Genneia (GENN) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA for 3Q24 was $62 million, with new facilities offsetting lower wind speeds and higher costs.

• Net sales rose 2.2% year-over-year to $84 million, driven by new solar and wind farm commissioning, while renewable installed capacity surpassed 1 GW after La Elbita Wind Farm's full commissioning.

• Net profit for the nine months ended September 30, 2024, was $26.5 million, down from $67.9 million in the prior year period, impacted by higher administrative expenses and increased income tax expense.

• Major solar projects Malargüe I (90 MW) and Anchoris (180 MW) are progressing, with La Elbita wind farm (162 MW) reaching full commercial operation in October 2024.

• Proceeds from thermal asset sales are being reinvested in renewables, supporting the company's strategic focus.

Financial highlights

• Net sales for 3Q24 were $84.2 million, up 2.2% year-over-year, with renewable energy accounting for 84% of net sales.

• Adjusted EBITDA for 3Q24 totaled $62 million, down 2.6% year-over-year due to higher costs.

• Gross profit for the nine months was $139.3 million, with administrative expenses rising to $20.1 million.

• Negative free cash flow of $8 million in 3Q24, mainly due to $51 million in capex and $17 million in interest expenses.

• Net leverage remained stable at 3.1x as of September 30, 2024.

Outlook and guidance

• Malargüe I solar project is expected to reach COD in 1Q 2025, with Anchoris targeting COD in 4Q 2025.

• Both projects have secured financing and a combined estimated capex of $250 million.

• The company expects negative working capital to reverse as new projects come online and additional financing is secured.

• Strategy includes further expansion under the MATER framework to supply energy to private off-takers.