Significant contract for Eltel to construct a large solar power plant in Finland

Eltel announced on Thursday that it had been selected by Taaleri Energia for the construction of the Hallanvahti solar power plant in Joroinen, Finland. The solar power plant will be Finland’s second largest, with a capacity of 129 MWp. The Hallanvahti solar park is carried out as a turnkey contract, which includes the establishment of the solar park, transformer station, and connection to the main grid, as well as responsibility for the operation and maintenance of the plant. The total value of the contract for Eltel is 74 MEUR. Construction is scheduled to commence in Q1’25, and full operations are expected by mid-2026.

We consider the contract positive for Eltel, especially from a strategic point of view as we estimate it is by quite far the largest project that could be categorized as new business for the company (and especially in solar). Therefore, it could also be a good reference for the company in the future if the project execution goes smoothly.

The contract is large for Finland’s country unit, we will revise our estimates in connection with the upcoming Q4 report

Overall, the contract is significant for Eltel on a yearly level (2025e revenue: 844 MEUR). In addition, it is large for Finland’s country unit (2025e revenue 376 MEUR), and thus, we initially see upward pressure in our estimates for the country unit’s 2025-2026 revenue, although there is still uncertainty about its exact allocation. Furthermore, we believe that the margin profile in the project could be more attractive than in Eltel’s traditional business. We will revise our estimates in connection with the company’s upcoming Q4 report on February 14, when we get a better overall picture of the company’s outlook and development.