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