Sweden's Netel Q3 net sales rise on infraservices, power segment

Overview

• Sweden infrastructure services firm's Q3 net sales rose 4.5% yr/yr, led by Infraservices and Power

• Adjusted EBITA for Q3 improved to SEK 20 mln, reflecting higher sales and savings measures

• Company's merger with Infrea approved; SEK 140 mln rights issue was oversubscribed

Outlook

• Netel expects no group growth for full-year 2026 due to rapid changes in Norway telecom

• Company maintains expectation for margin improvement in 2026, supported by savings and market conditions

• Netel expects significant cost synergies from the Infrea merger, boosting efficiency and sales potential

Result Drivers

• INFRASTRUCTURE AND POWER - Higher project volumes and strong performance in Infraservices and Power drove sales and earnings, per CEO Jeanette Reuterskiöld

• SAVINGS PROGRAMMES - Savings measures introduced in 2025 supported improved adjusted EBITA margin across divisions

• TELECOM MARKET TRANSITION - Rapid changes in Norwegian telecom market led to lower volumes and increased competition, negatively impacting sales

Company press release:

Key Details

Analyst Coverage

• The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 6 three months ago

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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.)