Photon Energy (PEN) investor relations material

Executive summary

• Q2 2025 revenues grew 7.5% YoY to EUR 25.7 million, driven by strong technology trading and project execution, despite declines in electricity generation from asset sales and plant shutdowns.

• EBITDA fell 46.2% YoY to EUR 2.8 million, mainly due to lower capacity market volumes, weaker generation, and margin pressure in New Energy.

• Net loss of EUR 3.3 million in Q2 2025, with total comprehensive loss of EUR 2.8 million, improved from EUR -5.1 million YoY.

• Key operational achievements included major EPC contracts in Romania, expansion into battery storage optimisation in Poland, and the sale of Australian assets.

• Water remediation technology achieved patent awards in China and Japan, with pilot projects underway and material financial contribution expected from 2026.

Financial highlights

• Q2 IPP portfolio revenues declined by about 5% YoY, with generation volume down 11.6%, while technology trading revenues surged 183% YoY to EUR 6.2 million.

• Engineering segment revenues declined 8.5% YoY, but EBITDA improved from a loss to a profit.

• New Energy segment posted a EUR 1M EBITDA loss in Q2, with capacity market revenues down 55% YoY, but trading volumes rose 89% YoY.

• Operating cash flow improved to EUR 8.2 million, while net cash decreased by EUR 4.1 million to EUR 3.9 million.

• Total half-year revenue higher than prior year, mainly due to technology and engineering growth.

Outlook and guidance

• 2025 revenue expected to exceed last year, targeting around EUR 110 million, with EBITDA projected at EUR 9 million, similar to last year.

• Management expects profitability to recover as Romanian generation normalises and new ancillary services launch.

• All power plants expected to be reconnected and generating by Q4, with new energy division aiming for positive EBITDA for the full year.

• Continued strong demand expected in technology trading, supported by government tenders and green transition funding.

• Focus remains on improving financial performance, especially in 2026, to address upcoming bond maturities.