Enersense - High top line growth
Enersense’s Q1 revenue grew clearly faster than estimated, at a rate of 39% y/y, which also helped profitability relatively near expectations. Enersense also updated its revenue guidance for the year on the back of strong orders.
- Enersense Q1 revenue grew 39.4% y/y to EUR 75.0m, compared to the EUR 62.7m/65.1m Evli/consensus estimates. Revenue grew across the board, but most clearly in Smart Industry and International Operations.
- Adjusted EBITDA amounted to EUR 0.4m vs the EUR 3.1m/0.7m Evli/consensus estimates. EBIT landed at EUR -2.3m, compared to the EUR 0.9m/-1.6m Evli/consensus estimates. Q1 typically sees the lowest profitability, but the level in the core business has improved considering seasonality. Profitability improvement was most visible in Smart Industry, while International Operations also improved clearly despite inflation still being a challenge. Higher volumes similarly helped the profitability of Connectivity.
- Order backlog was EUR 526m at the end of Q1 (EUR 288m a year ago). Smart Industry increased particularly due to the EUR 100m Helen agreement. Strong demand also supported Power and Connectivity. Activity in the offshore wind power market is increasing.
- Enersense guides FY ’23 revenue to be over EUR 300m and adjusted EBITDA to be in the range of EUR 12-18m (previous guidance was revenue in the range of EUR 280-310m and adjusted EBITDA in the range of EUR 12-18m). Strong order backlog supports revenue, while wind power portfolio development has accelerated. Profitability headwinds include the implementation of the new ERP system as well as on-going investments in the offshore wind power business and acceleration of onshore wind power project development.