Analyst Comment
Merus Power signed a cooperation agreement with a global battery manufacturer
Summary
- Merus Power has signed a strategic cooperation agreement with CATL for delivering approximately 3 GWh of energy storage solutions to Northern Europe, enhancing its credibility in larger international projects.
- The agreement, while not immediately impacting the order backlog, is seen as strategically important, reinforcing Merus Power's market position and serving as a significant reference.
- The collaboration with CATL, a global battery manufacturer, is expected to bolster Merus Power's credibility and align with its internationalization strategy, despite no immediate financial effects.
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Translation: Original published in Finnish on 06/04/2026 at 08:05 am EEST
Merus Power announced on Wednesday that it had signed a strategic cooperation agreement with global battery manufacturer CATL for the delivery of approximately 3 gigawatt-hours (GWh) of energy storage solutions to Northern Europe. We consider the agreement strategically important for the company, as it strengthens Merus Power's credibility, targeting increasingly larger energy storage projects in international markets. The agreement itself does not immediately increase the order backlog, so the announcement does not cause immediate pressure to change our estimates.
The cooperation strengthens Merus Power's credibility in the market
In the energy storage business, batteries account for a very significant portion of the value of deliveries, and Merus Power typically procures them through subcontracting from global suppliers. The companies have been collaborating for three years, during which time Merus Power has delivered solutions utilizing CATL's batteries, totaling around 500 megawatt-hours (MWh). We believe the cooperation now agreed upon with CATL is a sign of confidence in Merus Power's system delivery capability. We believe the partnership with CATL will strengthen Merus Power's credibility and serve as an important reference.
The agreement is important, even if no money changes hands at this stage
The 3 GWh volume targeted by the agreement is remarkably large relative to the company's historical deliveries. Achieving this scale requires significant sales success for Merus Power not only in Finland but also more broadly in Northern Europe, which is in line with the company's internationalization strategy. In our view, CATL's strong global brand and references support Merus Power's position in tenders. As we have previously estimated, the international growth of the energy storage business is a significant growth option for the company, and the agreement now announced slightly supports its prerequisites, even though it does not have immediate financial effects.
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Merus Power operates in the industrial sector. The company specializes in electrical engineering, designing technology for energy efficiency, operational and environmental performance. The company delivers battery energy storage systems, power quality solutions and services. The customer base consists of players in industry, power generation and renewable energy. The company operates on a global level with headquarters in Ylöjärvi.
Read more on company pageKey Estimate Figures23.02.
| 2025 | 26e | 27e | |
|---|---|---|---|
| Revenue | 54.6 | 57.9 | 69.5 |
| growth-% | 52.5 % | 6.0 % | 20.0 % |
| EBIT (adj.) | 0.3 | 1.4 | 2.8 |
| EBIT-% (adj.) | 0.6 % | 2.3 % | 4.0 % |
| EPS (adj.) | -0.14 | 0.02 | 0.19 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | 230.7 | 22.6 |
| EV/EBITDA | 21.4 | 14.0 | 9.0 |
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