Scatec Q4 2025 Overview
Scatec posted a strong fourth quarter for 2025, with the Development & Construction (D&C) segment driving notable revenue growth and healthy profitability. Revenues reached NOK 2,266 million, more than doubling the prior-year figure of NOK 1,038 million. The margin profile remained constructive, as the D&C gross margin stood at 14%, supporting an EBITDA of NOK 251 million. The quarter’s results underscore the company’s continued momentum in project execution and early-stage revenue recognition across its solar and energy storage portfolio.
Key Driver: Obelisk in Egypt
Progress on the Obelisk project in Egypt was a primary catalyst for the stronger quarter. The execution cadence reflects Scatec’s ability to manage complex, large-scale solar builds in challenging environments. The company’s approach to site development, EPC management, and commissioning contributed to the revenue ramp while maintaining disciplined cost control. As Egypt continues to deploy solar power at scale, Obelisk stands as a benchmark for project execution within Scatec’s portfolio, signaling continued growth potential in North Africa.
Strength in Mogobe BESS, South Africa
In South Africa, the Mogobe Battery Energy Storage System (BESS) project contributed meaningfully to the quarter’s EBITDA performance. The integration of storage with utility-scale solar aligns with global energy transition trends and represents a strategic area of expansion for Scatec. Mogobe’s progress demonstrates the company’s ability to deliver hybrid solutions that enhance grid reliability and provide ancillary services, a key differentiator in a market with growing energy demand and intermittency challenges.
Financial Health and Margin Profile
With a robust revenue line and a 14% gross margin on D&C activities, Scatec maintained a healthy EBITDA of NOK 251 million for the quarter. The mix of D&C projects in construction and early-stage development activity suggests continued upside as milestones are achieved, enables better cash flow visibility, and strengthens the company’s project portfolio quality. The results reflect management’s focus on execution excellence, risk management, and disciplined capital deployment across geographies.
Strategic Implications and Growth Outlook
Scatec’s Q4 2025 results reinforce a strategic trajectory centered on building a diversified pipeline that spans solar, storage, and hybrid solutions. By delivering Obelisk and Mogobe on schedule, the company demonstrates its capability to monetize project development and move projects into the construction phase efficiently. Looking ahead, the company is likely to emphasize:
- Strengthening international project execution capabilities to reduce cycle times between development, construction, and commissioning.
- Expanding the storage portfolio to capitalize on revenue diversification and stabilizing cash flows from grid-scale BESS projects.
- Maintaining disciplined cost management to sustain healthy margins amid a competitive project environment.
Investors will be watching for continued progress on the backlog, project milestones, and potential reductions in risk through standardized execution playbooks across regions. If Scatec sustains this growth cadence, the company could further improve its EBITDA contribution from D&C and support a broader portfolio transition toward integrated energy solutions.
Conclusion
Scatec’s fourth quarter of 2025 illustrates a company well-positioned in the energy transition landscape. The D&C segment’s revenue growth, coupled with strategic milestones like Obelisk in Egypt and Mogobe BESS in South Africa, highlights a productive phase of project execution, portfolio expansion, and enhanced value creation for shareholders. As the company advances its development and construction activities, stakeholders can expect further progress on scale and profitability in the near term.
