Ennogie Solar (ESG) Q4 2024 earnings summary

Executive summary

• 2024 marked a turnaround year with significant cost reductions and a focus on internal efficiency, resulting in an adjusted EBITDA near breakeven in H2 despite a challenging market and a 53% drop in revenue year-over-year.

• Expansion plans for 2025 target new markets (France, Poland, Italy) with growth expected through agents and partnerships, aiming for profitability and cash generation from operations.

• The company secured notable contracts and awards, including a flagship project in Poland and an exclusive distribution agreement in Germany, enhancing market exposure.

Financial highlights

• Revenue for 2024 was DKK 46.2 million, down from DKK 98.8 million in 2023, with 88% of revenue from Germany and 12% from Denmark.

• Gross profit was DKK 16.3 million (gross margin 35.2%, up from 27.6% in 2023), reflecting improved pricing and lower production costs.

• EBITDA was DKK -9.5 million, impacted by lower revenue and DKK 1.9 million in costs for rectifying failing solar panels.

• Net loss for the year was DKK -13.9 million, compared to DKK -8.0 million in 2023.

• Equity at year-end was DKK 15.2 million, with interest-bearing debt of DKK 15.7 million.

• Net cash flow for 2024 was DKK -10.9 million, with improved operating cash flow but no capital increase as in 2023.

Outlook and guidance

• 2025 turnover is expected in the range of DKK 55–62 million, with EBITDA between DKK 0 and 2 million.

• Revenue growth of 17–33% is anticipated, based on a DKK 20 million order book and increased incoming orders.

• Gross margin is expected to remain at 2024 levels, with continued cost discipline and efficiency.

• Assumptions include stable market conditions, successful cost containment, and fulfillment of supplier obligations for warranty replacements.