Solar (SOLAR) Q2 2025 earnings summary

Executive summary

• Revenue growth in Q2 and July was disappointing across all key markets, especially in Industry and Installation, prompting a downward revision of 2025 guidance.

• Trade and Climate & Energy segments saw growth, mainly from Solar Polaris' major solar park project, while other segments underperformed.

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

• Management remains confident in improving profitability despite market uncertainty.

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.

• Gross profit margin in Q2 declined to 20.3% from 20.4% year-over-year, diluted by Solar Polaris projects, but underlying margin improved.

• Q2 EBITDA margin was 3.7% (Q2 2024: 4.4%); H1 EBITDA margin was 3.0% (H1 2024: 3.7%).

• 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.

Outlook and guidance

• 2025 revenue guidance lowered to DKK 11.75bn–12.25bn from DKK 12.3bn–12.8bn.

• 2025 EBITDA guidance reduced to DKK 450m–510m from DKK 530m–600m.

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

• Gross profit margin expected to remain stagnant in 2025, with ongoing price pressure and less favorable mix.

• Management expects market improvement later in the year, but acknowledges uncertainty.