Translation: Original published in Finnish on 10/21/2026 at 08:00 am EEST

Yesterday, Betolar announced that it has signed a framework agreement with Enersense for the development and delivery of substation and data center protection solutions in Finland and the Baltics. We consider the agreement a critical step for Betolar's protection business, as we believe industrial partners are a necessity for this business area of Betolar. However, the agreement does not put pressure on our estimates, which already incorporate significant growth.

May's letter of intent progressed to a framework agreement

The framework agreement is based on a letter of intent signed by the companies in May, which concerned the protection of substations against external threats such as drones. The agreement expands the collaboration to cover, in addition to substations, other solutions related to electrical networks for both grid companies and industrial customers, including data centers. The solutions combine physical protective structures, such as drone networks and protective walls, with other solutions that improve security. Like the letter of intent, the cooperation also covers the utilization of Betolar's low-carbon concrete solutions in substation projects.

In the division of labor, Betolar develops and supplies the protection solutions and brings the expertise related to threat assessment, while Enersense brings its experience in substation design, construction, and maintenance. Either company can act as the primary contractor for the project, and responsibilities are defined in project-specific agreements. The release did not disclose the value, volumes, or schedule of the agreement.

A partnership is likely a prerequisite for scaling the protection business

We assess that Betolar does not have its own capacity to build and maintain substations nor established customer relationships with grid companies, meaning that the delivery of protection solutions relies practically on a partner. Enersense brings the solution directly to substation projects while keeping Betolar's role asset-light. Therefore, we consider the agreement a prerequisite for the protection business to grow in Finland and the Baltic countries. The entry of data centers and industrial customers expands the potential customer base.

The framework agreement does not include orders in itself, so the impact on revenue will depend on project-specific contracts, and significant revenue is still expected to materialize, in our view, at the earliest in 2027. Our estimates already include revenue from critical infrastructure protection solutions as part of other projects, and we forecast revenue to grow from 1.7 MEUR this year to 3.0 MEUR next year. Following the lackluster order intake of the current year so far, our estimates require new commercial successes from Betolar. Therefore, the agreement does not provide a reason to revise our estimates. The next checkpoints are the Q3 business review to be published on October 28 and the CMD to be held on November 26.