Earnings call transcript: Ocean Sun Q2 2025 reveals strategic expansion

Ocean Sun reported its second-quarter 2025 earnings, highlighting a strategic focus on expansion and innovation despite financial challenges. The company disclosed a revenue of €3.8 million, with a significant first half-year loss of €9.8 million. Despite the negative cash flow of €12.3 million, Ocean Sun remains optimistic about acquiring new funds for growth. According to InvestingPro data, analysts expect impressive revenue growth of 482% for FY2025, suggesting potential turnaround opportunities. The stock price remained stable at $0.13, unchanged from the last close, with InvestingPro’s Fair Value analysis indicating the stock may be undervalued. For detailed valuation metrics and 12 additional exclusive insights, explore the comprehensive Pro Research Report available on InvestingPro.

Key Takeaways

• Ocean Sun reported a revenue of €3.8 million for Q2 2025.
• The company is pursuing new funding to support its expansion plans.
• New product innovations include a floating solar system and an autonomous cleaning robot.
• Ocean Sun is expanding its market presence in Brazil and India.

Company Performance

Ocean Sun’s performance in Q2 2025 reflects both challenges and opportunities. The company reported a revenue of €3.8 million, but faced a significant loss of €9.8 million in the first half of the year. InvestingPro analysis reveals a strong gross profit margin of 50.83% and a healthy current ratio of 3.75, indicating solid operational efficiency and short-term liquidity. Despite these financial setbacks, Ocean Sun is committed to innovation and market expansion, with new projects in the Maldives, Caribbean, and Pacific regions. The company is focusing on floating solar solutions, which are gaining traction in emerging markets like Malaysia, Turkey, and India. With a beta of 2.25, investors should note the stock’s higher volatility compared to the market.

Financial Highlights

• Revenue: €3.8 million for Q2 2025
• First half-year loss: €9.8 million
• Negative cash flow: €12.3 million
• Remaining cash balance: €17.2 million

Outlook & Guidance

Ocean Sun is targeting a 90% renewable energy mix for resort installations and is expanding into new markets such as Brazil and India. The company is confident in its ability to secure additional funding to support these initiatives. Future projects include a Brazilian pilot project and continued focus on hydropower reservoir solar installations.

Executive Commentary

CEO Kristian Torwald expressed optimism about the company’s future, stating, "We’re soon enabling the cleanest and coolest solar panels in the world." CFO Karl also conveyed confidence in securing new funding, which is crucial for the company’s expansion plans.

Risks and Challenges

• Financial losses and negative cash flow could impact future operations.
• Dependence on securing new funding to support expansion.
• Competitive pressures in the renewable energy sector.
• Potential delays in project execution due to market conditions.

Q&A

During the earnings call, analysts inquired about Ocean Sun’s collaboration with Canopy Power in the Maldives and Australia, as well as the upcoming Brazilian pilot project. The company’s focus on hydropower reservoir solar installations and the promising results of the Axiomna demo project in Spain were also discussed.

Full transcript - Ocean Sun As (OSUN) Q2 2025:

Kristian Torwald, CEO, OceanSun: Welcome to the presentation of Oceansand’s Second Quarter Results. My name is Kristian Torwald, and I am the CEO of Oceansand. Here you see the current status of our Maldives project. Installation of the floaters has taken longer than originally planned, but we are forging ahead now. Today, as always, we will first talk about Ocean Sand in brief, before we go through the highlighted updates and project developments.

Then Karl will present the financials. OceanSun’s proprietary technology is the world’s best FPV technology. It offers low CapEx due to the low material use, fast and easy installation and lean transportation. It sees high efficiency due to the PV modules being on water and water cooled. And the structure, derived from Norwegian maritime heritage, offers a seaworthy solution.

We’re in the final stages of constructing the Sunniva secret power plant in The Maltese with completion targeted for Q3. This is our first deployment of the OS-seventy, an impressive 74 meter diameter floating solar ring, making it the largest and most cost effective structure we’ve built to date. Despite the site’s logistical challenges, including limited space and equipment, distillation is nearing completion. Thanks to OceanSense two megawatt peak floating solar system and a three megawatt hour battery pack, the resort will shift from relying on diesel to running on renewable energy 90% of the time. It is not just a smart investment, but it’s a major win for reducing air and noise pollution.

We’re excited to replicate this model with partners such as Canopy Power across island nations and resorts in The Maldives, Caribbean and Pacific, all waiting for an enabling solution like OceanSun. Alotta has successfully launched two installations using OceanSun patented floating solar technology, one in Norway and one in Chile. These projects target the fish farming industry, where replacing diesel with solar power offers both environmental and economic benefits. The end customers include well known companies like MUVI and Emerson Fiske, highlighting the market’s readiness for sustainable solutions. Built by Allotta and their partners, these installations demonstrate the benefit of OceanSense licensing model, showing that when partners master the build and commissioning process, they can scale independently and effectively.

