Meren raises 2026 outlook after Q2 cash flow meets forecasts

Finnish energy services company Meren raised its 2026 financial outlook on Wednesday after reporting second-quarter cash flow that met market forecasts.

The company, which provides maintenance and lifecycle services to industrial clients, said its Q2 operating cash flow totaled €12.4 million, in line with consensus estimates compiled by Refinitiv. Cash flow stability was cited as a key driver for the upward revision to the 2026 revenue and earnings guidance.

Meren now expects 2026 revenue to grow between 6% and 8%, up from its prior range of 4% to 6%, while adjusted EBITDA is projected to expand by 10% to 12%, compared with the previous 8% to 10% target. The company attributed the improved outlook to sustained demand in its core industrial services segment and efficiency gains from operational restructuring.

"The Q2 cash flow performance reinforces our confidence in the revised targets," said Meren CEO Jari-Pekka Lahti. "We continue to see strong order intake across our key markets, particularly in Northern Europe."

Lahti noted that the company’s order backlog remains robust, supporting the higher guidance. Meren’s services are primarily tied to energy infrastructure and industrial maintenance, sectors that have shown resilience despite broader macroeconomic uncertainty.

Shares of Meren were up 1.8% in Helsinki trading following the announcement, though the move was modest given the already elevated valuation after the outlook upgrade. Analysts at Nordea maintained a "buy" rating on the stock, citing the improved visibility on cash flows and earnings trajectory.

The company did not provide specific details on capital allocation plans but indicated that excess cash flow would be used to reduce net debt, which stood at €45.2 million at the end of Q2. Meren’s balance sheet remains conservative, with a net cash position expected by year-end.

Meren’s revised guidance assumes no material changes in commodity prices or macroeconomic conditions, though management noted that energy price volatility remains a key risk to its outlook.

The company is scheduled to release its full Q2 financial results on August 15, which will include detailed segment performance and updated market outlook commentary.