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Net Sales (Q2 2026): SEK725 million, down from SEK775 million in Q2 2025.

Adjusted EBITDA (Q2 2026): SEK24 million, down from SEK39 million in Q2 2025.

Adjusted EBITDA Margin (Q2 2026): 2.6%, down from 4.2% in Q2 2025.

Year-to-Date Net Sales (2026): SEK1.3 billion, down from SEK1.45 billion in 2025.

Year-to-Date Adjusted EBITDA (2026): SEK34 million, down from SEK61 million in 2025.

Order Backlog: SEK3.7 billion, with SEK1.2 billion to be completed in 2026.

Operating Cash Flow (Q2 2026): Minus SEK31 million.

Available Liquidity: SEK228 million.

Infra Services Sales (Q2 2026): SEK184 million, growth of 17.6%.

Power Segment Sales (Q2 2026): SEK269 million, growth of 0.5%.

Telecom Sales (Q2 2026): SEK272 million, down 22% from last year.

Release Date: July 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Netel Holding AB (FRA:2CR) reported a strong order backlog of SEK3.7 billion, with SEK1.2 billion expected to be completed within the year, indicating a solid pipeline of future work.

The proposed merger with Infrea is expected to create a leading Northern European infrastructure service company with significant synergies and strategic advantages.

The company is experiencing strong growth in its power segment, particularly in Norway, with a 20% increase in the quarter.

Netel Holding AB (FRA:2CR) has secured new contracts with significant clients such as Swedavia and the Swedish Transport Administration, enhancing its market position.

The company maintains a flexible business model, allowing it to adapt to market changes, particularly in the telecom sector, where it has secured new framework agreements.

Negative Points

Net sales and adjusted EBITDA have declined year-over-year, with net sales dropping from SEK775 million to SEK725 million and adjusted EBITDA from SEK39 million to SEK24 million.

The telecom segment is facing challenges due to lower volumes, resulting in a 22% decrease in sales, impacting overall profitability.

The company is undergoing restructuring, including winding up a subsidiary acquired in 2022, which has incurred additional costs.

Operating cash flow was negative at minus SEK31 million in the second quarter, reflecting the need for working capital in early project phases.

The competitive environment remains challenging, with high competition for new contracts, potentially impacting pricing and margins.

Story Continues

Q & A Highlights

Q: Can you describe the process and potential costs associated with winding up the company acquired in 2022? A: Fredrik Helenius, CFO, explained that they are in the process of winding up the operations and have started new operations under Netel Infra East. They have ongoing projects and expect to finalize the transition by the end of 2026, with some projects extending into 2027. Extra costs have occurred in the first half of 2026, but they aim to complete the process within the year.

Q: Is the SEK500 million gap to show growth for the year feasible? A: Fredrik Helenius, CFO, stated that the remaining volume needed to achieve growth is balanced and viewed as a normal course of business. They have added significant order intake and expect the active market to support their growth target.

Q: How do you view the competitive environment and pricing for upcoming contracts? A: Jeanette Reuterskiold, CEO, noted that while the market remains competitive, there is a shift towards a more normalized situation. They expect a better pricing environment next year due to resource capacity constraints and increased market activity.

Q: Can you manage the resource demands in Norway given the growth there? A: Jeanette Reuterskiold, CEO, confirmed that they can manage the growth in Norway. They have a good momentum in their power business and are strategically working with subcontractors to scale up operations.

Q: Are the cost savings for 2027 complementary to the SEK50 million synergies from the merger with Infrea? A: Fredrik Helenius, CFO, clarified that the SEK15 million to SEK25 million cost savings are separate from the SEK50 million synergies expected from the merger. The latter focuses on eliminating duplicate costs and improving procurement efficiencies.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.