Netel (NETEL) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales were SEK 725 million, down 6.4% year-over-year, with adjusted EBITA/EBITDA at SEK 24 million, mainly impacted by lower telecom volumes and seasonality.

• Year-to-date net sales reached SEK 1.3 billion, down from SEK 1.45 billion, and adjusted EBITDA was SEK 34 million, down from SEK 61 million.

• Order backlog stands at SEK 3.7 billion, with SEK 1.2 billion to be completed in 2026, supporting a positive outlook for H2.

• The proposed merger with Infrea, expected to close in Q4 2026, will create a leading Northern European infrastructure services group with SEK 5 billion in annual revenue and over 1,200 employees.

• High activity in infraservices and power, with new customer wins and strong order intake across all divisions.

Financial highlights

• Q2 net sales: SEK 725 million (down 6.4% YoY); adjusted EBITA/EBITDA: SEK 24 million (3.3% margin), down from SEK 39 million (5.1%) YoY.

• EPS: SEK -0.63, down from SEK 0.18 in Q2 2025, mainly due to merger and restructuring costs.

• Operating cash flow in Q2 was SEK -31 million, improved from SEK -61 million in Q2 2025; liquidity at SEK 228 million.

• Order backlog at end of June: SEK 3.7 billion, with SEK 1.2 billion to be produced in H2.

• Loss after tax from continuing operations was SEK -31 million, compared to SEK 9 million profit in Q2 2025.

Outlook and guidance

• Guidance for growth and margin improvement in 2026 is maintained, with expectations of a stronger H2 and ongoing cost-saving measures.

• Cost savings of SEK 15–25 million expected in 2027 from internal restructuring, with an additional SEK 50 million in synergies from the Infrea merger.

• Cash flow is expected to turn positive in H2 2026, supported by improved margins and project invoicing.

• The second half of the year is expected to be the peak season with higher project volumes and profitability.

• Merger with Infrea expected to enhance market position and operational synergies.