Enersense Q3 2025 slides: EBITDA margin improves despite revenue decline

Enersense International Oyj (HEL:ESENSE) presented its third-quarter 2025 results on October 31, revealing improved profitability metrics despite a revenue decline. The Finnish energy services company’s stock closed at €4.32, down 2.48% following the presentation.

Executive Summary

Enersense reported a 10% year-over-year revenue decline in its core businesses to €81 million for Q3 2025, down from €90.9 million in the same period last year. However, the company managed to improve its adjusted EBITDA margin to 11.2% from 9.6% in Q3 2024, demonstrating enhanced operational efficiency amid challenging market conditions.

"We have completed our strategic refocusing with the sale of the Marine and Offshore Unit," noted Kari Sundbäck, CEO of Enersense, during the presentation. He emphasized that the company is now positioned as a lifecycle partner for clients in its core segments of Power, Energy Transition, and Connectivity.

The presentation highlighted a growing order backlog, which reached approximately €390 million in Q3 2025, up from €370 million in Q3 2024, suggesting potential future revenue improvement despite current challenges.

Quarterly Performance Highlights

While overall revenue declined, Enersense’s financial position showed improvement in several key areas. The company’s equity ratio strengthened to 22.9% from 18.3% in the comparable period last year, reflecting a more solid financial foundation.

The financial performance varied across Enersense’s three core business segments:

• Power: Revenue declined to €32 million in Q3 2025 from €45 million in Q3 2024, with EBITDA holding steady at around €2 million
• Energy Transition: Revenue fell to €22 million from €40 million year-over-year, while EBITDA decreased slightly to €3 million from €4 million
• Connectivity: Revenue remained stable at €25 million compared to Q3 2024, with EBITDA improving to €2.5 million from €2 million

The following chart breaks down the factors contributing to the changes in EBITDA for the core businesses:

Operating cash flow turned negative at -€8 million in Q3 2025, compared to neutral cash flow in Q3 2024, which may raise concerns about short-term liquidity despite the improved profitability metrics.

Strategic Initiatives

A key focus of Enersense’s presentation was its Value Uplift program, which aims to deliver annual EBIT/EBITDA run-rate improvements of €4 million by the end of Q3 2025. The program focuses on three main streams: renewing procurement performance, improving commercial management, and evaluating fixed costs and resources to support strategy implementation.

The company provided the following progress update on its Value Uplift program:

Enersense also highlighted its transition to a lifecycle partner strategy for 2025-2028, which involves updating the strategy of core businesses, renewing the operating model, and developing an operational roadmap for 2026-2028.

The company showcased several recent contract wins that align with this strategy:

• A €25 million renovation project for a 75 km high-voltage line for Elering in Estonia
• A €9 million transmission line project for Fingrid in Ostrobothnia
• A €27 million 100 km transmission line project for Fingrid in Central Finland
• A €27 million Fingrid substation project in Nokia

Market Outlook & Guidance

Enersense maintained its 2025 guidance, expecting adjusted EBITDA for core businesses to be €16-20 million, compared to €20.7 million in 2024. This guidance, updated on August 6, 2025, reflects both the challenges and opportunities the company faces in its core markets.

The presentation emphasized several market trends driving customer needs, including the green transition, operational resilience requirements, and increasing digitalization. Notably, the company cited Fingrid’s prediction that electricity consumption in Finland will double between 2025 and 2035, creating significant opportunities in grid capacity expansion.

The following slide illustrates the key market trends shaping Enersense’s business environment:

The growing order backlog, which increased to €390 million in Q3 2025, provides some confidence in future revenue potential despite the current revenue decline:

Sustainability Initiatives

Enersense also highlighted its sustainability plan during the presentation, focusing on enhancing sustainable work life for its employees. The company aims to achieve zero incidents with a continuous decrease in lost-time incident frequency and an engagement index over 4.2. Additionally, Enersense is working to increase diversity, targeting an increase in the share of women among blue-collar employees to 5% and among white-collar employees to 28%.

The following slide details the company’s sustainability initiatives:

Conclusion

Enersense’s Q3 2025 presentation painted a picture of a company in transition, focusing on profitability improvement while dealing with revenue challenges. The completed strategic refocusing, growing order backlog, and Value Uplift program suggest potential for future improvement, though investors appeared cautious as reflected in the 2.48% stock price decline following the presentation.

While the improved EBITDA margin and equity ratio are positive developments, the negative operating cash flow and revenue decline across most segments indicate ongoing challenges that the company will need to address. The success of Enersense’s lifecycle partner strategy and its ability to capitalize on the growing electricity market in Finland will likely be key determinants of its future performance.

Full presentation:

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