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• Net Sales: Declined by almost 4% due to last year's divestment of high voltage Poland; organic growth was 0.6%.

• Gross Profit: Increased to 20% during the quarter.

• Adjusted EBITA: Improved by nearly EUR5 million, reaching EUR0.9 million.

• Cash Flow: Improved by EUR22 million compared to the previous year.

• Leverage: Reduced to 2.1% from 6.3% in the first quarter of 2023.

• Net Debt: Reduced to EUR104 million from EUR160 million in the first quarter of 2023.

• Sweden Operations: Net sales growth of 6.5%; adjusted EBITA tripled to EUR1.5 million.

• Finland Operations: Adjusted EBITA improved by EUR2 million, reaching EUR1.7 million.

• Denmark and Germany Segment: Net sales of EUR30.5 million; adjusted EBITA nearly doubled, reaching 7.9%.

• Norway Operations: Net sales declined by 7.4%; adjusted EBITA at negative EUR1.8 million.

• Order Book: Solid order book of EUR1.3 billion.

• New and Adjacent Markets: 6% of net sales from new areas; 17% of contracts signed during the quarter from new areas.

• Warning! GuruFocus has detected 4 Warning Signs with FRA:E5E.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Eltel AB (FRA:E5E) reported its strongest first quarter in many years, with a significant improvement in adjusted EBITA, marking the seventh consecutive quarter of profitability improvement.

• The company achieved a notable improvement in cash flow, with a EUR22 million increase compared to the previous year, contributing to a healthier financial position.

• Sweden showed strong performance with a 6.5% growth in net sales, driven by public infrastructure and solar investments, marking the 12th consecutive quarter of profitability improvement.

• The newly established Denmark and Germany segment reported significant profitability improvement, with adjusted EBITA nearly doubling to 7.9%, the highest in the Eltel Group.

• Eltel AB (FRA:E5E) has successfully broadened its customer base, particularly in public infrastructure, which has contributed to a solid order book of EUR1.3 billion.

Negative Points

• Net sales declined by almost 4% due to the impact of last year's divestment of the high voltage business in Poland.

• Norway remains a challenging market for Eltel AB (FRA:E5E), with continued declines in net sales and unprofitable operations, resulting in a negative adjusted EBITA of EUR1.8 million.

• The company faces lower activity levels in communication compared to power, with the exception of the Swedish market.

• Eltel AB (FRA:E5E) has not provided a clear timeline for resuming dividend payouts, as the situation in Norway and other segments still requires improvement.

• The fiber to the home business in Finland is experiencing a reduction in demand, indicating that the peak of the rollout may have been reached in 2024.