Skel fjárfestingafélag (SKEL) Q2 2025 earnings summary

Executive summary

• Achieved key milestones, including Drangar's formation via merger and a 15.4% Styrkás stake sale to institutional investors.

• Revenue for H1 2025 reached ISK 23.9 bn, up 6.9% year-over-year, with gross profit at ISK 5.8 bn and a margin of 24.7%.

• Net loss for H1 2025 was ISK 559 m, compared to ISK 314 m loss in H1 2024, mainly due to fair value changes and restructuring costs.

• Drangar established as a major retail group, targeting a public listing by 2027 and raising ISK 2 bn in new share capital.

• Significant dividend payout of ISK 6 bn during the period.

Financial highlights

• Total assets stood at ISK 56,663 m as of June 30, 2025, with equity at ISK 37,202 m.

• Cash and government bonds totaled ISK 3,703 m; cash and cash equivalents decreased to ISK 2,582 m from ISK 3,604 m at year-end 2024.

• Fair value changes in H1 2025 resulted in a net decrease of ISK 531 m, with positive revaluations in Baridi and Stork, but a decrease in Drangar and listed assets.

• Dividend payments of ISK 6 bn scheduled for 2025, with ISK 3 bn already paid and the remainder due in October.

• Earnings per share at ISK -0.30, compared to ISK -0.17 year-over-year.

Outlook and guidance

• Drangar aims to improve earnings by ISK 2.5–3 bn over the next two years through procurement, cost reduction, and operational simplification.

• Revenue for Drangar is forecast to grow from ISK 74.7 bn in 2024 to ISK 79.6 bn in 2026, with EBITDAAL margin rising from 2.6% to 6.5%.

• Drangar's capital raise to be completed in Q4 2025, with a planned IPO by 2027.

• Continued asset sales and real estate divestments expected to support liquidity and shareholder returns.