Eltel

Interim Report • Jul 24, 2025

Eltel Group

Half-year report January–June 2025

Stockholm, Sweden, 24 July 2025

April–June 2025

• Net sales EUR 201.0 million (216.0), a decrease of 6.9%. Organic growth1) was -5.4%
• Gross profit EUR 22.5 million (21.7) and gross margin 11.2% (10.0)
• Adjusted EBITDA EUR 10.3 million (8.4)
• Adjusted EBITA2) EUR 2.5 million (0.5) and adjusted EBITA margin 1.2% (0.2)
• Items affecting comparability4) EUR -0.5 million (0.0)
• Operating result (EBIT) EUR 2.0 million (0.5) and EBIT margin 1.0% (0.2)
• Net result EUR -0.8 million (-2.7)
• Earnings per share EUR -0.01 (-0.02), basic and diluted
• Cash flow from operating activities EUR -7.8 million (-2.2)

January–June 2025

• Net sales EUR 370.6 million (392.3), a decrease of 5.5%. Organic growth1) was -2.7%
• Gross profit EUR 44.7 million (40.2) and gross margin 12.1% (10.2)
• Adjusted EBITDA EUR 18.0 million (12.0)
• Adjusted EBITA2) EUR 3.4 million (-3.5) and adjusted EBITA margin 0.9% (-0.9)
• Items affecting comparability4) EUR -1.1 million (-23.1)
• Operating result (EBIT) EUR 2.3 million (-26.7) and EBIT margin 0.6% (-6.8)
• Net result EUR -3.4 million (-33.2)
• Earnings per share EUR -0.03 (-0.22), basic and diluted
• Cash flow from operating activities EUR 9.7 million (-7.1)
• Net debt EUR 144.6 million (127.9)

Significant events during and after the reporting period

• During the second quarter, Eltel signed new contracts with a combined value of about EUR 104 million (317) and the value of the total orderbook5) was EUR 1.2 billion.
• On 8 May, it was announced that Klas Elmberg was appointed as the new Managing Director for Eltel Sweden and member of the Group Management Team assuming his role on 1 August.
• On 28 May, it was announced that Yathukulan Kankesan was appointed as the new Managing Director for Eltel Denmark & Germany and member of the Group Management Team from 1 August, replacing Claus Metzsch Jensen.
• On 16 June, the successful issue of new bonds amounting to EUR 130 million was announced and on 25 June, the completion of settlement for tender offer and cancellation of repurchased hybrid bonds was announced. Read more on page 11.
• On 24 June, it was announced that Eltel Finland and Hyperco signed a datacenter contract valued at EUR 16 million.
• On 30 June, it was announced that Eltel Sweden and E.ON. signed a frame agreement for connection and metering services valued at approximately EUR 24.6 million and on 8 July another frame agreement with E.ON., was announced, valued at approximately EUR 18 million.

Key figures

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	201.0	216.0	370.6	392.3	828.7
Net sales growth, %	-6.9%	3.8%	-5.5%	-1.1%	-2.5%
Gross profit	22.5	21.7	44.7	40.2	91.8
Gross margin, %	11.2%	10.0%	12.1%	10.2%	11.1%
Adjusted EBITDA	10.3	8.4	18.0	12.0	45.2
Adjusted EBITA2)	2.5	0.5	3.4	-3.5	10.5
Adjusted EBITA margin, %	1.2%	0.2%	0.9%	-0.9%	1.3%
Adjusted EBITA2), segments3)	5.9	3.7	9.6	3.4	22.6
Adjusted EBITA margin, %, segments3)	2.9%	1.8%	2.6%	0.9%	2.8%
Operating result (EBIT)	2.0	0.5	2.3	-26.7	-18.0
Net working capital	-59.2	-54.3	-59.2	-54.3	-61.3
Net debt	144.6	127.9	144.6	127.9	114.0
Number of employees, average, FTE	3,932	4,717	3,962	4,801	4,550

1) Organic growth is adjusted for currency effects and divestments. Net sales as well as other figures in the income statement during January-June 2024 included High Voltage Poland.

2) Eltel follows the profitability of segments with adjusted EBITA, which does not include restructuring costs and other items affecting comparability. Please see pages 26–27 for definitions of the key ratios.

3) Adjusted EBITA and margin for segments have been restated in comparative periods according to the new segment structure. See page 25 for more information.

4) See reconciliation of segment results on page 5 for more information.

5) Total orderbook includes the committed order backlog and the best estimate for uncommitted remaining parts of frame agreements until the end of the agreement.

Comments by the CEO

I am pleased to report that the trajectory of improved profitability continued in Q2, marking the eighth consecutive quarter of improved adjusted EBITA year-on-year. The profitability improvement was mainly attributed to enhanced operational and commercial excellence, but also to an increasing share of new business with better margins. In Q2, 10% of total net sales came from new business, such as renewable energy and Data Center, which is more than 100% growth year-on-year.

The Group's adjusted EBITA improved by EUR 2.0 million to EUR 2.5 million (0.5) and the adjusted EBITA margin improved to 1.2% (0.2). The positive development is driven by improved gross profit both in absolute numbers and percentages. Equally important though, is that all segments contributed to the improved profitability in Q2.

We saw a strong growth in Sweden but a decline in the other segments. It is clear that global uncertainty has caused some delays in decision-making. At the same time, the geopolitical situation paves the way for an enhancement of critical infrastructure, as resilient and robust networks are crucial in our current and future societies. The effect of this is visible in our Swedish business.

Other megatrends driving and affecting Eltel's business are digitalization, electrification, and climate change impacting all segments. In Eltel Finland, our operations in new business showed strong growth in Q2. Especially the Solar PV* and Data Center business had a strong development, although not fully compensating for the decline in Communication caused by the slowdown in the rollout of fiber-to-the-home. Profitability wise, Finland shows a positive trend, reporting its seventh consecutive quarter of improved adjusted EBITA.

Sweden also showed increasing revenue from Solar PV, although the largest volume increase came from the public infrastructure operations. Sweden presents its seventh consecutive quarter of year-on-year net sales growth and the 13th consecutive quarter of improved adjusted EBITA. Both Communication and Power contributed to the profitability improvements in Q2.

In Denmark & Germany, we saw positive development in Power although it did not compensate for the reduced net sales in Communication. However, the strong focus on operational excellence paved the way for continued profitability improvement.

In Norway, the persistent focus on operational excellence started to yield results and is noticeable both in operational performance indicators and in an improvement of the adjusted EBITA margin. Net sales decreased, as expected, due to continued lower volumes in telecom. The restructuring process, which began in 2024, was completed in Q2.

Towards the end of the quarter, we carried out a comprehensive refinancing of the entire debt portfolio. The newly issued fouryear senior bond of 130 million euros was well received by the market. Supported by this refinancing, as well as the tailwinds from the strong megatrends mentioned, we are well-positioned for future growth. With the team in place, steady improvement of our profitability, continuous broadening of our customer base and strong growth in new business, I am very confident about Eltel's future development.

Håkan Dahlström, President and CEO

*Solar Photovoltaics, a technology that converts sunlight directly to electricity.

About Eltel and the Group strategy

Eltel in brief

Eltel is the leading service provider for critical infrastructure that enables renewable energy and high-performing communication networks. Operations are conducted in the Nordic countries, Germany, Poland (a Shared Services Center) and Lithuania within country-based organizations that have full responsibility for their financial results.

Within business area Communication, Eltel establishes networks and supports the societal need for greater digitalization. We provide design, installations, upgrades and maintenance services mainly to mobile and fixed communication network owners and operators and increasingly to private and public sector.

Within business area Power, Eltel enables the transition to renewable energy and the electrification of society. We provide maintenance and upgrade services to power distribution and transmission, smart grids and turnkey solutions in e-Mobility, Solar PV, wind energy and battery energy storage systems.

With our expertise in both Communication and Power we are well equipped to provide comprehensive solutions for Data Centers, an area which we entered in 2024 and now constitutes an important and growing part of new business.

Our strategy – towards sustainable profitable growth

Through our strategy, we build the foundation for sustainable profitable growth. This involves:

• Improve efficiency and profitability of the current business
• Broaden the customer base
• Grow in new and adjacent markets, such as renewable energy and public infrastructure
• Integrate sustainability as part of our offerings and operations
• Develop our concepts and commercial capabilities
• Implement new business models and expand our position in the value chain

The strategy will enable Eltel to ensure long-term value creation for our shareholders, customers, employees and society at large.

