# Windar Photonics builds momentum on H1 progress, platform enhanced for growth – Zeus Capital

- Link: https://www.directorstalkinterviews.com/windar-photonics-builds-momentum-on-h1-progress-platform-enhanced-for-growth-zeus-capital/4121216572
- Published: 2025-09-16T11:17:08+01:00
- Author: Anthony Fox

**Windar Photonics** (LON:WPHO) has reported a progressive first half that, according
to Zeus Capital, already covers as much as two thirds of the broker’s full year 
2025 forecast through delivered revenue and contracted orders. The group, which 
specialises in LIDAR systems and software that improve wind turbine efficiency, 
is showing stronger revenues, firmer margins and a materially improved operational
foundation following recent hires and a move to a larger site near Copenhagen.

Zeus highlights that H1 revenue reached €2.7m, up 18.3 percent year on year, with
gross margin improving to 61.9 percent. The reported EBITDA loss of €0.2m includes
an additional €0.4m of marketing spend that the broker believes is already feeding
through to improved commercial momentum. Post-tax loss was €0.7m, after a €0.5m 
foreign exchange headwind. Net cash stood at around €5m at the half year, providing
a strong base to support growth.

Operationally, the business has taken a clear step forward. Management has consolidated
into a new, more efficient facility at Ishøj that could lift capacity as much as
fivefold, and has appointed a full-time Finance Director, Søren Karles Belmar, alongside
meaningful additions to the sales team. A new licence-based turbine performance 
monitoring model is slated to launch in Q4, broadening Windar’s software revenue
profile.

The near-term order environment also looks encouraging. In North America, Windar
recently secured a $2.6m contract and is targeting a sizeable installed base of 
V82 turbines for retrofit opportunities, while China, the wider APAC region and 
Europe offer additional routes to growth under the expanded sales effort. With this
backdrop, Zeus reiterates its 90p price target for the shares, noting that it sits
at roughly a 10 percent discount to the firm’s DCF calculation.

Directly in the words of Research Analyst Nick Spoliar: “With a strong bid pipeline
and €5m of net cash in hand at the half year, we believe WPHO is well-placed to 
fulfil its ambitions, and we retain our current 90p price target.”

## H1 2025 highlights

 * Revenue €2.7m, up 18.3 percent year on year.
 * Gross margin 61.9 percent, up 146 basis points.
 * Reported EBITDA loss €0.2m after €0.4m additional marketing investment.
 * Post-tax loss €0.7m reflecting a €0.5m FX headwind.
 * Net cash c.€5m at the half year following successful fund-raises last year.

## Outlook and forecasts

Zeus keeps FY25E and FY26E unchanged. For FY25E the broker models €10.0m sales, 
€2.7m EBITDA and adjusted EPS of 2.2c, rising in FY26E to €15.0m sales, €5.5m EBITDA
and 5.1c EPS. The increased software element, broader geographic reach and the upgraded
operational set-up are all expected to support that progression, underpinned by 
the balance sheet.

## Why it matters to investors

Windar Photonics now couples established, proprietary LIDAR technology with a stronger
commercial engine and an emerging software layer. The combination of improved H1
trading, visible order cover and increased capacity gives clearer line-of-sight 
on FY25 delivery while positioning the company for further scaling in FY26, in Zeus’s
view.

On a Final Note, the first half shows Windar Photonics moving from promise to execution.
With cash to support growth, expanding sales reach and a forthcoming licence model
to deepen customer relationships, Zeus’s stance remains supportive with a 90p target
maintained.

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