Solar A/S: No. 2 2025 Annual report 2024

In 2024, we reached a revenue of DKK 12.2bn and EBITDA of DKK 646m. EBITDA surpassed our guidance, whereas revenue came in below, caused by a slower than expected market recovery. At the Annual General Meeting, the Board of Directors will propose a dividend distribution of DKK 15.00 per share.

CEO Jens Andersen says:
“Our 2024 results were marked by challenging market conditions with a slower and less robust market recovery than anticipated. As a result, our revenue fell below projections. However, our EBITDA exceeded guidance, reaching DKK 646m.

Given the challenging and unpredictable market conditions in 2025, we anticipate revenue to be between DKK 12.3bn and 12.8bn, with EBITDA ranging from DKK 530m to 600m.

Due to the expected market development in 2025 and our expectations for the remaining strategy period, we are adjusting our ambition for the 2026 EBITDA margin to >5%, down from >6%. Nevertheless, we remain confident in our ability to strengthen the margin over time.

The Board of Directors will propose a dividend of DKK 15.00 per share, reflecting our significant investments in automation and digitalisation. With the Swedish warehouse completed in late 2026, AutoStore implementation will be finalised across all main markets.”

Financial highlights (DKK million)	Q4 2024	Q4 2023	2024	2023
Revenue	3,233	3,160	12,223	13,031
EBITDA	219	190	646	871
EBITA	154	131	400	648
Earnings before tax	63	85	192	468
Cash flow from operating activities	525	486	538	855
Financial ratios (%)
Organic growth adj. for number of working days	3.0	-11.1	-6.4	-2.6
EBITDA margin	6.8	6.0	5.3	6.7
EBITA margin	4.8	4.1	3.3	5.0
Net working capital, end of period/revenue (LTM)	13.9	14.6	13.9	14.6
Gearing (NIBD/EBITDA), no. of times	1.9	1.3	1.9	1.3
Return on invested capital (ROIC)	8.3	13.2	8.3	13.2

2024 revenue

Adjusted organic growth amounted to -6.4% (-2.6%) and revenue came to DKK 12.2bn (DKK 13.0bn).

2024 EBITDA

EBITDA amounted to DKK 646m (DKK 871m). Non-recurring items supported EBITDA by net DKK 81m (DKK 30m).

Dividend distribution

At the Annual General Meeting, the Board of Directors will propose dividend distribution of DKK 15.00 per share, corresponding to a payout ratio of 72%.

2025 outlook

We expect a revenue between DKK 12.3bn and 12.8bn.
We expect EBITDA between DKK 530m and 600m.

Our guidance assumptions are included on page 8 in our Annual Report 2024.

Revised 2026 ambitions

Due to recent market developments and our expectations for the remaining strategy period, we have revised our ambitions.

For our strategic focus area Climate & Energy, we expect slower growth, reducing our ambition for share of revenue to >10%, down from >15%.
Due to a lower-than-expected effect in 2024, we have reduced our ambition for the strategic focus area Concept strength to >0.5 percentage points, down from >0.7 percentage points.
Our ambition for Solution sales is unchanged.
Consequently, we are also lowering our financial ambition for EBITDA margin to >5.0% from >6.0%.

Our revised 2026 assumptions are included on page 9 in our Annual Report 2024.

Audio webcast and teleconference today
The presentation of Annual Report 2024 will be made in English on 6 February 2025 at 11:00 CET. The presentation will be transmitted as an audio webcast and will be available at www.solar.eu. Participation will be possible via teleconference.

Access to the webcast:
https://edge.media-server.com/mmc/p/59juvdey/

To participate by telephone, and thus have the possibility to ask questions:
Register in advance of the teleconference by using the link below. Upon registering, you will be provided with a dial-in number and a unique personal PIN:
https://register.vevent.com/register/BI69cd7a29de6143edaec091be028ffe9d

Contacts
CEO Jens Andersen - tel. +45 79 30 02 01
CFO Michael H. Jeppesen - tel. +45 79 30 02 62
IR Director Dennis Callesen - tel. +45 29 92 18 11

Facts about Solar

Solar is a leading European sourcing and services company mainly within electrical, heating and plumbing, ventilation and climate and energy solutions. Our core business centres on product sourcing, value-adding services and optimisation of our customers’ businesses.

We facilitate efficiency improvement and provide digital tools that turn our customers into winners. We drive the green transition and provide best in class solutions to ensure sustainable use of resources.

Solar Group is headquartered in Denmark, generated revenue of approx. DKK 12.2bn in 2024 and has approx. 2,900 employees. Solar is listed on Nasdaq Copenhagen and operates under the short designation SOLAR B. For more information, please visit www.solar.eu.

Disclaimer
This announcement was published in Danish and English today via Nasdaq Copenhagen. In the event of any inconsistency between the two versions, the Danish version shall prevail.

Attachments