Eltel announced on Monday an award decision from Vattenfall Eldistribution for a service-and-maintenance agreement valued at ~138 MEUR over an initial four-year period, rising to a potential 275 MEUR including four option years. The agreement represents a new volume for Eltel, whose prior work with Vattenfall had centred on smart-meter rollouts and, as such, we believe it marks a meaningful broadening of that relationship. In our view, the agreement improves the visibility of our medium-term forecasts for the Swedish unit and puts upward pressure on our estimates, though we await the final contract signing before revising them.

New, incremental volume strengthens the Swedish operations

The agreement covers service and maintenance for Vattenfall's electricity network in the Roslagen and Uppland areas, including fault repair, network connections, and projects. The contract period spans four years, starting February 1, 2027, with four option years, bringing the potential total value to 275 MEUR. Importantly, this represents new work for Eltel, as its only prior engagement with Vattenfall was related to smart-meter rollouts. In our view, securing a recurring volume of this scale from a major utility is a constructive signal on Eltel's competitiveness and supports further business momentum within the Swedish operations. As this is recurring service and maintenance work, we expect the margin profile to be broadly consistent with the group's 5% EBITA target once mature, although it could be dilutive in the first year as local operations are mobilised.

Multi-year framework supports the Swedish unit's revenue base and improves visibility

The annual value of ~34 MEUR corresponds to ~14% of our 2027 revenue estimate for the Swedish unit (2027e: 249 MEUR) and 4% of Group revenue (2027e: 883 MEUR). However, as this is a framework agreement, the communicated value is based on Vattenfall's estimate rather than guaranteed volume. The award decision is subject to a standard 10-day standstill period ending on June 18, 2026, and assuming no appeals are filed, the final contract is expected to be signed on June 22. As previously noted, we maintain our current forecasts unchanged pending the final contract signature.