Enersense International Plc | Stock Exchange Release | February 28, 2025 at 12:30:00 EET
The figures in this bulletin are unaudited.
In line with the strategic alignment made in summer 2024, Enersense's core businesses are project and service operations for the green energy transition and telecommunication networks. The core businesses do not include the three businesses that were under strategic assessment in 2024: wind and solar power project development, zero-emission transport solutions and the Marine and Offshore Unit.
October-December 2024
- Revenue totalled EUR 114.2 (107.8) million, +6.0% year-on-year.
- EBITDA was EUR 10.9 (7.7) million, of which EUR 10.1 million related to the termination of the cooperation agreement of wind power project development, which has no net income or cash flow impact. As a result of the termination of the agreement, the company recognized EUR 10.1 million in revenue and made a corresponding depreciation of EUR 10.1 million in fixed assets. The EBITDA margin was 9.6 (7.1)%.
- Revenue from the core businesses was EUR 83.0 (89.2) million.
- Adjusted EBITDA for the core businesses was EUR 3.0 (7.2) million.
- Cash flow from operating activities was EUR 17.5 (4.4) million.
- Asset write-downs of EUR 8.5 million in businesses under strategic assessment increased depreciation.
- Operating profit was EUR -10.1 (5.3) million. The profit margin was -8.9 (4.9)%.
- Undiluted earnings per share were EUR -0.84 (-0.15).
January-December 2024
- Revenue totalled EUR 424.7 (363.3) million, +16.9% year-on-year.
- EBITDA was EUR 14.5 (14.7) million, of which EUR 10.1 million related to the termination of the cooperation agreement of wind power project development, which has no net income or cash flow impact. The EBITDA margin was 3.4 (4.0)%.
- Revenue from the core businesses was EUR 335.5 (331.7) million.
- Adjusted EBITDA for the core businesses was EUR 19.9 (18.3) million.
- Cash flow from operating activities was EUR 16.3 (-15.2) million.
- Operating profit was EUR -14.1 (5.3) million. The profit margin was -3.3 (1.4)%.
- Undiluted earnings per share were EUR -1.83 (-0.54).
- At the end of the year, the order backlog stood at EUR 393 (457) million.
- The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the financial year 2024.
Guidance for 2025
Enersense expects its core businesses' EBITDA to improve from 2024 (2024: EUR 10.4 million) and its core businesses' adjusted EBITDA to be at the same level as in 2024 (2024: EUR 19.9 million). The Marine and Offshore Unit, which is under strategic assessment, is not part of the core businesses and no guidance is given for it.
Key figures
| 10-12/2024 | 10-12/2023 | Change-% | 1-12/2024 | 1-12/2023 | Change-% | |
| Revenue, (EUR 1,000) | 114,248 | 107,827 | 6.0 | 424,718 | 363,318 | 16.9 |
| Core businesses | 83,003 | 89,247 | -7.0 | 335,529 | 331,783 | 1.1 |
| Non-core businesses | 31,244 | 18,581 | 68.2 | 89,189 | 31,535 | 182.8 |
| EBITDA, (EUR 1,000) | 10,915 | 7,655 | 42.6 | 14,511 | 14,704 | -1.3 |
| Core businesses | 2,590 | 4,594 | -43.6 | 10,422 | 14,884 | -30.0 |
| Non-core businesses | 8,325 | 3,061 | 172.0 | 4,089 | -180 | - |
| EBITDA, % | 9.6 | 7.1 | 3.4 | 4.0 | ||
| Adjusted EBITDA, core businesses (EUR 1,000) | 3,129 | 7,199 | -56.5 | 19,941 | 18,345 | 8.7 |
| Operating profit, (EUR 1,000) | -10,119 | 5,311 | -290.5 | -14,100 | 5,260 | - |
| Operating profit, % | -9 | 4.9 | -3 | 1.4 | ||
| Result for the period, (EUR 1,000) | -13,359 | -2,356 | - | -28,921 | -9,149 | - |
| Equity ratio, % | 12.7 | 26.0 | 12.7 | 26.0 | ||
| Gearing, % | 122.7 | 70.2 | 122.7 | 70.2 | ||
| Return on equity, % | -35.8 | -4.1 | -77.6 | -16.0 | ||
| Earnings per share, undiluted, EUR | -0.84 | -0.15 | -1.83 | -0.54 | ||
| Earnings per share, diluted, EUR | -0.84 | -0.15 | -1.83 | -0.54 |
CEO Kari Sundbäck
Enersense is a major operator in the development, construction and maintenance of critical infrastructure for society. We operate in a customer-driven manner in the growing and evolving markets for electricity and telecommunications networks and energy industry solutions. In 2024, we improved the profitability of our core businesses, operating cash flow, customer satisfaction and occupational safety, and reduced climate emissions from our own operations.
Work safety is of primary importance to us and our customers. Our investment in proactive safety at work paid off, with a 34% reduction in the frequency of lost time injuries in 2024.
