Netel is well-prepared for the merger with Infrea
Summary by AI BETAClose X
Strategic summary — merger with Infrea approved by Extraordinary General Meetings and Netel’s rights issue oversubscribed
- Extraordinary General Meetings of Netel and Infrea, as well as all relevant authorities, have approved the merger with Infrea
- Netel’s rights issue was oversubscribed – Netel raised proceeds of MSEK 140
- Adjusted full-year 2026 indication – Margin improvement is expected for full-year 2026, supported by savings and current market conditions. No growth is expected as the Norwegian telecom market is changing faster than planned.
- Activity levels remain high in the infraservices and power markets
Financial summary — strong operating cash flow and high order backlog
Continuing operations
- The order backlog was MSEK 3,673 (3,699)
- Net sales grew 4.5 per cent to MSEK 682 (652) driven by a solid performance in Infraservices and Power
- Adjusted EBITA increased to MSEK 20 (-34), with an adjusted EBITA margin of 2.9 per cent (-5.3), as a result of higher sales in Infraservices and Power, as well as the effects of the savings programmes introduced in the third quarter of 2025
- Cash flow from operating activities increased to MSEK 60 (-44) for the quarter
| MSEK | July-September | January-September | R12 Oct-Sept | Full-year | ||
| Continuing operations | 2026 | 2025 | 2026 | 2025 | 2025/2026 | 2025 |
| Net sales | 682 | 652 | 1,983 | 2,103 | 2,794 | 2,915 |
| Net sales growth | 4.5% | -16.4% | -5.7% | -7.1% | -8.4% | -9.3% |
| EBITA | -5 | -41 | -6 | 14 | -24 | -5 |
| EBITA margin | -0.7% | -6.2% | -0.3% | 0.7% | -0.9% | -0.2% |
| Adjusted EBITA | 20 | -34 | 53 | 26 | 55 | 28 |
| Adjusted EBITA margin | 2.9% | -5.3% | 2.7% | 1.3% | 2.0% | 1.0% |
| EBIT | -7 | -43 | -12 | 8 | -33 | -13 |
| EBIT margin | -1.0% | -6.6% | -0.6% | 0.4% | -1.2% | -0.5% |
| Net debt excluding leasing | 727 | 864 | 727 | 864 | 727 | 786 |
| Net debt excluding leasing /adjusted EBITDA R12 | 5.5 | 5.6 | 5.5 | 5.6 | 5.5 | 7.6 |
| Earnings per share before and after dilution continuing operations (SEK) | -0.52 | -0.99 | -1.54 | -0.86 | -2.52 | -1.86 |
| Earnings per share before and after dilution including discontinued operations (SEK) | -0.52 | -1.39 | -1.54 | -1.04 | -2.89 | -2.42 |
CEO’s comments
Netel is well-prepared for the merger with Infrea
With a successfully oversubscribed new share issue, positive operating cash flow and good effects from our internal improvements, we are well prepared ahead of the merger with Infrea later in the quarter. We are also bringing a strong order backlog of SEK 3.7 billion into the new Group. Supported by our strategic focus on profitability in tender processes and our internal improvement initiatives, our expectation for margin improvement for the full year 2026 remains unchanged. However, we have adjusted our growth indication for the full year 2026 and no longer anticipate growth, as the transformation of the Norwegian telecommunications market is occurring more rapidly than we had previously planned for.
Net sales for the quarter were positively impacted by strong performances in both Infraservices and Power in Sweden and Norway, while sales in Telecom were lower. All divisions reported improved earnings performances as a result of the savings programmes we introduced last year. Higher project volumes in Infraservices and Power also contributed to the earnings trend. The Group’s profitability was impacted by costs related to the merger with Infrea, costs associated with the merger of the Swedish operating companies and the ongoing discontinuation of a company in Infraservices that was acquired in 2022. Adjusted for these costs, EBITA increased to MSEK 20 (-34). The operating cash flow was positive with MSEK 60 as a result of the increased project volumes and the subsequent reduction in tied-up capital.
Strong performance for Power in Norway
Growth for the Norwegian operations in Power was especially strong, and we won important contracts in both Norway and Sweden that strengthen the order backlog for 2027 and ahead. Energy customers in both countries are investing in improved and expanded capacity to meet growing electrification.
