Translation: Original published in Finnish on 5/19/2025 at 9:14 am EEST.

The expansion into large electricity storage deliveries caused delivery challenges for Merus Power in the first project in 2024, but the second large electricity storage project now completed in Lappeenranta seems to have gone better. The company and the client prepared a release on the completion of the project together. In our view, the improvement in delivery capacity supports the probability of a profitability turnaround this year. We have already factored improved efficiency into our forecasts, so the release does not create a need for forecast revisions, although it slightly reduces the uncertainty surrounding our forecasts.

The delivery capacity seems to have improved

Merus power announced on Friday that the electricity storage it delivered in Mertaniemi, Lappeenranta, has been completed and put into market use on May 15, 2025. We interpret that the electricity storage has been completed on schedule, as the original release on the order anticipated completion in the spring of 2025. This would support our assumption that Merus Power has succeeded in improving its delivery capacity for large electricity storage systems after the company's first large-scale electricity storage system for Taaleri Energia was completed behind schedule in 2024. The value of the Lappeenranta electricity storage delivery was 15 MEUR, and the customers are Lappeenrannan Energia and eNordic Oy, latter of which is backed by the global energy sector private equity investor Ardian.

Profitability could turn positive in the current year

We forecast a clear improvement in Merus Power's profitability during 2025, driven by improved delivery capacity and economies of scale. The company's factory has likely been under heavy load at the beginning of the year due to several significant orders, including two large electricity storages to be delivered later and smaller deliveries. Our forecast for 2025 revenue is 44.8 MEUR (growth 25%), EBITDA 2.0 MEUR (2024: -0.8 MEUR) and EBIT 0.5 MEUR (2024: -2.1 MEUR). The turnaround in profitability also partly depends on how efficiently the company has managed to control production under increased load. According to the company's guidance, EBITDA is estimated at 1-3 MEUR.