Q1
2025
Solar A/S
CVR no. 15 90 84 16
Driven by
our purpose
We improve construction, building operation
and industry processes with a commitment to
sustainability and productivity. For our customers.
With our partners. For a better world.
Driving the
green transition
As a driver of the green transition we are supporting
our customers in achieving their CO
2
emission
reduction targets through our Climate & Energy
products, which generate revenue exceeding DKK
1bn. Our CO
2
reduction targets are approved by the
SBTi, and we operate and report in accordance with
the CSRD.
Empowering
greater productivity
We provide products, technical know-how, and
qualified services to more than 49,000 customers,
supported by valuable market knowledge and the
expertise of 2,899 committed employees, driving
greater productivity.
Enhancing service
through digitalisation
With 65% of order lines made digitally, our digital
engagement has become a key driver of customer
satisfaction, raising our service offering to the next
level and supporting our best in class digital customer
journey.
This is Solar
We are a leading sourcing and
services company. We
combine excellent product
sourcing, superior distribution,
and value-adding services to
support professionals and
businesses in the electrical,
heating & plumbing, and
industrial sectors across five
key European markets.
Products
Markets
75% 16% 9%
% of 2024 revenue
Segments
Installation Industry Trade
55% 35% 10%
% of 2024 revenue
% of 2024 revenue
Electrical Heating &
Plumbing
Climate &
Energy
Denmark
The Netherlands
Sweden
Norway
Poland
Other
33%
23%
17%
15%
3%
9%
Solar A/S Q1 2025
2
Management’s
review
Who we are
Contents
Financial highlights 4
Business update 5
Financial performance 6
Segment performance 8
Guidance 2025 9
Shareholder information 10
Statement of comprehensive income 12
Balance sheet 13
Cash flow statement 14
Statement of changes in equity 15
Notes 17
Section 1 – Basis for preparation 17
Section 2 – Income statement 19
Q1 Quarterly information 22
Statements 26
Management review Consolidated financial statements Q1
Preparing for future growth
Investments in our four strategic markets, which cover warehouse expansion, automation, digitalisation and standardisation,
have boosted capacity, improved efficiency, and positioned us for further growth and market opportunities.
Page 5
Solar A/S Q1 2025
3
Management’s
review
Financial highlights
Q1 Year
DKK million 2025 2024 2024
Revenue 3,223 3,030 12,223
Earnings before interest, tax, depreciation and amortisation (EBITDA) 74 88 646
Earnings before interest, tax and amortisation (EBITA) 10 26 400
Earnings before interest and tax (EBIT) -11 10 278
Earnings before tax (EBT) -33 -6 192
Net profit for the period -28 -6 148
Balance sheet total 6,400 6,082 6,108
Total equity 1,786 1,726 1,874
Interest-bearing liabilities, net 1,519 1,450 1,232
Cash flow from operating activities -88 7 538
Net investments in property, plant and equipment -50 -23 -101
Employees
Number of employees (FTE's), end of period 2,919 2,932 2,895
Average number of employees (FTE's) 2,896 2,997 2,899
Financial ratios (%, unless otherwise stated)
Organic growth adjusted for number of working days 6.5 -15.4 -6.4
Gross profit margin 20.4 20.7 20.6
EBITDA margin 2.3 2.9 5.3
EBITA margin 0.3 0.9 3.3
Net working capital (end of period NWC)/revenue (LTM) 15.0 15.1 13.9
Gearing (net interest-bearing liabilities/EBITDA), no. of times 2.4 2.1 1.9
Return on equity (ROE) 7.2 10.9 8.0
Equity ratio 27.2 27.6 29.9
Share ratios (DKK)
Earnings per share outstanding (EPS) -3.70 -0.68 20.68
Q1 Financial messages
• All our main markets returned to positive growth.
• EBITDA was on par with expectations.
• For the seventh consecutive quarter, average net
working capital decreased.
• We confirm our 2025 EBITDA guidance in the range
of DKK 530-600m.
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
Solar A/S Q1 2025
4
Management’s
review
Financial highlights
Preparing for future growth
Warehouse expansion and automation
By 2026, the AutoStore system will be operational in our
four main markets, managing 279 robots picking products
from almost 300,000 bins. This automation combined with
warehouse expansions will result in a warehouse capacity
increase of 25% across Denmark, Sweden and the
Netherlands. The initiative, focused on automation,
digitalisation, and standardisation, represents total
investments of more than DKK 1 billion.
Our investments in warehouse upgrades and expansions
have increased capacity and enable us to take advantage
of market opportunities. By moving 70% of picks to
AutoStore, we have improved the work environment by
minimising noise and reducing lifting. At the same time,
picking efficiency increases by a factor of up to four.
