CEO’s Review

In January-March, we made significant progress on the key targets we set last year. We improved our EBITDA, continued to clarify the strategy of our core businesses and completed two of our three strategic assessments. We also agreed on a new financing arrangement that gave us financial flexibility in our operations.

In the review period, our EBITDA improved to EUR 21.2 (4.5) million, mainly due to a gain of EUR 22.4 million on the sale of our wind and solar power project development business. The transaction was part of our strategic renewal, significantly improving our equity ratio. On the other hand, the ramp-down of the zero-emission transport solutions business weakened the EBITDA by EUR 2.9 million. The EBITDA for the comparison period was strengthened by a EUR 6.9 million income from wind power projects.

Seasonality and a weaker market situation compared to last year reduced first-quarter revenue and profitability in the core businesses. The profitability of our core businesses was in line with our expectations, and strengthened in the Power segment, while in the Industry and Connectivity segments, projects in the beginning of the year had a lower margin than in the comparison period. Revenue increased slightly in the Connectivity segment, but declined in the Industry and Power segments, where revenue fell after the completion of individual large projects at the end of last year and due to the proceeds from wind power project sales strengthening the comparison period. In the Industry segment, revenue from core business services declined due to contract changes and a smaller network of sites than in the comparison year.

We aim to do business in an environmentally and socially sustainable way and to increase our customers’ positive carbon handprint. In early 2025, we were starting up Finland’s first green hydrogen plant that we built and operate and maintain for our customer, P2X Solutions. Our experience in green hydrogen production gives us a strong starting point for partnering throughout the life cycle of future energy systems.

Our Value Uplift program, launched at the end 2024 to improve efficiency and support profitable growth, has had a strong start. The procurement performance renewal has made encouraging progress and we expect to see benefits already in the second half of this year, whereas previously we estimated that the results would only start to show from the beginning of 2026. In total, we are targeting an annual performance improvement of around EUR 5 million from the second half of 2026 onwards. The Value Uplift program plays an important role in accelerating and financing the implementation of the strategy.

We will continue to patiently assess the Marine and Offshore Unit to ensure the best possible outcome in the rapidly evolving market environment for offshore wind power and other arctic marine industries. Our Marine and Offshore Unit had a positive EBITDA in the first quarter.

The strong commitment of Enersense’s people to renewal and profitability improvement provides a good basis for developing our business and achieving our goals. We maintain our guidance for 2025 and expect our core businesses’ EBITDA to improve from 2024.

Over the first half of the year, we have been working with our staff and customers to update the strategy of our core businesses. We will share our strategy and new financial targets at our Capital Markets Day on 4 June 2025. We hope to meet as many of you as possible on site or via webcast.

Kari Sundbäck
CEO

(Business Review Q1/2025, 28.4.2025)