Solar (SOLAR) investor relations material

Executive summary

• 2025 revenue and EBITDA guidance were lowered due to an unexpected market slowdown, especially in the Industry and Installation segments, while Trade saw growth driven by Solar Polaris projects.

• Q2 and July showed disappointing revenue growth across key markets, prompting staff reductions and operational optimization measures.

• Restructuring and transition costs totaled DKK 57m in H1, expected to yield DKK 70m annual savings.

• Net profit for Q2 was DKK -1m compared to DKK 25m last year; H1 net profit was DKK -29m versus DKK 19m year-over-year.

• The slowdown is attributed to widespread uncertainty, particularly from tariffs and global trade tensions, not from loss of market share.

Financial highlights

• Q2 revenue was DKK 3,018m, down from DKK 3,100m year-over-year; Q2 EBITDA was DKK 112m, down from DKK 137m.

• H1 revenue reached DKK 6,241m, up from DKK 6,130m; H1 EBITDA was DKK 186m, down from DKK 225m, impacted by one-off costs.

• Q2 organic revenue growth was -1.2%; excluding Solar Polys/Polaris, the decline was -3.6%.

• Gross profit margin in Q2 was 20.3%, slightly down from 20.4% year-over-year; underlying margin improved when adjusted for Solar Polys/Polaris deliveries.

• Cash flow from operating activities in H1 was DKK -84m, down from DKK 209m year-over-year.

Outlook and guidance

• 2025 revenue guidance revised to DKK 11.75–12.3 billion from DKK 12.3–12.8 billion.

• 2025 EBITDA guidance lowered to DKK 450–510 million from DKK 530–600 million.

• Organic growth for 2025 expected between -4% and 0%; EBITDA margin guidance at 3.8%–4.2%.

• Management expects market improvement in late H2, but uncertainty remains, especially for Industry and Installation.

• 2026 ambition is an EBITDA margin above 5%, supported by cost-saving initiatives.