Eltel

July–September 2025

• Net sales EUR 208.2 million (210.3), a decrease of 1.0%. Organic growth¹⁾ was -1.6%
• Gross profit EUR 27.8 million (24.0) and gross margin 13.3% (11.4)
• Adjusted EBITA²⁾ EUR 9.1 million (8.2) and adjusted EBITA margin 4.3% (3.9)
• Items affecting comparability⁴⁾ EUR -0.3 million (-3.8)
• Operating result (EBIT) EUR 8.8 million (4.5) and EBIT margin 4.2% (2.1)
• Net result EUR 3.0 million (0.3)
• Earnings per share EUR 0.02 (-0.01), basic and diluted
• Cash flow from operating activities EUR -19.1 million (-4.4)

January–September 2025

• Net sales EUR 578.8 million (602.6), a decrease of 3.9%. Organic growth¹⁾ was -2.3%
• Gross profit EUR 72.5 million (64.2) and gross margin 12.5% (10.7)
• Adjusted EBITA²⁾ EUR 12.4 million (4.7) and adjusted EBITA margin 2.2% (0.8)
• Items affecting comparability⁴⁾ EUR -1.3 million (-26.9)
• Operating result (EBIT) EUR 11.1 million (-22.2) and EBIT margin 1.9% (-3.7)
• Net result EUR -0.4 million (-32.9)
• Earnings per share EUR -0.02 (-0.23), basic and diluted
• Cash flow from operating activities EUR -9.4 million (-11.5)
• Net debt EUR 171.6 million (144.8)

Significant events during and after the reporting period

• During the third quarter, Eltel signed new contracts with a combined value, TCV, of about EUR 176.2 million (135.7) and the value of the total orderbook⁵⁾ was EUR 1.2 billion.
• On 8 July, it was announced that Eltel has signed a frame agreement with E.ON worth EUR 18.2 million.
• On 18 August, it was announced that Eltel applies for admission to trading of its Bonds on Nasdaq Transfer Market.
• On 12 September, it was announced that Eltel has been awarded a contract to build grid connections for DayOne’s new Data Center in Lahti, Finland. The contract value is estimated to EUR 38 million.
• On 15 September, it was announced that Eltel and Caruna signed a four-year frame agreement worth about EUR 81 million for the entire contract period including option years.
• On 15 October it was announced that Eltel will redeem its outstanding subordinated sustainability-linked capital securities. The redemption date will be 11 November 2025.

Key figures

1. Organic growth is adjusted for currency effects and divestments. Net sales as well as other figures in the income statement during January-June 2024 included High Voltage Poland.
2. Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 27–28 for definitions of the key ratios.
3. Adjusted EBITA and margin for segments have been restated in comparative periods according to the new segment structure. See page 26 for more information.
4. See reconciliation of segment results on page 5 for more information.
5. Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the agreement.

Comments by the CEO

I am very pleased to report a strong quarter with progress in all our strategic areas. We have improved our profitability, to an adjusted EBITA margin of 4.3%, broadened our customer base, especially in Power, and continued to grow in our new business areas, in particularly in Solar PV and Data Center.

This is our ninth quarter of improved adjusted EBITA year on year, and in a ten-year perspective we have achieved an all-time high in this respect. It is also very nice to see that, compared to last year, all our segments deliver a stronger adjusted EBITA year-to-date.

Stable net sales were delivered by Sweden, Finland and Denmark & Germany but due to the decline in Norway, net sales were slightly down to EUR 208.2 million (210.3). Our gross profit reached EUR 27.8 million, with a gross margin of 13.3%, up from 11.4% previously. The adjusted EBITA margin also improved to 4.3% from 3.9%, where Finland was the largest contributor. I am also very happy to be able to report an improved profitability for Norway. There is a lot of work that remains to be done but this is evidence that our measures have had effect. Our total contract value (TCV) stands at EUR 176.2 million, with new business accounting for EUR 41.8 million, representing almost 24% of the total.

In Power we have observed increased activity, particularly in our newer business areas such as Solar PV and Data Centers. Communication has seen less activity overall, except in Sweden, where demand in public infrastructure, including defense, has driven positive development.

In Finland, net sales have remained stable, with growth in the Power sector fully compensating for declining volumes in Communication. Power has seen significant growth, mainly due to continuous expansion in Solar PV. Two contracts with poor profitability have been renewed with new, healthy commercial terms. Volumes in Communication have declined, which was expected due to the peak in the fiber-to-the-home business in 2024. In Finland we have achieved our eighth consecutive quarter of improved adjusted EBITA year-over-year. Eltel Finland is a forerunner in our transformation towards a broader business scope, strongly contributing to the quarterly result. Furthermore, our strong pipeline, especially in new business areas such as Solar PV, BESS, Battery Energy Storage Systems, and Data Center, makes me confident with the very positive development in these areas.

Sweden achieved net sales growth, despite exceptionally good growth in Q3 2024. This is the eighth consecutive quarter with net sales growth. Communication had increased net sales in both public infrastructure and telecommunications. Although there has been a decline in Power due to a remarkably strong quarter in 2024, year-to-date performance is almost on par. Positive volume development and operational excellence in Communication have strongly improved profitability.

In Denmark & Germany, declining volumes in Communication and contract endings have resulted in slightly decreased net sales. Power grew, and BESS in particular performed well, although not compensating for the decline in Communication. Operational excellence measures have helped maintain profitability at a decent level. The volume shift from Communication to Power is still noticeable, although there are some positive signs in the fiber market.

Norway has shown improved profitability driven by a decisive execution of operational excellence, resulting in a positive adjusted EBITA for the quarter. A strong focus on broadening the customer base, particularly in public infrastructure, is yielding some result. However, growth in revenue from new customers has not mitigated the decline in traditional telecommunications volumes.

I would like to extend my gratitude to all our colleagues who play a crucial role in restoring and securing critical infrastructure. This became especially evident when storm Amy recently hit large parts of Scandinavia, especially Norway. Even before the storm reached the mainland, Eltel Norway mobilized resources across the country. The restoration work is still ongoing, and our colleagues are working tirelessly alongside customers and other suppliers to ensure that the lifelines of our society are restored.

Our society also need more green energy. I'm very proud of our colleagues’ ongoing work in Finland’s second largest solar park in Hallanvahti, providing energy to 18,000 households when finalised 2026 and a great proof of Eltel’s contribution to the green transition. This dedication exemplifies what Eltel stands for: creating, maintaining and ensuring resilient critical infrastructure and mitigating any disturbances. I want to thank all our colleagues across all markets for their daily contributions to this important task.

Håkan Dahlström, President and CEO