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
ANNONS
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.
