Elisa (ELISA) Q3 2025 earnings summary

Executive summary

• Revenue grew between 4.6% and 5% year-over-year in Q3 2025, driven by international software services, mobile, and fixed service revenue, with 5G upselling and new security features supporting growth.

• EBITDA increased 3.7% to EUR 213.5 million, with comparable cash flow up 12% and margin at 38.1%.

• A transformation program was launched post-Q3, targeting EUR 40 million in annual cost savings by 2026, including 450 job reductions, mainly in Finland.

• The Finnish mobile market saw intensified 4G competition, raising churn above 22%, but 5G upselling and security features supported mobile service revenue.

• Acquisitions (SedApta, iCADA) contributed positively to revenue, while divestments (Epic TV, Banana Fingers) had a negative impact.

Financial highlights

• Q3 2025 revenue: EUR 561m (+5% YoY); EBITDA: EUR 214m (+4% YoY); EBIT: EUR 139m (+2% YoY); Net profit: EUR 103m (+3.1% YoY); EPS: EUR 0.64 (+2.3% YoY).

• Comparable cash flow increased by 12% to EUR 125m in Q3; YTD comparable cash flow: EUR 320m (+10% YoY).

• CapEx was EUR 81m (EUR 65m excluding licenses, leases, and acquisitions), focused on 5G, fiber, and IT investments.

• Net debt rose 7% to EUR 1,390m; equity ratio at 35.7%; net debt/EBITDA: 1.7x.

• Average interest on debt stable at 2.5%; cash and undrawn credit lines totaled EUR 415m at quarter-end.

Outlook and guidance

• Full-year 2025 revenue and comparable EBITDA expected at or slightly above 2024 levels; guidance unchanged.

• ISS organic comparable growth for the full year expected between 5% and 10%, despite project delays.

• Capital expenditure capped at 12% of revenue.

• Transformation program aims to ensure achievement of midterm revenue and EBITDA targets, with most cost savings realized from Q1 2026.

• Market environment remains uncertain due to geopolitical risks, weak Finnish economy, and supply chain challenges.