Arise (ARISE) Q2 2025 earnings summary

Executive summary

• Net sales for Q2 2025 rose to SEK 164 million, up from SEK 101 million year-over-year, driven by project sales, including a major battery project in Finland, and increased production volume despite lower electricity prices.

• EBITDA for Q2 reached SEK 61 million (53), with EBIT at SEK 39 million (33), and profit after tax was SEK 28 million (30); EPS was SEK 0.11 (0.76).

• The Kölvallen wind project, the largest to date (277 MW, 950 GWh/year), reached commercial operation, with an upfront payment of EUR 75 million and an expected earnout of EUR 30 million.

• The project portfolio expanded by 400 MW in late-stage development in Q2, reaching 9,000 MW, with continued diversification in the UK and Germany.

• Operations span six markets with a diversified portfolio in wind, solar, and battery storage, across Production, Development, and Solutions segments.

Financial highlights

• Q2 net sales were SEK 164 million, mainly from the Pysäysperä battery project sale; H1 net sales reached SEK 249 million (213).

• EBITDA for Q2 was SEK 61 million; EBIT SEK 39 million; profit after tax SEK 28 million; EPS SEK 0.11.

• Operating cash flow in Q2 was SEK 80 million (24), with cash flow after investments at SEK -13 million.

• Net debt increased to SEK 513 million (358), while cash and equivalents declined to SEK 90 million (804) due to bond redemption.

• Equity/assets ratio improved to 65% (57%).

Outlook and guidance

• Targeting a 10 GW project portfolio by year-end 2025, with organic growth and strong demand for renewables supporting this goal.

• Project sales target of 400 MW for 2024–2025 is considered realistic, leveraging maturing projects in new markets.

• Bullish on H2 2024 due to expected higher spot prices and strong late-stage portfolio; price hedges for H2 2025 expected to improve EBITDA margin.

• Financial targets include divesting or reaching FID for 500 MW per year from 2026–2028.

• Despite market challenges, the robust project pipeline supports positive growth prospects.