Eltel's financial targets

Group adjusted EBITA margin	5%
Annual growth	2–4%
Leverage	1.5–2.5x net debt/adjusted EBITDA
Dividend payout	Subject to leverage target

Net sales and earnings Group

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	201.0	216.0	370.6	392.3	828.7
Adjusted EBITDA	10.3	8.4	18.0	12.0	45.2
Adjusted EBITA	2.5	0.5	3.4	-3.5	10.5
Items affecting comparability	-0.5	0.0	-1.1	-23.1	-28.5
EBIT	2.0	0.5	2.3	-26.7	-18.0
Net result	-0.8	-2.7	-3.4	-33.2	-29.1
Key ratios
Net sales growth, %	-6.9%	3.8%	-5.5%	-1.1%	-2.5%
Organic growth1), % in segments	-5.6%	5.2%	-2.8%	0.8%	1.5%
Currency translation effect in net sales, MEUR	2.7	0.8	2.3	-0.2	0.1
Effect of divestment in net sales, MEUR	-6.3	-0.5	-13.6	-1.8	-20.9
Adjusted EBITA margin, %	1.2%	0.2%	0.9%	-0.9%	1.3%
Tax rate, %	-17.0%	-18.0%	-28.1%	-2.3%	5.3%
Earnings per share after dilution, EUR	-0.01	-0.02	-0.03	-0.22	-0.21

1) Organic growth is adjusted for currency effects and divestments.

April–June 2025

Net sales decreased by 6.9% to EUR 201.0 million (216.0). In segments net sales decreased by EUR 9.1 million. Organic net sales in segments, adjusted for currency effects, decreased by 5.6%. Net sales increased in Sweden and decreased in the other segments.

Adjusted EBITDA was EUR 10.3 million (8.4). Adjusted EBITA increased to EUR 2.5 million (0.5) and the adjusted EBITA margin was 1.2% (0.2). Adjusted EBITA in segments was EUR 5.9 million (3.7) and the margin was 2.9% (1.8). Adjusted EBITA improved in all segments, reflecting the high focus on operational and commercial excellence.

Items affecting comparability amounted to EUR -0.5 million (0.0) comprising a restructuring charge in Norway, consisting mainly of personnel related expenses.

For further information regarding net sales and adjusted EBITA development, refer to the respective sections on the segments.

EBIT amounted to EUR 2.0 million (0.5).

Net financial expenses amounted to EUR 2.7 million (2.8).

Taxes amounted to EUR -0.1 million (-0.4). The effective tax rate was -17.0% (-18.0).

Net result for the period was EUR -0.8 million (-2.7). Earnings per share were EUR -0.01 (-0.02).

January–June 2025

Net sales decreased by 5.5% to EUR 370.6 million (392.3). In segments net sales decreased by EUR 8.4 million. Organic net sales in segments, adjusted for currency effects, decreased by 2.8%. Net sales increased in Sweden and decreased in the other segments.

Adjusted EBITDA was EUR 18.0 million (12.0). Adjusted EBITA increased to EUR 3.4 million (-3.5) and the adjusted EBITA margin was 0.9% (-0.9). Adjusted EBITA in segments was EUR 9.6 million (3.4) and the margin was 2.6% (0.9). Adjusted EBITA improved in all segments, reflecting the high focus on operational and commercial excellence.

Items affecting comparability amounted to EUR -1.1 million (-23.1) comprising a restructuring charge in Norway, consisting mainly of personnel related expenses. In 2024 items affecting comparability related to divestment of the Polish High Voltage business.

For further information regarding net sales and adjusted EBITA development, refer to the respective sections on the segments.

EBIT amounted to EUR 2.3 million (-26.7).

Net financial expenses amounted to EUR 5.0 million (5.8).

Taxes amounted to EUR -0.8 million (-0.7). The effective tax rate was -28.1% (-2.3).

Net result for the period was EUR -3.4 million (-33.2). Earnings per share were EUR -0.03 (-0.22).

Overview of segments

Net sales

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	85.0	92.6	147.1	155.0	357.7
Sweden	58.3	50.9	111.4	100.7	211.8
Denmark & Germany	31.4	34.4	61.9	64.8	129.6
Norway	25.8	31.6	49.1	57.3	114.9
Sum segments	200.5	209.6	369.5	377.9	814.0
Net sales growth, % in segments	-4.3%	5.4%	-2.2%	0.5%	1.4%
Organic growth, % in segments	-5.6%	5.2%	-2.8%	0.8%	1.5%
Group Support Functions	2.5	9.0	4.3	18.4	24.3
Eliminations	-1.9	-2.5	-3.2	-4.0	-9.7
Total net sales	201.0	216.0	370.6	392.3	828.7
Net sales growth, %	-6.9%	3.8%	-5.5%	-1.1%	-2.5%
Net sales of High Voltage Poland (divested in Q2 2024)	-	6.3	-	13.6	13.6

Adjusted EBITA

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	3.5	2.4	5.1	2.1	15.7
Sweden	1.3	1.0	2.8	1.5	6.1
Denmark & Germany	1.5	1.3	3.9	2.6	6.5
Norway	-0.4	-1.0	-2.2	-2.7	-5.7
Sum segments	5.9	3.7	9.6	3.4	22.6
Group Support Functions	-3.4	-3.2	-6.2	-7.0	-12.2
Total adjusted EBITA	2.5	0.5	3.4	-3.5	10.5

Adjusted EBITA margin

%	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	4.1%	2.6%	3.5%	1.3%	4.4%
Sweden	2.3%	2.0%	2.5%	1.5%	2.9%
Denmark & Germany	4.8%	3.8%	6.3%	4.0%	5.0%
Norway	-1.6%	-3.1%	-4.6%	-4.7%	-4.9%
Sum segments	2.9%	1.8%	2.6%	0.9%	2.8%
Total adjusted EBITA margin, %	1.2%	0.2%	0.9%	-0.9%	1.3%

To simplify the operational structure and leverage our Danish management, the segment structure has been updated from 1 January 2025. The operations in Denmark and Germany are presented in one segment named Denmark & Germany. Smart Grids Germany was presented outside segments under Other business until 31 December 2024. Starting from 1 January 2025 the segments are Finland, Sweden, Denmark & Germany and Norway. In January-June 2025, the segments represented 99.7% of the net sales. Management follows segment results by adjusted EBITA, which does not include items affecting comparability.

The Group Support Functions include Group Functions and Lithuania as well as closing activities for Power Transmission International and High Voltage Poland until its divestment in Q2 2024. Group Support Functions is not considered a segment.

Net sales by segment

FI SE DK & DE NO Group support functions

Net sales change by segment

Net sales change in Group Support Functions mainly relates to High Voltage Poland.

0,5 2,5 1.1 0.3 0.2 0.6 -0.2 0 2 4 M€ Adjusted EBITA change by segment

Net sales and adjusted EBITA – Segments

Finland

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	85.0	92.6	147.1	155.0	357.7
Adjusted EBITA1)	3.5	2.4	5.1	2.1	15.7
Number of employees, average, FTE	1,311	1,510	1,314	1,501	1,478
Key ratios
Net sales growth, %	-8.2%	8.7%	-5.1%	3.6%	3.8%
Adjusted EBITA margin, %	4.1%	2.6%	3.5%	1.3%	4.4%

1) Excluding restructuring costs.

April–June 2025

Net sales decreased by EUR 7.6 million, or 8.2%, to EUR 85.0 million (92.6). We saw growth in Power, especially in the areas of Solar PV and Data Center. Communication net sales faced a decline, driven by lower volumes in fiber-to-the-home, FTTH.

Adjusted EBITA improved by EUR 1.1 million to EUR 3.5 million (2.4). The adjusted EBITA margin was 4.1% (2.6). Profitability continued to improve, driven by both Communication and Power.

On 24 June, it was announced that Eltel Finland and Hyperco signed a datacenter contract valued at EUR 16 million.

January–June 2025

Net sales decreased by EUR 7.9 million, or 5.1%, to EUR 147.1 million (155.0). The decline was mainly related to Communication and lower customer demand for, fiber-to-the-home, FTTH, after last year's peak. Power had growth, mainly attributed to new business, particularly within Solar PV.

Adjusted EBITA improved by EUR 3.1 million to EUR 5.1 million (2.1). The adjusted EBITA margin was 3.5% (1.3). Operational and commercial excellence contributed to the positive profitability development in both Power and Communication and was reflected in the number of employees.

Sweden

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	58.3	50.9	111.4	100.7	211.8
Adjusted EBITA	1.3	1.0	2.8	1.5	6.1
Number of employees, average, FTE	972	955	967	953	950
Key ratios
Net sales growth, %	14.6%	0.1%	10.6%	1.1%	6.7%
Organic growth1), %	8.8%	0.4%	7.7%	1.5%	6.2%
Currency translation effect in net sales, MEUR	2.9	-0.1	3.0	-0.4	1.0
Adjusted EBITA margin, %	2.3%	2.0%	2.5%	1.5%	2.9%
1) Adjusted for currency effects.

