Arise Windpower Q2 2025 slides: Revenue surges 62% amid Nordic market challenges

Introduction & Market Context

Arise Windpower AB (STO:ST:ARISE) presented its second quarter 2025 results on July 18, revealing substantial revenue growth despite challenging conditions in Nordic power markets. The renewable energy developer saw its stock decline 1.28% to SEK 35.05 during the presentation day, reflecting investor caution despite the company’s improved operational performance.

The company operates in an increasingly complex renewable energy landscape, with significant regional price disparities across Nordic markets and evolving dynamics in Continental Europe. Arise highlighted that while southern Nordic regions maintained strong spot pricing, northern areas experienced weakness, influenced by a persistent hydrological surplus.

"We had a very strong second quarter in quite challenging markets," noted Per-Erik Eriksson, CEO of Arise, emphasizing how the company’s geographic diversification strategy is beginning to yield results.

Quarterly Performance Highlights

Arise reported impressive financial growth for Q2 2025, with net sales reaching SEK 164 million, a substantial 62% increase from SEK 101 million in Q2 2024. The company’s EBITDA improved to SEK 61 million from SEK 53 million year-over-year, while EBIT rose to SEK 39 million from SEK 33 million.

As shown in the company’s financial results summary:

Profit after tax totaled SEK 28 million (SEK 0.11 per share), slightly below the SEK 30 million reported in Q2 2024. Operating cash flow was robust at SEK 80 million, though cash flow after investments amounted to negative SEK 13 million, reflecting the company’s continued capital deployment into growth projects.

Production volume increased to 79 GWh with an average income of SEK 352 per MWh. However, this realized price represents a decrease from previous periods, highlighting the pricing pressures in certain markets.

Segment Analysis

Arise operates through three business segments – Development, Production, and Solutions – each contributing differently to the quarter’s performance.

The Development segment delivered a strong quarter driven by the Pysäysperä project sale, generating an EBITDA of SEK 66 million. Notably, the company’s late-stage development portfolio increased by 400 MW, strengthening its pipeline for future growth.

The Production segment saw a 10 GWh increase in generation compared to Q2 2024, though realized prices decreased to SEK 352 per MWh. The company secured a new hedge position for Q3 2025 of approximately 8 GWh at €48/MWh, with the segment contributing SEK 15 million to quarterly EBITDA.

The Solutions segment began to show its potential with the Kölvallen project takeover in June, contributing SEK 1 million to EBITDA for the quarter.

The company’s business segment overview illustrates its integrated approach to renewable energy:

Portfolio Growth and Project Development

Arise’s project portfolio has expanded significantly, now totaling approximately 9.0 GW across multiple markets. The portfolio is strategically diversified, with over 1.7 GW in late-stage development and more than 7.2 GW in early-stage development.

The portfolio distribution reveals Arise’s strategic focus on Finland and Sweden, while maintaining significant positions in the UK and Norway:

A major milestone during the quarter was the commercial operation date of the Kölvallen project on May 28, 2025. As Arise’s largest project to date, it features 42 wind turbine generators with 277 MW capacity and 950 GWh annual production. The project represents a significant achievement for the company, particularly given the challenging winter installation conditions.

The Kölvallen project details highlight both the scale and financial impact:

Market Outlook and Strategic Initiatives

Arise provided insights into market conditions affecting its operations, noting distinct dynamics between Nordic and Continental European markets. While Nordic markets face challenges from hydrological surplus and weak northern pricing, Continental Europe shows more stable conditions despite increasing solar power influence.

The company’s market analysis reveals these regional differences:

Looking forward, Arise has set ambitious targets for 2025, including expanding its project portfolio to 10 GW by year-end and achieving 400 MW in project sales for the 2024-2025 period. Management expressed confidence in delivering profitable growth despite current market headwinds, pointing to its diversified portfolio and strong late-stage project pipeline.

"Our diversification is starting to pay off," emphasized CEO Eriksson during the presentation, highlighting the strategic advantage of Arise’s presence across multiple markets and technologies.

The company’s geographic diversification strategy spans six countries, with varying levels of involvement across the renewable energy value chain:

While Arise maintains an optimistic outlook, investors appear cautious, as reflected in the stock’s performance. According to available market data, the company trades at a P/E ratio of 12.59, suggesting potential value opportunity despite near-term market challenges. Analysts have set price targets between SEK 7.50 and 8.74, indicating significant upside potential from current levels if the company executes on its strategic initiatives.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.