Ennogie Solar (ESG) Q3 2024 earnings summary

Executive summary

• Achieved EBITDA break-even in Q3 2024 after a loss of DKK -7.6m in H1, driven by improved gross margin and cost reductions.

• Q3 revenue rose to DKK 14.1m, up 28% from Q2 and 174% from Q1, but down 43% year-over-year.

• Management changes implemented post-Q3 to drive internationalization and operational efficiency.

Financial highlights

• Q1–Q3 2024 net revenue was DKK 30.2m, a 56% decrease from DKK 69.1m in Q1–Q3 2023.

• Q3 2024 gross profit was DKK 5.6m (gross margin 39.7%), up from 27.2% in Q3 2023.

• Q3 2024 EBITDA was DKK 33k, compared to DKK 823k in Q3 2023 (which included a DKK 905k one-time warrant cancellation gain).

• Free cash flow for Q1–Q3 2024 was DKK -6.9m, improved from DKK -15.6m in Q1–Q3 2023.

• Net loss for Q1–Q3 2024 was DKK -10.8m, compared to DKK -8.5m in Q1–Q3 2023.

Outlook and guidance

• 2024 revenue guidance revised to DKK 50–60m (from DKK 70–90m), EBITDA expected at DKK -9 to -5m.

• Lowered outlook due to delayed German project deliveries and economic slowdown.

• Gross margin improvement expected to continue; cost reductions to be maintained.