Our high degree of automation reduces costs and allows
us to accommodate increased demand without added
labour costs. Digitalisation provides better insights into our
customers’ needs and enhances service quality.
Standardisation across borders facilitates cross-border
learning and drives operational efficiency.
Investments in our four strategic markets, which cover
warehouse expansion, automation, digitalisation and
standardisation, have boosted capacity, improved efficiency, and
positioned us for further growth and market opportunities.
These warehouse upgrades provide a platform for us to
capitalise on market growth while maintaining high levels
of efficiency and employee satisfaction. Our investments in
automation, digitalisation, and standardisation have thus,
set the stage for future growth and improved operational
performance.
Our investments consistently achieve an IRR significantly
higher than our WACC, which improves shareholder return.
Although the investments have reduced dividend
payments, cash flow is set to increase when our
investment programme concludes in 2026, and
investments return to normal levels.
Future innovative enhancements
Future plans include the implementation of robot arms in
the AutoStore setup for simple orders and developing
solutions for elongated goods to enhance efficiency and
optimise costs. These initiatives will further streamline
operations, reduce costs, and improve overall performance,
laying the groundwork for continued success.
We will continue to invest in the future, while keeping our
CAPEX at normal levels.
2019
2022 20262020 2023
Solar Nederland
Phase 1
Solar Danmark Solar Nederland
Phase 2
Solar Sverige
Planned
Solar Group, AutoStore implementation highlights
(by country)
Robots
Robots Robots
RobotsRobots
Bins Bins Bins BinsBins
50 125
4
6040
41,000 108,000
20,000
69,50035,000
Solar Norge
Solar A/S Q1 2025
5
Management’s
review
Business update
All main markets returned to
positive organic growth
Q1 2025
Revenue
Revenue increased to DKK 3.2bn (DKK 3.0bn). Adjusted
organic growth amounted to 6.5% (-15.4%). When adjusting
for Solar Polaris’ deliveries to a major solar park project,
organic growth amounted to 4.3%.
As expected, we saw positive adjusted organic growth in all
main markets and across all main segments in Q1 2025.
Installation delivered adjusted organic growth of 4.7%
(-17%), Industry of 3.3% (-10%) and Trade of 30% (-22%).
Revenue from Climate & Energy, a strategic focus area, also
showed positive adjusted organic growth, amounting to
37% (-48%). However, when adjusting for Solar Polaris’
deliveries to a major solar park project, organic growth
amounted to 14%.
Gross profit
Throughout 2024, we saw a loss in gross profit margin
across all main product categories. Our 2025 guidance
reflected our expectations for this downward trend to taper
off in 2025. However, we continue to expect a slightly lower
gross profit margin in 2025, mainly due to continued price
pressure combined with lower price increases.
As expected, in Q1 2025 gross profit margin at group level
declined to 20.4% (20.7%). In all material aspects, the
decline referred to Solar Polaris' deliveries to a major solar
project park.
Adjusted organic growth
increased to 6.5% as revenue
in all our main markets and
main segments returned to
positive growth.
External operating costs and staff costs
The construction of our new logistics centre in Kumla,
Sweden, is ahead of schedule. This allows us to optimise
the completion of the relocation of the warehouses in
Örebro and Halmstad by moving our inventory from
Halmstad to Örebro, and thus vacating the Halmstad
warehouse earlier than expected. In Q1 2025, this resulted
in approx. DKK 12m in transition costs, which were initially
expected in 2026. Fast-tracking this step towards Kumla,
reduces risks and frees up cash by reducing net working
capital.
In Q1, we also initiated several measures to optimise our
operating model, including cost containment, process
improvements and staff reductions.
Consequently, costs in Q1 2025 include restructuring costs
of approx. DKK 40m (DKK 25m) resulting in similar savings
in 2025 but with full-year savings of approx. DKK 60m.
When adjusting for restructuring and transition costs,
external operating costs and staff costs decreased to
16.4% (16.8%) of revenue.
EBITDA
EBITDA of DKK 74m (DKK 88m) was on par with
expectations and we confirm our 2025 EBITDA guidance in
the range of DKK 530-600m. When adjusting for
restructuring and transition costs, the underlying EBITDA
margin amounted to 3.9% (3.7%). The results from the
individual markets are given on page 21.
EBITDA
DKKm
Gross profit margin
%
Adjusted organic growth
%
Q2 Q3 Q4Q1
74
88
137
202
219
20242025
Q1 Q2 Q3 Q4
20242025
20.4
20.7
20.4
20.7
20.8
Q1 Q2 Q3 Q4
20242025
6.5
-15.4 -7.8 -5.3
3.0
(Data shown in brackets relate to the corresponding period in 2024)
Solar A/S Q1 2025
6
Management’s
review
Financial performance
Earnings before tax
As increased revenue did not compensate for lower gross
profit margin and increased costs due to restructuring and
transition, earnings before tax amounted to DKK -33m (DKK
-6m).
