CEO Kari Sundbäck’s review from this spring’s Annual General Meeting! 
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Kaisa has written about Enersense’s updated strategy and financial targets. 
Enersense published its updated strategy and financial targets this morning. The company’s strategy, unsurprisingly, builds upon the strategy renewed last year. It will continue to focus on its core businesses, i.e., green energy transition project and service businesses. Correspondingly, the company still has a way to go, especially regarding profitability, to reach the renewed financial targets, but we consider the targets achievable in the longer term, for example, through the ongoing Value Uplift program. The company’s Capital Markets Day can be followed today here starting at 1 p.m. We will comment on the strategy and financial targets in more detail tomorrow.
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Finally, a “no-nonsense” strategy, and not some pipe dreams. The new CEO is clearly a more sensible guy than the dreamer who left for Summa.
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Below are Aapeli’s comprehensive comments on Enersense’s Capital Markets Day.
Enersense organized a Capital Markets Day (CMD) on Wednesday, where it presented its new strategy and businesses in more detail and shed light on the path to achieving financial targets. In our opinion, the main message of the CMD was the company’s tighter focus than before on selected core businesses and seeking growth through increasing lifecycle services. The strategy and the planned measures related to it seemed reasonable to us, and we believe that through their successful implementation, the company would have clear prerequisites for value creation. At this point, however, we will monitor the progress of the strategy’s implementation, and the CMD has no immediate impact on our forecasts. A recording of Enersense’s CMD can be viewed here.
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Aapeli also got to interview Enersense’s CEO Kari Sundbäck.
Topics:
00:00 Introduction
00:18 CMD’s main message
01:05 Cornerstones of core business strategy
02:24 Power
04:24 Connectivity
05:55 Energy Transition (previously Industry)
09:37 Strategic review of Marine & Offshore
12:20 What a lifecycle partnership practically means
15:12 Attractiveness of the latter part of the value chain
17:52 Implementation of remote monitoring in maintenance
19:35 Differentiation and pricing
21:44 Revenue growth target
23:26 Profitability growth target
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Tässä on Nordean tuore katsaus Enersenseen.
Ei pitäisi juurikaan tuoda uutta, jos Inderesin materiaaleja seurannut. 
With its updated core business strategy, Enersense is extending its focus from construction to maintenance and modernisation. Development and digitalisation of its project and service delivery model could also support profitability and offer a core competitive edge compared to its competitors. The updated strategy includes a revenue growth target of 4-5% on average in 2025-28. The new EBIT margin target of 5%-plus looks a little challenging but is in line with our expectations for the strategy update. Growth of higher-margin businesses could improve EBIT margin beyond 3% we believe. Our fair value range remains EUR 3.6-4.6, based on our DCF analysis and backed by a peer group comparison. Marketing material commissioned by Enersense.
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Within a month, two management team members have resigned from the company (Takila and Reijonen). The management team had five members, meaning 40% resigned.
This smells like a crisis. I wonder if Q2/2025 will be grim reading?
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Interesting point 
Without belittling the HR department, the HR director is not usually very critical. But combined with other changes, it could indeed indicate problems. One could try to speculate something between the lines about the legal director’s departure, but it’s not very clear what it was about.
In addition to those, we can highlight this: “Ville Vuori, a member of Enersense International Plc’s Board of Directors, has announced his resignation from his position effective today, as he is a candidate for Chairman of the Board of Dovre Group Plc.”
Resigning from the board is justified by avoiding conflicts of interest, and the Chairman of the Board position is certainly more significant than a regular board member, but it’s the third insider loss in a short time.
I have to praise Enersense’s investor pages. There’s genuinely useful information there, easily findable and nicely presented (unfortunately, this is not the case for many other listed companies).
The CEO is somewhat new and has since bought at least some shares. The insider group seems to be disproportionately involved with their own money; Suokas has a large stake, and others don’t really have any significant money invested.
Almost all listed companies could take a cue from this registration of insider transactions 
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Here are Kaisa’s and Tommi’s comments on Enersense’s sale of its marine industry unit.
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Enersense is selling its marine industry unit, Enersense Offshore Oy, also known as the Mäntyluoto shipyard.
Enersense records a profit of €2.5 million from the deal. The actual profit is likely negative, but that doesn’t matter. The main thing is that the company got rid of a heavily loss-making business whose synergistic benefits for Enersense’s other operations were modest. The new management has had quite a lot to clean up after the former CEO.
Enersense is starting to be quite similar in content to the Empower it once acquired; that is what Enersense’s current core business is. Along the way, tens of millions of euros have been wasted on increasingly desperate company acquisitions, which have then been divested with the new management. In retrospect, one can only wonder at the owners’ immense trust in the then-CEO’s visions and competence.
That core business is certainly on a healthier footing, but it’s no goldmine. Due to wasted opportunities, Enersense’s debt burden is considerable, and while efforts have been made to plug the leaking stern, it still leaks. It remains to be seen whether the core business’s revenues will be enough to tackle the mountain of debt. At that point, there are quite dark clouds on the horizon.
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What is included in Enersense’s financing costs, as 7, 6, and 5 million euros are forecasted for the coming years? Net debt, however, was a little over 30 million euros before the Offshore deal, and now it’s around 25 million euros? Those figures are large compared to net debt, so there must be something else there @Aapeli_Pursimo
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Hi,
Thank you for the good question, and first of all, apologies for the delayed response; this somehow slipped my mind during the holidays.
I’ve attached an excerpt here from Enersense’s last year’s financial statement notes. From there, it can be observed that, in its current form, the main items consist of interest expenses from other loans (loan interest expenses, guarantee commissions, factoring), which have been approximately EUR 6.4–7.0 million in recent years, in addition to interest on lease agreements and various fee expenses (for last year, the item is increased by EUR 0.8 million in arrangement fees for drawing down the financing package).
