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Netel (NETEL) investor relations material
Netel Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Q3 2025 saw a significant decline in profitability due to major write-downs in three subsidiaries, lower sales, and delayed project starts, especially in Telecom and Infraservices.
Strategic actions include divesting underperforming UK operations, restructuring subsidiaries, consolidating management layers, and implementing a SEK 40-50 million cost-saving program.
The order backlog increased to SEK 3.84 billion, supported by new framework agreements in Sweden and Norway, providing strong future revenue visibility.
Management has installed new leadership in key subsidiaries and is targeting new customer segments, particularly in the power sector.
Divestment of Finnish operations was completed in June 2025.
Financial highlights
Q3 2025 sales were SEK 654 million, down 17.8% year-over-year, with adjusted EBITA/EBITDA at SEK -53 million and a margin of -8.1% due to SEK 59 million in write-downs.
EPS for Q3 was SEK -1.39, and loss after tax was MSEK -67.
Operating cash flow for Q3 was SEK -44 million, mainly due to project startups and lower volumes.
Cash and available funds at quarter-end totaled SEK 361 million.
Net debt excluding leases rose to SEK 862 million, with a leverage ratio of 6.3x adjusted EBITDA.
Outlook and guidance
2025 guidance: revenue of SEK 3 billion, adjusted EBITA/EBITDA margin of 1.5%-2% (including write-downs); 4%-5% margin for core operations.
Growth and margin improvement are anticipated in 2026, supported by cost-saving measures and a SEK 2 billion order backlog for 2026.
Strong cash flow is expected in Q4 2025 due to seasonality.
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