Net profit
Net profit amounted to DKK -28m (DKK -6m). Within the
next three quarters, we expect a catch-up of the DKK 40m
in restructuring costs recognised in the income statement
in Q1 2025.
Cash flows
Net working capital as an average of the previous four
quarters amounted to 14.7% (16.7%) of revenue. Net
working capital at the end of Q1 2025 decreased to 15.0%
(15.1%).
Cash flow from operating activities totalled DKK -88m (DKK
7m). Nevertheless, we succeeded in reducing inventories
through inventory changes, which had a cash flow impact
of DKK 45m (DKK 112m).
Changes in receivables impacted cash flow by DKK -343m
(DKK -222m) due to increased growth and the normal
seasonal factors. Changes in non-interest-bearing liabilities
impacted cash flow by DKK 129m (DKK 87m).
Total cash flow from investing activities amounted to DKK
-78m (DKK -57m). Purchase of property, plant and
equipment amounted to DKK -126m of which DKK -115m
relates to the construction of our new logistics centre in
Kumla, Sweden. Disposal of property, plant and equipment
amounted to DKK 76m which primarily relates to the
release of the proceeds from the sale of our warehouse in
Duiven in Q4 2024.
Cash flow from financing activities amounted to DKK 51m
(DKK -57m). This was primarily affected by changes in
current interest-bearing liabilities and by dividend
distribution of DKK 110m (DKK 219m).
As a result, total cash flow amounted to DKK -115m (DKK
-107m). Net interest-bearing liabilities amounted to DKK
1,519m (DKK 1,450m).
By the end of Q1 2025, gearing was 2.4 (2.1) times EBITDA.
Our gearing target was 1.0-3.0 times EBITDA.
At the end of Q1 2025, Solar had undrawn credit facilities
of DKK 744m (DKK 743m).
Invested capital
Invested capital for the Solar Group totalled DKK 3,289m
(DKK 3,157m). ROIC calculated over the last twelve months
amounted to 7.7% (8.5%). Activities with a Solar equity
interest of less than 50% and activities attributable to
non-controlling interests are not included in the ROIC
calculation. Invested capital includes operating assets and
liabilities only.
Key risks and mitigation
The commercial and financial risks in respect of our
activities are detailed in Solar’s 2024 Annual Report. No
additional material risks have been identified. Solar is not
directly exposed to the tariffs imposed by the US or to the
US market, but resulting macroeconomic consequences
may affect Solar's markets. We continue to monitor market
developments closely.
Solar A/S Q1 2025
7
Management’s
review
Financial performance
Positive growth across our
main segments in Q1
Installation
Our Installation segment covers the installation of
electrical, heating and plumbing products.
Installation revenue for Q1 amounted to DKK 1,756m (DKK
1,679m), which corresponds to overall adjusted organic
growth of around 4.7% (-17%). All markets saw positive
development with Solar Danmark almost reaching double
digit growth.
Segment profit amounted to DKK 144m (DKK 131m), which
corresponds to a segment profit margin of 8.2% (7.8%).
Industry
This segment covers the industry, offshore and marine
industries as well as utilities and infrastructure. Industry
also includes MAG45 and ThermoNova.
Industry revenue for Q1 amounted to DKK 1,119m (DKK
1,086m). This corresponds to overall adjusted organic
growth of around 3.3% (-10%). We saw positive growth in
Solar Danmark, Solar Norge and Solar Sverige while other
markets, including MAG45 posted negative growth.
Segment profit amounted to DKK 167m (DKK 164m). This
corresponds to a segment profit margin of 14.9% (15.1%).
Trade
Our Trade segment covers special sales and other
specialist areas. It also includes Solar Polaris and Højager
Belysning.
Revenue from Trade for Q1 amounted to DKK 348m (DKK
265m) corresponding to overall adjusted organic growth of
around 30% (-22%), which was positively affected by Solar
Polaris’ deliveries to a major solar park project. When
adjusting for Solar Polaris’ deliveries, organic growth
amounted to approx. 6%.
Segment profit amounted to DKK 31m (DKK 29m), which
corresponds to a segment profit margin of 8.9% (10.9%).
Segment profit includes items that are directly
attributable to the individual segment and items
that can be reliably allocated to it.
Segment profit does not include non-allocated
costs of DKK 268m (DKK 236m) in Q1, which
cover income and costs related to joint group
functions and to costs that cannot be reliably
allocated to it.
