Analyst Comment
Eltel signs new frame agreement with E.ON
Eltel has announced that it has signed a new frame agreement with E.ON for connection and metering services in five of E.ON's geographical areas. The work includes both new constructions and increased capacity for existing households and is scheduled to begin in February 2026. The contract has a maximum duration of six years, including the possibility of an extension for three years. The value of the initial three-year period is estimated at 24.6 MEUR.
We view the new framework agreement positively, as it strengthens the company's position in critical communication and supports our growth estimates. However, spread roughly evenly on an annual basis, the agreement is relatively small for Eltel (2025e revenue of 863 MEUR, ~1% of Group revenue). On the other hand, it brings important volume to the Swedish country unit (2025e revenue 224 MEUR). However, due to the size of the frame agreement, it has no direct impact on our forecasts or view of the company.
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 Figures2025-05-02
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 828.7 | 863.0 | 887.9 |
| growth-% | -2.5 % | 4.1 % | 2.9 % |
| EBIT (adj.) | 10.4 | 26.9 | 30.3 |
| EBIT-% (adj.) | 1.3 % | 3.1 % | 3.4 % |
| EPS (adj.) | -0.03 | 0.05 | 0.09 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | 23.0 | 12.2 |
| EV/EBITDA | 13.7 | 5.2 | 4.5 |
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