April–June 2025

Net sales increased by EUR 7.4 million, or 14.6%, to EUR 58.3 million (50.9). Growth in local currency was 8.8%. The growth was particularly strong in Communication, mainly driven by increased volumes towards the public sector. Solar PV had strong growth but did not offset a decline in Smart Grids, leading to a net sales decrease in Power.

Adjusted EBITA increased to EUR 1.3 million (1.0). The adjusted EBITA margin was 2.3% (2.0). The improved profitability was driven both by higher volumes in Communication and higher margins in Power.

On 8 May, it was announced that Klas Elmberg was appointed as the new Managing Director for Eltel Sweden and member of the Group Management Team. He will assume his role on 1 August.

On 30 June, it was announced that Eltel Sweden and E.ON. signed a frame agreement for connection and metering services valued at approximately EUR 24.6 million.

January–June 2025

Net sales increased by EUR 10.7 million, or 10.6%, to EUR 111.4 million (100.7). Growth in local currency was 7.7%. Communication had good growth driven by increased volumes towards the public sector. In Power, the Smart Grids business showed a decline in volumes compared to last year following the ramp down of some large roll outs. The decline was, however, partly offset by growth in Solar PV.

Adjusted EBITA increased to EUR 2.8 million (1.5). The adjusted EBITA margin was 2.5% (1.5). Both business areas contributed to improved profitability.

Denmark & Germany

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	31.4	34.4	61.9	64.8	129.6
Adjusted EBITA	1.5	1.3	3.9	2.6	6.5
Number of employees, average, FTE	775	843	777	847	829
Key ratios
Net sales growth, %	-8.8%	13.6%	-4.5%	4.1%	0.1%
Organic growth1), %	-8.8%	13.7%	-4.4%	4.2%	0.1%
Currency translation effect in net sales, MEUR	-0.0	-0.0	-0.0	-0.1	-0.1
Adjusted EBITA margin, %	4.8%	3.8%	6.3%	4.0%	5.0%

1) Adjusted for currency effects.

April–June 2025

Net sales decreased by EUR 3.0 million, or 8.8%, to EUR 31.4 million (34.4). Net sales decreased in Communication and also in Power, despite growth in Smart Grids.

Adjusted EBITA was EUR 1.5 million (1.3). The adjusted EBITA margin was 4.8% (3.8). The profitability improvement was mainly a result of a high focus on operational excellence.

On 28 May, it was announced that Yathukulan Kankesan was appointed as the new Managing Director for Eltel Denmark & Germany and member of the Group Management Team as of 1 August.

January–June 2025

Net sales decreased by EUR 2.9 million, or 4.5%, to EUR 61.9 million (64.8). The decline was mainly due to lower volumes in Communication. Net sales in Power increased, albeit not fully compensating for the total net sales decline.

Adjusted EBITA was EUR 3.9 million (2.6). The adjusted EBITA margin was 6.3% (4.0). A favorable business mix and operational excellence secured a solid profitability improvement during the first half of the year. Activities related to operational excellence were also reflected in the number of employees.

To simplify our operational structure and leverage our Danish management, the segment structure has been updated from 1 January 2025. The operations in Denmark and Germany are presented in one segment named Denmark & Germany. Smart Grids Germany was presented outside segments under Other business until 31 December 2024.

Norway

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	25.8	31.6	49.1	57.3	114.9
Adjusted EBITA1)	-0.4	-1.0	-2.2	-2.7	-5.7
Number of employees, average, FTE	554	783	578	790	761
Key ratios
Net sales growth, %	-18.6%	-2.5%	-14.4%	-11.3%	-11.7%
Organic growth2), %	-18.0%	-4.2%	-13.2%	-10.4%	-10.3%
Currency translation effect in net sales, MEUR	-0.2	0.6	-0.7	-0.6	-1.7
Adjusted EBITA margin, %	-1.6%	-3.1%	-4.6%	-4.7%	-4.9%

1) Excluding restructuring costs. 2) Adjusted for currency effects.

April–June 2025

Net sales decreased by EUR 5.9 million, or 18.6%, to EUR 25.8 million (31.6). The currency effect was EUR -0.2 million. Net sales decline in local currency was 18%. The decline in net sales was driven by lower volumes in the area of telecommunication. Efforts to expand the customer base started to yield some results.

Adjusted EBITA increased by EUR 0.6 million to EUR -0.4 million (-1.0). The adjusted EBITA margin was -1.6% (-3.1). High focus on operational excellence contributed to positive profitability development.

Rightsizing the operations for future market demands, including a restructuring process with a reduction of approximately 220 employees and fleet, which began in 2024, was finalized in Q2. In line with Eltel's strategy, the focus has been, and will continue to be, on margins and profitability rather than volumes.

January–June 2025

Net sales decreased by EUR 8.3 million, or 14.4%, to EUR 49.1 million (57.3). The currency effect was EUR -0.7 million. Net sales decline in local currency was 13.2%. The decline in net sales was caused by lower volumes in the area of telecommunication.

Adjusted EBITA increased by EUR 0.4 million to EUR -2.2 million (-2.7). The adjusted EBITA margin was -4.6% (-4.7).

Rightsizing the operations for the future market demands, including a restructuring process with a reduction of employees and fleet, continued in 2025 and was finalized in Q2. In line with Eltel's strategy, the focus has been, and will continue to be, on margin and profitability rather than volumes.

Cash flow

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
EBIT	2.0	0.5	2.3	-26.7	-18.0
Depreciation and amortization	7.8	7.9	14.6	15.6	34.7
EBITDA	9.8	8.5	17.0	-11.1	16.7
Changes in working capital	-16.7	-6.1	-3.1	-9.9	-2.5
Total financial expenses and taxes	-2.6	-2.9	-4.4	-6.4	-13.3
Adjustment for gain/loss on sales of assets and business	0.0	-0.1	0.0	22.9	22.8
Other	1.7	-1.5	0.3	-2.6	3.7
Cash flow from operating activities	-7.8	-2.2	9.7	-7.1	27.5
Cash flow from investing activities	-0.8	-4.3	-2.1	-5.1	-6.6
Cash flow from financing activities	99.4	2.8	90.0	1.4	-24.0
Net change in cash and cash equivalents	90.8	-3.7	97.5	-10.8	-3.1
Cash and cash equivalents at beginning of period	28.3	17.0	21.3	24.7	24.7
Foreign exchange rate effect	-0.5	0.3	-0.1	-0.1	-0.3
Transfer as assets held for sale	-	0.2	-	-	-
Cash and cash equivalents at end of period	118.6	13.7	118.6	13.7	21.3

Condensed consolidated statement of cash flows is presented on page 16.

April–June 2025

Cash flow from operating activities was EUR -7.8 million (-2.2). Main items included EBITDA EUR 9.8 million (8.5), cash flow from change in net working capital EUR -16.7 million (-6.1), financial items EUR -2.3 million (-2.6) and income taxes EUR -0.2 million (-0.3). Cash flow from financial items and income taxes is impacted by timing differences between income statement and payments.

Cash flow has historically displayed a strong seasonal pattern, with weaker cash flow recorded during the period until the end of the third quarter due to higher production activity. Eltel's net working capital level is also impacted by phasing of projects. These projects, and delays in them, might result in continued tie up of working capital and can create volatility in the net working capital also going forward.

Net cash flow from investing activities was EUR -0.8 million (-4.3) from net capital expenditure on machinery and equipment as well as advances paid on intangible assets. April-June 2024 included EUR -4.0 million cash flow impact from divestment of the Polish High Voltage business and net capital expenditure on machinery and equipment EUR -0.4 million.

Cash flow from financing activities was EUR 99.4 million (2.8). Net proceeds from issuance of bond amounted to EUR 127.1 million, repurchase of the hybrid bond amounted to EUR 25.3 million and payment of interest for the hybrid bond amounted to EUR 3.1 million. See page 11 for more information. Utilization of short-term financing increased by EUR 10.0 million (increase of 10.0). Amortization of term loan amounted to EUR 1.0 million (1.0) and payments of lease liabilities were EUR 7.8 million (6.2).

January–June 2025

Cash flow from operating activities was EUR 9.7 million (-7.1). Main items included EBITDA EUR 17.0 million (-11.1), cash flow from change in net working capital EUR -3.1 million (-9.9), financial items EUR -3.8 million (-5.7) and income taxes EUR -0.7 million (-0.6). Cash flow from financial items and income taxes is impacted by timing differences between income statement and payments. January-June 2024 included EUR 22.9 million adjustment for gain/loss on sale of assets and business impact from divestment of the Polish High Voltage business.

Net cash flow from investing activities was EUR -2.1 million (-5.1) from net capital expenditure on machinery and equipment as well as advances paid on intangible assets. January-June 2024 included EUR -4.0 million cash flow impact from divestment of the Polish High Voltage business and net capital expenditure on machinery and equipment EUR -1.2 million.

