Eltel (ELTEL) Q3 2026 earnings summary

Executive summary

• Q3 adjusted EBITA was EUR 11.0m, the highest quarterly result since 2015; margin rose to 5.6% from 4.3%, marking 13 consecutive quarters of profitability improvement despite lower sales.

• Record order book of EUR 1.7bn, up from EUR 1.2bn a year earlier, supported by Q3 contract wins of EUR 680.7m.

• Priorities remain margin improvement, broader customer coverage and growth in emerging services; recurring revenue was 70% YTD.

Financial highlights

• Q3 net sales declined 5.8% to EUR 196.2m; adjusted EBITA rose to EUR 11.0m from EUR 9.1m, with a 5.6% margin versus 4.3%.

• Q3 gross profit was EUR 27.7m versus EUR 27.8m; gross margin improved to 14.1% from 13.3%.

• Jan–Sep net sales rose 1.4% to EUR 587.0m, including 0.2% organic growth; adjusted EBITA increased to EUR 19.7m from EUR 12.4m.

• 9M net result was EUR 6.4m versus a EUR 0.4m loss; Q3 net result was EUR 8.7m versus EUR 3.0m, including a tax credit from recognition of previously unvalued tax losses.

• Q3 operating cash flow improved to EUR 0.5m from EUR -19.1m; 9M operating cash flow was EUR -15.2m, including EUR 15.8m repayment of Swedish tax deferral.

Outlook and guidance

• Targets remain a 5% adjusted EBITA margin within 12–18 months, annual growth of 2%–4%, and net debt/adjusted EBITDA of 1.5–2.5x; Q3 LTM results were 3.4%, 2.6% and 3.1x.

• New-contract volumes are expected to rise gradually from Q1 2027, with the full net sales effect of recent wins from Q3 2027; Telenor revenue is expected to begin in Q4 and build through Q1–Q2.

• Telenor Norway agreement is expected to generate over EUR 475m in its initial five-year term; potential value including two optional three-year extensions is EUR 1bn.

• Emerging services target remains 25% of net sales by end-2027, compared with 13% in Q3 2026.

• KONSTANT agreement starts 1 February; Vattenfall service and maintenance agreement is scheduled to start 1 June 2027.