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Solar A/S: No. 6 2025 Adjustment of 2025 guidance due to unexpected market slowdown
Globenewswireยท2025-08-08 06:24

Core Insights - The company has lowered its 2025 revenue guidance to a range of DKK 11.75 billion to 12.25 billion, down from the previous guidance of DKK 12.3 billion to 12.8 billion [1][3] - EBITDA guidance for 2025 has also been reduced to a range of DKK 450 million to 510 million, compared to the earlier guidance of DKK 530 million to 600 million [1][3] Financial Performance - Preliminary figures for Q2 2025 show revenue of DKK 3,018 million, a decrease from DKK 3,100 million in Q2 2024. H1 2025 revenue stands at DKK 6,241 million, slightly up from DKK 6,130 million in H1 2024 [5] - Gross profit for Q2 2025 is DKK 613 million, down from DKK 631 million in Q2 2024, while H1 2025 gross profit is DKK 1,269 million, compared to DKK 1,257 million in H1 2024 [5] - EBITDA for Q2 2025 is reported at DKK 112 million, down from DKK 137 million in Q2 2024, with H1 2025 EBITDA at DKK 186 million, down from DKK 225 million in H1 2024 [5] Market Outlook - The CEO indicated disappointing revenue growth across all key markets in Q2 and July, with an unexpected market slowdown in the Industry segment and a lesser extent in Installation [2] - Despite current challenges, the company expects market improvement in 2025 relative to current levels [2] Cost Management - The company executed additional staff reductions and initiated measures to optimize its operating model, resulting in transition costs of DKK 12 million and restructuring costs of DKK 45 million in H1 2025 [4] - These restructuring costs are expected to generate equivalent savings in 2025, with full-year savings projected at approximately DKK 70 million going forward [4] Guidance and Assumptions - The updated revenue guidance corresponds to an organic growth of approximately -4% to 0%, while the EBITDA guidance reflects an EBITDA margin of 3.8% to 4.2% [6] - Adjusted for specific deliveries, organic growth amounted to -3.6%, with the overall gross profit margin diluted by approximately 0.4 percentage points [8]