Dovre - Additional project losses in Q1
Dovre’s Q1 top line was basically in line with our estimates, however there were additional losses in Renewable Energy stemming from a Finnish solar park project. The project should still be profitable, but Dovre and Suvic need to focus on project selection and their successful delivery to cut losses in the Renewable Energy segment. Dovre sees FY’25 revenue slightly lower y/y while EBIT is expected to improve significantly.
- Dovre Q1 revenue grew by 0.3% y/y to EUR 14.0m, compared to our EUR 14.4m estimate. Renewable Energy grew by 0.7% while Consulting decreased by 11.9%. Sales have been negatively impacted by the termination of some of Proha’s customer agreements as well as slower market for the eSite services.
- EBITDA amounted to EUR -2.9m vs our EUR 0.3m estimate while EBIT was EUR -3.2m vs our EUR 0.1m estimate. Q1 is always somewhat slower than other quarters, but Renewable Energy still saw losses of almost EUR 3m due to a Finnish solar park project’s reduced margin, although the project is still expected to generate a positive margin.
- Dovre expects FY’25 revenue to slightly decline y/y while EBIT is to improve significantly. The lowered top line expectation is due to increased focus on improving profitability as Renewable Energy prioritizes project selection and their successful delivery.