Solar (SOLAR) Q1 2025 earnings summary

Executive summary

• Revenue increased to DKK 3.2 billion in Q1 2025, with adjusted organic growth of 6.5% year-over-year, and all main markets and segments returning to positive growth.

• EBITDA reached DKK 74 million, in line with expectations, but net profit was negative at DKK -28 million due to restructuring and transition costs.

• Strategic focus on automation, digitalization, and standardization, with over DKK 1 billion invested in warehouse upgrades and expansion, including AutoStore rollout by 2026.

• Restructuring and transition costs totaled DKK 40–52 million in Q1, with expected annual cost savings of DKK 60 million.

• Net working capital as a percentage of revenue continued to decrease for the seventh consecutive quarter.

Financial highlights

• Revenue: DKK 3,223 million in Q1 2025 (up from DKK 3,030 million in Q1 2024), with adjusted organic growth of 6.5%.

• EBITDA: DKK 74 million (Q1 2024: DKK 88 million); underlying EBITDA margin 3.9% when adjusted for restructuring and transition costs.

• Gross profit margin declined to 20.4% (Q1 2024: 20.7%) due to price pressure and project mix.

• Cash flow from operating activities: DKK -88 million, mainly due to seasonal increase in accounts receivable.

• Net investments in PPE were DKK 126 million, with DKK 115 million related to the Kumla warehouse.

Outlook and guidance

• 2025 revenue guidance confirmed at DKK 12.3–12.8 billion and EBITDA at DKK 530–600 million.

• All markets expected to be stagnant or grow in 2025, with overall growth in all main segments and slightly lower gross profit margin due to price pressure.

• Macroeconomic uncertainty remains elevated, especially regarding timing and strength of recovery.