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Netel (NETEL) investor relations material
Netel Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Net sales declined 7.7% year-over-year to SEK 789 million, mainly due to a high proportion of projects in start-up phase, impacting sales and profitability.
Sale of loss-making Finnish operations completed, freeing resources for core and growth markets.
Order backlog increased to SEK 4.1 billion, supporting future growth.
Expansion with new and existing customers and into new geographies continued.
High level of project startups and new customer wins across segments.
Financial highlights
Adjusted EBITA was SEK 41 million (margin 5.2%), down from SEK 48 million (5.6%) year-over-year, impacted by project startups and mix.
Earnings per share for the quarter was SEK 0.11, down from SEK 0.30 year-over-year.
Operating cash flow was minus SEK 62 million, compared to SEK 41 million last year, reflecting project startup activity.
Net debt (excluding leases) increased to SEK 800 million, leverage ratio at 3.4x adjusted EBITDA R12.
FX effects contributed -2.6% to net sales.
Outlook and guidance
Management expects improved cash flow and profitability as projects move from start-up to delivery phase, with positive cash conversion anticipated by year-end.
No resource limitations anticipated for increased production.
Margin in Power segment expected to improve gradually, with new projects starting in 2H25 and production ramping in 2026.
Strong market demand persists, though some delays in tenders and customer projects noted.
Estimated SEK 1.5 billion of backlog to be delivered in the final six months of 2025.
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