Eltel announced a 34 MEUR transmission line project for Fingrid on Friday and, in a separate release, a 20 MEUR grid connection contract for FCDC's new data center. We view these combined 54 MEUR wins positively, as they highlight Eltel's strong competitive position in the Finnish Power segment and confirm the structural growth drivers we have identified in grid reinforcement and data centers. We view the orders positively as they support our estimates, and we will review the need to update our estimates in connection with the company's upcoming Q2 report on July 21, when we get a better overall picture of the company's outlook and development.

Largest-ever transmission line project in Finland strengthens Power backlog

The 34 MEUR contract from Fingrid includes the construction of two parallel 400+110 kV transmission lines over a distance of approximately 43 kilometers. The project, which is the largest single transmission line contract in Eltel's history in Finland, is scheduled to begin construction in October 2026 and be completed in November 2028. In our view, this win underscores the strong momentum from Fingrid's massive national grid development program, which aims to increase north-south transmission capacity for renewable energy and industrial investments. We believe that winning a project of this magnitude from a key customer demonstrates Eltel's robust capabilities in high-voltage projects and secures valuable baseload volume for the Finnish unit's revenue generation in 2027 and 2028.

Data center momentum continues with a 20 MEUR contract

In addition to the Fingrid project, Eltel has been awarded a 20 MEUR contract to build the grid connection for FCDC's data center in Karjaa, Finland. The agreement covers the turnkey delivery of a 110 kV substation and cabling connecting the facility to the national transmission grid, with the project running until the end of 2027. In our view, this adds to Eltel's growing track record in the booming data center market, following previous major wins such as the Hyperco and DayOne projects. As we have previously highlighted, data centers represent a highly attractive emerging growth area for Eltel, sitting perfectly at the intersection of its Power and Communication expertise. We believe this latest win further solidifies Eltel's position as a go-to partner for critical infrastructure in this fast-growing segment.