CEO’s Review

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.

Kari Sundbäck
CEO

(Financial Statement Bulletin 2024, 28.2.2025)