Enersense Q4'25 flash comment: Numerous negative non-recurring items, but guidance roughly in line with expectations

Translation: Original published in Finnish on 02/2/2026 at 09:26 am EET

Lähde: Inderes

Enersense published its Q4 report this morning. The operational earnings development of the company's core businesses was slightly below our expectations, while reported earnings fell significantly into negative territory due to negative non-recurring items. Due to numerous negative non-recurring items, interpretation of the figures requires more detailed analysis. A positive aspect of the report was that the company had progressed faster than targeted in the implementation of the Value Uplift program and also raised the program's overall target. The earnings guidance range provided for this year was, however, broadly in line with our estimates. There were no major surprises in the market outlook, and we anticipate that demand will remain at least moderately strong overall.

Revenue of the core businesses fell slightly short of our expectations

The company's reported revenue declined sharply, as expected, reflecting the impact of the former non-core businesses in the comparison period. The development of revenue from core businesses, on the other hand, (81.5 MEUR vs. Q4'24: 83.0 MEUR) was somewhat behind our forecast (85.6 MEUR). By business unit, revenues for Power (-3% y/y) and Energy Transition (-10% y/y) declined from the comparison period, while Connectivity's revenue increased (+7% y/y). The operating model reform implemented at the beginning of Q4 led to updated comparable figures for the business units, but these did not affect group-level figures.

Similarly, the order book for core businesses stood at 392 MEUR at the end of the year, continuing to grow versus the previous quarter (Q3’25: 379 MEUR) and also versus the comparison period (Q4’24: 387 MEUR). However, it should be noted that larger orders may cause fluctuations in the order book in the short term.

Operational earnings development of core businesses was slightly below our expectations, and numerous non-recurring items weighed on reported performance

Enersense's adjusted EBITDA for its core businesses amounted to 4.2 MEUR, falling slightly short of our 5.0 MEUR estimate. Due to revisions made to reporting, comparing the business units' figures against our estimates is not entirely straightforward. However, we suspect the miss came largely from Power, while the performance of Energy Transition and Connectivity was more positive than we expected. Items not allocated to businesses were also clearly higher than our expectations.

Meanwhile, the company's reported EBITDA fell to -4.6 MEUR due to several items affecting comparability, falling clearly below our estimate. EBITDA was negatively impacted by 6.4 MEUR in costs related to Enersense's strategic focus and restructuring. These included, e.g., shutdown costs and write-downs of non-core operations, as well as investments in the Value Uplift program. In addition, the decrease in revenue and the completion of higher-margin projects in the comparison period reduced EBITDA.

Depreciation, on the other hand, was in line with our expectations, while the cost burden on the bottom line was clearly higher than we expected. The company's net financial expenses were as high as -7.6 MEUR, including, e.g., interest on loans, costs of financial arrangements, and write-downs. Financial expenses were particularly increased by the 7.6 MEUR write-downs related to Enersense's restructuring. The most significant of these related to the shares of P2X Solutions Oy and the claim related to the wind power project portfolio sold to Fortum, for which the fair value assessment at the turn of the year was carried out with the help of an external expert company. Enersense decreased its influence in P2X Solutions, as a result of which it is no longer an associated company, and the holding is valued at fair value. During the review period, Enersense was paid a 1.0 MEUR receivable related to the Värväämö acquisition, which was written down in 2024. Against the overall picture, reported EPS fell sharply into the red. As expected, the company will not distribute a dividend from its current year's earnings.

Our current year estimate is within the guidance range

In its market commentary for this year, the company stated that the situation would remain good in Enersense's key market segments. According to Enersense, all of its operating countries are investing in the capacity and operational reliability of electricity and telecommunications networks. Data center investments, particularly, increase the need for capacity. At the same time, it believes that cautiously positive development would continue in clean energy transition investments. Individual large investment projects may have an impact on market developments.

In its guidance for 2026, Enersense estimates its adjusted EBITDA to be 19-23 MEUR (2025: 18.8 MEUR). The company will no longer report separate core business figures as the strategic focus is completed. We had expected the company to switch to EBIT-based guidance in line with its financial targets, so the continued use of EBITDA-based guidance came as a slight disappointment. However, our estimate for this year's adjusted EBITDA (22.0 MEUR) was within the given guidance range, and slightly above the midpoint. Overall, however, we do not initially see significant pressure to revise our operational estimates.

The company also reported progress on its Value Uplift efficiency program, achieving an annual EBIT/EBITDA run-rate improvement of 6.7 MEUR by the end of Q4, instead of the previously targeted 5 MEUR. As a result, it also raised its overall target to 7.5 MEUR (was 6.5 MEUR) by the end of H1’26.