Source: Inderes

 Translation: Original published in Finnish on 5/7/2026 at 9:30 am EEST.

Enersense published its Q1 report this morning. The company's revenue development was well in line with our expectations, while the operating result exceeded our expectations in the seasonally slowest quarter. Enersense, as expected, reiterated its earnings guidance for the current year but raised its growth target for the strategy period, which strengthens confidence in the company's medium-to-long-term market outlook. 

Revenue in line with expectations

The company's reported revenue declined sharply, as expected, reflecting the impact of divested or discontinued operations in the comparison period. However, adjusted for these, revenue development (61.1 MEUR vs. Q1'25: 62.3 MEUR) was in line with our estimate (61.4 MEUR). By business unit, Power's revenue (+2% y/y) grew slightly compared to the comparison period, while Connectivity's remained stable. In contrast, Energy Transition's comparable revenue decreased by 14%. The performance of the Power and Connectivity business units exceeded our forecasts, while Energy Transition fell short of them. However, due to the lack of updated quarterly comparable figures for the business units, there is some uncertainty in the forecasts at the unit level.

The company's order book rose to 413 MEUR at the end of Q1, continuing its upward trend through the end of the year (Q4'25: 392 MEUR) and also year-on-year (Q1'25: 373 MEUR). However, it should be noted that larger orders may cause fluctuations in the order book in the short term.

Operational earnings development exceeded expectations

Enersense's adjusted EBITDA, in turn, amounted to 1.5 MEUR, exceeding our 0.9 MEUR estimate. The results for the Power and Energy Transition business units were in line with our expectations, while Connectivity seasonally fell slightly more into the red. Thus, the forecast beat came especially from items not allocated to business areas. Similarly, the company's reported EBITDA settled at 1.4 MEUR, exceeding our estimate due to lower non-recurring costs and a small non-recurring gain.

Earnings guidance for the year reiterated

In connection with the report, Enersense reiterated its guidance for the current year, as we expected, and estimates its adjusted EBITDA to be 19–23 MEUR (2025: 18.8 MEUR). The company expects earnings and growth to improve, especially in the second half of the year, in line with our current expectations. Prior to the report, our forecast for the current year's adjusted EBITDA was 20.6 MEUR. We do not initially see any material pressure to change our current year forecast, but we will await the company's more detailed comments on the outlook for the remainder of the year.

The company's market commentary also remained unchanged. The company expects the situation to remain good in Enersense's key strategic market segments. According to Enersense, all of its operating countries are investing in the capacity and reliability of electricity and telecommunications networks. In particular, data center investments increase capacity requirements. At the same time, it believed that cautiously positive development would continue in clean energy transition investments. Individual large investment projects can impact market development.

The company also reported progress on its Value Uplift efficiency program, achieving an annual EBIT/EBITDA run rate improvement of 6.9 MEUR by the end of Q1. The company also raised its overall target to 8.0 MEUR (was 7.5 MEUR) by the end of H1’26.

The strategy's growth target was raised

Enersense announced this morning that it is raising its growth target for the 2025–2028 strategy period and adding data centers as a new customer segment. Going forward, Enersense's customer segments will include energy transmission and production, industrial energy transition, telecommunications, and data centers. According to the company, the update reflects favorable market development and a significantly increased order book. The updated targets are:

• Growth: average annual growth (CAGR) of 6–7% (from 4–5%)
• Profitability: EBITDA margin over 7%, which, according to the company, corresponds to the previous EBIT margin target of over 5%
• Balance sheet: net gearing below 85% (from below 100%)

We consider the raised targets a positive sign that strengthens confidence in the company's ability to benefit from the energy transition and digitalization. We are still awaiting the company's more detailed comments on the raised growth targets in connection with the Q1 webcast, which can be followed here starting at 11:30 am EEST.