Solaria FY25 Results: Outlook, Catalysts and Share Price Momentum
Solaria reported very strong results in 2025, with revenues increasing by 27%, the EBITDA margin expanding by 400bps to 88%, and net profit rising by 55%.
2025 has indeed been a transformational year for Solaria, as the company doubled its installed capacity from 1.7 GW to 3.1 GW in a single year — connecting the 1.4 GW that was under construction. This marks the execution milestone the market had been waiting for after years of delays, and it was delivered in full. More importantly, the vast majority of this new capacity — including Garoña’s 710 MW, the largest plant in the portfolio — came online in 4Q24 and therefore contributed minimally to the 2025 financials. The real earnings impact of this buildout will be visible in FY26, when these assets deliver their first full year of production.
What is particularly encouraging is the resilience of the average realised price: €50.7/MWh in 2025 versus €53.0/MWh in 2024, despite Spain experiencing a significant increase in zero- and negative-price hours during solar peak windows — a direct consequence of excess renewable generation. Solaria’s effective price held up thanks to its PPA book (approximately 75% of production sold under long-term contracts).
The earnings beat did not come from solar generation. It came from the infrastructure division. Network and infrastructure revenues nearly doubled to €74M (from €42M in FY24), driven by grid connection fees, substation sales and electrical infrastructure services — the revenue stream tied to the company’s expanding Data Center platform. Management confirmed this is not a one-off: visibility on FY26 infrastructure revenue is high, and the trajectory is upward as the Merlin deals and future agreements begin contributing.
The Other Revenues line reflects the Generia real estate operation: €128.9M in 2025 versus €22.3M in 2024. The bulk — €96M from the Generia transaction — is not yet cash for Solaria. It has been recognised on the P&L under IFRS accounting as the value of the stake transferred, but cash conversion depends on future milestones. It is also worth noting that this came in €29M below the €125M originally guided — a shortfall management mentioned but did not explain.
The one shadow over the operational picture is curtailments. Despite 82% more capacity installed, total production fell 4% to 2,434 GWh. The Spanish grid increasingly cannot absorb all solar generation at peak hours, and Solaria — as the largest solar platform in the country — is the most exposed. This is a market-wide constraint, and it is precisely the dynamic that makes the battery business strategically valuable: batteries allow excess solar generation to be stored and sold at hours when the grid can absorb it at a positive price. Curtailments today are the commercial argument for batteries tomorrow.