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.