Eltel: Keeps the margin improvement streak going - ABG

Another quarter of y-o-y margin improvement
Margin-driven EBITA upgrades of 6-4% for '25e-'26e
Share trading at 9.9-7.5x '25e-'26e EV/EBITA


Q4 showcased more margin improvements

Eltel reported Q4 sales of EUR 226m, down 6% y-o-y, of which -2% organic. However, adj. EBITA came in at EUR 5.7m (ABGSCe 3.6m), up 104% y-o-y, for a margin of 2.5% (1.2%), marking yet another quarter of clear margin progress, driven by continued work on improving prices and terms on contracts. There is still work to be done on this front though as some contracts will take time to roll over onto better terms. End-market demand remains mixed, and while overall profitability is up materially, we note that Communication sales in Norway remain especially weak, and Eltel is working on further downsizing its Norwegian organisation as a result.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eltel/Equity-research/2025/2/eltel---keeps-the-margin-improvement-streak-going/