Infraservices on the way towards increased profitability
Profitability in Infraservices was dampened again this quarter by the process of discontinuing a company that was acquired in 2022, although this work will be essentially completed before the end of the year. Adjusted for these discontinuation costs, Infraservices reported an EBITA margin of 1.7 per cent for the quarter.
Telecom – rapid transition in Norway
For Telecom, the market transition in Norway is progressing faster than expected, from the rollout of fibre to service which means lower volumes and increased competition. This had a negative impact on net sales since we are focusing on profitability in procurements. We have therefore, ahead of schedule, started work to change our strategic direction and adapt our organisation for Telecom in Norway. As we did previously in Sweden, we will now shift operations to more project operations by expanding the customer base from traditional telecom operators to public and private sector customers and the defence industry. This will allow us to build a more profitable business in the future and to adapt to new market conditions.
Order backlog of SEK 3.7 billion
Our order backlog remains high at SEK 3.7 billion, with the majority of the volume scheduled for 2027 and 2028. After the end of the quarter, we announced several major orders in both Power and Telecom, totalling över MSEK 230. Within Power, we have been entrusted with building more power stations for Elvia in Norway, as well as E.ON and another major energy supplier in Sweden. In Telecom, we won a new fibre customer in Germany, Sachsen Energie.
Merger of Swedish companies
One of the key measures in our savings programme, which will lower our costs by MSEK 15–25 with full effect in 2027, is the merger of our twelve Swedish operating companies. The merger went according to plan and we now have seven companies fully registered with the Swedish Companies Registration Office. Soon we will enter into 2027, and when we do we will have a single operating company for Netel’s operations in Sweden, which will shorten decision-making processes, reduce overhead costs and make us more efficient in such areas as purchasing, tendering and project management. In addition, it will establish standardised ways of working, faster exchange of knowledge and more efficient communication channels.
Adjusted indication for full-year 2026
We previously announced that we expected growth and improved margins for the full-year 2026, based on the savings measures for 2025–2026 and the market conditions at the time. But the Norwegian telecom market has changed faster than expected, and so we have adjusted the indication to state that we do not expect any growth for the Group for full-year 2026. The indication for improved margins for the full-year 2026 remain unchanged, however, since we prioritise profitability in tender processes rather than volume.
Oversubscribed new share issue ahead of the merger with Infrea
It was pleasing to see wide-spread support for our rights issue both from existing and new investors. This is clear proof of the trust Netel enjoys and the potential of the new Group we are creating with Infrea. Together with Infrea, we are creating a leading Northern European group for infrastructure services, with total revenue of approximately SEK 5 billion and just over 1,200 employees in Sweden, Norway and Germany. We will also generate significant synergies and strategic advantages as the companies complement each other in terms of service offering and customer exposure. This means we will be better able to take on larger, more complex projects while gaining the capacity for a higher number of smaller assignments. This increases our sales potential, while the merger is expected to generate significant cost synergies.
Future outlook
We have taken important steps in recent years to restructure and strengthen Netel, creating a more focused, efficient and resilient organisation. I would like to extend my sincere thanks to all of our dedicated employees, whose commitment and drive have helped bring about this change. Thanks to your efforts, Netel is well prepared for the merger with Infrea and the next step of our development – to create a larger, stronger Group together with Infrea with a position as a leading player in critical infrastructure services.
Jeanette Reuterskiöld
President and CEO
Webcast presentation and teleconference
Jeanette Reuterskiöld, President and CEO, and Fredrik Helenius, CFO, will present the interim report on Wednesday, 28 October at 9:00 a.m. CET in a webcast. Questions may be asked both online and by phone. Presentation material is also available at https://netelgroup.com/en/investors/reports-and-presentations/. The presentation will be held in English.
If you want to participate through the webcast, use the link https://events.inderes.com/netel-group/q3-report-2026. It will be possible to submit written questions during the webcast. If you want to ask questions orally via teleconference, please register through the link https://events.inderes.com/netel-group/q3-report-2026/dial-in. After registration, you will receive a telephone number and ID to log in to the conference. It will be possible to ask questions orally during the teleconference.
Interim reports on www.netelgroup.com
The complete interim report and previous reports are available on https://netelgroup.com/en/investors/reports-and-presentations/.
Next report
The year-end and fourth quarter report 2026 will be published 19 February 2027, 07:30 a.m. CET.
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