Solar Foods H1’25 preview: Eventful first half of the year

Translation: Original published in Finnish on 08/13/2025 at 07:46 am EEST

Source: Inderes

Solar Foods will publish its H1 report on Thursday at 9:00 am EEST. Due to the early development stage of the company, it is futile to expect significant revenue, and our attention is focused on comments regarding the progress of Solein's commercialization and the development of the balance sheet. The first half of the year has been eventful for Solar Foods on the back of the company announcing an investment plan for industrial-scale Factory 02-04 production plants in Lappeenranta, partners' Solein-based product launches, and conditional Solein supply agreements. The company has also announced three letters of intent, which, if realized, would cover around 50-60% of the planned industrial-scale Factory 02 plant's production capacity. The company's sales efforts are not yet visible in its H1 figures, but the news flow during the review period has brought valuable visibility to Solein's demand among partners. 

The key wins of the review period are not yet reflected in the figures

Solar Foods’ production started in the new 01 demonstration plant in April last year. During the review period, the company's spearhead product, Solein, has had marketing authorization in the US (where the product was launched in November) and Singapore. The company has announced several customer product launches during H1, but we expect their revenue impact to have remained limited. During the review period, the company announced conditional supply agreements with Kelp Eat and Superb Food, which are valued at around 1.9 MEUR (and cover a total of 107 tonnes of Solein), but their deliveries are scheduled for after the review period, between Q3’25 and Q2’28. In our view, possible comments on Solein's reception in the US are of greater interest than the review period's revenue.
 

Despite Solar Foods' growth investments, we expect the adjusted operating loss to have settled roughly at the comparison period's level of 4.5 MEUR. The performance level is significantly supported by various grants, of which the IPCEI grant from the European Commission (IPCEI notification granted to the company) totals 110 MEUR, of which the company has received a funding decision for 43.6 MEUR to date to promote the hydrogen economy. Solar Foods capitalizes a significant portion of its expenses on its balance sheet due to the long-term impact of the expenses. As a result, the key challenge in forecasting the company’s earnings level relates to the subsidies attributable to the reporting period and the amount of capitalized expenses. Since the company capitalizes a significant portion of its expenses on its balance sheet, cash flow must also be monitored to create an overall picture of profitability. 

Guidance could be issued

Solar Foods does not currently provide guidance for its short-term development, but the company stated in its H2’24 report that it is evaluating providing guidance later during the 2025 financial year. We believe guidance would give visibility, especially into the development of the company's cost structure, given its current development stage. However, in terms of the investment story, we believe that potential additional visibility into the terms related to the letters of intent for the upcoming Factory 02 and potential financing arrangements with partners would be more interesting than the guidance, as the upcoming investment plays a critical role in the medium-term development.