In This Article:
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Net Sales: Decrease due to divestment of High Voltage operation in Poland.
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Organic Growth: Flat during the quarter.
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Gross Profit: EUR28 million, increased in the fourth quarter and full year.
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Adjusted EBITDA: Doubled in the fourth quarter compared to last year.
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New Contracts Signed: EUR308 million in the fourth quarter.
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Order Book: EUR1.220 billion at the end of 2024.
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Leverage: Reached target of 2.5.
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Adjusted EBITA (Q4): EUR5.7 million, more than double compared to previous year.
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Full Year Adjusted EBITA: EUR10.5 million.
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Finland Net Sales Growth: Exceeded 3%.
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Sweden Net Sales Growth: Exceeded 5% in Q4, close to 7% for the full year.
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Norway Net Sales Decline: EUR4 million decline in Communication.
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Denmark Net Sales Decline: 8% decline due to shift from Communication to Power.
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Net Working Capital: Improved to negative EUR61.3 million from negative EUR49.8 million.
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Net Debt: EUR114 million, increased due to fleet renewal.
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New and Adjacent Market Revenue: EUR31 million in 2024.
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New and Adjacent Market Contracts: EUR111 million signed in 2024.
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Eltel AB (FRA:E5E) achieved a significant improvement in profitability, with adjusted EBITDA more than doubling in the fourth quarter compared to the previous year.
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The company reached its leverage target of 2.5, indicating improved financial stability.
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Eltel AB (FRA:E5E) signed new contracts worth EUR 308 million in the fourth quarter, contributing to a strong order book of EUR 1.220 billion.
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The company successfully delivered its first utility-sized solar installation in Finland and a battery energy storage solution in Denmark and Finland.
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Eltel AB (FRA:E5E) reported major profitability improvements in its Finnish operations, with adjusted EBITA nearly doubling to EUR 6 million.
Negative Points
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Net sales decreased due to a slow market and the divestment of the High Voltage operation in Poland.
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Organic growth was flat during the quarter, indicating challenges in expanding sales.
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Norway's operations faced a decline in communication volumes, resulting in a EUR 4 million decrease in net sales.
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The company had to implement significant headcount reductions, including 200 employees in Norway, to improve efficiency.
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Group function costs increased from EUR 9 million in 2023 to EUR 11 million in 2024, partly due to one-off restructuring costs.
Q & A Highlights
Q: Can you provide an update on the contract terms for annual contracts and any price increases in negotiations? A: Hakan Dahlstroem, CEO: Our frame agreements typically have three- or four-year commitments with options for extensions. Some contracts have predefined conditions, while others are more open. Our pricing strategy has been effective over the past two years, and we expect it to continue working well.