Solar A/S: No. 5 2025 Revenue returns to growth

Core Insights - The company reported Q1 2025 revenue of DKK 3,223 million, an increase from DKK 3,030 million in Q1 2024, indicating a positive trend in financial performance [5] - EBITDA for Q1 2025 was DKK 74 million, down from DKK 88 million in Q1 2024, with an EBITDA margin of 2.3% compared to 2.9% in the previous year [5] - The company confirmed its EBITDA guidance for 2025, projecting between DKK 530 million and DKK 600 million [5][6] Financial Performance - Organic growth improved significantly to 6.5% in Q1 2025, recovering from a decline of -15.4% in Q1 2024 [2][5] - Cash flow from operating activities was negative at DKK -88 million in Q1 2025, compared to a positive DKK 7 million in Q1 2024 [5] - The gearing ratio (NIBD/EBITDA) increased to 2.4 times from 2.1 times year-over-year, indicating a higher level of debt relative to earnings [5] Operational Changes - The company initiated measures to optimize its operating model, including cost containment and staff reductions, resulting in restructuring costs of approximately DKK 40 million in Q1 2025 [3] - Transition costs of DKK 12 million were incurred in Q1 2025 due to the fast-tracking of the new logistics center in Kumla, which is expected to lead to savings of approximately DKK 60 million in the future [4][5] Market Outlook - The company anticipates a recovery in 2025, although the timing and strength of this recovery have become more unpredictable [4][8] - The overall market and main segments have rebounded, contributing to the positive organic growth reported [2]