Analyst Comment
Merus Power H2'25 flash comment: High revenue, earnings in line with expectations
By Pauli Lohi
Summary
- Merus Power's H2 revenue was 29.7 MEUR, significantly exceeding expectations, although this resulted in lower relative profitability due to low-margin electricity storage deliveries.
- The order backlog at the end of 2025 was 24.5 MEUR, 17% below estimates, as more revenue was recognized in H2, while new orders for the full year were 5% above forecasts at 48 MEUR.
- Earnings were in line with expectations, with full-year EBITDA at 1.8 MEUR and EBIT at 0.3 MEUR, but the need for higher recognized revenue suggests a weaker order book for 2026.
- The company's guidance anticipates revenue growth and improving EBITDA in 2026, with forecasts aligning within the guidance range of 2-4 MEUR for EBITDA.
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| Estimates | H2'24 | H2'25 | H2'25e | Difference (%) | 2025e | |
| MEUR / EUR | Comparison | Actualized | Inderes | Act. vs. Inderes | Inderes | |
| Revenue | 29.2 | 29.7 | 20.9 | 42% | 45.9 | |
| Order book | 30.0 | 24.5 | 29.7 | -17% | 29.7 | |
| EBITDA | 2.6 | 1.5 | 1.6 | -8% | 2.0 | |
| EBIT | 2.0 | 0.8 | 0.8 | 0% | 0.3 | |
| EPS (reported) | 0.22 | 0.01 | 0.05 | -82% | -0.10 | |
| DPS | 0.00 | 0.00 | 0.00 | 0.00 | ||
| Revenue growth-% | 88.5% | 2% | -28.2% | 30 pp | 28.0% | |
| EBIT-% (adj.) | 6.7% | 2.7% | 3.9% | -1.1 pp | 0.7% |
Source: Inderes
Translation: Original published in Finnish on 2/5/2026 at 9:19 am EET.
Merus Power reported its H2 results today. The figures for revenue were stronger than expected, but this, on the other hand, meant lower relative profitability as the earnings lines came quite close to forecasts. New orders were slightly higher than expected, but the order book at the turn of the year was still lower than anticipated, as more revenue was recognized in the previous year. Overall, we consider the report to be quite neutral.
H2 revenue exceeded expectations
H2 revenue was 29.7 MEUR, thus on par with the very strong comparison period. Revenue significantly exceeded our estimate, although forecasting the timing of large electricity storage deliveries is challenging, and this revenue also has relatively low margins. Full-year 2025 revenue grew by as much as 53% year-on-year, driven by a strong H1.
Order intake slightly above forecast
The order backlog at the end of 2025 was 24.5 MEUR (-18% y/y), which was 17% below our estimate as the company recognized more revenue than expected in H2. New orders for the full year amounted to 48 MEUR (5% above our estimate), so overall, orders developed well compared to expectations. However, the order intake for 2025 was, as expected, below the strong 2024 level (53.6 MEUR).
Earnings rows were in line with our expectations, but relative margin level weaker
There was moderate evidence of progress in the profitability turnaround, as the company succeeded in raising the full-year EBITDA to 1.8 MEUR (we estimated 2.0 MEUR). EBIT was also moderately positive at 0.3 MEUR, thus in line with our estimate. The value of the achieved result is slightly diminished by the fact that it required more recognized revenue than anticipated, which simultaneously implies a weaker order book for 2026 and raises the bar for new sales to sustain revenue growth. Net profit was 0.1 MEUR in H2 and -1.1 MEUR for the full year. As expected, the Board of Directors proposes that no dividend be distributed for 2025.
Guidance expects growth and improving EBITDA
The company’s guidance is that revenue will grow in 2026 and EBITDA will be 2-4 MEUR. Based on the order book and guidance, we interpret that growth will slow down in 2026 compared to the very strong growth in 2025. However, the guidance puts upward pressure on our revenue forecasts (latest forecast for 2026: 49 MEUR). 49 MEUR). Regarding EBITDA, our current forecast of 2.5 MEUR for 2026 is within the given guidance.
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 Figures12/01
| 2024 | 25e | 26e | |
|---|---|---|---|
| Revenue | 35.8 | 45.9 | 48.6 |
| growth-% | 23.4 % | 28.0 % | 6.0 % |
| EBIT (adj.) | -2.1 | 0.3 | 0.7 |
| EBIT-% (adj.) | -5.7 % | 0.7 % | 1.5 % |
| EPS (adj.) | -0.35 | -0.10 | -0.02 |
| Dividend | 0.00 | 0.00 | 0.00 |
| Dividend % | |||
| P/E (adj.) | neg. | neg. | neg. |
| EV/EBITDA | neg. | 18.1 | 14.5 |
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