Detailed segment information is given on page 20.
Segment revenue
DKKm
Q1 2025 Q1 2025
DKKm
Installation Installation
1,756 144
1,119 167
348 31
Industry Industry
Trade Trade
Segment profit Overview business segments
Q1
Revenue Segment profit Segment margin %
DKK million 2025 2024 2025 2024 2025 2024
Installation 1,756 1,679 144 131 8.2 7.8
Industry 1,119 1,086 167 164 14.9 15.1
Trade 348 265 31 29 8.9 10.9
Solar Group 3,223 3,030 342 324 10.6 10.7
Solar A/S Q1 2025
8
Management’s
review
Segment performance
We confirm our EBITDA guidance of between
DKK 530m and DKK 600m for 2025
Assumptions
As mentioned on page 7, uncertainty increased
substantially at the start of Q2 2025. However, on a
macroeconomic level, we continue to expect a recovery in
2025 although the timing and strength of the recovery have
become more unpredictable.
Revenue
We expect all markets to post stagnant growth or
experience positive trends in all countries in 2025, resulting
in projected overall growth across all segments.
Installation
We expect to see growth in the new construction sector in
2025. The green transition is set to deliver slightly better
growth rates. We expect the installation market to show
positive growth.
Industry
The guidance assumes stagnant sales to Marine/Offshore
and Utility, whereas we expect all other sub-segments to
show positive growth. Overall, we expect the industry
market to show positive trends.
Trade
We expect to see positive growth in special sales in 2025,
which is the Trade segment’s primary activity.
Our 2025 guidance ranges
between DKK 12.3bn and
12.8bn for revenue and
between DKK 530m and
600m for EBITDA.
Gross profit margin
Throughout 2024, we saw a loss in gross profit margin
across all main product categories. However, we expect
this downward trend to taper off in 2025. Our outlook is for
a slightly lower gross profit margin in 2025, primarily driven
by ongoing price pressure combined with lower price
increases.
Costs
Contrary to our initial expectations, salary inflation
continues to have an impact, in part due to carry-over
effects and in part to collective labour agreements. We
anticipate this trend to continue into 2025.
The implemented restructuring costs of DKK 40m in Q1 are
cost neutral for 2025. We will, however, continue to initiate
restructuring activities albeit at a lower level. This,
combined with other measures, including cost containment
and process improvements, will continue to reduce costs.
Financial outlook 2025
Revenue guidance
We expect revenue to range between DKK 12.3bn and
12.8bn.
EBITDA guidance
We expect EBITDA in the range of DKK 530-600m.
Solar A/S Q1 2025
9
Management’s
review
Guidance 2025
Share and webcast information
Solar’s share capital is divided
into nominal value DKK 90
million A shares and nominal
value DKK 646 million B shares.
Total shareholder return
The total shareholder return of the Solar B share during the
holding period 1 January 2025 - 31 March 2025 was -15.0%
including the DKK 15.00 ordinary dividend that was paid
out in March 2025.
Audio webcast
The presentation of the Quarterly Report Q1 2025 will be
conducted in English on 9 May 2025 at 11:00 CET. The
presentation will be transmitted as an audio webcast and
will be available at:
A share B share
Shares 900,000 6,460,000
Nominel value (DKK) 100 100
Votes per share 10 1
Treasury shares - 56,813
Stock Exchange - Nasdaq Copenhagen
Stock Exchange
Ticker symbol Solar B
Share price 31 March (DKK) 239.50 239.50
Market Cap 31 March (DKKm) 216 1,547
The Solar share
Financial calendar 2025
Shareholders with more than 5%
of shares or votes
Quarterly Report Q2 2025
Quarterly Report Q3 2025
14
6
Aug
Nov
www.solar.eu
Shareholders according to
section 55 of the Danish
Companies Act
Share
Capital Votes
The Fund of 20th December,
Vejen, Denmark 17.0% 60.5%
Nordea Funds Ltd., Helsinki,
Finland 10.4% 5.0%
Solar A/S Q1 2025
10
Management’s
review
Shareholder information
Solar A/S Q1 2025
Financial statements
12
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Q1 Year
DKK million 2025 2024 2024
Revenue 3,223 3,030 12,223
Cost of sales -2,567 -2,404 -9,702
Gross profit 656 626 2,521
