Eltel signs new major framework contract with Swedish Transport Administration
Eltel announced on Thursday that it has signed another major new framework agreement with the Swedish Transport Administration for the construction of its nationwide communications network. The contract covers installation work throughout Sweden. The contract has a maximum duration of seven years, including four option years, and a value of up to 83 MEUR. The initial three-year period is estimated at 35 MEUR. The contract will take effect in December 2025.
Spread roughly evenly on an annual basis, the agreement is relatively small for Eltel (2024e revenue 829 MEUR, 1-2% of Group revenue). On the other hand, it brings important volume to the Swedish country unit (2024e revenue 205 MEUR). Furthermore, the release didn’t mention the deal as a continuation agreement and thus it supports our growth estimates for the coming years. However, due to the size of the frame agreement, it has no direct impact on our forecasts or view on the company.
Eltel
Eltel operates in the telecommunications and electricity industries and offers services in infrastructure for networks and electricity. The company's services include installation, maintenance and project management for telecommunications and electricity networks. The business is aimed at companies and public institutions in Europe. Eltel was founded in 2001 and is headquartered in Stockholm, Sweden.
Read more on company pageKey Estimate Figures01.11.2024
2023 | 24e | 25e | |
---|---|---|---|
Revenue | 850.2 | 828.9 | 843.8 |
growth-% | 3.2 % | -2.5 % | 1.8 % |
EBIT (adj.) | 1.7 | 10.1 | 20.3 |
EBIT-% (adj.) | 0.2 % | 1.2 % | 2.4 % |
EPS (adj.) | -0.02 | -0.05 | 0.01 |
Dividend | 0.00 | 0.00 | 0.00 |
Dividend % | |||
P/E (adj.) | - | - | 48.19 |
EV/EBITDA | 8.54 | 15.02 | 4.95 |