We work to enable the green energy transition and thus play an important role in the mitigation of climate change. We are committed to reducing our own and our value chain's greenhouse gas emissions in line with the Science Based Targets initiative (SBTi). In 2024, emissions from our own operations reduced by 33% and in 2025, we will set a target for our overall emissions.
2024 showed that our customer relationships are on solid ground. Customer satisfaction increased in all our divisions and we entered into a number of new customer relationships. Our customers expect us to offer an ever wider range of services in the future, and our staff are ready to develop them.
A new direction in the summer
2024 was a special year for Enersense. At the beginning of the year, problems with individual projects were piling up and a change of direction became necessary. In June, the Board of Directors redefined the focus of our strategy and launched a strategic assessment of three of our businesses. I joined the team in September with the aim to strengthen the balance sheet and improve profitability. We will achieve these goals by developing our core businesses and by completing the strategic assessments.
Two of the three strategic assessments initiated in the summer have now been completed. We announced the sale of the wind and solar power project development business to Fortum in December, and the transaction closed on 26 February 2025. After the review period, we completed the strategic assessment of the zero-emission transport solutions business, which was decided to be ramped down.
The third strategic assessment, related to the Marine and Offshore Unit, is still ongoing. Our expertise in Mäntyluoto is unique both for offshore wind power and the rest of the arctic marine industry, such as constructing icebreaker vessels. These sectors are evolving rapidly, so we will continue the strategic assessment to ensure the best possible outcome.
Improved profitability in the second half of the year
In the second half of the year, we stabilised our business and built the foundations for sustainable growth. Starting in the summer, we thoroughly reviewed the condition of our businesses and critically assessed balance sheet values. This resulted in significant write-downs in the second and fourth quarters. These were necessary for the long-term development of our core businesses.
A clear focus on the core business was reflected in improved profitability in the second half of the year. Adjusted full-year EBITDA for the core businesses was EUR 19.9 (18.3) million. EBITDA for the entire Group was down on the previous year and amounted to EUR 14.5 (14.7) million, of which EUR 10.1 million related to the termination of the cooperation agreement of wind power project development, which has no net income or cash flow impact. We managed to raise cash flow from operating activities to clearly positive EUR 16.3 (-15.2) million.
I am particularly pleased with our Connectivity segment, which expanded its customer base and almost doubled its EBITDA to EUR 4.2 million. Power segment's core business developed positively and we grew our substation business profitably in Finland. In the Industry segment, we completed significant projects, such as the piping and steel structures for Finland's first green hydrogen production plant for P2X, and turned the early-year difficulties at the Mäntyluoto Marine and Offshore Unit into successful customer deliveries in the second half of the year.
We are developing our offering in areas where we have customers and strong expertise. Enersense's revenue increased by 17% to EUR 425 million in 2024.
Building a new Enersense
In line with our strategic alignment of summer 2024, we will focus on project and service operations for the green energy transition in our Power, Connectivity and Industry segments. We will update our strategy to build sustainable growth in our core businesses. More information on our new strategy will be provided by the summer.
At the end of the year, to fund our strategic journey, we started a Value uplift program to improve efficiency and support profitable growth. The program will continue throughout the year, and we plan to gradually renew our procurement performance, evaluate our fixed costs and resources to support the implementation of the strategy as well as improve our commercial management. We are targeting an annual profit improvement of around EUR 5 million from 2027 onwards, and we estimate that the positive impact on profit will be seen gradually from 2026 onwards.
I would like to thank all Enersense's employees for their commitment to the transformation of the company and for a job well done in 2024. I would also like to acknowledge our customers, shareholders and other partners for their trust and rewarding cooperation. I look forward to continuing our journey together.
Strategy
On 19 June 2024, Enersense announced that it would focus on its core businesses in project and service operations for the green energy transition in its Power, Industry and Connectivity segments. With the revised direction, Enersense started in late 2024 to update its core business strategy to create sustainable growth. The company will provide more details on its new strategy by summer 2025.
At the end of the year 2024, Enersense started a Value uplift -program to improve efficiency and support profitable growth. The program will continue throughout the year 2025, and the company is planning to gradually renew its procurement performance, evaluate its fixed costs and resources to support the implementation of the strategy as well as improve its commercial management. With the program, Enersense is targeting an annual profit improvement of around EUR 5 million from the second half of 2026 onwards, and is estimating that the positive impact on profit will be seen gradually from 2026 onwards. The cost of the Value uplift program is treated as an item affecting comparability.
Enersense promotes the sustainability of its business through three themes: sustainable work, sustainable business and the environment. Enersense is committed to the Science Based Targets initiative (SBTi) and will set science-based targets to reduce greenhouse gas emissions by 2025. In 2024, key results of responsibility work included a 33% reduction in greenhouse gas emissions from the company's own operations (Scope 1 and 2) and a 34% reduction in the frequency of lost time injuries from the year 2023. Enersense's Sustainability Statement will be released as part of the Report of the Board of Directors on 26 March 2025.