Cash flow from financing activities was EUR 90.0 million (1.4). Net proceeds from issuance of bond amounted to EUR 127.1 million, repurchase of the hybrid bond amounted to EUR 25.3 million and payment of interest for the hybrid bond amounted to EUR 3.1 million. See page 11 for more information. Utilization of short-term financing increased by EUR 8.0 million (increase of 15.4). Amortization of term loan amounted to EUR 2.0 million (2.0) and payments of lease liabilities were EUR 14.3 million (12.1).

Financial position, cash and cash equivalents

In June 2025, Eltel issued a EUR 130 million senior secured four-year floating rate bond. The net proceeds from the bond will be used for the repayment of the remaining term loans, revolving credit facility, and the hybrid bond as well as for general corporate purposes.

In June 2025 EUR 25.3 million was used to repurchase the hybrid bond and EUR 3.1 million of the accrued interest for the hybrid bond was paid. The remaining net funds from the bond issue were kept in the escrow account until the completion of the documentation of the bond and the new super senior revolving credit facility, as well as the related security package.

The funds were released from the escrow account on 15 July, and the old term loans and the revolving credit facility loans were repaid at the same date. Additionally, a new super senior revolving credit facility of EUR 60 million became effective. The Group has also access to a commercial paper program subject to restrictions of the terms of the bond. The refinancing simplifies the financing structure of Eltel and improves the liquidity of the Group.

The funds on the escrow account were presented as liquid funds in cash and cash equivalents, and the remaining term loans of EUR 18.0 million and revolving credit facility of EUR 54.0 million were presented as current debt in the balance sheet on 30 June 2025.

Available liquidity reserves, including the committed revolving credit facility, account overdrafts and cash and cash equivalents, amounted to EUR 169.6 million (63.7) on 30 June 2025. Additional to the committed facilities, the Group also had access to short-term debt capital markets via a commercial paper program of EUR 150 million. On 30 June 2025, EUR 10.0 million (7.5) of the commercial paper program and EUR 54.0 million (55.0) of the revolving credit facility were utilized.

Equity at the end of the period was EUR 157.6 million (186.9) and total assets were EUR 692.4 million (587.5). The equity ratio was 25.4% (34.7).

Interest-bearing liabilities and net debt

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Interest-bearing debt	209.6	84.4	76.3
Leasing liabilities	53.3	56.7	58.7
Allocation of effective interest to periods	0.4	0.5	0.2
Less cash and cash equivalents	-118.6	-13.7	-21.3
Net debt	144.6	127.9	114.0
EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Non-current interest-bearing debt	127.1	17.6	15.8
Current interest-bearing debt	82.5	66.8	60.5
Total interest-bearing debt	209.6	84.4	76.3
Non-current leasing liabilities	31.9	36.1	36.0
Current leasing liabilities	21.5	20.6	22.7
Total leasing liabilities	53.3	56.7	58.7

Commercial guarantees

On 30 June 2025, the commercial guarantees issued by the banks and other financial institutions on behalf of the Group amounted to EUR 60.2 million (57.9).

Other information

Risks and uncertainty factors

Current market volatility and the unpredictability of customer investment volumes may have a negative impact on Eltel's net sales development, especially in Communication. General global uncertainty may cause delays in investment decisions also in new business where market financing is prevalent.

Eltel performed an impairment test of goodwill showing that there was no impairment in Q4 2024. However, the value of goodwill in country unit Norway was sensitive to impairment. Restructuring activities initiated in Norway during Q3 2024 were finalized in Q2 2025. Eltel follows any triggering events and impairment tests are conducted in case of any indicators of impairment arise.

Materialization of business risks may lead to breach of leverage covenant under the existing financing agreement. Seasonal variation in Eltel's operations and related working capital build-up may also expose the company to liquidity risk.

For additional information regarding risks and uncertainties, please refer to Eltel's 2024 Annual Report which was published on 26 March 2025 and is available on Eltel's website at www.eltelgroup.com.

Large agreements announced during and after the reporting period

On 24 June, it was announced that Eltel Finland and Hyperco signed a datacenter contract valued at EUR 16 million.

On 30 June, it was announced that Eltel Sweden and E.ON. signed a frame agreement for connection and metering services valued at approximately EUR 24.6 million and on 8 July another frame agreement with E.ON. was announced, valued at approximately EUR 18 million.

Related party transactions

During the quarter, no significant transactions took place between Eltel and related parties.

Seasonality

Eltel's businesses are generally characterized by seasonal patterns and cyclicality of the project business that adds volatility to net sales, adjusted EBITA and cash flow. Seasonality is normally driven by a number of factors, including weather conditions, the timing of customer orders and completion of work phases. The Eltel Group has historically reported higher revenues and operating profit in the second half of the year. Cash flow has historically displayed a strong seasonal pattern, with weaker cash flow recorded during the period until the end of the third quarter due to higher production activity. At the end of the year, as production volumes decrease as a result of completion of projects, cash flow has normally been stronger. For more details, please refer to quarterly key financial figures for the Group on page 18.

Presentation of the half-year 2025 report

Analysts and media are invited to participate in the half-year 2025 interim report briefing on 24 July 2025 at 10:00 am CEST where Eltel's President and CEO Håkan Dahlström and CFO Tarja Leikas will host a presentation. A combined webcast and teleconference as well as the presentation will be available at www.eltelgroup.com/investors.

For further information, please contact:

Tarja Leikas, CFO Phone: +358 40 730 77 62, tarja.leikas@eltelnetworks.com

Alexandra Kärnlund, Director, Communications Phone: +46 70 910 0903, alexandra.karnlund@eltelnetworks.com

Financial calendar

• Interim report January–September: 30 October 2025
• Full-year report January–December: 13 February 2026

This information is information that Eltel AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CEST on 24 July 2025.

Board's assurance

The Board of Directors and CEO certify that the half-year interim report gives a true and fair presentation of the Parent Company's and Group's business, financial position and result of operations, and describes material risks and uncertainties facing the Parent Company and the companies included in the Group.

Signature of the Board of Directors and the President and CEO

Stockholm, Sweden, 24 July 2025

Eltel AB (publ)

Per Sjöstrand, Chairman Johan Nordström Joakim Olsson Riitta Palomäki Erja Sankari Roland Sundén

Employee representatives: Stefan Söderholm Björn Tallberg

Håkan Dahlström, President and CEO

The information in this interim report has not been reviewed by the company's auditors.

Condensed financial information

Condensed consolidated income statement

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	201.0	216.0	370.6	392.3	828.7
Cost of sales	-178.5	-194.4	-325.9	-352.1	-736.8
Gross profit	22.5	21.7	44.7	40.2	91.8
Other income	0.7	1.0	1.6	2.0	4.3
Selling and administrative expenses	-20.7	-21.4	-43.0	-44.1	-88.2
Other expenses1)	-0.5	-0.7	-1.1	-24.8	-25.9
Operating result (EBIT)	2.0	0.5	2.3	-26.7	-18.0
Financial income	0.1	0.3	0.2	0.4	1.0
Financial expenses	-2.7	-3.1	-5.2	-6.2	-13.7
Net financial expenses	-2.7	-2.8	-5.0	-5.8	-12.7
Result before taxes	-0.6	-2.3	-2.7	-32.5	-30.7
Taxes	-0.1	-0.4	-0.8	-0.7	1.6
Net result	-0.8	-2.7	-3.4	-33.2	-29.1
Attributable to:
Equity holders of the parent	-0.9	-2.8	-3.7	-33.4	-29.7
Non-controlling interest	0.2	0.1	0.3	0.2	0.6
Earnings per share (EPS)
Basic, EUR	-0.01	-0.02	-0.03	-0.22	-0.21
Diluted, EUR	-0.01	-0.02	-0.03	-0.22	-0.21

1) In January-June 2024 and in January-December 2024, other expenses include EUR -23.1 million from divestment of the Polish High Voltage business in Q2 2024.

