Netel (NETEL) Q4 2025 earnings summary

Executive summary

• Q4 2025 ended a challenging year with lower volumes, large write-downs, and divestments of underperforming UK and Finnish operations, while a record order backlog of SEK 4.2 billion and strong cash flow were achieved.

• Profitability was impacted by overvalued projects in acquired companies, lower volumes, increased competition, and delayed project starts, especially in Telecom.

• Robust measures included restructuring, management changes, consolidation, and a cost-saving program targeting SEK 40-50 million, with further savings expected in 2026 and 2027.

• Divestments focused resources on core and growth markets, with new long-term financing agreements secured and management team changes implemented.

Financial highlights

• Q4 net sales were SEK 812 million (down 14.4% YoY); full-year net sales were SEK 2.9 billion (down 9.3%).

• Q4 adjusted EBITA was SEK 2 million (margin 0.2%); full-year adjusted EBITA margin was 1%.

• Operating cash flow in Q4 was SEK 97 million, with full-year operating cash flow at approximately -SEK 30 million.

• Leverage ratio increased to 7.6x due to lower EBITDA and write-downs; net debt (excl. leases) was SEK 786 million.

• Ended 2025 with over SEK 200 million in cash and SEK 340 million in available liquidity.

Outlook and guidance

• Growth and margin improvement are expected in 2026, driven by cost-saving measures, a strong order backlog, and new framework agreements.

• H2 2026 anticipated to be stronger due to project phasing and seasonality.

• No dividend proposed for 2025.