Translation: Original published in Finnish on 10/30/2026 at 7:00 am EET.

Source: Inderes

Teleste will publish its Q3 report on Friday, November 6, at 8:30 am EET. We expect the company's revenue to have increased slightly, though we anticipate a slight weakening of adjusted EBIT from the strong comparison period. In accordance with previous company communications, earnings this year are weighted toward Q4. This is due to the merger of Cox and Charter in the Networks segment, as well as the timing of deliveries to Alstom in the Public Safety and Mobility segment. Accordingly, we will focus particularly in the report on the normalization of North American order intake and the timing of Public Safety and Mobility deliveries for the rest of the year.

We expect revenue to have grown moderately, supported by the recovery in Europe

We forecast Teleste’s Q3 revenue to have grown by 4% to 35.9 MEUR. In the Networks segment (Q3'26e: 21.9 MEUR, +5%), we expect the recovery in the European market to support growth, as the region’s order flow has already developed favorably in the first half of the year. Conversely, in North America, the merger of the largest customer, Cox, and Charter has caused orders to be postponed in the short term. In Public Safety and Mobility (Q3'26e: 14.0 MEUR, +3%), we expect stable development, although on a quarterly basis, the timing of large project deliveries typically causes volatility in growth figures. The segment’s long-term outlook was bolstered by a 40-MEUR order received from Siemens in September, with deliveries set to begin in 2028. In the Q3 report, we will also monitor the trend in orders for the PSM segment in general, as the company has previously forecast a strong order flow from its existing customer base in H2.

We expect moderately good profitability

We expect Q3 adjusted EBIT to decrease slightly to 2.1 MEUR (Q3’25: 2.3 MEUR). This corresponds to a margin of 5.9%, which is reasonably good for Teleste (Q3'25: 6.6%). In the Networks segment, we estimate that earnings will be weighed down by short-term delays in North American deliveries and investments made, but the positive developments in Europe and the company’s streamlined cost structure will support margins. Efficiency measures implemented in the PSM segment in recent years, in both procurement and project management, support profitability. Regarding costs, hyperscalers’ investments in artificial intelligence have increased demand for components, which has put pressure on prices and availability in both of the company’s business segments. However, Teleste has sought to prepare for this through frontloaded procurement. On the lower lines of the income statement, we expect adjusted earnings per share to have remained at the comparison period's level of EUR 0.08, supported by the improved loan terms negotiated in the spring and lower financing costs.

Eyes on Q4's earnings surge and North American orders

We expect Teleste to reiterate its guidance for the current year, predicting revenue of 140–160 MEUR and adjusted EBIT of 7–10 MEUR. Our estimates expect revenue of 143 MEUR and an adjusted EBIT of 8.9 MEUR. The company has previously noted that earnings are concentrated in Q4, and our forecast also indicates that about one-third of the full-year earnings will be generated during that quarter. This is due to delayed orders caused by the merger of Cox and Charter, as well as the timing of deliveries to PMS’s largest customer (Alstom). Therefore, in the Q3 report, we will closely monitor comments on the North American market, as well as the development of orders from Cox since the completion of the corporate transaction (August 20). Teleste commented in its Q2 report that it also expects another major customer (Rogers) to complete its destocking, with order flow to Teleste increasing towards the end of the year. In the PSM segment, we believe that expanded customer base and measures taken to streamline operations will provide a solid foundation for continued profitable growth.