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Eltel Q1'26: Strong revenue growth

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  • Eltel’s CEO said Q1 2026 delivered strong revenue growth and a clear profit improvement, extending the company’s year-on-year margin improvement streak to 11 consecutive quarters. He added that long-term demand remains intact despite macro uncertainty.
  • According to the CEO, activity in renewable energy has softened faster than expected, especially in wind and solar PV, while energy storage remains active and data center demand has picked up faster than expected. He also said public-sector demand is increasing, while fuel, asphalt and cabling costs had only a very minor impact in Q1.
  • The CEO said Eltel is better positioned than 2-3 years ago due to a more flexible cost structure and stronger contract indexation. He noted headcount has been reduced to about 3,600 from roughly 5,000 while maintaining revenue at a similar level, with greater use of subcontractors and partners in emerging services.
  • Management said the business mix is broadening, with the top five customers now accounting for 40% of revenue versus more than 50% three years ago. The CEO reiterated an expectation that emerging services could represent about one-third of the business by end-2027, while service, maintenance and upgrades still account for 72% of current activity.

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Eltel released their first quarter results today, reporting a significant improvement in profitability. We sat down with CEO Håkan Dahlström to discuss the drivers behind the strong Q1, how he views the current market environment, and their ambitions to gain market share.