Eltel operates in the telecommunications and electricity industries and offers services in infrastructure for networks and electricity. The company's services include installation, maintenance and project management for telecommunications and electricity networks. The business is aimed at companies and public institutions in Europe. Eltel was founded in 2001 and is headquartered in Stockholm, Sweden.
* Earnings improved materially y-o-y, but less than we estimated * We cut EBITA estimates by EUR 3m for '26e, EUR 1m for '27e-'28e * Share trading at 12-9x '26e-'27e EV/EBITA (adj.) Earnings improvement, but not as much as we hoped Eltel reported Q2 ...
We expect the Q2 report to show solid top-line growth driven by the Power segment and improved commercial visibility from recently signed framework agreements, alongside continued margin expansion.
* Q2e: big y-o-y earnings improvement * Raised EBITA driven by increasing emerging service sales * Share trading at 10x '26e EV/EBITA, goes to 7x in '28e Q2e: significant y-o-y EBITA improvement We expect Eltel to report Q2 net sales of EUR 211m, up ...
Following the strong post-Q1 share price surge, however, we believe the valuation has run too far, and the risk-adjusted return is no longer attractive at current levels.
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.
Eltel's Q1'26 report came in well above our estimates on both top and bottom line, demonstrating that the turnaround trajectory not only remains intact, but is progressing faster than we projected.
* Strong growth and continued margin improvement * We raise '26e EBITA by 9%, '27e-'28e by 6% each * 9x '26e EV/EBITA, 6-11% '26e-'27e lease-adj. FCF yields An impressive showing given negative seasonality Eltel reported Q1 net sales of EUR 191m (+7%...
