Enersense Q3'25 flash comment: Operational earnings development in core businesses far surpassed expectations

Translation: Original published in Finnish on 10/31/2025 at 9:31 am EET.

Source: Inderes

Enersense published its Q3 report this morning. The operational earnings development of the company's core businesses easily exceeded our estimates. The company had also continued to implement its Value Uplift efficiency program as planned. There were no major surprises in the market outlook, and we anticipate that demand will remain at least moderately strong overall. 

Revenue in line with 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, (81.1 MEUR vs. Q3'24: 90.9 MEUR) was well in line with our forecast (80.2 MEUR). By business unit, revenues for Power (-20% y/y) and Energy Transition (-5% y/y) declined from the comparison period, while Connectivity revenue remained stable. Compared to our forecasts, revenue development was more positive in Energy Transition and Connectivity, while Power fell slightly short of our expectations.

Similarly, the order book for core businesses stood at 379 MEUR at the end of Q3, continuing to grow versus the previous quarter (Q2’25: 376 MEUR) and also versus the comparison period (Q3’24: 335 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 clearly above estimates

Enersense's adjusted EBITDA for its core businesses, in turn, amounted to 9.2 MEUR, well exceeding our 5.9 MEUR estimate. The outperformance relative to our estimates came from all business units, and the company noted that the development of all segments supported strategy execution progress.

Meanwhile, the company's reported EBITDA settled at 5.8 MEUR due to several items affecting comparability, exceeding our estimate more modestly by comparison. As we noted in our preview, however, the reported development was highly uncertain due to positive (sale of the Marine and Offshore Unit), and negative one-time items and other adjustments (e.g., Value Uplift, ERP project, results of associated companies). Depreciation, on the other hand, was slightly lower than we expected, while the net cost burden on the lower lines was in line with our expectations.

Guidance reiterated as expected

Enersense reiterated its guidance for the current year in connection with the report, as expected, and estimates the adjusted EBITDA of its core businesses to be 16–20 MEUR (2024: 20.7 MEUR). Prior to the report, we forecasted adjusted EBITDA for the core businesses at 17.9 MEUR for the current year. Due to earnings exceeding expectations, we are seeing preliminary upward pressure on our forecasts for the current year, but we will wait for more detailed comments from the company regarding the outlook for the remainder of the year (incl. potentially accelerated revenue recognition in Q3).

Similarly, the company's comments on the market situation contained no major surprises. The company stated that it has seen an improvement in Power's market environment, with data center investments increasing demand for electricity networks while renewable energy development has remained slow. Accordingly, cautiousness continued in Energy Transition, while Connectivity saw stable development.

The company also reported progress on its Value Uplift efficiency program, achieving an annual EBIT/EBITDA run rate improvement of 4 MEUR by the end of Q3. In addition, it still expects to reach the level of 5 MEUR by the end of the current year and the level of 6.5 MEUR by the end of H1’26.