Condensed consolidated statement of comprehensive income

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net profit for the period	-0.8	-2.7	-3.4	-33.2	-29.1
Other comprehensive income:
Items that will not be reclassified to profit and loss
Revaluation of defined benefit plans, net of tax	-1.4	-0.4	-2.1	2.6	3.8
Items that may be subsequently reclassified to profit and loss
Net investment hedges, net of tax	-	-0.1	-	-0.1	-0.1
Currency translation differences	-4.1	2.5	2.8	-2.7	-5.5
Total	-4.1	2.5	2.8	-2.7	-5.6
Other comprehensive income/loss for the period, net of tax	-5.5	2.1	0.7	-0.2	-1.8
Total comprehensive income/loss for the period	-6.3	-0.6	-2.8	-33.4	-30.9
Total comprehensive income/loss attributable to:
Equity holders of the parent	-6.5	-0.7	-3.1	-33.5	-31.5
Non-controlling interest	0.2	0.1	0.3	0.2	0.6

Condensed consolidated balance sheet

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
ASSETS
Non-current assets
Goodwill	251.4	251.2	249.3
Intangible assets	30.1	31.4	30.3
Property, plant and equipment	5.9	6.9	5.9
Right-of-use assets	50.4	54.7	53.5
Deferred tax assets	27.2	25.0	27.2
Financial assets	11.6	15.1	13.4
Total non-current assets	376.6	384.4	379.6
Current assets
Inventories	24.9	19.3	19.3
Trade and other receivables	172.2	170.1	165.3
Cash and cash equivalents	118.6	13.7	21.3
Total current assets	315.8	203.1	205.8
TOTAL ASSETS	692.4	587.5	585.4
EQUITY AND LIABILITIES
Equity
Equity attributable to shareholders of the parent	148.5	154.1	156.3
Hybrid bond	1.3	25.0	25.0
Non-controlling interest	7.8	7.8	8.0
Total equity	157.6	186.9	189.3
Non-current liabilities
Interest-bearing debt	127.1	17.6	15.8
Leasing liabilities	31.9	36.1	36.0
Retirement benefit obligations	6.7	5.5	6.6
Deferred tax liabilities	10.6	11.3	10.7
Provisions	5.5	3.7	5.2
Other non-current liabilities1)	16.2	0.1	31.3
Total non-current liabilities	197.8	74.3	105.7
Current liabilities
Interest-bearing debt	82.5	66.8	60.5
Leasing liabilities	21.5	20.6	22.7
Provisions	3.1	2.7	3.8
Advances received	72.1	48.5	51.4
Trade and other payables	157.8	187.7	152.0
Total current liabilities	337.0	326.4	290.3
Total liabilities	534.8	400.7	396.0
TOTAL EQUITY AND LIABILITIES	692.4	587.5	585.4

1) Including non-current portion of the tax deferral in Sweden in Q2 2025 and Q4 2024.

Condensed consolidated statement of cash flows

EUR million	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Cash flow from operating activities
Operating result (EBIT)	2.3	-26.7	-18.0
Adjustments:
Depreciation and amortization	14.6	15.6	34.7
Gain/loss on sales of assets and business	-0.0	22.9	22.8
Defined benefit pension plans	0.4	-1.8	2.0
Other non-cash adjustments	-0.1	-0.8	1.8
Cash flow from operations before interests, taxes and changes in working capital	17.2	9.2	43.3
Interest and other financial expenses paid, net	-3.8	-5.7	-12.4
Income taxes received/paid	-0.7	-0.6	-0.9
Total financial expenses and taxes	-4.4	-6.4	-13.3
Changes in working capital:
Trade and other receivables	-5.9	9.0	11.4
Trade and other payables	8.3	-13.6	-8.6
Inventories	-5.5	-5.3	-5.3
Changes in working capital	-3.1	-9.9	-2.5
Net cash from operating activities	9.7	-7.1	27.5
Cash flow from investing activities
Purchases of property, plant and equipment (PPE) and intangible assets	-2.2	-1.5	-2.4
Proceeds from sale of property, plant and equipment (PPE)	0.0	0.3	0.4
Disposal of business, net of cash disposed of	-	-4.0	-4.6
Net cash from investing activities	-2.1	-5.1	-6.6
Cash flow from financing activities
Proceeds from issuance of bond	127.1	-	-
Repurchase of hybrid bond	-25.3	-	-
Payments of interests for hybrid bond	-3.1	-	-3.4
Proceeds from short-term financial liabilities	19.0	27.5	49.0
Payments of short-term financial liabilities	-11.0	-12.0	-40.1
Payments of financial liabilities, term loans	-2.0	-2.0	-4.0
Payments of lease liabilities	-14.3	-12.1	-25.2
Proceeds from equity-settled share-based program	0.1	-	-
Dividends to non-controlling interest	-0.5	-	-0.2
Change in non-liquid financial assets	0.0	-0.0	-0.1
Net cash from financing activities	90.0	1.4	-24.0
Net change in cash and cash equivalents	97.5	-10.8	-3.1
Cash and cash equivalents at beginning of period	21.3	24.7	24.7
Foreign exchange rate effect	-0.1	-0.1	-0.3
Cash and cash equivalents at end of period	118.6	13.7	21.3

Condensed consolidated statement of changes in equity

	Equity attributable to shareholders of the parent
EUR million	Share capital	Other paid-in capital	Accumu lated losses	Revaluation of defined benefit plans, net of tax	Hedging reserve	Currency translation	Total	Hybrid bond	Non controlling interest	Total equity
1 Jan 2025	162.0	487.5	-423.7	-28.8	10.8	-51.5	156.3	25.0	8.0	189.3
Total comprehensive income for the period	-	-	-3.7	-2.1	-	2.8	-3.1	-	0.3	-2.8
Repurchase of hybrid bond, including premium	-	-	-1.5	-	-	-	-1.5	-23.7	-	-25.3
Interests on hybrid bond	-	-	-3.3	-	-	-	-3.3	-	-	-3.3
Transactions with owners:
Equity-settled share-based payment	-	-	0.1	-	-	-	0.1	-	-	0.1
Dividends paid to non-controlling interests	-	-	-	-	-	-	-	-	-0.5	-0.5
Total transaction with owners	-	-	0.1	-	-	-	0.1	-	-0.5	-0.4
30 Jun 2025	162.0	487.5	-432.2	-30.9	10.8	-48.7	148.5	1.3	7.8	157.6

	Equity attributable to shareholders of the parent
EUR million	Share capital	Other paid-in capital	Accumu lated losses	Revaluation of defined benefit plans, net of tax	Hedging reserve	Currency translation	Total	Hybrid bond	Non controlling interest	Total equity
1 Jan 2024	162.0	487.5	-390.8	-32.6	10.9	-45.9	191.0	25.0	7.6	223.6
Total comprehensive income for the period Interests on hybrid bond	- -	- -	-33.4 -3.4	2.6 -	-0.1 -	-2.7 -	-33.5 -3.4	- -	0.2 -	-33.4 -3.4
Transactions with owners:
Equity-settled share-based payment	-	-	-0.0	-	-	-	-0.0	-	-	-0.0
Total transaction with owners	-	-	-0.0	-	-	-	-0.0	-	-	-0.0
30 Jun 2024	162.0	487.5	-427.5	-30.0	10.8	-48.6	154.1	25.0	7.8	186.9

	Equity attributable to shareholders of the parent
EUR million	Share capital	Other paid-in capital	Accumu lated losses	Revaluation of defined benefit plans, net of tax	Hedging reserve	Currency translation	Total	Hybrid bond	Non controlling interest	Total equity
1 Jan 2024	162.0	487.5	-390.8	-32.6	10.9	-45.9	191.0	25.0	7.6	223.6
Total comprehensive income for the period	-	-	-29.7	3.8	-0.1	-5.5	-31.5	-	0.6	-30.9
Interests on hybrid bond	-	-	-3.4	-	-	-	-3.4	-	-	-3.4
Transactions with owners:
Equity-settled share-based payment	-	-	0.2	-	-	-	0.2	-	-	0.2
Dividends paid to non-controlling interests	-	-	-	-	-	-	-	-	-0.2	-0.2
Total transaction with owners	-	-	0.2	-	-	-	0.2	-	-0.2	-0.1
31 Dec 2024	162.0	487.5	-423.7	-28.8	10.8	-51.5	156.3	25.0	8.0	189.3

Key figures

Key figures for the period

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024	Rolling 12- mon
Net sales	201.0	216.0	370.6	392.3	828.7	807.1
Net sales growth, %	-6.9	3.8	-5.5	-1.1	-2.5	-4.6
Adjusted EBITDA	10.3	8.4	18.0	12.0	45.2	51.2
Adjusted EBITA	2.5	0.5	3.4	-3.5	10.5	17.4
Adjusted EBITA margin, %	1.2	0.2	0.9	-0.9	1.3	2.2
Adjusted EBITA, segments1)	5.9	3.7	9.6	3.4	22.6	28.8
Adjusted EBITA margin, %, segments1)	2.9	1.8	2.6	0.9	2.8	3.6
Items affecting comparability	-0.5	0.0	-1.1	-23.1	-28.5	-6.4
EBITDA	9.8	8.5	17.0	-11.1	16.7	44.8
Operating result (EBIT)	2.0	0.5	2.3	-26.7	-18.0	11.0
EBIT margin, %	1.0	0.2	0.6	-6.8	-2.2	1.4
Result after financial items	-0.6	-2.3	-2.7	-32.5	-30.7	-0.9
Net result for the period	-0.8	-2.7	-3.4	-33.2	-29.1	0.7
Earnings per share EUR, basic and diluted	-0.01	-0.02	-0.03	-0.22	-0.21	-0.02
Return on equity (ROE), %2)	0.4	-12.2	0.4	-12.2	-16.0	0.4
Leverage ratio2)	2.8	3.6	2.8	3.6	2.5	2.8
Net working capital	-59.2	-54.3	-59.2	-54.3	-61.3	-59.2
Number of personnel, average, FTE	3,932	4,717	3,962	4,801	4,550	4,131

