Solar (SOLAR) Q4 2025 earnings summary

Executive summary

• Achieved key milestones in 2025 despite market headwinds, including the acquisition of Sonepar Norge, which expanded market reach and is expected to add DKK 700 million in revenue post-integration, but caused short-term negative EBITDA impact due to integration costs.

• Major investments in digital transformation and logistics modernization, including a new automated centre in Kumla, aim to improve efficiency and customer experience, with investment levels to normalize below 1% of revenue from 2027.

• 2026 will be a transition year due to integration and restructuring, with margin dilution expected before benefits materialize from 2027 onward.

Financial highlights

• FY 2025 revenue was DKK 12,171 million, down 0.4% year-over-year; Q4 revenue was DKK 3,115 million, down 3.6% from Q4 2024.

• Organic growth for Q1 2025 was 6.5% but ended Q4 at -6.1%; adjusted organic growth for FY 2025 was -0.9%.

• Full-year 2025 EBITDA was DKK 501 million (margin 4.1%), down from DKK 646 million (margin 5.3%) in 2024.

• Q4 EBITDA of DKK 205 million (margin 6.6%) included a DKK 74 million gain from the sale of the Halmstad warehouse.

• Gross profit margin for FY 2025 was 20.4% (down from 20.6%); Q4 margin was 21.0%.

Outlook and guidance

• 2026 revenue guidance: DKK 12.9–13.4 billion, with DKK 700 million from acquisitions and DKK 275 million from a new solar park project; mid-range organic growth of ~1%.

• EBITDA guidance for 2026: DKK 400–480 million, including DKK 85 million in restructuring costs; underlying performance expected to improve slightly to DKK 525 million.

• Margin improvement from the Sonepar Norge acquisition expected from H2 2026 and especially from 2027.

• Uncertainty remains elevated due to market conditions and a weak start to 2026.