Netel Holding AB (NETEL) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to Natel Q2 Report for 2025. For the first part of the conference call, the participants will be in listen-only mode. During the questions and answers session, participants are able to ask questions by dialing pound key 5 on their telephone keypad. Now I will hand the conference over to CEO and President Jeanette Ruderskild and CFO Frederick Hellenius. Please go ahead. Good morning and welcome to our presentation of our second quarter. My name is Jeanette Reuterskjöld, I'm CEO and President of Netel. With me today I have Fredrik Helenius, our CFO. In the second quarter we continue to have a large proportion of projects in startup phase across all divisions. However, telecom has increased its volumes primarily due to positive trend in Sweden and Germany. The high proportion of product start has also negatively impacted profitability since initial activities needs to be performed in our projects before we can start deliveries and invoicing. The major contracts that we are now commencing include, for example, LVS Power Stations in Norway, a new framework agreement with GlitterNet in Norway. an expanded framework agreement with Tele2 in Sweden, and fiber networks for UGG and Enviatel in Germany. The order backlog continued to be strengthened and increased to 4.1 billion, part of which will extend into 2027, but the vast majority comprises deliveries in 2025 and 2026. The adjusted EBITDA margin amounted to 5.2% during the quarter, negatively impacted by the high proportion, as I said earlier, from products in the startup phase. In infraservices sales decreased 29.8% in the quarter compared with an unusually strong comparative quarter last year. but the division has continued to capture new customers and expanded collaboration with existing ones step by step we are...