Quarterly key figures

EUR million	Apr-Jun 2025	Jan-Mar 2025	Oct-Dec 2024	Jul-Sep 2024	Apr-Jun 2024	Jan-Mar 2024
Net sales	201.0	169.6	226.1	210.3	216.0	176.3
Net sales growth, %	-6.9	-3.8	-5.9	-1.4	3.8	-6.4
Adjusted EBITDA	10.3	7.8	14.2	19.0	8.4	3.6
Adjusted EBITA	2.5	0.9	5.7	8.2	0.5	-4.0
Adjusted EBITA margin, %	1.2	0.5	2.5	3.9	0.2	-2.3
Adjusted EBITA, segments1)	5.9	3.7	9.0	10.2	3.7	-0.3
Adjusted EBITA margin, %, segments1)	2.9	2.2	4.0	4.9	1.8	-0.2
Items affecting comparability	-0.5	-0.6	-1.6	-3.8	0.0	-23.2
EBITDA	9.8	7.2	12.6	15.2	8.5	-19.6
Operating result (EBIT)	2.0	0.3	4.2	4.5	0.5	-27.2
EBIT margin, %	1.0	0.2	1.9	2.1	0.2	-15.4
Result after financial items	-0.6	-2.0	0.9	0.8	-2.3	-30.2
Net result for the period	-0.8	-2.7	3.9	0.3	-2.7	-30.5
Earnings per share EUR, basic and diluted	-0.01	-0.02	0.02	-0.01	-0.02	-0.20
Return on equity (ROE), %2)	0.4	-0.8	-16.0	-12.9	-12.2	-12.8
Leverage ratio2)	2.8	2.1	2.5	3.5	3.6	3.5
Net working capital	-59.2	-76.3	-61.3	-33.5	-54.3	-59.0
Number of personnel, average, FTE	3,932	3,992	4,226	4,372	4,717	4,885

1) Adjusted EBITA and margin for segments have been restated in comparative periods according to the new segment structure. See page 25 for more information.

2) Calculated on a rolling 12-month basis.

Please see pages 26–27 for definitions of the key ratios.

Notes to the condensed consolidated interim financial statements

Accounting principles

This condensed interim report has been prepared in accordance with IAS 34 Interim Financial Reporting and applicable regulations in the Swedish Annual Accounts Act. The accounting principles adopted are the same with those of the Group's and the Parent Company's annual financial statements for the year ended 31 December 2024.

The new IFRS standards and amendments effective for the first time for 2025 financial year did not have any impact on Group's financial statements.

New segment structure

To simplify our operational structure and leverage our Danish management, the segment structure has been updated from 1 January 2025. The operations in Denmark and Germany are presented in one segment named Denmark & Germany. Smart Grids Germany was presented outside segments under Other business until 31 December 2024. The remaining part of the Other business and Group Functions have been combined and named as Group Support Functions. Starting from 1 January 2025 the segments are Finland, Sweden, Denmark & Germany and Norway. The Group Support Functions includes Group Functions and Lithuania as well as closing activities for Power Transmission International and High Voltage Poland until its divestment in Q2 2024.

Eltel refinancing

In June 2025, Eltel issued a EUR 130 million senior secured four-year floating rate bond. The net proceeds from the bond will be used for the repayment of the remaining term loans, revolving credit facility, and the hybrid bond as well as for general corporate purposes.

In June 2025 EUR 25.3 million was used to repurchase the hybrid bond and EUR 3.1 million of the accrued interest on hybrid bond was paid. The remaining net funds from the bond issue were kept in the escrow account until the completion of the documentation of the bond and the new super senior revolving credit facility, as well as the related security package.

The funds were released from the escrow account on 15 July, and the old term loans and the revolving credit facility loans were repaid at the same date. Additionally, a new super senior revolving credit facility of EUR 60 million became effective. The Group has also access to a commercial paper program subject to restrictions of the terms of the bond. The refinancing simplifies the financing structure of Eltel and improves the liquidity of the group.

The funds on the escrow account were presented as liquid funds in cash and cash equivalents, and the remaining term loans of EUR 18.0 million and revolving credit facility of EUR 54.0 million were presented as current debt in the balance sheet on 30 June 2025.

Net sales by segment

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	85.0	92.6	147.1	155.0	357.7
Sweden	58.3	50.9	111.4	100.7	211.8
Denmark & Germany	31.4	34.4	61.9	64.8	129.6
Norway	25.8	31.6	49.1	57.3	114.9
Group Support Functions1)	2.5	9.0	4.3	18.4	24.3
Eliminations	-1.9	-2.5	-3.2	-4.0	-9.7
Net sales, total	201.0	216.0	370.6	392.3	828.7

1) Group Support Functions includes Group functions and Lithuania as well as closing activities for Power Transmission International and High Voltage Poland until its divestment in Q2 2024. Group Support Functions is not considered a segment.

Net sales by segment and by business

EUR million		Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	Communication	34.0	43.4	56.1	66.6	174.4
	Power	51.1	49.2	91.1	88.5	183.4
Sweden	Communication	48.8	38.8	88.1	73.5	159.9
	Power	9.5	12.1	23.4	27.2	52.0
Denmark & Germany	Communication	11.5	13.8	23.4	27.9	54.4
	Power	19.9	20.6	38.5	36.9	75.2
Norway	Communication	25.7	31.6	48.9	57.2	114.6
	Power	0.1	0.1	0.2	0.1	0.3
Group Support Functions	Communication	2.5	2.6	4.3	4.8	10.7
	Power	-	6.3	-	13.6	13.6
	Other operations	-	0.0	-	0.0	0.0
Eliminations		-1.9	-2.5	-3.2	-4.0	-9.7
Net sales, total		201.0	216.0	370.6	392.3	828.7

Internal net sales consist mainly of net sales from Communication in Lithuania, reported in Group Support Functions. There are no material internal net sales in any of the segments.

Net sales by business

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Communication	120.8	128.0	218.0	227.1	505.9
Power	80.3	88.1	152.6	165.3	322.8
Other operations	-	0.0	-	0.0	0.0
Net sales, total	201.0	216.0	370.6	392.3	828.7

Net sales by service split

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Project delivery	50.6	53.7	99.1	104.2	185.6
Upgrade services	95.1	103.2	167.5	179.1	401.8
Maintenance	55.3	59.2	104.1	109.0	241.3
Net sales, total	201.0	216.0	370.6	392.3	828.7

	Apr-Jun	Apr-Jun	Jan-Jun	Jan-Jun	Jan-Dec
EUR million	2025	2024	2025	2024	2024
Adjusted EBITA by segment
Finland	3.5	2.4	5.1	2.1	15.7
Sweden	1.3	1.0	2.8	1.5	6.1
Denmark & Germany	1.5	1.3	3.9	2.6	6.5
Norway	-0.4	-1.0	-2.2	-2.7	-5.7
Sum segments	5.9	3.7	9.6	3.4	22.6
Group Support Functions	-3.4	-3.2	-6.2	-7.0	-12.2
Adjusted EBITA, Group	2.5	0.5	3.4	-3.5	10.5
Restructuring and resizing	-0.5	-	-1.1	-	-5.3
Divestments	-	0.0	-	-23.1	-23.1
Total items affecting comparability in EBITA	-0.5	0.0	-1.1	-23.1	-28.5
Operating result (EBIT)	2.0	0.5	2.3	-26.7	-18.0
Financial expenses, net	-2.7	-2.8	-5.0	-5.8	-12.7
Result before taxes	-0.6	-2.3	-2.7	-32.5	-30.7

Reconciliation of segment results

The January-June 2025 result includes EUR -1.1 million restructuring charge in Norway, recognized in selling and administrative expenses in the income statement. The January-June 2024 result included EUR -23.1 million from the divestment of the Polish High Voltage business, recognized in other expenses in the income statement. The January-December 2024 result included EUR -23.1 million from the divestment of the Polish High Voltage business, recognized in other expenses in the income statement and EUR 5.3 million restructuring and resizing charge in Norway and Finland, recognized in selling and administrative expenses in the income statement.

