Translation: Original published in Finnish on 3/11/2026 at 8:42 am EET.

Merus Power announced on Tuesday that it had received a significant energy storage order from Latvia. The order is the largest in the company's history from outside Finland and a significant step forward in the internationalization of its energy storage business. The order improves the outlook for 2026 growth, although the realization of our 6% growth estimate will likely require additional successes in energy storage sales. In the long run, the geographical diversification of the energy storage business's revenue reduces dependence on Finland and, on the other hand, enables stronger growth as the company gains access to new markets in earlier growth phases.

Deal includes equipment deliveries to a local contractor

The agreement includes two 20 MW/40 MWh energy storage systems, which will be delivered to Riga for Latvenergo, Latvia's state-owned energy company. Merus Power acts as the equipment supplier to the local main contractor Nordes Būve for the project. The agreement may also include lifecycle services. Depending on the contractual options chosen, the value of Merus Power's deliveries will be in the range of 13-15 MEUR. This is the company's first energy storage order in Latvia and also its first entry into the Baltic market.

Reducing uncertainty around guidance

The delivery date was not disclosed in the release, but we estimate that over half of the value will be recognized by 2026 (mainly in H2). As a result, we estimate that the company's expected energy storage deliveries for 2026, based on the current order book, will be close to the 2025 level. However, for the moderate 6% revenue growth in our forecasts to materialize, we believe the company still needs small to medium-sized successes in energy storage sales or, alternatively, significant successes in selling power quality solutions, for example, to the steel industry. According to the company's 2026 guidance, revenue will grow from 2025 (54.6 MEUR) and EBITDA will be between 2-4 MEUR.

A strategically significant step forward

We consider internationalization a critical factor for Merus Power's long-term growth story, enabling the company to diversify risks related to demand fluctuations in the Finnish market. The agreement in Latvia, following the smaller orders in Poland announced last year, strengthens our confidence in the competitiveness of the company's technology outside Finland. The energy storage market in Eastern Europe and elsewhere in Continental Europe is clearly behind Finland, so strengthening the foothold in new countries can enable strong growth as these markets develop. For international growth to create value, the company should also be able to deliver won projects profitably. More evidence of this should be available in 2026-27.