Other operating income and costs 2 0 88
External operating costs -116 -107 -369
Staff costs -464 -426 -1,580
Loss on trade receivables -4 -5 -14
Earnings before interest, tax, depreciation and amortisation (EBITDA) 74 88 646
Depreciation and write-down on property, plant and equipment -64 -62 -246
Earnings before interest, tax and amortisation (EBITA) 10 26 400
Amortisation and impairment of intangible assets -21 -16 -122
Earnings before interest and tax (EBIT) -11 10 278
Share of net profit from associates 0 0 -1
Financial income 8 8 63
Financial expenses -30 -24 -148
Earnings before tax (EBT) -33 -6 192
Income tax 5 0 -44
Net profit for the period -28 -6 148
Attributable to:
Shareholders of Solar A/S -27 -5 151
Non-controlling interests -1 -1 -3
Net profit for the period -28 -6 148
Earnings in DKK per share outstanding (EPS) -3.70 -0.68 20.68
Diluted earnings in DKK per share outstanding (EPS-D) -3.70 -0.68 20.60
Q1 Year
DKK million 2025 2024 2024
Net profit for the period -28 -6 148
Other income and costs recognised:
Items that can be reclassified for the income statement
Foreign currency translation adjustment of foreign subsidiaries 48 -33 -36
Fair value adjustment of hedging instruments before tax 2 2 0
Tax on fair value adjustments of hedging instruments 0 0 0
Other income and costs recognised after tax 50 -31 -36
Total comprehensive income for the period 22 -37 112
Attributable to:
Shareholders of Solar A/S 23 -36 115
Non-controlling interests -1 -1 -3
Total comprehensive income for the period 22 -37 112
Statement of comprehensive income
Income statements Other comprehensive income
Solar A/S Q1 2025
Financial statements
13
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
31.03 31.12
DKK million 2025 2024 2024
Assets
Intangible assets 388 366 381
Property, plant and equipment 1,184 1,057 1,070
Right-of-use assets 401 415 408
Deferred tax asset 14 7 11
Investments in associates 3 4 3
Other non-current assets 25 28 27
Non-current assets 2,015 1,877 1,900
Inventories 1,876 1,893 1,888
Trade receivables 2,030 1,846 1,657
Income tax receivable 25 52 20
Contract assets 3 0 4
Other receivables 29 20 107
Prepayments 78 60 73
Cash at bank and in hand 344 334 459
Current assets 4,385 4,205 4,208
Total assets 6,400 6,082 6,108
31.03 31.12
DKK million 2025 2024 2024
Equity and liabilities
Share capital 736 736 736
Reserves -184 -229 -234
Retained earnings 1,189 1,170 1,216
Proposed dividends for the financial year 0 0 110
Equity attributable to shareholders of Solar A/S 1,741 1,677 1,828
Non-controlling interests 45 49 46
Total equity 1,786 1,726 1,874
Interest-bearing liabilities 422 432 425
Lease liabilities 275 303 284
Provision for deferred tax 157 145 157
Other provisions 9 11 12
Non-current liabilities 863 891 878
Interest-bearing liabilities 1,025 925 841
Lease liabilities 141 124 141
Trade payables 2,039 1,863 1,852
Income tax payable 1 35 8
Contract liabilities 25 0 35
Other payables 457 486 462
Prepayments 6 9 8
Other provisions 57 23 9
Current liabilities 3,751 3,465 3,356
Liabilities 4,614 4,356 4,234
Total equity and liabilities 6,400 6,082 6,108
Balance sheet
Consolidated
Solar A/S Q1 2025
Financial statements
14
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
31.03 31.12
DKK million 2025 2024 2024
Net profit for the period -28 -6 148
Depreciation, write-down, amortisation and impairment 85 78 368
Changes to provisions and other adjustments 49 0 -103
Share of net profit from associates 0 0 1
Financials, net 22 16 85
Income tax -5 0 44
Financial income, received 3 5 33
Financial expenses, settled -27 -20 -114
Income tax, settled -18 -43 -69
Cash flow before working capital changes 81 30 393
Working capital changes
Inventory changes 45 112 113
Receivables changes -343 -222 -64
Non-interest-bearing liabilities changes 129 87 96
Cash flow from operating activities -88 7 538
31.03 31.12
DKK million 2025 2024 2024
Investing activities
Purchase of intangible assets -26 -34 -154
Purchase of property, plant and equipment -126 -23 -162
Disposal of property, plant and equipment 76 0 61
Acquisition of subsidaries and activities -2 0 -10
Cash flow from investing activities -78 -57 -265
Financing activities
