Solteq - Comparable revenue grew, earnings still soft
Solteq reported its first comparable revenue growth in eight quarters, driven by the Utilities segment. However, profitability remained weak as expected, well in line with our estimates.
- Comparable net sales in Q4 were EUR 12.1m (Q4’24: EUR 11.9m) vs. Evli EUR 11.6m, an increase of 1% y/y in comparable terms. The net sales beat came from the Utilities segment.
- Comparable operating result in Q4 was EUR 0.5m (Q4’24: EUR 0.3m), in line with our estimate. Operating result was EUR 0.3m (Q4’24: EUR 1.8m). Comparison figure from year ago was affected by a one-off gain from the sale of the Solteq Care business.
- Retail and Commerce: Net sales in Q4 amounted to EUR 8.8m (Q4’24: EUR 9.7m) vs. Evli EUR 8.9m. Revenue declined by 9%, and by 4% in comparable terms. The segment’s comparable operating profit was EUR 0.8m (Q4’24: EUR 0.9m), in line with our estimate. Comparable operating profit margin was 9.4%.
- Utilities: Revenue in Q4 amounted to EUR 3.2m (Q4’24: EUR 2.8m) vs. Evli EUR 2.7m, showcasing a much-needed improvement. Despite this, the comparable operating profit was still subdued and came in at EUR -0.3m (Q4’24: EUR –0.7m) vs. Evli EUR –0.3m.
- Guidance for 2026: Solteq expects the comparable revenue to remain at the same level and comparable operating result to improve clearly. The guidance is well-aligned with our current estimates.
- Dividend proposal: Solteq’s BoD proposes that no dividend be paid for FY 2025 (Evli EUR 0.00).
- Market outlook remains tough due to economic uncertainty and cautious customer demand, with management noting no significant changes in the environment.
- Cash at year end amounted to EUR 1.3m (2024: EUR 3.3m)