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Sweden's Eltel Q3 net sales fall on lower fiber rollout volumes

By Reuters News


Overview

  • Nordic infrastructure services firm's Q3 net sales fell 5.8% yr/yr on lower fiber rollout volumes

  • Adjusted EBITA margin reached highest level since 2015, driven by operational efficiency

  • Orderbook hit record EUR 1.7 bln after major contract wins in Norway and Sweden


Outlook

  • Eltel expects volumes from new contracts to increase gradually from Q1 2027

  • Company says full net sales effect of new contracts will be seen from Q3 2027

  • Eltel remains confident in reaching its 5% profitability target


Result Drivers

  • LOWER FIBER VOLUMES - Co said net sales decline was due to lower fiber rollout volumes and reduced contribution from major projects

  • OPERATIONAL EFFICIENCY - Co attributed improved profitability to focus on commercial excellence and operational efficiency

  • RECORD CONTRACT WINS - Co said major new contracts, especially with Telenor Norway and Vattenfall Sweden, drove orderbook to record EUR 1.7 bln


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Miss

EUR 196.20 mln

EUR 216.50 mln (2 Analysts)

Q3 EPS

EUR 0.05

Q3 Net Income

EUR 8.70 mln

Q3 EBIT

EUR 10.10 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the integrated telecommunications services peer group is "buy"

  • Wall Street's median 12-month price target for Eltel AB is SEK18.50, about 7.6% above its October 28 closing price of SEK17.20

  • The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Oct 28 - Sweden's Netel Q3 net sales rise on infraservices, power segment

  • Oct 28 - Norway's Telenor Q3 service revenue rises, maintains 2026 forecast

  • Oct 27 - Orange raises 2026 profit outlook, talks up satellites as network boost


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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