Repayment of non-current interest-bearing debt -103 -2 -9
Raising of non-current interest-bearing liabilities 0 0 100
Change in current interest-bearing debt 304 198 11
Instalment on lease liabilities -40 -34 -137
Dividends paid to shareholders of Solar A/S -110 -219 -219
Dividends paid to non-controlling interests 0 0 -1
Cash flow from financing activities 51 -57 -255
Total cash flow -115 -107 18
Cash at bank and in hand at the beginning of period 459 441 441
Cash at bank and in hand at the end of period 344 334 459
Cash flow statement
Consolidated
Solar A/S Q1 2025
Financial statements
15
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
DKK million
Share
capital
Reserves
for hedging
transactions
1
Reserves
for foreign
currency
translation
adjustments
1
Retained
earnings
Proposed
dividends
Equity
attributable to
Shareholders of
Solar A/S
Non-controlling
interests Total equity
2025
Equity as at 1 January 736 -13 -221 1,216 110 1,828 46 1,874
Foreign currency translation adjustments of foreign subsidiaries 48 48 48
Fair value adjustments of hedging instruments before tax 2 2 2
Tax on fair value adjustments 0 0 0
Net income recognised in equity via other comprehensive income in the statement
of comprehensive income 0 2 48 0 0 50 50
Net profit or loss for the period -27 -27 -1 -28
Comprehensive income 0 2 48 -27 0 23 -1 22
Distribution of dividends (DKK 15.00 per share) -110 -110 -110
Non-controlling interests on acquisition of subsidiary 0 0
Transactions with the owners 0 0 0 0 -110 -110 0 -110
Equity as at 31 March 736 -11 -173 1,189 0 1,741 45 1,786
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
Statement of changes in equity
Consolidated
Solar A/S Q1 2025
Financial statements
16
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
DKK million
Share
capital
Reserves
for hedging
transactions
1
Reserves
for foreign
currency
translation
adjustments
1
Retained
earnings
Proposed
dividends
Equity
attributable to
Shareholders of
Solar A/S
Non-controlling
interests Total equity
2024
Equity as at 1 January 736 -13 -185 1,175 219 1,932 50 1,982
Foreign currency translation adjustments of foreign subsidiaries -33 -33 -33
Fair value adjustments of hedging instruments before tax 2 2 2
Tax on fair value adjustments 0 0 0
Net income recognised in equity via other comprehensive income in the statement
of comprehensive income 0 2 -33 0 0 -31 0 -31
Net profit or loss for the period -5 -5 -1 -6
Comprehensive income 0 2 -33 -5 0 -36 -1 -37
Distribution of dividends (DKK 30.00 per share) -219 -219 -219
Non-controlling interests on acquisition of subsidiary 0 0
Transactions with the owners 0 0 0 0 -219 -219 0 -219
Equity as at 31 March 736 -11 -218 1,170 0 1,677 49 1,726
1. Reserves for hedging transactions and reserves for foreign currency translation adjustments are recognised in the balance sheet as a total amount under reserves.
Statement of changes in equity
– Continued
Solar A/S Q1 2025
Financial statements
17
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Section 1
Basis for preparation
Solar A/S Q1 2025
Financial statements
18
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Section 1 – Basis for preparation
1.1 Accounting policies
The financial report for Solar A/S has been
prepared in accordance with IAS 34 “Presentation
of interim reports” as approved by the EU and
additional Danish disclosure requirements for
quarterly reports of listed companies.
The accounting policies remain unchanged from
the Annual Report 2024, which contains a full
description of these on pages 104-106 as well as
of relevant, supplementary notes.
In the financial report, income tax has been
calculated on the basis of pre-tax profits at the
expected average tax rate.
New accounting standards implemented during
the period
No additional standards have become effective in
the period, only amendments and improvements
to existing standards. These changes have no
impact on Solar’s accounting policies.
New accounting standards to be implemented
in coming accounting periods
In Annual Report 2024, note 5.5, page 145, new
or amended standards to be implemented in the
coming accounting periods are described.
