@christoffer.jennel has provided his preliminary comments as Eltel publishes its Q3 results on Thursday.
We expect public infrastructure projects in Sweden to continue their good development and the Finnish Power segment to grow steadily. Combined with the absence of negative impacts from the divested Polish business and currency tailwinds, we expect these factors to support strong revenue growth in Q3. Alongside continuous strategy execution and focus on profitability, we forecast another year-on-year improvement in EBITA profitability. As always, managementâs comments on market outlook and strategy execution will be key areas of interest in the report.
Christoffer Jennel has published a new company report following Q3. Although Eltelâs Q3 revenue fell below our forecast, profitability was well in line with our expectations. We consider Q3 profitability, despite lower revenue, a sign of higher resilience and further evidence that Eltelâs operational and commercial efficiency measures are yielding results. The continued strong development of new business areas (24% of Q3 contract value) also supports, in our opinion, future profitability improvement. In a turnaround company like Eltel, profitability development remains central to our investment case, as it is the most important driver of sustainable value creation. In our view, the company has taken clear and consistent steps in the right direction and is now better positioned to maintain and continue improving its profitability. In light of the Q3 report, however, we have revised our revenue forecasts downwards, but have largely kept margins unchanged. Following the post-earnings share price decline, we believe the current valuation offers good risk-adjusted return potential over the next 12 months. We therefore reiterate our Add recommendation and raise our target price to SEK 9.9 (previously SEK 9.7).
Hello everyone! Jesper from the Swedish community here. Today, we recorded an interview with analyst @christoffer.jennel about our updated analysis on Eltel after the Q3 report. So feel free to check it out, though itâs in Swedish. If you have any questions youâd like Christoffer to answer, feel free to write them here!
Here are Christofferâs preview comments as Eltel reports its Q4 results on Friday, Feb 13.
We expect the report to highlight continued margin resilience despite a varying demand environment across different geographical areas. While traditional telecommunications markets remain weak, especially in Norway and Finlandâs Fiber-to-the-Home (FTTH) segment, we expect growth in the Power segment and public infrastructure projects to support revenue. Key focus areas for the quarter include the seasonal peak in cash flow, the sustainability of the profitability recovery in Norway, and order intake.
Here is a new company report on Eltel from Christoffer following the Q4 results.
Eltel ended 2025 strongly, as Q4 revenue was 4% higher than our forecasts and profitability continued to improve year-on-year for the tenth consecutive quarter. Importantly, Norway continued its return to profitability for the second consecutive quarter, which is crucial for the overall turnaround story. We believe that the continued development of new business areas (11% of FY2025 revenue vs. 4% last year) combined with demonstrated operational and commercial improvements will support profitability improvement. Management expressed confidence in achieving the 5% adjusted EBITA margin target within 12â18 months, providing a timeline for the first time since its withdrawal in Q3â24. While this is encouraging, we remain more cautious and believe that the burden of proof is on Eltel to demonstrate that this is achievable. However, we are raising our 2026â27e revenue forecasts by 1â2%, primarily reflecting stronger performance in Sweden, while keeping our profitability forecasts largely unchanged.
If you have any questions youâd like Christoffer to answer, feel free to write them here!