Strategic assessments
As part of the strategic alignment defined in the summer 2024, Enersense launched a strategic assessment of three businesses: wind and solar power project development, zero-emission transport solutions and the Marine and Offshore Unit.
On 19 December 2024, Enersense announced the sale of its wind and solar project development business to Fortum, which completed on 26 February 2025. With the completion of the transaction, Fortum paid Enersense a fixed debt-free cash price of EUR 9.25 million. At the same time, Enersense recorded a profit of approximately EUR 19 million, and its equity ratio increased by approximately 10 percentage points. The transaction also includes Earn-Out up to EUR 74 million, which is based on the progress of the wind and solar power development projects covered by the Transaction, and any payment will be subject to individual projects reaching a final investment decision made by Fortum. Any payment related to the Earn-Out would be paid in instalments on a per project basis. No Earn-Out will be paid for any projects that do not reach the final investment decision in 15 years from the closing date. Enersense estimates a probability-weighted Earn-Out of EUR 33 million. Further, Enersense estimates that the potential Earn-Out cash flow of the Transaction could be generated earliest starting from 2027.
After the review period, on 28 February 2025, Enersense announced that it had completed a strategic assessment of its business focused on zero-emission transport solutions. The company is ramping down the business under assessment and estimates to record a write-down of approximately EUR 2-3 million related to the ramp-down in the first quarter of 2025.
In its Marine and Offshore Unit, Enersense has unique expertise in offshore wind power and other arctic marine industries, e.g. related to constructing icebreaker vessels. These sectors are evolving rapidly, so the company will continue the strategic assessment to ensure the best possible outcome. Due to the long production cycles in the marine industry and the uncertainty about the duration of the upcoming quieter period, Enersense revised the value of the Marine and Offshore Unit downwards by EUR 5 million in 2024.
Events after the financial period
- Stock Exchange Release 27 January 2025: Enersense's Shareholders' Nomination Board's proposals to the 2025 Annual General Meeting.
- Press release 27 January 2025: Enersense to supply state-of-the-art pipelines to Gothenburg. Enersense announced that it had signed an agreement with Valmet for a piping contract including prefabrication and installation of demanding process piping. The order is part of a project in which Valmet will supply Göteborg Energi AB with a biomass power plant in Gothenburg, which will generate electricity and district heat from renewable and recycled fuels.
- Inside information 28 January 2025: Positive profit warning: Enersense raises its 2024 revenue estimate and gives preliminary information on its 2024 financial performance.
- Press release 26 February 2025: Transaction of Enersense's wind and solar power project development business completed. The financial impact of the transaction is disclosed in the Strategic Assessments section of the Financial Statements Bulletin.
- Inside information 28 February 2025: Inside information: Enersense to discontinue its business of zero-emission transport solutions. The financial effects of the completion of the strategic assessment and the ramp-down are disclosed in the Strategic Assessments section of the Financial Statements Bulletin.
- Stock Exchange Release 28 February 2025: Changes to the publication dates of Enersense's financial reports 2025. Enersense will publish its January-March Business Review on 28 April 2025 (previously announced date 30 April 2025) and January-June Half-Year Financial Report on 12 August 2025 (previously announced date 5 August 2025).
Distribution of funds to the shareholders
The Board of Directors proposes to the Annual General Meeting that the profit for the financial year 1.1.-31.12.2024 be transferred to the profit and loss account of previous financial periods and that no dividend be paid to shareholders on the basis of the balance sheet for the financial period.
Financial reporting 2025
Enersense will publish the following financial reports in 2025:
- Enersense's ESEF Financial Statements and Report of the Board of Directors, including Sustainability Report, Corporate Governance Statement and Remuneration Report for 2024 on Wednesday 26 March 2025
- Business Review January-March on Monday 28 April 2025
- January-June Half-Year Financial Report on Tuesday 12 August 2025
- Business Review January-September on Friday 31 October 2025
Pori 28.2.2025
ENERSENSE INTERNATIONAL PLC
Board of Directors
Webcast
Enersense arranges a webcast for investors, analysts, and the media on 28 February 2025 at 13:00 EET. CEO Kari Sundbäck and CFO Jyrki Paappa will present the results and answer questions. The event is in Finnish, and a recording will be available later on the company's webpage.
Register for the webcast.
Additional information
Kari Sundbäck
CEO
Tel. +358 50 464 7704
Email: kari.sundback@enersense.com
Jyrki Paappa
CFO
Tel. +358 50 556 6512
Email: jyrki.paappa@enersense.com
Media contacts:
Liisi Tamminen
Head of Communications and Sustainability
Tel. +358 44 222 5552
Email: liisi.tamminen@enersense.com
Distribution:
Nasdaq Helsinki
Major media
www.enersense.com
Additional information is available on the company's website.
About us
Enersense International Plc focuses on the project and service operations for the green energy transition and telecommunication networks. The Enersense Group had a revenue of EUR 425 million in 2024. The company employs a total of approximately 2 000 people, operating in Finland and internationally. Enersense is listed on Nasdaq Helsinki (ESENSE). www.enersense.com