Solar A/S Q1 2025
Financial statements
20
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Section 2 – Income statement
2.1 Revenue
2.2 Segment information
Solar’s business segments are Installation, Industry and Trade and are based on the customers’
affiliation with the segments. Installation covers installation of electrical, and heating and plumbing
products, while Industry covers industry, offshore and marine, and utility and infrastructure. Trade
covers special sales and other small areas. The three main segments have been identified without
aggregation of operating segments. Segment income and costs include any items that are directly
attributable to the individual segment and any items that can be reliably allocated to the individual
DKK million Q1 2025 Q1 2024
Sales of goods and services 3,148 3,022
Revenue from construction contracts 75 8
Total 3,223 3,030
DKK million Installation Industry Trade Total
Q1 2025
Revenue 1,756 1,119 348 3,223
Cost of sales -1,421 -852 -294 -2,567
Gross profit 335 267 54 656
Direct costs -73 -44 -11 -128
Earnings before indirect costs 262 223 43 528
Indirect costs -118 -56 -12 -186
Segment profit 144 167 31 342
Non-allocated costs -268
Earnings before interest, tax, depreciation and amortisation
(EBITDA) 74
Depreciation and amortisation -85
Earnings before interst and tax (EBIT) -11
Financials, net incl. share of net profit from associates and
impairment on associates -22
Earnings before tax (EBT) -33
DKK million Installation Industry Trade Total
Q1 2024
Revenue 1,679 1,086 265 3,030
Cost of sales -1,368 -820 -216 -2,404
Gross profit 311 266 49 626
Direct costs -67 -41 -8 -116
Earnings before indirect costs 244 225 41 510
Indirect costs -113 -61 -12 -186
Segment profit 131 164 29 324
Non-allocated costs -236
Earnings before interest, tax, depreciation and amortisation
(EBITDA) 88
Depreciation and amortisation -78
Earnings before interst and tax (EBIT) 10
Financials, net incl. share of net profit from associates and
impairment on associates -16
Earnings before tax (EBT) -6
segment. Non-allocated costs refer to income and costs related to joint group functions and costs,
which can not be reliably allocated to the individual segment. Assets and liabilities are not included in
segment reporting.
Revenue and costs in the amount of DKK 75m (Q1 2024: DKK 8m) and DKK 70m (Q1 2024: DKK 6m),
respectively, from construction contracts recognised over time are fully allocated to the Trade segment.
Solar A/S Q1 2025
Financial statements
21
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Section 2 – Income statement
2.2 Segment information – continued
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
2025
Denmark
1,124 14.0 45 4.0 820
Sweden 547 2.6 2 0.4 418
Norway 479 10.0 -1 -0.2 206
The Netherlands 725 1.4 18 2.5 389
Poland 105 5.2 0 0.0 52
Other markets 243 -5.1 10 4.1 127
Solar Group 3,223 6.5 74 2.3 2,012
DKK million Revenue
Adjusted
organic growth EBITDA
EBITDA
margin
Non-current
assets
2024
Denmark
971 -10.9 35 3.6 896
Sweden 539 -20.6 17 3.2 210
Norway 437 -19.0 11 2.5 211
The Netherlands 726 -21.6 10 1.4 417
Poland 98 -4.5 0 0.0 49
Other markets 259 6.8 15 5.8 94
Solar Group 3,030 -15.4 88 2.9 1,877
Geographical information
Solar A/S primarily operates on the Danish, Swedish, Norwegian and Dutch markets. In the below table,
Other markets covers the remaining markets, which can be seen in the group companies overview
available on page 184 of Annual Report 2024 or on www.solar.eu. The below allocation has been made
based on the products’ place of sale.
Solar A/S Q1 2025
Financial statements
23
Consolidated
Q1 Q2 Q3 Q4
Income statement (DKK million) 2025 2024 2024 2023 2024 2023 2024 2023
Revenue
3,223 3,030 3,100 3,250 2,860 2,965 3,233 3,160
Earnings before interest, tax, depreciation and amortisation (EBITDA) 74 88 137 214 202 187 219 190
Earnings before interest, tax and amortisation (EBITA) 10 26 77 159 143 132 154 131
Earnings before interest and tax (EBIT) -11 10 56 121 125 114 87 114
Financials, net -22 -16 -22 -20 -24 -21 -23 -29
Earnings before tax (EBT) -33 -6 34 101 101 93 63 85
Net profit or loss for the quarter -28 -6 25 77 78 71 51 55
Balance sheet (DKK million)
Non-current assets 2,015 1,877 1,880 1,761 1,879 1,809 1,900 1,893
Current assets 4,385 4,205 4,339 4,556 4,385 4,456 4,208 4,219
Balance sheet total 6,400 6,082 6,219 6,317 6,264 6,265 6,108 6,112
Total equity 1,786 1,726 1,770 1,810 1,831 1,910 1,874 1,982
Non-current liabilities 863 891 881 894 871 877 878 908
