Netel Holding AB reported net sales of SEK725 million for the second quarter of 2026, a decline from SEK775 million during the same period in 2025. According to the company’s July 2026 earnings release, the firm’s adjusted EBITDA fell to SEK24 million from SEK39 million year-over-year, as the business navigates restructuring costs and a significant downturn in its telecom segment.
Telecom Volatility and Segment Performance
The company’s telecom segment faced a 22% drop in sales compared to the previous year, serving as the primary drag on overall profitability. Despite these headwinds, other areas of the business showed resilience. The Infra Services segment grew by 17.6% to SEK184 million, while the power segment maintained stability with a 0.5% growth rate, reaching SEK269 million in sales. According to CEO Jeanette Reuterskiold, the power business in Norway remains a bright spot, posting a 20% increase for the quarter.
Strategic Merger and Operational Restructuring
Netel is currently working toward a proposed merger with Infrea. This integration is designed to consolidate their market position in Northern Europe. CFO Fredrik Helenius noted that the company anticipates SEK50 million in synergies from the merger, which will be achieved by streamlining procurement and eliminating duplicate costs. These savings are distinct from the SEK15 million to SEK25 million in internal cost-cutting measures targeted for 2027.
Simultaneously, the firm is winding down a subsidiary acquired in 2022. This restructuring, which involves transitioning operations to the new Netel Infra East entity, has contributed to additional costs in the first half of 2026. Management expects to finalize this transition by the end of 2026, though some associated projects may continue into 2027.
Market Outlook and Order Backlog
Despite current financial pressures, Netel maintains a solid pipeline of work. The company reported a total order backlog of SEK3.7 billion, with SEK1.2 billion slated for completion within 2026. New framework agreements with major clients, including the Swedish Transport Administration and Swedavia, provide a buffer against market volatility.
Frequently Asked Questions
How does the company plan to achieve its growth targets?
CFO Fredrik Helenius stated that the company views the remaining volume needed to reach annual growth targets as a “normal course of business,” supported by recent order intake and an active market environment.
What is the current liquidity status of Netel Holding AB?
As of the second quarter of 2026, the company reported available liquidity of SEK228 million.
Are the cost-saving measures related to the Infrea merger?
No. The SEK15 million to SEK25 million in cost savings for 2027 are separate from the SEK50 million in synergies expected from the Infrea merger, according to CFO Fredrik Helenius.
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