In This Article:
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Revenue: Declined to DKK12.2 billion from DKK13 billion in 2023.
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Organic Growth (4Q): 3% growth, with adjusted organic growth at group level at -6.4%.
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Climate Energy Revenue: Declined to DKK1.1 billion from DKK1.3 billion in 2023.
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Industry Segment Growth: Adjusted organic growth of approximately -4%.
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Installation Segment Growth: Adjusted organic growth of -8%.
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Trade Segment Growth: Adjusted organic growth of -6%.
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EBITDA (4Q): DKK219 million, above expectations.
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EBITDA (2024 Full Year): DKK646 million, supported by DKK81 million in non-recurring net income.
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Dividend Proposal: DKK15 per share.
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Gross Margin (4Q): Underlying margin approximately 20.6%.
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Operating Activities (4Q): Delivered DKK525 million.
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Net Working Capital (2024): Improved to 15% from 16.8% in 2023.
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Revenue Guidance (2025): Expected range of DKK12.3 to DKK12.8 billion.
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EBITDA Guidance (2025): Expected range of DKK530 to DKK600 million.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Solar AS (FRA:ZVR) achieved a 3% organic growth in Q4, indicating a return to growth after several challenging quarters.
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The climate and energy segment delivered strong results in Q4, supported by large projects such as the Solar Polaris solar park in Denmark.
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The company successfully reduced costs through process optimization and staff reduction, helping to mitigate margin dilution.
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The board of directors proposed a dividend of 15 DKK per share, reflecting confidence in the company's strategic investments.
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Solar AS (FRA:ZVR) expects positive growth in the installation and industry segments in 2025, driven by the green transition and other sub-segments.
Negative Points
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Revenue for 2024 was below expectations, with a decline to DKK12.2 billion from DKK13 billion in 2023.
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The gross margin was more suppressed than expected, with no significant improvement anticipated in 2025.
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The company faces challenges from salary inflation and new taxes, which are not expected to be passed on to the market.
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Uncertainty remains high, with unpredictable recovery timing and strength across markets.
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The company's concept initiatives underperformed in 2024, facing price pressure and limited impact from expected gains.
Q & A Highlights
Q: Can you comment on the pricing and cost expectations for 2025, particularly regarding salary increases? A: Michael Jeppesen, CFO: Salary increases will be spread throughout the year due to mandatory adjustments. The impact will be gradual, with full effects seen by the end of the year. It's advisable to allocate the growth rate evenly across quarters, considering rollover effects from late Q4 increases.