Strategic summary — proposed merger with Infrea
Financial summary — earnings in line with seasonal patterns
Continuing operations
| MSEK | April-June | January-June | R12 July-June | Full-year | ||
| Continuing operations | 2026 | 2025 | 2026 | 2025 | 2025/2026 | 2025 |
| Net sales | 725 | 775 | 1,301 | 1,451 | 2,765 | 2,915 |
| Net sales growth | -6.4% | -7.0% | -10.4% | -2.3% | -0.5% | -9.3% |
| EBITA | -3 | 39 | -1 | 55 | -60 | -5 |
| EBITA margin | -0.3% | 5.0% | -0.1% | 3.8% | -2.2% | -0.2% |
| Adjusted EBITA | 24 | 39 | 34 | 61 | 1 | 28 |
| Adjusted EBITA margin | 3.3% | 5.1% | 2.6% | 4.2% | 0.0% | 1.0% |
| EBIT | -5 | 37 | -5 | 50 | -69 | -13 |
| EBIT margin | -0.6% | 4.7% | -0.4% | 3.5% | -2.5% | -0.5% |
| Net debt excluding leasing | 916 | 800 | 916 | 800 | 916 | 786 |
| Net debt excluding leasing /adjusted EBITDA R12 | 12.3 | 3.3 | 12.3 | 3.3 | 12.3 | 7.6 |
| Earnings per share before and after dilution continuing operations (SEK) | -0.63 | 0.18 | -1.01 | 0.14 | -3.01 | -1.86 |
| Earnings per share before and after dilution including discontinued operations (SEK) | -0.63 | 0.52 | -1.01 | 0.35 | -3.78 | -2.42 |
CEO’s comments
Earnings in line with seasonal patterns – market activity levels remain high
Sales and earnings for the quarter are in line with our seasonal patterns and our expectations. Activity levels in the infraservices and power markets remain high, and the order intake is strong. Given the market conditions we are seeing today and the savings measures in 2025–2026, we stand firm in our expectations of growth and margin improvement for full-year 2026. On 15 June, Netel and Infrea announced plans for a merger, with completion expected in the fourth quarter of this year. Through this merger, we are creating a leading Northern European company for infrastructure services with total revenue of approximately SEK 5 billion. The new company will drive continued profitable growth through a broader range of operations and strong, long-term relationships with leading customers. At the same time, we are realising significant synergies and creating lasting value for the shareholders of both companies.
Netel’s performance during the quarter followed the seasonal pattern in our industry, with the second quarter of the year being typically stronger than the first quarter. During the quarter, our project deliveries increased as planned and with the higher volumes, revenue improved compared with the previous quarter. We also incurred significant one-time costs during the quarter – a total of MSEK 27 – as a result of organisational changes and the completion of projects at a subsidiary in Infraservices that was acquired in 2022 as well as costs associated with the planned merger with Infrea. We expect to continue following the seasonal pattern, which means that the second half of the year will be our peak season, with good project volumes and profitability as well as strong cash flow.
We view future developments with confidence. Activity remains high in both the infraservices and power markets, with a large number of requests for tenders. With skilled employees, extensive experience, and a strong track record of successful projects and high customer satisfaction, we are well-positioned competitively, enabling us to secure a growing number of contracts.
We are continuing to deliver on our strategy of growing with both new and existing customers. An important success factor is that we operate across three segments – Infraservices, Power, and Telecom – which gives us broader market exposure, increased flexibility, and more opportunities to meet our customers' needs. The order backlog amounts to SEK 3.7 billion of which SEK 1.2 billion refers to projects that will be completed in 2026. Supported by a profitable order backlog, combined with our ongoing savings programmes, we are confident that we will be able to achieve our financial targets in the long term.
Power – strong market
In the Power segment, we can see a continued strong performance in Norway with 8.2 per cent growth in the first half of the year, and negotiations are underway in Sweden for many new and exciting projects. During the quarter, we launched several new projects with customers such as E.ON, Elvia, and Swedavia. The contract with Swedavia – a new customer for us – is for a project worth approximately MSEK 40. We have overall responsibility, from the design phase through to completed construction – including the delivery and installation of high and low-voltage switchgear, backup power solutions, and several new power stations. This major assignment is a testament to our expertise and ability to deliver future-proof solutions for critical projects.
Over the past year, Netel has been building up a targeted industrial initiative in the Power sector in Norway and Sweden. The initiative is being carried out in coordination between the Norwegian and Swedish organisations and is intended to strengthen our position in customer segments where in the past our presence has been more limited. Through selective hiring, we have brought in specialised expertise and market knowledge that allow us to offer a broader range of services to customers with comprehensive needs for electrification, capacity, and resilience. This initiative is targeted at such customers as industrial companies, defence-related operations, public sector entities and other larger customers that require a resilient, secure and sustainable power supply for their continued development and competitiveness. This industrial initiative complements our established power business and enables a more diversified customer base, a stronger market position, and improved conditions for long-term profitable growth.