It’s a promising step for OceanSun and towards greening the aquaculture industry. In other business updates, we have signed an MoU with the municipality of Chokmir in Ukraine and the EPC HICC. This is an ongoing and collaborative process where we are working closely with our Ukrainian partners to assess the potential for a future 25 megawatt peak installation. The assessment will likely be partially covered by funds earmarked for Ukraine reconstruction and development. We’re looking forward to start this important work.

In terms of websites, our previous website is has served us well, but has also become quite outdated. We’re now thrilled to unveil a fresh new site next week. One that better reflects our advanced technical capabilities and the innovative direction we’re heading with a clear call to action. Lastly, we are approaching the prototyping phase of our cleaning robot, and anticipate beginning tests of the world’s first autonomous cleaning system in Q4. This innovation is set to disrupt markets frequently affected by sand and dust events, such as in South Europe, Africa and Middle East.

Regions that are also prime for OceanSun deployment due to the efficient cooling of our modules. So soon, we’ll be enabling the cleanest and coolest solar panels in the world. Project wise, there’s only been minor changes since last quarter. Two Alota projects have been deployed and new initiatives are entering the pipeline. Our focus remains steady and clear.

We’re concentrating on Tier two opportunities, including promising engagement with Caribbean islands and resort developments. Progress in India continues, and we’ve now secured a supply of PV modules tailored for the OceanSun solution, an essential step towards unlocking the Indian market and scaling our presence there. So in all, we’re seeing strong momentum in Oceanside, with more projects underway and increased activity across key regions. We’ve sharpened our internal processes and clarified our focus. The energy is high, and we’re generally excited about the upcoming quarters.

And with that, I’ll leave it to Karl to talk about the financials.

Karl, CFO, OceanSun: Thank you, Christian. In the 2025, we had a revenue of EUR 3,800,000.0, which overall resulted in 9,800,000.0 loss for the first half year. This was further amplified a bit by negative working cash flow effects and the deposit paid for a guarantee to our new rental agreement for the office lease. And as such, the cash flow ended at EUR 12,300,000.0 negative. That leaves us with a cash balance of EUR 17,200,000.0 going out of the quarter.

And in light of this and the positive developments to the pipeline and operational excellence and technology, we have started the process of acquiring new funds to support further expansion. And with the positive and committed owners that we have, we are confident that this will be successful. And with that, we open up for Q and A.

Kristian Torwald, CEO, OceanSun: Thank you, Kot. Any questions?

Karl, CFO, OceanSun: Any questions? We have one here. Any updates on the collaboration with Canopy Power?

Kristian Torwald, CEO, OceanSun: Yes. We, of course, working closely with Canopy Power in Maldives. That is our first project together and it’s a very, very important project for both of us. And then, Canopy Power in Australia has also been doing very well. They have progressed several of the dialogues and we’re hoping to see positive results from these efforts in the coming quarters.

Karl, CFO, OceanSun: Okay. What is the current status in Brazil?

Kristian Torwald, CEO, OceanSun: So the Brazilian market is ever expanding. There are many opportunities there that are opening up and starting now. We are still working on our first pilot that we hope to start installation of by the end of this year. This is, of course, an R and D project together with our partner, Ruapier, in Rio. And it will be an exciting opportunity for us both to test new technology, but also to enter the Brazilian market in an efficient way.

Karl, CFO, OceanSun: Thank you. And then a lot of focus on the ocean, but what about hydro?

Kristian Torwald, CEO, OceanSun: Yes. Our projects this quarter have been focused on the ocean. But that doesn’t mean that we’ve changed our focus away from hydropower reservoirs. Still, hydropower reservoirs is where we will most likely see the largest installations. And this is a market that is developing, although not as fast as we initially thought.

We see countries like Malaysia and we see Turkey and India all now en masse putting floating solar on reservoirs. So we’re excited about focusing on hydropower source, and we’re definitely not losing that focus.

Karl, CFO, OceanSun: Ben, any updates on the project in Mainland Spain? I guess that refers to

Kristian Torwald, CEO, OceanSun: the Akeona demo. Yeah. So we have a demo in yeah. Outside of Madrid with Axiona. That is performing well.

It’s now one of six technologies being tested by Axiomna, and the results are promising. We’re hoping, of course, that Axiomna will take these results and start building more power plants using OceanSun technology. But that will we will leave that up to them to decide on their timeline.

Karl, CFO, OceanSun: Perfect. And that was the last question.

Kristian Torwald, CEO, OceanSun: All right. And that concludes the second quarter presentation. Thank you very much for tuning in. And we’ll see you next quarter.

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