Windar Photonics (LON:WPHO) has reported a confident 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
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.