Number of employees by segment	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Finland	1,311	1,510	1,314	1,501	1,478
Sweden	972	955	967	953	950
Denmark & Germany	775	843	777	847	829
Norway	554	783	578	790	761
Group Support Functions	319	626	326	709	531
Total number of employees, average, FTE	3,932	4,717	3,962	4,801	4,550
Total number of employees, end of period, FTE	3,911	4,462	3,911	4,462	4,160

Committed order backlog

EUR million	30 Jun	30 Jun	31 Dec
	2025	2024	2024
Committed order backlog	493.8	484.5	385.1

Committed order backlog in Eltel is defined as the total value of committed purchase orders received but not yet recognized as net sales. It does not include frame agreements unless a binding purchase order has been received. Committed order backlog is therefore the best measure of unsatisfied performance obligations according to IFRS 15 Revenue from contracts with customers. The currency impact in committed order backlog at 30 June 2025 was EUR 1.7 million.

Net working capital and operative capital employed

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Inventories	24.9	19.3	19.3
Trade and other receivables	172.2	170.1	165.3
Provisions	-8.0	-6.4	-8.4
Advances received	-72.1	-48.5	-51.4
Trade and other payables	-157.8	-187.7	-152.0
Other	-18.4	-1.0	-34.1
Net working capital	-59.2	-54.3	-61.3
Intangible assets excluding acquisition-related allocations	3.7	5.2	4.1
Property, plant and equipment	5.9	6.9	5.9
Right-of-use assets	50.4	54.7	53.5
Restructuring provisions	-0.5	-0.1	-0.5
Operative capital employed	0.3	12.4	1.7

Provisions

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Non-current provisions	5.5	3.7	5.2
Current provisions	3.1	2.7	3.8
Total provisions	8.5	6.5	8.9
EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
1 Jan	8.9	7.1	7.1
Changes:
Restructuring provisions	-0.0	-0.2	0.2
Other provisions	-0.4	-0.4	1.6
Balance at the end of reporting period	8.5	6.5	8.9

Contract balances

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Trade receivables	75.2	75.5	89.6
Contract assets	82.7	74.7	58.9
Total assets related to contracts with customers	157.9	150.2	148.5
Advances received from contracts with customers	67.4	43.8	46.7
Total liabilities related to contracts with customers	67.4	43.8	46.7

Trade receivables and contract assets are included in the trade and other receivable line in the above net working capital table. Advances received from contracts with customers represent contract liabilities.

Deferred taxes

EUR million	30 Jun 2025	30 Jun 2024	31 Dec 2024
Deferred tax assets	27.2	25.0	27.2
Deferred tax liabilities	-10.6	-11.3	-10.7
Net deferred tax assets	16.6	13.7	16.4

In December 2024, gross amount of EUR 22.9 million (20.7) deferred tax assets for losses carried forward was recognized, of which EUR 14.9 million (11.4) related to operations in Sweden. There were no changes in January-June 2025. Deferred tax assets are recognized for tax loss carry forwards to the extent that the utilization against current year taxable profits and future taxable profits is probable. The future taxable profit estimate is based on current business plans approved by management.

Acquisitions, disposals and assets held for sale

Disposal of Polish High Voltage business

In April 2024, Eltel signed an agreement to divest its Polish High Voltage business via sale of 100% of the shares in Eltel Networks Energetyka S.A. and Eltel Networks Engineering S.A. to Mutares SE & Co. KGaA, a listed private equity investor headquartered in Munich, Germany. The transaction was completed on 6 June 2024 following receipt of customary regulatory approval. The transaction had negative cash flow impacts of EUR 4.0 million in the second quarter of 2024 and EUR 0.6 million in the third quarter of 2024. Total negative cash flow impact for January-December 2024 was EUR 4.6 million. The negative impact on Group EBIT in January-December 2024 was EUR 23.1 million. The negative impact in 2024 was recognized in other expenses in the income statement.

Leasing

Right-of-use assets	30 Jun	30 Jun	31 Dec
EUR million	2025	2024	2024
Buildings	19.0	21.3	19.2
Machinery and equipment	31.4	33.4	34.3
Total	50.4	54.7	53.5

Changes in the right-of-use assets during the period	30 Jun	30 Jun	31 Dec
EUR million	2025	2024	2024
1 Jan	53.5	51.9	51.9
Additions	10.1	18.4	35.9
Depreciations	-11.9	-12.3	-25.5
Impairment losses	-	-	-3.1
Divestments / transfer to asset held for sale	-	-1.0	-1.0
Other	-1.3	-2.3	-4.7
Balance at the end of period	50.4	54.7	53.5

Leasing liabilities	30 Jun	30 Jun	31 Dec
EUR million	2025	2024	2024
Non-current	31.9	36.1	36.0
Current	21.5	20.6	22.7
Total	53.3	56.7	58.7

Financial instruments

Derivative financial instruments	30 Jun 2025 30 Jun 2024			31 Dec 2024
EUR million	Nominal values	Net fair values	Nominal values	Net fair values	Nominal values	Net fair values
Foreign exchange rate derivatives	7.4	-0.0	44.8	-0.1	35.5	0.0
Total	7.4	-0.0	44.8	-0.1	35.5	0.0

Financial assets recognized at fair value through profit and loss comprise solely derivatives. Fair values of the derivative instruments are based on market values (level 2 observable input information) at balance sheet date.

Fair value of financial instruments measured at cost

The carrying amount of financial assets and financial liabilities is a reasonable approximation of their fair value. Changes in the market interest rates are reflected in the future interest flows of interest-bearing debt within a short period.

Earnings per share	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net result attributable to equity holders of the parent	-0.9	-2.8	-3.7	-33.4	-29.7
Interest on hybrid bond	-0.8	-0.8	-1.6	-1.7	-3.4
Net result attributable to ordinary shares	-1.7	-3.7	-5.4	-35.0	-33.1
Weighted average number of ordinary shares, basic	156,736,781	156,736,781	156,736,781	156,736,781	156,736,781
Weighted average number of ordinary shares, diluted	156,736,781	156,736,781	156,736,781	156,736,781	156,736,781
Earnings per share EUR, basic	-0.01	-0.02	-0.03	-0.22	-0.21
Earnings per share EUR, diluted	-0.01	-0.02	-0.03	-0.22	-0.21

New segment structure

To simplify our operational structure and leverage our Danish management, the segment structure has been updated from 1 January 2025. The operations in Denmark and Germany are presented in one segment named Denmark & Germany. Smart Grids Germany was presented outside segments under Other business until 31 December 2024. The remaining part of the Other business and Group Functions has been combined and named as Group Support Functions. Starting from 1 January 2025 the segments are Finland, Sweden, Denmark & Germany and Norway. The Group Support Functions includes Group Functions and Lithuania as well as closing activities for Power Transmission International and High Voltage Poland until its divestment in Q2 2024. Restated figures for 2024 according to the new segment structure are presented below.

Net sales EUR million		Jan-Mar 2024	Apr-Jun 2024	Jul-Sep 2024	Oct-Dec 2024	Jan-Dec 2024
Finland		62.4	92.6	101.3	101.4	357.7
Sweden		49.8	50.9	51.6	59.5	211.8
Denmark & Germany		30.4	34.4	28.9	35.8	129.6
Norway		25.7	31.6	27.8	29.8	114.9
Sum segments		168.3	209.6	209.7	226.5	814.0
Group Support Functions		9.4	9.0	2.9	3.0	24.3
Eliminations		-1.5	-2.5	-2.3	-3.4	-9.7
Total net sales		176.3	216.0	210.3	226.1	828.7
Adjusted EBITA and -margin		Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Jan-Dec
EUR million		2024	2024	2024	2024	2024
Finland		-0.3	2.4	7.3	6.3	15.7
Sweden		0.5	1.0	2.2	2.5	6.1
Denmark & Germany		1.3	1.3	1.4	2.5	6.5
Norway		-1.7	-1.0	-0.7	-2.3	-5.7
Sum segments		-0.3	3.7	10.2	9.0	22.6
Group Support Functions		-3.8	-3.2	-1.9	-3.3	-12.2
Total adjusted EBITA		-4.0	0.5	8.2	5.7	10.5
Finland		-0.5%	2.6%	7.2%	6.2%	4.4%
Sweden		1.0%	2.0%	4.2%	4.2%	2.9%
Denmark & Germany		4.2%	3.8%	4.9%	7.1%	5.0%
Norway		-6.5%	-3.1%	-2.5%	-7.7%	-4.9%
Sum segments		-0.2%	1.8%	4.9%	4.0%	2.8%
Total adjusted EBITA margin, %		-2.3%	0.2%	3.9%	2.5%	1.3%
Net sales by segment and by business		Jan-Mar	Apr-Jun	Jul-Sep	Oct-Dec	Jan-Dec
EUR million		2024	2024	2024	2024	2024
Finland	Communication	23.2	43.4	55.8	52.0	174.4
	Power	39.2	49.2	45.5	49.4	183.4
Sweden	Communication	34.7	38.8	35.8	50.6	159.9
	Power	15.1	12.1	15.8	8.9	52.0
Denmark & Germany	Communication	14.1	13.8	13.0	13.5	54.4
	Power	16.3	20.6	16.0	22.3	75.2
Norway	Communication	25.6	31.6	27.6	29.8	114.6
	Power	0.1	0.1	0.1	0.0	0.3
Group Support Functions	Communication	2.2	2.6	2.9	3.0	10.7
	Power	7.3	6.3	0.0	0.0	13.6
	Other operations	0.0	0.0	0.0	0.0	0.0
Eliminations		-1.5	-2.5	-2.3	-3.4	-9.7
Net sales, total		176.3	216.0	210.3	226.1	828.7
Number of employees by segment, FTE		Jan-Mar 2024	Apr-Jun 2024	Jul-Sep 2024	Oct-Dec 2024	Jan-Dec 2024
Finland		1,492	1,510	1,492	1,419	1,478
Sweden		951	955	941	955	950
Denmark & Germany		852	843	819	802	829
Norway		798	783	760	705	761
Group Support Functions		793	626	361	345	531
Total number of employees, average, FTE		4,885	4,717	4,372	4,226	4,550
Total number of employees, end of period, FTE		4,846	4,462	4,328	4,160	4,160

