks, preventive and corrective maintenance, and installation of communication networks; and construction and maintenance of infrastructure for district heating, water, and sewage. It serves telecom operators, owners of mobile towers, and system suppliers; network owners, network operators and tenant-owner associations; infrastructure owners; and real estate and construction companies. Netel Holding AB was founded in 2000 and is based in Stockholm, Sweden.

How the Company Makes Money

Netel Holding AB generates revenue through multiple streams primarily centered around its telecommunications infrastructure services. The company earns money by charging clients for the design, construction, and maintenance of telecom networks, including both fixed and mobile installations. Key revenue streams include contracts with telecommunications operators for network upgrades and expansions, as well as ongoing maintenance agreements. Additionally, NETEL benefits from long-term partnerships with various telecom providers, which provide steady income and opportunities for project collaborations. The company also engages in public sector projects, which further contributes to its revenue through government contracts and infrastructure development initiatives.

Netel Holding AB Financial Statement Overview

Summary

Overall financials have weakened: 2025 revenue declined (~-5.8%), profitability swung to deeper losses with margin deterioration (including negative gross profit), leverage increased (debt-to-equity ~1.16), and both operating cash flow (~-46M) and free cash flow (~-68M) turned negative. Prior-year strength (notably 2023) shows potential, but the latest-year reversal drives a low score.

Income Statement

Profitability deteriorated meaningfully in the latest year (2025 annual): revenue fell ~5.8% and the company swung to negative operating profit and a wider net loss (net margin ~-4.0% vs ~-1.4% in 2024 and positive in 2022–2023). Margins show sharp volatility, including a negative gross profit in 2025 after stable mid-30% gross margins in prior years, raising execution and cost-control concerns. The main positive is that EBITDA remains positive in 2025, suggesting some underlying operating capacity, but the overall earnings trajectory is clearly weakening.

Balance Sheet

Leverage has increased and balance sheet flexibility has weakened: debt-to-equity rose to ~1.16 in 2025 (from ~0.92 in 2024), and equity declined alongside losses (return on equity ~-12% in 2025). While assets remain sizable relative to the business, the combination of higher leverage and negative profitability increases risk if earnings and cash generation do not stabilize. Strengths include a still-material equity base, but the direction of leverage and returns is unfavorable.

Cash Flow

Cash generation turned negative in 2025 with operating cash flow of about -46M and free cash flow about -68M, following modestly positive cash flow in 2024 and strong cash generation in 2023. Free cash flow growth is also negative in 2025, indicating worsening funding needs. A key watch item is the inconsistency in cash conversion year-to-year (including negative operating cash flow in 2022 and 2025), which can pressure liquidity and financing requirements if it persists.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.92B	3.28B	3.46B	3.14B	2.42B
Gross Profit	-23.00M	1.17B	1.21B	1.16B	860.00M
EBITDA	71.00M	214.00M	241.00M	241.00M	172.00M
Net Income	-117.00M	-47.00M	44.00M	123.00M	66.00M
Balance Sheet
Total Assets	2.75B	2.97B	3.15B	3.12B	2.13B
Cash, Cash Equivalents and Short-Term Investments	205.00M	261.00M	446.00M	369.00M	271.00M
Total Debt	1.12B	1.01B	1.06B	1.09B	589.00M
Total Liabilities	1.78B	1.87B	2.01B	2.01B	1.22B
Stockholders Equity	971.00M	1.09B	1.13B	1.11B	912.00M
Cash Flow
Free Cash Flow	-68.00M	59.00M	223.00M	-90.00M	91.00M
Operating Cash Flow	-46.00M	59.00M	242.00M	-72.00M	114.00M
Investing Cash Flow	-20.00M	-162.00M	-83.00M	-238.00M	-181.00M
Financing Cash Flow	16.00M	-89.00M	-67.00M	402.00M	244.00M

Netel Holding AB Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.97
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:NETEL, the sentiment is Neutral. The current price of 4.97 is above the 20-day moving average (MA) of 3.99, above the 50-day MA of 4.30, and below the 200-day MA of 7.22, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 49.89 is Neutral, neither overbought nor oversold. The STOCH value of 64.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SE:NETEL.

