Translation: Original published in Finnish on 02/13/2026 at 09:18 am EET

Lähde: Inderes

Source: Inderes

This morning, Teleste reported Q4 results in line with our expectations, and the company's outlook, as expected, anticipates continued earnings growth this year. The company's North American expansion progressed excellently last year, and the company already has over 20 operator customers there. An expanding customer base also diversifies the short-term risk associated with Teleste's largest North American customer, Cox, as it is currently merging with Charter.

Revenue was stable in Q4, while we still expected slight growth

Teleste's Q4 revenue decreased by 1% to 36.1 MEUR, below our estimate of 37.9 MEUR. Broadband Networks' revenue (Q4’25: 19.9 MEUR) remained stable, while our expectation was 7% growth. Revenue was as expected supported by North American DOCSIS 4.0. deliveries, while traditional networks and the UK services business saw a decrease, according to the company. Last year, North America already accounted for 30% of Broadband Networks' revenue, reflecting Teleste's well-progressing expansion there. The unit's order intake (20.6 MEUR) decreased by 20% from a strong comparison period but increased significantly quarter-on-quarter (14.1 MEUR). Last year, customer orders were weighted towards the beginning of the year, and for the full year, the unit's orders grew by 10%.  

Public Safety and Mobility's revenue decreased by 2% to 16.2 MEUR, and our estimate also expected a roughly stable development. Teleste had several project deliveries underway at the end of the year, and according to the company, these have been very successful. The segment's order intake grew by 4% year-on-year, and the order book of 89.7 MEUR is at a good level.

Q4 earnings development slightly better than we expected

Teleste's adjusted EBIT was 1.2 MEUR in Q4 (Q4'24: 0.8 MEUR), slightly exceeding our forecast of 1.0 MEUR. The full-year adjusted EBIT of 7.1 MEUR was thus slightly above the guidance range (4-7 MEUR). Compared to a strong start to the year, relative profitability (EBIT 3.3%) declined, but it showed a slight improvement year-on-year. Broadband Networks' EBIT (8.5% vs. Q4'24: 5.6%) improved from the comparison period. Profitability in Public Safety and Mobility (4,7 % vs. Q4'24: 5.0%) was slightly lower than in the comparison period.  

Teleste's cash flow from operating activities (12.9 MEUR) was good last year, similar to the previous year, and as a result, the balance sheet's indebtedness continued to decrease throughout the year. Reduced debt and improved earnings are also reflected in the significant improvement of the net debt/EBITDA ratio (Q4’25: 1.7 vs. Q4'24: (2.8). Teleste's Board proposes a small dividend of EUR 0.08 per share, while our estimate was EUR 0.10. The dividend still grows by EUR 0.05 from the previous year.

Guidance in line with our expectations

Teleste guides for revenue of 140-160 MEUR and an adjusted EBIT of 7-10 MEUR for this year. Our forecast prior to the report expected revenue of 154.5 MEUR and EBIT of 9.0 MEUR, so our expectations are within the guidance range. Teleste expects earnings to be weighted towards H2, which has also been our assumption. In the short term, the merger between Teleste's largest North American customer, Cox Communications, and Charter has impacted Cox's network investments. The merger is expected to be completed by mid-year, after which the situation could be assumed to normalize again. However, Teleste already has over 20 operator customers in North America, so orders are continuously accumulating from a wider range of customers, diversifying the risk associated with the main customer. In addition, DOCSIS 4.0. deliveries will continue in Europe this year, although the investment wave is clearly smaller than in North America. The expanded customer base of Public Safety and Mobility also strengthens the prerequisites for continued profitable growth.