Infraservices – geographic expansion in Sweden
Infraservices also follows the seasonal pattern, with increased project volumes during the quarter. We are establishing a new region, Netel Infra East, while in parallel carrying out a restructuring process involving the discontinuation of a subsidiary acquired in 2022. Over the past six months, Netel Infra East has generated an order backlog of approximately MSEK 75. Excluding the effects of discontinuing the company, Infraservices has strong underlying profitability, with an EBITA margin of 4 per cent for the quarter. Our year-on-year growth of 17.6 per cent in the quarter clearly reflects our competitiveness and our ability to deliver high-quality results in customer projects.
Throughout 2025, Infraservices has worked conscientiously to adjust costs and establish central functions in areas such as risk management and project costing. These functions were established the end of the year and have led to the development of efficient internal processes. We are benefiting from this, now that we are seeing high and increasing levels of activity in many attractive local markets.
Telecom – a weak quarter
In the Telecom segment, we are seeing the clear effects of lower volumes in both mobile and fixed networks with revenue declining by 21.1% during the first half of the year. Our strategy for winning new customers in Telecom is proving successful – for example, we secured a contract with the Swedish Transport Administration and the property company Stångåstaden during the second quarter. These efforts are continuing, but will not fully offset the declining volumes from our traditional customers this year. However, our flexible business model will help mitigate the impact of the decline in volume.
Cash flow in line with seasonal pattern
Cash flow for the quarter was also in line with the industry’s seasonal patterns, and is expected to improve as higher project volumes come in during the second half of the year.
Merger of Netel’s Swedish companies
The process of merging our Swedish operating companies is proceeding as planned. The first applications have been filed with the Swedish Companies Registration Office, and we expect the companies involved to merge after the summer. The remaining companies are expected to be merged in the fourth quarter. Our plan for when we enter 2027 is to have a single operating company for Netel’s business activities in Sweden, rather than 14 companies. This is one of the key measures in our savings programme, which will lower our costs by MSEK 15–25 with full effect in 2027.
Proposed merger with Infrea
On 15 June 2026, the Boards of Netel and Infrea jointly announced their intent to merge the companies, with Netel as the absorbing party. The merger will create a leading Northern European company for infrastructure services, with total revenue of approximately SEK 5 billion and over 1,200 employees. This new Group will also generate significant synergies and strategic advantages, as the companies complement each other in terms of service offering and customer exposure, whilst operating in partly distinct geographical markets. We are strengthening our financial position, since prior to the merger the Board of Netel intends to resolve on a fully secured rights issue of approximately MSEK 127 and to propose an overallotment issue of up to MSEK 75, which will contribute to a balanced combined capital structure. The rights issue is fully secured through subscription commitments, with 78 per cent (MSEK 99) attributable to existing shareholders and 22 per cent (MSEK 28) to new investors. The new share issues by Netel and Infrea’s well-capitalised balance sheet, will help to provide the new Group a balanced capital structure. Our combined cash flows are expected to further reduce our net debt over time. The merger thus creates favourable conditions for competitive external financing and increases the new Group’s financial flexibility, while a reasonable level of debt promotes capital efficiency for shareholders. The completion of the merger is not conditional upon any financing, as the merger consideration consists entirely of new shares in Netel. In connection with the merger, the new Group has secured new financing from its existing lenders.
Future outlook
Netel operates in sectors that are critical for building a more resilient society. Electrification, digitalisation, and the need for modernising ageing infrastructure are making our role increasingly important. As I have previously emphasised, future competitiveness is not just about growth, but about the capacity for building robustness over time. With strong expertise, long-standing customer relationships, and a flexible business model, Netel is well positioned to grow profitably and create long-term value. Given the savings measures in 2025–2026 and the market conditions we see today, we are expecting growth and margin improvement for the full-year 2026.
Jeanette Reuterskiöld
President and CEO
Webcast presentation and teleconference
Jeanette Reuterskiöld, President and CEO, and Fredrik Helenius, CFO, will present the interim report on Friday, 10 July at 9:00 a.m. (CEST) in a webcast. Questions may be asked both online and by phone. Presentation material is also available at https://netelgroup.com/en/investors/reports-and-presentations/. The presentation will be held in English.
If you want to participate through the webcast, use the link https://netel-group.events.inderes.com/q2-report-2026. It will be possible to submit written questions during the webcast. If you want to ask questions orally via teleconference, please register through the link https://events.inderes.com/netel-group/q2-report-2026/dial-in. After registration, you will receive a telephone number and ID to log in to the conference. It will be possible to ask questions orally during the teleconference.
Interim reports on www.netelgroup.com
The complete interim report and previous reports are available on https://netelgroup.com/en/investors/reports-and-presentations/.
Next report
The third quarter report 2026 will be published 21 October 2026, 07:30 a.m. CEST.