Solar (SOLAR) Q1 2026 earnings summary

Executive summary

• Integration of Sonepar Norge is ahead of schedule, delivering synergies and operational efficiencies faster than planned, with integration costs now expected to be DKK 10 million lower than initially forecasted and strong customer retention.

• Launch of a new digital customer platform is imminent, starting with Solar Faroe Islands, supporting a scalable, modern customer experience and enabling cross-selling.

• The new Kumla distribution center in Sweden is ramping up as planned, handling over two-thirds of daily order volume and set to take over all distribution in June, enhancing logistics and cost efficiency.

• Growth segments such as defense, critical infrastructure, and small/mid-sized data centers are seeing increased activity, with Solar leveraging ISO 27001 certification to strengthen its position.

• Special focus on small installers through simplified pricing and digital onboarding aims to reduce complexity and improve accessibility.

Financial highlights

• Q1 2026 revenue reached DKK 3.3 billion, up 2.6% year-over-year, mainly due to the Sonepar Norge acquisition.

• Organic growth adjusted for working days was -4.2%, with overall growth negative in January and February but improving to -0.8% in March.

• EBITDA for Q1 was DKK 59 million, down from DKK 74 million in Q1 2025; adjusted EBITDA was DKK 90 million.

• Gross profit margin declined to 19.5% from 20.4%, mainly due to sales price pressure and higher freight costs.

• Operating activities resulted in a cash outflow of DKK 173 million, mainly due to increased inventory and seasonal rise in accounts receivable.

Outlook and guidance

• 2026 revenue guidance confirmed at DKK 12.9–13.4 billion, including DKK 700 million from acquisitions and DKK 275 million from a new solar park project.

• EBITDA guidance for 2026 remains DKK 400–480 million, now including DKK 75 million in restructuring and integration costs, with Sonepar integration costs reduced due to strong progress.

• Gross profit margin expected to decline slightly further in 2026 due to ongoing price pressure and segment mix; inventory gains guidance increased to DKK 20 million.

• Sonepar acquisition currently dilutes margin by 0.6–0.7pp, expected to strengthen margin post-integration.

• Market expected to remain stagnant, with installation slightly positive and industry potentially slightly negative.