Current liabilities 3,751 3,465 3,568 3,613 3,562 3,478 3,356 3,222
Interest-bearing liabilities, net 1,519 1,450 1,334 1,558 1,646 1,480 1,232 1,157
Invested capital 3,289 3,157 3,085 3,342 3,460 3,366 3,089 3,120
Net working capital, end of period 1,867 1,876 1,720 2,265 2,036 2,253 1,693 1,907
Net working capital, average 1,829 2,075 1,939 2,251 1,885 2,268 1,831 2,193
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Quarterly figures
Solar A/S Q1 2025
Financial statements
24
Consolidated – continued
Q1 Q2 Q3 Q4
Cash flows (DKK million) 2025 2024 2024 2023 2024 2023 2024 2023
Cash flow from operating activities
-88 7 202 78 -196 190 525 486
Cash flow from investing activities -78 -57 -70 -54 -82 -102 -56 -87
Cash flow from financing activities 51 -57 -85 -38 165 -109 -278 -199
Net investments in intangible assets -26 -34 -41 -25 -38 -26 -41 -31
Net investments in property, plant and equipment -50 -23 -19 -29 -44 -76 -15 -34
Acquisition and divestment of subsidiaries and operations, net -2 0 -10 0 0 0 0 -22
Financial ratios (% unless otherwise stated)
Revenue growth 6.4 -17.1 -4.6 -5.8 -3.5 -9.2 2.3 -14.2
Organic growth 6.5 -17.1 -5.0 -2.2 -3.8 -6.2 2.3 -12.5
Organic growth adjusted for nomber of working days 6.5 -15.4 -7.8 -1.0 -5.3 -4.7 3.0 -11.1
Gross profit margin 20.4 20.7 20.4 22.7 20.7 21.5 20.8 22.4
EBITDA margin 2.3 2.9 4.4 6.6 7.1 6.3 6.8 6.0
EBITA margin 0.3 0.9 2.5 4.9 5.0 4.5 4.8 4.1
EBIT margin -0.3 0.3 1.8 3.7 4.4 3.8 2.7 3.6
Net working capital (end of period NWC)/revenue (LTM) 15.0 15.1 14.0 16.3 16.8 16.6 13.9 14.6
Net working capital (average NWC )/revenue (LTM) 14.7 16.7 15.8 16.2 15.5 16.7 15.0 16.8
Gearing (net interest-bearing liabilities/EBITDA), no. of times 2.4 2.1 2.2 1.4 2.7 1.5 1.9 1.3
Return on equity (ROE) 7.2 10.9 8.6 32.7 8.8 25.5 8.4 18.3
Return on invested capital (ROIC) 7.7 8.5 6.6 20.5 6.8 16.9 8.3 13.2
Enterprise value/earnings before interest, tax and amortisation (EV/EBITA) 8.4 8.6 10.0 5.7 11.1 6.2 8.4 7.0
Equity ratio 27.2 27.6 27.7 27.9 28.5 29.7 29.9 31.6
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Quarterly figures
Solar A/S Q1 2025
Financial statements
25
Consolidated – continued
Q1 Q2 Q3 Q4
Share ratios (DKK unless otherwise stated) 2025 2024 2024 2023 2024 2023 2024 2023
Earnings per share outstanding (EPS)
-3.70 -0.68 3.70 10.54 10.68 9.72 6.98 7.39
Intrinsic value per share outstanding 238.39 229.63 235.92 241.13 244.28 254.82 250.30 264.54
Share price 241.44 331.37 325.27 506.42 354.55 476.27 299.27 465.71
Share price/intrinsic value 1.01 1.44 1.38 2.10 1.45 1.87 1.20 1.76
Employees
Number of employees (FTE's), end of period 2,919 2,932 2,889 3,063 2,880 3,005 2,895 2,990
Average number of employees (FTE's) 2,896 2,997 2,954 3,058 2,923 3,049 2,899 3,036
Definitions
Organic growth Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes. No adjustments have been made for number of working days.
Organic growth adjusted for number of working days Revenue growth adjusted for enterprises acquired and sold off and any exchange rate changes and number of working days.
Net working capital Inventories and trade receivables less trade payables.
Return on invested capital (ROIC) Return on invested capital calculated on the basis of EBIT exclusive impairment on goodwill less tax calculated using the effective tax rate adjusted for one-off effects, if any.
In all material aspects financial ratios are calculated in accordance with the Danish Finance Society’s “Recommendations & Financial Ratios”.
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Quarterly figures
Solar A/S Q1 2025
Financial statements
27
Consolidated financial statements Q1
Statement of comprehensive income
Balance sheet
Cash flow statement
Statement of changes in equity
Notes
Section 1 – Basis for preparation
Section 2 – Income statement
Q1 Quarterly information
Statements
Executive Board
Board of Directors
Solar A/S
Tel. +45 79 30 00 00
CVR no. 15908416
LEI 21380031XTLI9X5MTY92
http://www.linkedin.com/company/solar-as
ESEF data
Name of reporting entity or other means of identification Solar A/S
Domicile of entity Denmark
Legal form of entity A/S
Country of incorporation Denmark
Address of entity's registered office Industrivej Vest 43, 6600 Vejen
Principal place of business Europe
Description of nature of entity's operations and principal business Sourcing and services company
Name of parent entity Solar A/S
Name of ultimate parent of group Fonden af 20. December