The Catalan solar company focused on installing photovoltaic self consumption systems has announced a major staffing and financial adjustment this month. Solaprofit is preparing to file for an Employment Regulation File (ERE) that will cut about 30 percent of its workforce. The disclosure came from the company itself, which provided brief information this Monday. The move affects roughly 1,000 workers and follows a noticeable slowdown in demand for home solar panel installations caused by intensified competition and inflationary pressure on consumers. The reductions are expected to take effect in October and will impact several partner firms along the broader business network.
Following the announcement, Solaprofit reported a downturn in its market value. The stock dropped by around 40 percent, trading at approximately 1.44 euros per share. The company also released a view of its financial position, noting a total net worth near 6.5 million euros as of June 30, which it described as adequate given current circumstances. These headlines reflect the firm’s challenge in aligning its revenue trajectory with a path toward sustainable profitability amid shifting market conditions.
In a detailed note to investors, the company explained that softened demand in the residential sector has reduced expected revenues for 2023. The cost structure that Solaprofit previously designed to support higher activity levels has weighed on results, contributing to an unaudited accounting EBITDA of -10.7 million euros for the first half of 2023. Solaprofit projects that full-year EBITDA could remain negative, with a forecast around -15 million euros. The update also revises the billing guidance, with total revenue now seen near 78 million euros, a figure about 71 percent below earlier projections. The shortfall is attributed to slower plate demand in residential buildings, delays in industrial project execution, and permitting holdups. The first-half revenue and EBITDA stand at 33 million euros and -10.7 million euros respectively, while the company estimates the second half could bring 45 million euros in invoicing and about 4 million euros in negative EBITDA. Management remains focused on improving the earnings trajectory through corrective actions and tighter financial discipline.
Looking ahead, Solaprofit expects a modest improvement in second-half performance as the ERE process advances and new business partnerships take hold. The company anticipates that monthly results could return to positive territory starting in November as the regulatory adjustment completes and several corrective steps are implemented. These steps include rebalancing expenses against revenue, sharpening the efficiency of customer acquisition, expanding sales volumes through a collaboration with a financial partner, curbing material costs, and driving operating cost reductions through better purchasing agreements. The plan also involves restructuring the geographic footprint, rationalizing the network of logistics centers and branches, and optimizing the allocation of resources across delegations to support a leaner, more focused operation. At a strategic level, the company points to a more disciplined approach to project execution and cost control as essential levers to restore profitability over the medium term, while ongoing collaboration with lenders and suppliers will help stabilize liquidity during the transition. This situates Solaprofit within a broader context of energy transition investments where market volatility requires cautious planning and disciplined execution to protect jobs and sustain growth in the solar installation sector. (Investor briefing, attribution from company disclosures and market commentary)