Source: Inderes

Translation: Original published in Finnish on 8/13/2026 at 9:22 am EEST.

Enersense published its Q2 report this morning. The company's revenue and operating profit slightly exceeded our expectations. In addition, the H2-weighted guidance for the current year remained unchanged. The market outlook also remains largely favorable for the company, and we do not anticipate the report to lead to material operational forecast changes at the group level. The company's Q2 webcast can be viewed here at 12:30 p.m. EEST.

Revenue slightly above our forecast

The company's reported revenue declined, reflecting the impact of divested or discontinued operations in the comparison period Adjusted for these, however, revenue development remained stable (73.0 MEUR vs. Q2'25: 72.5 MEUR) and slightly exceeded our forecast (70.6 MEUR). By business unit, Power's revenue grew by as much as 32%. However, this development was dampened by comparable revenue declines in Connectivity (-15% y/y) and especially in Energy Transition (-41% y/y). Compared to our forecasts, Power's performance exceeded our expectations, while Connectivity and Energy Transition fell short of our forecasts. Due to the lack of updated quarterly comparison figures for the business units, there was some uncertainty associated with the forecasts, but this would not have changed the overall picture.

The company's order book at the end of Q2 was at the comparison period's level of 373 MEUR. The order book decreased from the Q1 level (413 MEUR), mainly due to the timing of Power's projects. However, it should be noted that larger orders may cause fluctuations in the order book in the short term.

EBITDA also slightly above expectations, strong cash flows 

Enersense's adjusted EBITDA, in turn, amounted to 3.1 MEUR, which also slightly exceeded our 2.7 MEUR estimate. By business unit, Power and Connectivity fell slightly short of our expectations, while Energy Transition, contrary to our expectations, fell into the red, similar to the comparison period. According to the company, the quiet market situation in Estonia weakened Power's result, while Connectivity's margin was pressured by a decrease in demand for fiber optic projects for homes. The company commented that Energy Transition's performance improved from the comparison period due to stronger service business, but we estimate that the result turned negative due to volumes. Against this backdrop, the beat once again came from unallocated items, which were clearly positive. These were due to timing differences in the allocation and accrual of shared costs. In light of this, we also believe that the segment-specific figures do not provide a complete picture of their development. The company's reported EBITDA fell slightly short of our forecast due to higher one-off costs related to strategy renewal, Value Uplift, and a new ERP system. On the bottom line, financial expenses were higher than our expectations, which we believe was partly due to the non-cash accounting entry for the wind power portfolio sold to Fortum (based on our calculations, this impact was 0.4 MEUR).

A positive aspect of the report was the strong cash flow after an exceptionally weak Q1, which was burdened by a one-time change in VAT liabilities. In Q2, the company's net cash flow from operating activities rose to 6.7 MEUR (Q2'25: -3.1 MEUR) and to 5.1 MEUR after lease payments. The development was particularly supported by the change in working capital.

Current year earnings guidance reiterated, several significant projects to commence in Q3

In connection with the report, Enersense reiterated its guidance for the current year, as we expected, and estimates its adjusted EBITDA to be 19–23 MEUR (2025: 18.8 MEUR). According to the company, its order book includes several significant projects scheduled to start in Q3, which are expected to support development in H2. Prior to the report, our forecast for the current year's adjusted EBITDA was 21.2 MEUR, and we do not see any material pressure for changes to this. We estimate the company's second half of the year to be strong, which is naturally required to achieve the guidance (cf. H1'26 adjusted EBITDA: 4.6 MEUR). However, we note that the H2-weighted nature of the guidance slightly increases the risks related to timing factors (e.g., weather, project schedules) for achieving the guidance.

The company's market commentary also remained unchanged. The company expects the situation to remain good in Enersense's key strategic market segments. According to Enersense, all of its operating countries are investing in the capacity and reliability of electricity and telecommunications networks. Data center investments, in particular, increase capacity requirements. At the same time, it believed that cautiously positive development would continue in clean energy transition investments. Individual large investment projects can impact market development.

The company also announced the completion of its Value Uplift efficiency program, achieving an annual earnings improvement run-rate (EBIT/EBITDA run-rate) of 8.6 MEUR by the end of Q2. Thus, the program clearly exceeded its original targets (5 MEUR).