Windar Photonics Reports 18% Revenue Growth and Strong H1 2025 Performance

Software shift: higher-margin, recurring revenue on the horizon

Gross margin improved by 2 percentage points versus H1 2024, helped by the first software revenues. Software is attractive because once a client has LiDAR and Nexus OS installed, new features can be added as licence-based modules. The big near-term addition is the Nexus TPM module in Q4 2025, focused on high-precision turbine efficiency monitoring and performance analytics.

In plain English, optimisation boosts output by adjusting the turbine in real time, while TPM should prove whether a turbine is truly performing to spec over its life. If adoption goes to plan, recurring software income could both smooth revenue and lift margins over time.

Costs, FX and tariffs: what’s going on under the bonnet

EBITDA (earnings before interest, tax, depreciation and amortisation) remained in the red at a €0.2 million loss, mainly because management leaned into marketing to drive growth. At the operating level the group posted a €0.49 million loss from operations and a €0.73 million loss after tax.

Two external factors bit in H1. First, currency headwinds: a €0.5 million loss from FX, with roughly half linked to December’s fundraise proceeds being held in sterling and the rest from the US dollar and renminbi dropping 8-9% versus the euro. Second, North American import tariffs briefly slowed customer decisions, though the August US$2.6 million order shows normal service resuming.

Management also notes cost of goods sold at period end was 15% lower than at the end of 2024, which should help offset FX impacts in the coming periods. Cash of €6.0 million gives headroom to keep investing in growth.

Why these results matter for FY25 and beyond

There are two big takeaways. One, demand is broadening – across geographies and turbine platforms – with tangible orders and tests rather than just talk. Two, Windar is quietly building an installed base that can be monetised with software modules, potentially improving gross margins and visibility.

On the flip side, the company is still loss-making, and H2 is doing the heavy lifting for FY25. Working capital is lumpy, finance expenses rose, and currency exposure remains a swing factor. The concentration in V82s is improving but not yet fully diversified.

What could move the share price next

• Conversion of the Chinese Goldwind test into a “major order”.
• Further wins beyond V82s – especially GE and Senvion platforms in North America.
• Smooth delivery of the August US$2.6 million order under the new tariff and tax-credit regime.
• Launch and early uptake of the Nexus TPM module in Q4 2025.
• Evidence that gross margin continues to improve as software scales.

My take: cautiously positive with clear milestones to watch

This reads like a business moving from pilot wins to platform penetration. The 18% revenue growth and stronger order coverage for H2 underpin guidance that Windar is “well placed” to meet market expectations. The expanded factory and beefed-up sales team suggest management is planning for a bigger 2026 as well.

Risks remain – chiefly FX, delivery execution in a second-half weighted year, and the need to convert tests to firm orders. But cash is solid, costs per unit are improving, and the shift to licence-based software is the right strategic move for returns.

If you want the full numbers, the company says the interim report will be available at www.investor.windarphotonics.com.

Bottom line

Windar Photonics’ H1 2025 shows growing demand, improving margins, and a clearer route to recurring software income. It is not profitable yet, but the order book, new US contract, and pending TPM launch give the second half plenty of catalysts. Delivery now needs to do the talking.