Solar (SOLAR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was DKK 2.8 billion, at the low end of expectations, with adjusted organic growth of -2.1% and EBITDA at DKK 110 million, impacted by non-recurring costs.

• Major warehouse consolidation in Sweden completed ahead of schedule, resulting in greater net working capital reduction.

• Announced acquisition of Sonepar Norway/Norge for DKK 315 million, expected to close in early December, positioning the group as a leading distributor in Norway with integration by end of H1 2026.

• New growth initiatives include digital platform upgrades and AI-driven customer experience, with first rollout in H1 2026.

• Net profit for Q3 was DKK 3 million, compared to DKK 78 million in the same quarter last year.

Financial highlights

• Q3 revenue was DKK 2,815 million, down 1.6% year-over-year; adjusted organic growth was -2.1%.

• Q1–Q3 2025 revenue totaled DKK 9,056 million, up 0.7% year-over-year; EBITDA was DKK 296 million (DKK 361 million adjusted).

• Gross profit margin for Q3 was 19.8% (down from 20.7%), mainly due to price competition and product mix.

• Operating activities generated DKK 64 million in Q3, with continued inventory reduction.

• Net profit for Q1–Q3 was DKK -26 million, compared to DKK 97 million last year.

Outlook and guidance

• 2025 revenue guidance refined to DKK 12.0 billion (previously DKK 11.75–12.25 billion), with EBITDA at DKK 460 million (previously DKK 450–510 million), both at the low end of previous guidance.

• Guidance assumes gross margin improvement in Q4, supported by supplier negotiations and portfolio initiatives.

• No significant P&L impact expected from Sonepar Norway in 2025; integration synergies expected from late 2026.

• All markets expected to post stagnant or negative growth in 2025, with positive growth in Trade driven by Solar Polaris.

• Restructuring costs of DKK 47 million in Q1–Q3 2025 are expected to yield annual savings of DKK 75 million.