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 at -2.1% and EBITDA at DKK 110 million, impacted by non-recurring costs and margin pressure.

• Major operational transition completed in Sweden, including early warehouse vacating, supporting net working capital reduction.

• Acquisition of Sonepar Norway/Norge announced, expected to close early December, positioning the group as a leading distributor in Norway, with integration by end of H1 2026.

• Net profit for Q3 was DKK 3 million, down from DKK 78 million last year.

Financial highlights

• Q3 revenue was DKK 2,815 million, down 1.6% year-over-year; Q1–Q3 revenue reached DKK 9,056 million, up 0.7% year-over-year.

• Q3 EBITDA margin was 3.9% (4.2% adjusted), compared to 7.1% (5.7% adjusted) in Q3 2024.

• Gross profit margin for Q3 was 19.8%, mainly due to price competition and product mix; Q1–Q3 margin was 20.2%.

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

• 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 and EBITDA to DKK 460 million, both at the low end of previous guidance.

• Guidance assumes gross margin strengthening in Q4, supported by supplier negotiations and operational initiatives.

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