Netel (NETEL) Q4 2025 earnings summary

Executive summary

• Q4 2025 was marked by additional costs to terminate loss-making projects, restructuring, and a focus on streamlining operations to improve profitability.

• Net sales declined 14.4% in Q4 and 9.3% for the full year, with profitability impacted by project write-downs, lower volumes, and restructuring costs.

• Divestments of underperforming UK and Finnish operations were completed, allowing renewed focus on core and growth markets.

• Order backlog reached a record SEK 4.2 billion, providing a strong foundation for 2026.

• Robust cost-saving and restructuring measures were implemented, with full effect expected by 2027.

Financial highlights

• Q4 net sales were SEK 812 million, a 14.4% decline year-over-year; full-year net sales were SEK 2.9 billion, down 9.3%.

• Q4 adjusted EBITA was SEK 2 million (0.2% margin); full-year adjusted EBITA was SEK 28 million (1.0% margin).

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

• EPS was SEK -1.38 in Q4 and SEK -1.86 for the year.

• 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 for 2026, driven by cost-saving measures and a strong order backlog.

• Cost savings of SEK 25 million are expected in 2026, with an additional SEK 15–25 million in 2027.

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

• No dividend proposed for 2025.

• Focus remains on profitable growth and margin stabilization rather than top-line expansion.