Eltel secures 60 MEUR framework agreement with Elisa
Summary
- Eltel has announced a new framework agreement with Elisa, valued at approximately 60 MEUR, enhancing Eltel's Finnish operations visibility through 2029.
- The agreement, starting May 1, 2026, covers network design, construction, installation, and maintenance, with an estimated annual value of 17 MEUR, representing about 5% of Eltel's 2026 Finnish revenue estimate.
- This agreement strengthens Eltel's position as a key contractor for Elisa, ensuring long-term capacity utilization and stability in the Finnish market.
- The agreement mitigates risks associated with a soft telecom market, confirming Eltel's competitiveness despite a maturing fiber market, with further insights expected from the upcoming Q1 report.
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Eltel has announced a new framework agreement with the Finnish telecommunications leader Elisa, valued at ~60 MEUR. We view the agreement positively as it builds upon an existing strategic relationship and provides increased visibility for Eltel’s Finnish operations through 2029. We maintain our estimates unchanged ahead of the Q1 report later today.
Strengthening the backbone of the Finnish Communication business
The agreement, which commences on May 1, 2026, covers a comprehensive scope including network design, construction, installation, and maintenance for both mobile and fixed services. With an estimated annual value of roughly 17 MEUR, the contract represents ~5% of our 2026 revenue estimate for the Finnish unit (2026e: 364 MEUR) and nearly 2% of Group revenue (2026e: 843 MEUR). We view this new framework agreement positively, as it essentially enhances Eltel’s position as a key contractor for Elisa while ensuring that a large portion of the Finnish unit's capacity remains utilized under a long-term framework. In our view, securing such an agreement with the Finnish market leader is an important anchor for the stability of the local operations, similar to the framework renewal signed with Caruna last year.
Improved visibility helps mitigate soft telecom market trends
We believe this agreement is an important step in securing the long-term stability of the Finnish Communication segment. In the final quarter of 2025, Finland's revenue grew by a modest 1% to 102 MEUR, as declining volumes in fiber-to-the-home (FTTH) partially offset growth in other areas. Securing this framework agreement through 2029 reduces the risk profile of our Finnish estimates and confirms Eltel’s competitiveness in its core business despite a maturing fiber market. While the agreement supports our constructive view on the company's ongoing turnaround, we await the Q1 results later today for a more complete assessment of the current operational momentum and any potential impact on our full-year forecasts.
Eltel operates in the telecommunications and electricity industries and offers services in infrastructure for networks and electricity. The company's services include installation, maintenance and project management for telecommunications and electricity networks. The business is aimed at companies and public institutions in Europe. Eltel was founded in 2001 and is headquartered in Stockholm, Sweden.
Read more on company pageKey Estimate Figures16/02
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 817.8 | 843.4 | 867.6 |
| growth-% | -1.3 % | 3.1 % | 2.9 % |
| EBIT (adj.) | 20.7 | 27.5 | 30.9 |
| EBIT-% (adj.) | 2.5 % | 3.3 % | 3.6 % |
| EPS (adj.) | 0.01 | 0.06 | 0.09 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | 72.1 | 14.7 | 10.2 |
| EV/EBITDA | 5.6 | 4.7 | 4.2 |
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