Netel Holding AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INFREA	65 Neutral	kr499.47M	7.90	―	3.51%	7.83%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KJELL	57 Neutral	kr744.58M	-1.45	-42.09%	―	-4.54%	-1024.16%
ALCA	57 Neutral	kr688.76M	-61.49	―	―	-7.91%	-33.91%
KEBNI.B	50 Neutral	kr400.58M	-2,091.43	8.68%	―	9.30%	―
NETEL	43 Neutral	kr197.44M	-1.44	―	―	-13.07%	-372.35%
TRANS	42 Neutral	kr243.53M	-1.93	0.35%	―	10.36%	-100.68%

Netel Holding AB Corporate Events

Netel Swings to Loss in 2025 but Bets on Restructuring and Cost Cuts for 2026 Recovery

Netel reported a weak 2025 with net sales down 9.3% to SEK 2.9 billion and a swing to an operating loss, hurt by lower volumes, large project write-downs and underperforming units, while net debt rose and the board proposed scrapping the dividend despite a higher order backlog of SEK 4.2 billion and solid cash flow in the fourth quarter. In response, the group has divested its Finnish and UK businesses, implemented two savings programmes targeting up to SEK 50 million in annual cost cuts, streamlined management layers, strengthened oversight of loss-making subsidiaries and begun consolidating units, moves that management argues will restore profitability, enhance competitiveness and position Netel to benefit from favourable market conditions, particularly in its growing and profitable Norwegian power operations.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK4.00 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel Deepens Elvia Partnership With New Oslo Grid Contracts

Netel Holding AB has broadened its partnership with Norwegian grid company Elvia through a new four-year framework agreement covering roughly half of Oslo Municipality, marking a significant entry into a new geographic market, while simultaneously renewing a four-year framework contract for the Søndre Follo area south of Oslo. The agreements, together worth more than NOK 110 million, cover delivery, connection and upgrading of electricity distribution networks in high-activity regions, reinforcing Netel’s foothold in a strategically important area and underscoring its growth strategy of expanding into adjacent geographies within the Nordic infrastructure and power grid market.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK4.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel to Present Fourth-Quarter and Full-Year 2025 Results via Webcast and Teleconference

Netel Holding AB will publish its fourth-quarter and full-year 2025 report on Friday, 6 February, at 07:30 CET, followed by a webcast presentation at 09:00 CET where President and CEO Jeanette Reuterskiöld and CFO Fredrik Helenius will present the results. Investors and analysts will be able to follow the presentation via webcast with written questions or join a teleconference, highlighting the company’s ongoing efforts to maintain transparent communication with the market around its financial performance and operational developments.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK5.00 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel Secures New Long-Term Financing, Easing Going-Concern Concerns

Netel Holding AB has secured new long-term financing agreements with SEB, the Swedish Export Credit Corporation and Swedbank that run until 30 June 2027, replacing its previous loan arrangements and shifting the main financial covenant to a liquidity requirement. The refinancing follows one-time impairments on older projects in acquired subsidiaries that caused covenant breaches as of 30 September 2025, and the new structure is intended to restore predictability and flexibility in the company’s capital structure, remove uncertainty about its ability to continue operations, and support management’s plans to improve profitability and deliver growth from its SEK 3.8 billion order backlog and savings programmes.

The most recent analyst rating on (SE:NETEL) stock is a Sell with a SEK3.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.

Netel Secures Landmark Contract for Ludvika Logistics Center

Netel Holding AB’s subsidiary, Brogrund Mark, has secured a significant contract valued at approximately MSEK 110 for civil engineering works at a new logistics center in Ludvika. This project, the largest ever for Netel’s Infraservices division, involves comprehensive ground and civil engineering tasks, including stormwater and sewage systems installation, and is expected to be completed by early 2027. This contract underscores Netel’s competitive edge and capability to deliver high-quality infrastructure solutions, enhancing its industry positioning and operational scope.

The most recent analyst rating on (SE:NETEL) stock is a Hold with a SEK4.50 price target. To see the full list of analyst forecasts on Netel Holding AB stock, see the SE:NETEL Stock Forecast page.