Windar Photonics – beginning to power ahead, this group’s shares at 61.50p are on the move, TP 100p

15.09.2025

This morning’s Interim Results from the technology group Windar Photonics (LON:WPHO) are better than market expectations.

It reported an 18% increase in revenue to €2.7m for H1 2025, compared to €2.3m in H1 2024.

The company experienced a slight increase in EBITDA loss to €0.2m, impacted by increased marketing investment.

The loss after tax was €0.7m, with a basic loss per share of €0.01.

Despite adverse currency effects resulting in a €0.5m loss, COGS reduced by 15% compared to the end of 2024.

Windar's cash position remains strong at €6.0m.

Post H1, the company secured a US order for $2.6m and anticipates H2 2025 deliveries of €3.6m.

Management Comment

CEO Jørgen Korsgaard Jensen stated that:

"With sales and orders for 2025 already standing at 138% of 2024 revenue at the end of August 2025 and with the current cash position, the Company is well positioned to deliver on its considerable potential.

The funding provided from last year's two funding rounds has enabled the Company to accelerate its sales and production activities, reflected in increased demand across multiple markets.

Whilst there is much to be done in the second half, our sales pipeline and expanded production capacity give us confidence that we are well placed. 

We are making significant progress both in attracting new customers in North America, and towards expanding new and existing customers onto additional turbine platforms.

This will be further enhanced by the recent appointments of senior VPs of Sales for Europe and the US.

This, combined with the planned launch of the TPM module in Q4 2025, makes the longer-term opportunity for Windar increasingly exciting."

The Business

This company is a technology group that has developed LiDAR wind sensors and a related software suite designed to efficiently and cost-effectively increase the power output and reduce the lifetime operating costs of electricity-generating wind turbines.

LiDAR wind sensors in general are designed to remotely measure wind speed and direction.

The group's key physical products are the WindEYE™ and WindVISION™ sensors which measure the wind speed at different measuring points by scanning a laser beam ahead of the wind turbine.

By measuring the wind speed a variety of wind information is derived such as wind direction, turbulence, wind shear, wind gust and wake detection.

The products and various algorithms are designed for the general optimisation of wind turbines both in respect of increasing the Annual Energy Production and general load reduction options.

The group has recently developed and implemented the first phase of its Nexus software platform to support the data driven management of the improvement of performance of individual wind turbines and in future turbine farms.

The Equity

There are some 96.04m shares in issue.

The larger holders include Aldbridge Services (23.70%), Pasinika SARL for Jorgen Jensen, CEO, (5.86%), Amati Global Investors (4.25%), Paul Hodges, Dir, (3.74%), Octopus Investments (4.05%), Janus Henderson (3.45%), Unicorn Asset Management (3.04%), David Lis, Dir, (2.10%), Johan Petersen (1.95%), and Gavin Manson, Dir, (0.50%).

Broker’s Views

Following today’s results, analysts Nick Spoliar and Charlie Cullen, at Zeus Capital, have maintained their recently increased Target Price of 90p (75p).

They state that the results highlight confidence in the full year, with as much as two thirds of the Zeus FY25 forecast having been accomplished in H1 or inked-in through contracted orders.

With a strong bid pipeline and €5m of net cash in hand at the half year, they believe that WPHO is well-placed to fulfil its ambitions.

For the year to end-December 2025 the analysts estimate that group sales will be more than doubled to €10.0m (€4.6m), with adjusted pre-tax profits of €2.1m (loss €0.9m), generating earnings of 2.2c (1.1c) per share.

Their estimate for year-end net cash is €7.8m.

The 2026 year could see €15.0m revenues, €5.0m profits, worth 5.1c per share in earnings, and €10.9m net cash.

My View

This tech group is beginning to progress well, while its shares, at 61.50p, are slowly appreciating the fact that its global corporate growth is now showing confidently through into useful profits.

They are going higher.

(Profile 09.06.21 @ 29.5p set a Target Price of 38p*)

(Profile 16.06.25 @ 53p set a Target Price at 66p)

Asterisk * denotes that Target Price has been achieved since Profile publication.