Summary of Solar (SOLAR B) Update / Briefing August 08, 2025 Company Overview - **Company**: Solar AS - **Industry**: Solar Energy Key Points and Arguments Guidance Update - The company has lowered its revenue guidance for 2025 to a range of $11.8 billion to $12.3 billion from a previous range of €12.3 billion to €12.8 billion [4] - EBITDA guidance has also been reduced to a range of €450 million to €510 million from €530 million to €600 million [4] Market Performance - Q2 showed disappointing revenue growth with an organic growth rate of -1.2%, and a further adjusted negative growth of -3.6% when excluding the Polys segment [7] - The company experienced a market slowdown, particularly in the industry segment, which has been attributed to trade uncertainties and tariff impacts [3][27] - July continued the trend with a negative organic growth of approximately -3% [14] Financial Results - Q2 revenue was €3 billion, down from €3.1 billion the previous year [8] - EBITDA for Q2 was €112 million, below expectations, with underlying EBITDA at €117 million [8] - H1 EBITDA was €186 million, also below initial expectations, affected by restructuring costs of €45 million and transition costs of €12 million [12] Cost Management - The company executed staff reductions and restructuring measures, incurring transition costs of €12 million and restructuring costs of €45 million [4][10] - Full-year savings from restructuring are expected to be approximately €10 million, with cost neutrality anticipated in 2025 [10] Market Dynamics - The company noted fierce price competition across all segments and product categories [9] - There is a widespread uncertainty among industry customers, particularly those involved in exports, leading to postponed purchasing decisions [27][35] - The company is monitoring customer feedback closely, indicating that the slowdown is not due to loss of market share but rather a general market condition [35] Future Outlook - Despite the current challenges, the company remains optimistic about improving profitability in the future, supported by already implemented initiatives [17] - The company expects a slight negative development in installation and a clearly negative development in the industry segment, but a positive outlook for trade driven by solar supplies [15] Additional Insights - Transition costs relate to the closure of operations in Hamstern and the consolidation of warehouses, while restructuring costs are associated with redundancies [20][22] - The gross margin has been affected by the low margins of large solar park projects, which have diluted overall margins despite improvements in other segments [40][41] Conclusion - The company is facing significant challenges in the current market environment, leading to a downward revision of its financial guidance for 2025. However, it is taking proactive measures to manage costs and improve profitability in the long term. The market dynamics indicate a cautious outlook, particularly in the industry segment, but there is hope for recovery based on customer feedback and strategic initiatives.

Core Insights - Dovre Group's operating results for Q1 2025 were lower than expected, primarily due to margin reductions in a solar park project in Finland [9][18] - The company completed the sale of its Project Personnel and Norwegian Consulting businesses, resulting in a profit from discontinued operations [3][21] - The outlook for 2025 indicates a slight decline in net sales but a significant improvement in operating profit [6] Financial Performance - Net sales for Q1 2025 were EUR 14.0 million, unchanged from the same period in 2024, with a 0.7% increase in Renewable Energy sales and an 11.9% decrease in Consulting sales [7][15] - EBITDA for the period was EUR -2.9 million, while the operating profit was EUR -3.2 million, showing improvements from the previous year [17][18] - The result before tax was EUR -3.5 million, with a total profit attributable to the parent company's shareholders of EUR 4.9 million, largely due to discontinued operations [20][22] Business Segments - The Renewable Energy segment accounted for 97% of net sales, with a slight increase in sales to EUR 13.6 million [15] - The Consulting segment's sales decreased to EUR 0.4 million, impacted by the termination of customer agreements and a slower market [14][15] - The operating profit for Renewable Energy was EUR -2.8 million, while Consulting reported a break-even result [18] Strategic Developments - The company is focusing on renewable energy projects, including a significant 100 MWp solar park project in Finland and a wind farm project in Sweden [10][33] - Dovre Group has initiated management changes in its subsidiary Suvic Oy following significant losses in Swedish projects [11][40] - The company has also made a capital contribution to its Swedish subsidiary to ensure operational stability [12] Personnel and Cash Position - The average number of employees increased to 242, with a total of 274 employees as of March 31, 2025 [24][25] - The Group's net debt was EUR -9.5 million, with cash and cash equivalents totaling EUR 15.5 million [26][27] - Net cash flow from operating activities was EUR -10.2 million, reflecting an increase in working capital [29] Project Business Impact - The sale of businesses has led to a significant reduction in operations, with a strong focus on project-based construction in renewable energy [30] - The project nature of the business increases cyclicality and requires various collateral arrangements, with guarantees totaling approximately EUR 28.8 million [31][32]