Of course, the company’s development has moved in a better direction, and non-strategic businesses have been successfully divested, strengthening the financial position through these as well. From the old non-strategic businesses, I assume that at least the guarantee commissions of the Offshore business have increased financing costs. Thus, financing costs should indeed have room to decrease from recent years’ levels (including the decrease in interest rates) and gradually also in the future as operational activities develop positively. However, due to the development in recent years, it has not been possible to negotiate the best terms for financing, and due to the nature of the business, guarantee commissions for project deliveries will also increase interest expenses in the future. Also note that our current forecasts did not yet include the effects of the Offshore sale. We will review the forecasts for these as well in connection with the earnings preview, and, of course, we will be wiser regarding the development of financing costs after the actual development of the upcoming quarters.
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To cap off the evening, an earnings warning:
New guidance for 2025
Enersense estimates its core businesses’ adjusted EBITDA to be 16–20 million euros (2024: 20.7 million euros) in 2025.
Previous guidance for 2025 (issued 28.2.2025)
Enersense estimates its core businesses’ EBITDA to improve from 2024 (2024: 10.4 million euros) and its core businesses’ adjusted EBITDA to be at the 2024 level (2024: 19.9 million euros). The marine industry unit, which is subject to strategic review, is not part of core businesses, and no guidance is given for it.
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Here are Aapeli’s comments on the profit warning.
According to our rough estimate, the midpoint of the updated adjusted earnings guidance range for core businesses decreased by approximately 10–15% for the full year, taking into account the change made to the calculation of adjusted EBITDA. However, more detailed reasons for the guidance reduction will have to wait until the Q2 results are published next Tuesday. On the other hand, positive aspects of the profit warning included the company’s comments on the progress of the Value Uplift efficiency program, through which it estimates achieving greater positive impacts than before. Overall, however, we see downward pressure on our operational forecasts for at least the current year and will review our forecasts for tomorrow.
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It’s going wrong. Divesting from businesses, selling the wind portfolio to Fortum only gave a temporary and one-off boost. The shoals are visible again and the stern is dragging deep.
Enersense is struggling, but in my opinion, the new management is doing the right things.
The portfolio needs to be streamlined so they can focus on being the best in their core business within their field.
The numbers show that the organization needs to be made more efficient. This simply means more sales, fewer costs, or both. The cost structure of a clear and homogeneous portfolio is easier to streamline and prepare for action than that of a former conglomerate, whose structure still changes drastically from year to year.
The efficiency program should soon start bringing real money to the bottom line, and not just good opportunities and prospects.
There is still enough belief that this whole operation will start looking like a real company, and as a shareholder, I will be able to enjoy the fruits of my investment.
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Very much along the same lines as the post above. Enersense is indeed in a very interesting situation right now and is focusing on exactly the right things. I’ve listened to many old interviews and read old reports. According to the CEO, “low-hanging fruit” has been found within the framework of the Value uplift program from the old management, and thus, good development can certainly be expected next year. Apparently, the direction is already quite good (albeit slow) towards the end of the year, as the profit warning also states: “Enersense’s core businesses’ adjusted EBITDA margin and order book have turned to growth since the end of the first quarter of 2025, and positive development is expected to continue.”
This profit warning, of course, somewhat erodes the credibility of the new management as well, but perhaps the new management’s credibility will be better tested next year when they can focus solely on core business, and the results of the profitability improvement program should start to materialize.
The financial situation is much better than before, and actual bank loans are relatively few after the latest divestment. Could @Aapeli_Pursimo elaborate on what those VAT loans are and how they should be viewed?
I also see Enersense as a good addition for a more solvent operator, as the bottom line would improve quite a bit if financing costs could be reduced by a more solvent party rearranging the financing. Considering the pruning of non-core businesses, the ownership structure (the Ehrnrooths), the nature of the business, and the management’s background at Caverion, cases like Purmo and Caverion inevitably come to mind. This is, of course, a very speculative train of thought.
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Aapeli has prepared a pre-company report as Enersense publishes its Q2 results on Tuesday.
Following Enersense’s profit warning and preliminary information, the main figures for the Q2 report, to be published next Tuesday (August 12), are already known. However, the most significant recent move in the big picture, in our opinion, is the successful sale of the marine industry unit. The successful sale of the business clearly lowered the company’s risk level and simultaneously improved the stock’s risk-reward ratio, even though the profit warning weighed on our operational forecasts for the coming years. In line with the overall picture, we reiterate our buy recommendation for the stock, but raise our target price to 3.5 euros (previously 2.8 €).
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So, these are essentially debts related to a payment arrangement made with the tax authority (see excerpt from financial statements below). In practice, these will be gradually repaid as the year progresses, as part of the payment plan. In connection with the arrangement, the company will then have to pay some kind of interest (the exact level has not been disclosed). The arrangement is certainly backed by cash management reasons (cash flow that remained weak in previous years, the general cash situation, and the seasonality of cash flow when reflecting on the business). The company has made these in previous years as well, so certainly in agreement with the tax authority, which means it’s not a new thing in that sense, and the risk level is also reasonable, as long as payments are handled as agreed. I would assume, however, that the company aims to gradually abandon this arrangement as well in the coming years, once the earnings level and cash flow rise as targeted.
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Thanks for the answer!: I’m just confirming, because this is under the “Accounts payable and other liabilities” section, has this loan been taken into account when calculating the enterprise value and net debt?
Annual Report 2024:
Currently, the enterprise value is, for example, 74.3 million euros in Inderes’ calculations, and the net debt is approximately 30 million euros.