Q2 2025 Arise AB Earnings Call Transcript
Key Points
- Arise AB (FRA:A4W) reported a significant increase in net sales for Q2 2025, reaching SEK164 million, primarily driven by a successful battery project sale.
- The company's EBITDA increased to SEK61 million, showcasing strong financial performance.
- Arise AB has a robust project pipeline with 9,000 megawatts in development, indicating strong future growth potential.
- The completion of the Kölvallen project, the largest to date with 277 megawatts installed, marks a significant milestone and demonstrates the company's capability in managing large-scale projects.
- The company is well-diversified across six markets, including Sweden, Finland, the UK, Ukraine, Norway, and Germany, which helps mitigate risks and capitalize on various opportunities.
- The realized price for production decreased to SEK352 per megawatt hour, impacted by less favorable price hedges compared to the previous year.
- Operating cash flow was relatively low at SEK8 million, with cash flow after investments at minus SEK13 million, indicating potential liquidity challenges.
- The earnings per share decreased to SEK0.11, partly due to the not wholly owned Pohjan Voima, affecting overall profitability.
- Central costs were high in the quarter, driven by extraordinary expenses to accelerate projects and avoid delays.
- The company faces challenges in the solar PV market in the Nordics, with current market conditions making transactions difficult.
Welcome to the Arise Q2 report 2025. (Operator Instructions)
Now I will hand the conference over to the speakers, CEO, Per-Erik Eriksson; and CFO, Markus Larsson. Please go ahead.
Thank you very much. I will start with a brief introduction of Arise. We have three different business segments, starting with Production, our IPP business, and we have some 170 megawatts installed, corresponding to some 430 gigawatt hours in annual production a normal year. Secondly, we have the Development business. Currently, we have some 9,000 megawatts in total in our project pipeline, and we have divested since inception some 1,600 megawatts.
And the third leg in our business segment is the Solutions business, our Services business, including asset management, financial and technical management, and also construction management. We have today around 2,000 megawatts under management. And in construction, we have one project ongoing, 105-megawatt wind project under construction. With that, we can change slide.
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