Eltel (ELTEL) Q2 2026 earnings summary

Executive summary

• Achieved the best Q2 in a decade, with adjusted EBITA more than doubling year-over-year to EUR 5.5 million (2.8% margin), marking twelve consecutive quarters of improvement.

• Net sales for Q2 were EUR 199.6 million, down 0.7% year-over-year, but profitability and cash flow improved significantly.

• Strong contract wins, including EUR 217 million in new contracts and a record EUR 275 million Vattenfall award (under appeal), with total orderbook at EUR 1.2 billion.

• Profitability gains were driven by Norway, Finland, and Sweden, while Denmark & Germany lagged.

• Cash flow from operating activities improved in Q2, supported by strong customer payments and project completions.

Financial highlights

• Q2 adjusted EBITA: EUR 5.5 million (2.8% margin), more than double year-over-year; Q2 net sales: EUR 199.6 million (-0.7%).

• Q2 gross profit: EUR 24.7 million (gross margin 12.4%).

• Cash flow from operating activities in Q2: EUR 3.4 million, up from -7.8 million year-over-year.

• Net debt: EUR 170.1 million (EUR 144.6 million prior year); equity ratio: 29.1%.

• Leverage ratio: 3.1x (2.8x prior year), reflecting refinancing.

Outlook and guidance

• Management remains confident in achieving the 5% adjusted EBITA margin target within 12–18 months, with current rolling 12-month margin at 3.1%.

• Growth target remains 2–4%, with latest 12-month growth at 3.8%.

• Megatrends such as digitalization, electrification, and climate change expected to drive long-term growth.

• Strong order intake and contract awards position the group for future growth, despite some timing uncertainties in Denmark.

• Market outlook positive for data centers and grid investments, while renewable energy remains soft.