Definitions and key ratios

Eltel applies ESMA's (European Securities and Markets Authority) guidelines for alternative performance measures (APM). In addition to the financial measures defined in IFRS, certain key figures, which qualify as alternative performance measures (APMs) are presented to reflect the underlying business performance, facilitate analysis of the Group's development as followed by Group Management and enhance comparability from period to period. The definition of these key figures is presented below and relevant information enabling reconciliations to IFRS measures can be found in connection with relevant parts of the report. These APMs should not be considered as a substitute for measures in accordance with IFRS.

IFRS key ratios

Earnings per share (EPS)	Net result attributable to equity holders of the parent - interest on hybrid bond
	Weighted average number of ordinary shares

Alternative performance measures (APMs)

Key Figure	Definition and reason for use	Reference
Adjusted EBITA and -margin	Adjusted EBITA and -margin, % are used by management to measure business and segment profitability and exclude items affecting comparability. Income statement line items below adjusted EBITA are not allocated to segments. Adjusted EBITA: Operating result before acquisition-related amortizations and items affecting comparability Adjusted EBITA margin, %: Adjusted EBITA x 100 Net sales	Reconciliation of segment results
	Adjusted EBITA and -margin, % for segments represent the sum of segments: Finland, Sweden, Denmark & Germany and Norway.
Items affecting comparability	These include capital gains and/or losses and transaction costs related to divestments and acquisitions, restructuring and resizing expenses and other items that according to Eltel's management's assessment are not related to normal business operations.	Reconciliation of segment results
EBITDA and adjusted EBITDA	EBITDA is operating result (EBIT) before depreciations and amortizations. Adjusted EBITDA excludes items affecting comparability. Adjusted EBITDA is used in calculating the leverage ratio.	Cash flow, key figures, quarterly key figures
EBIT margin	Operating result (EBIT) and -margin% are used to measure profitability before interest and taxes. EBIT margin, %: EBIT x 100 Net sales	Income statement
Return on equity (ROE), %	Return on equity (ROE), % represents the rate of return that shareholders receive on their investments. Return on equity (ROE), % 1): Net result x 100 Total equity (average over the reporting period)	Income statement and balance sheet

1) Calculated on a rolling 12-month basis.

Key figure	Definition and reason for use	Reference
Operative capital employed	Operative capital employed is the amount of net operating assets the business uses in its operations. Operative capital employed: Net working capital + Intangible assets excluding goodwill and acquisition related allocations + Property, plant and equipment and Right-of-use assets	Net working capital and operative capital employed
Net debt and leverage ratio	Net debt represents Eltel's indebtedness. It is used to monitor capital structure and financial capacity. It is also used in calculating the leverage ratio. The leverage ratio is defined as covenant in Eltel's financing agreement. Net debt: Interest-bearing debt - cash and cash equivalents Net debt Leverage ratio1): Adjusted EBITDA	Interest-bearing liabilities and net debt
Net working capital	Net working capital is used to follow the amount of capital needed for the business to operate. Used also as a factor to calculate operative capital employed. Net working capital: Net of inventories, trade and other receivables, provisions, advances received and trade and other payables, excluding items in these balance sheet items that are not considered to form part of operative working capital: derivative valuations and income tax liabilities.	Net working capital and operative capital employed
Committed order backlog	Committed order backlog is the total value of committed orders received but not yet recognized as sales. It does not include frame agreements unless a binding purchase order has been received. It is the best measure of unsatisfied performance obligations according to IFRS 15 Revenue from contracts with customer.

1) Calculated on a rolling 12-month basis.

Parent Company

Eltel AB is the ultimate parent company of Eltel Group. The operational and strategic management functions of Eltel Group are centralized in Eltel AB but it has no operative business activities. Eltel AB owns and governs the shares related to Eltel Group and its risks are mainly attributable to the value and activities of its subsidiaries. The interim report for the parent company is prepared in accordance with the chapter 9, Interim report, in the Swedish Annual Accounts Act.

Parent Company condensed income statement

EUR million	Apr-Jun 2025	Apr-Jun 2024	Jan-Jun 2025	Jan-Jun 2024	Jan-Dec 2024
Net sales	4.1	1.0	4.1	1.0	8.3
Administrative expenses	-3.0	-3.1	-4.3	-5.0	-9.1
Operating result	1.0	-2.2	-0.2	-4.1	-0.8
Interest and other financial income	5.3	5.2	10.4	10.4	21.2
Interest and other financial expenses	-0.9	-1.0	-1.8	-2.1	-4.2
Net financial items	4.4	4.2	8.6	8.4	17.0
Result after financial items	5.4	2.0	8.4	4.3	16.2
Group contributions given	-	-	-	-	-16.0
Net result	5.4	2.0	8.4	4.3	0.2

Parent Company condensed balance sheet

	30 Jun	30 Jun	31 Dec
EUR million	2025	2024	2024
ASSETS
Non-current assets
Financial assets
Shares in Group companies	68.3	68.3	68.3
Long-term loans receivable from Group companies	483.8	480.4	490.8
Other financial assets	0.9	-	0.9
Intangible assets	0.7	-	0.0
Non-current assets	553.8	548.7	560.0
Current assets
Trade and other receivables	4.8	1.2	8.0
Cash pool receivable	21.7	4.4	4.4
Cash and cash equivalents	98.9	0.1	0.1
Current assets	125.4	5.7	12.6
TOTAL ASSETS	679.2	554.4	572.6

	30 Jun	30 Jun	31 Dec
EUR million	2025	2024	2024
EQUITY AND LIABILITIES
Restricted equity
Share capital	162.0	162.0	162.0
Statutory reserve	0.7	0.7	0.7
Restricted equity	162.6	162.6	162.6
Non-restricted equity
Retained earnings	273.6	277.9	278.2
Hybrid bond	1.3	25.0	25.0
Net result for the period	8.4	4.3	0.2
Non-restricted equity	283.2	307.2	303.3
Total equity	445.9	469.9	466.0
Non-current liabilities
Debt	127.1	-	-
Retirement benefit obligation	0.9	-	0.9
Provisions	0.2	-	0.2
Non-current liabilities	128.2	-	1.1
Current liabilities
Debt	9.9	7.4	9.9
Liabilities to Group companies	93.0	72.5	94.0
Trade and other payables	2.1	4.6	1.6
Current liabilities	105.1	84.5	105.5
Total liabilities	233.3	84.5	106.6
TOTAL EQUITY AND LIABILITIES	679.2	554.4	572.6

Eltel has secured its debt obligations towards the banks by share and intragroup loan pledges and floating charges over certain assets of the Group, all on customary terms and conditions.

Equity

		Repurchase of		Equity-settled share-based payment	Net result	30 Jun 2025
EUR million	1 Jan 2025	hybrid bond, including premium	Interests for hybrid bond, net of tax
							Share capital	162.0	-	-	-	-	162.0
							Statutory reserve	0.7	-	-	-	-	0.7
Non-restricted equity	303.3	-25.3	-3.3	0.1	8.4	283.2
Total	466.0	-25.3	-3.3	0.1	8.4	445.9

As of 30 June 2025, the total number of registered and outstanding shares of Eltel amounts to 160,585,581, whereof 156,736,781 are ordinary shares and 3,848,800 are class C shares. The number of votes in Eltel amounts to 157,121,661 and the registered share capital amounts to EUR 161,950,203.

For more information about changes relating to Eltel's refinancing in June 2025, please refer to page 11 in the notes for the financial statements.

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Eltel AB

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