January–March 2026
- Net sales EUR 191.3 million (169.6), an increase of 12.8%. Organic growth1) was 10.8%
- Gross profit EUR 22.9 million (22.2) and gross margin 12.0% (13.1)
- Adjusted EBITA2) EUR 3.1 million (0.9) and adjusted EBITA margin 1.6% (0.5)
- Items affecting comparability3) EUR 0.0 million (-0.6)
- Operating result (EBIT) EUR 3.1 million (0.3) and EBIT margin 1.6% (0.2)
- Net result EUR -1.7 million (-2.7)
- Earnings per share EUR -0.01 (-0.02), basic and diluted
- Cash flow from operating activities EUR -19.1 million (17.5), including EUR 15.8 million repayment of tax deferral in Sweden
- Net debt EUR 168.6 million (103.6), increase due to the hybrid bond (classified as equity) being replaced during the refinancing with a bond (classified as debt)
Significant events during and after the reporting period
- During the first quarter, Eltel signed new contracts with a combined value, TCV, of about EUR 102.8 million (145.7) and the value of the total orderbook4) was EUR 1.2 billion (1.3).
- On 2 April, it was announced that Eltel has been awarded a contract valued at EUR 25 million to build the grid connection for Hyperco’s Data Center in Lohja, Finland.
- On 29, April it was announced that Eltel has signed a new frame agreement with Elisa valued at EUR 60 million, covering network construction and maintenance.
Key figures
| EUR million | Jan-Mar 2026 | Jan-Mar 2025 | Jan-Dec 2025 |
| Net sales | 191.3 | 169.6 | 817.8 |
| Net sales growth, % | 12.8% | -3.8% | -1.3% |
| Gross profit | 22.9 | 22.2 | 105.1 |
| Gross margin, % | 12.0% | 13.1% | 12.9% |
| Adjusted EBITDA | 10.4 | 7.8 | 50.4 |
| Adjusted EBITA2) | 3.1 | 0.9 | 20.7 |
| Adjusted EBITA margin, % | 1.6% | 0.5% | 2.5% |
| Operating result (EBIT) | 3.1 | 0.3 | 19.4 |
| Net working capital | -36.9 | -76.3 | -60.4 |
| Net debt | 168.6 | 103.6 | 141.9 |
| Number of employees, average, FTE | 3,691 | 3,992 | 3,894 |
1) Organic growth is adjusted for currency effects and divestments.
2) Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 22–23 for definitions of the key ratios.
3) See reconciliation of segment results on page 19 for more information.
4) Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the agreement.
Comments by the CEO: “Strong growth and significant profitability improvement.”
I am delighted to report that 2026 started off with the best financial Q1 performance in a decade, with the combination of a 13% net sales growth, and significantly improved profitability. Net sales reached EUR 191 million, driven by Finland with an impressive 29% increase. Adjusted EBITA rose to EUR 3.1 million (0.9), corresponding to a margin of 1.6% (0.5). Considering the seasonality of our business, this is a very good result.
With this strong first quarter, we have now achieved eleven consecutive quarters of profitability improvement year-on-year. Norway was the largest contributor, while profitability in Finland and Sweden also improved. Denmark & Germany had harder year-on-year comparisons but also a weaker development despite net sales growth.
Emerging services, that we previously have referred to as “New business” continued to gain traction, accounting for 33% of total contract value and 23% of net sales, driven by high demand for renewable energy, data center solutions and energy storage across the Nordics.
Finland delivered an impressive growth, driven primarily by strong momentum in Solar PV and Data center solutions, with Hallanvahti solar park progressing in line with the plan, now generating 105 MW out of the planned capacity of 129 MW. The growth in Power, generated by both projects and services, compensated more than fully for the decline in Communication. Both Power and Communication contributed to improved profitability, reflecting a strong commercial discipline.
In Sweden, the positive development in Communication has continued with increased market share in telecommunications. Growth in Communication successfully offset the decline in Power, which was largely attributed to previous high volumes in Smart meters and Solar PV. In addition to telecommunications, demand also remains strong in public infrastructure and defense, supporting overall performance.
Denmark & Germany achieved solid growth, driven by Power. Positive developments were seen in Smart meters and within public infrastructure, while decreasing volumes in Communication and unfavorable business mix in general resulted in a weaker EBITA margin. We have taken the decision to rightsize the organization, with the purpose to better align with current and future market demands considering the decline in Communication.
Norway has improved the profitability for the fourth consecutive quarter, mainly driven by enhanced operational efficiency but also by stabilizing top line by customer expansion. It is encouraging to see the favorable development in Emerging services such as Data center solutions and e-Mobility. Considering the rolling 12-month adjusted EBITA being positive and the top line development, I believe we have started a new upward trend in Norway.
In Q4, I stated that I was confident that we would reach our profitability target of 5% within 12 to 18 months’ time and now, one quarter later, the positive start of 2026 strengthens my belief in this.
Håkan Dahlström, President and CEO