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Introduction & Market Context
Elmera Group ASA (OB:ELMRA) released its Q2 2025 quarterly presentation on August 21, 2025, revealing continued pressure on financial performance despite some positive operational developments. The company’s stock closed at 35.00 NOK on August 20, down 1.69% ahead of the presentation, reflecting ongoing investor concerns about the company’s performance trajectory.
The Nordic electricity provider continues to face challenges from reduced consumption volumes due to high temperatures in the first half of 2025, along with significant credit and hedging losses in the Swedish SME market. These factors have contributed to year-over-year declines in key financial metrics, continuing the trend observed in Q1 2025.
Quarterly Performance Highlights
Elmera reported Q2 2025 adjusted net revenue of NOK 370 million, down from NOK 389 million in the same period last year. Adjusted EBIT declined to NOK 93 million from NOK 106 million in Q2 2024. On a last-twelve-month basis, adjusted net revenue was NOK 1,725 million (down from NOK 1,762 million), while adjusted EBIT fell to NOK 500 million from NOK 546 million.
As shown in the following key financials summary:
Despite these challenges, the company highlighted several positive developments, including the continued growth trend in customer numbers, successful insourcing of the power trading function (which improved consumption forecast accuracy), and the distribution of a NOK 3 per share dividend in May.
The company’s operating expenses (Opex adj.) showed a slight improvement at NOK 277 million compared to NOK 282 million in Q2 2024, indicating some success in cost management efforts.
Segment Analysis
The Consumer segment delivered the strongest performance, achieving its highest quarterly organic growth since Q4 2022. The segment saw an increase in deliveries to 665,000 from 659,000 in Q1 2025, with adjusted EBIT rising year-over-year driven by increased net revenue margin per kWh.
The following chart illustrates the Consumer segment’s performance:
The Business segment maintained its positive trajectory with a fifth consecutive quarter of organic growth. Deliveries increased to 132,000 from 131,000 in Q1 2025, while maintaining a stable net revenue margin per kWh year-over-year. However, volume sold decreased by 9% due to reduced average consumption per delivery.
The Business segment performance is detailed in this chart:
The Nordic segment faced the most significant challenges, with EBIT adj. turning negative at NOK -5 million, down from a positive NOK 10 million in Q2 2024. This decline was primarily attributed to credit and hedging losses of NOK 25 million from bankruptcies and contract terminations in the Swedish B2B market, particularly affecting SMEs in the hospitality and restaurant (Horeca) sector.
The following chart shows the Nordic segment’s deteriorating performance:
The credit risk situation in Sweden appears to be worsening, as illustrated by this comparative analysis of invoice settlement rates:
The New Growth Initiatives segment showed mixed results, with continued growth in Mobile subscribers to 114,000 and a 9% year-over-year increase in Alliance volume sold. However, adjusted EBIT declined to NOK 4.1 million from NOK 9.3 million in Q2 2024.
Financial Position and Outlook
Elmera’s net working capital increased significantly to NOK 608 million in Q2 2025 from NOK 171 million in Q2 2024. The company explained this increase was due to a change in financing structure, as interest-bearing supplier credit previously classified under NWC was replaced by bank facilities.
The following chart illustrates these changes:
Looking forward, Elmera has maintained its financial targets for 2025-2026, including net revenue growth in all segments, stable nominal operating expenses, and adjusted EBIT in the range of NOK 550-600 million. However, the company acknowledged that net revenue growth and adjusted EBIT are likely to fall below these targets for 2025 due to reduced volumes from high temperatures in H1 2025 and increased credit risk in the Swedish SME market.
The company’s financial targets are summarized here:
Strategic Initiatives
Despite the near-term challenges, Elmera continues to pursue strategic growth initiatives. The company successfully launched "Fjordkraft Företag" in Sweden in May 2025, which has already led to new cooperation agreements. Management also highlighted a strong pipeline of new AllRate partners expected in H2 2025, estimated to add approximately 20,000 deliveries.
The company received approval for Norgespris, an addition to the Norwegian power support scheme, which could provide some stability in the domestic market. Additionally, Elmera is actively pursuing acquisition opportunities across Norway, Sweden, and Finland, suggesting confidence in its long-term growth strategy despite current headwinds.
CEO Rolf Barmen emphasized the company’s commitment to growth and operational improvements, building on the successful insourcing of the power trading function, which has already improved consumption forecast accuracy.
The quarterly results indicate that while Elmera continues to make strategic progress and grow its customer base, financial performance remains under pressure from external factors including weather conditions and credit market challenges in Sweden. Investors will likely focus on whether the company can translate its customer growth and strategic initiatives into improved financial performance in the coming quarters.
Full presentation:
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