Innergex Renewable Energy (INE) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded all 2024 objectives, including Adjusted EBITDA Proportionate of $761M and Free Cash Flow per share of $1.06, surpassing guidance.

• Secured 560 MW in new capacity awards, including BC Hydro's call for power, and commissioned the 330 MW Boswell Springs wind farm in Wyoming.

• Advanced construction on key projects such as Hale Kuawehi, with commercial operation expected in Q1 2025.

• Maintained leadership in Canadian RFP wins and expanded a diversified development portfolio exceeding 10 GW.

• Strengthened financial flexibility with $450M in financings and a $250M Texas sell-down, optimizing capital structure.

Financial highlights

• Adjusted EBITDA Proportionate reached $761M for 2024, up 3% year-over-year; Q4 Adjusted EBITDA was $210M, up 13% year-over-year.

• Free Cash Flow per share was $1.06 for 2024, exceeding guidance; Q4 Free Cash Flow was $49.2M.

• Revenues and Production Tax Credits for 2024 were $1,047.2M, up 1% year-over-year; Q4 revenues and PTCs were $286.1M, up 9%.

• Payout ratio for 2024 was 34%, down from 68% in 2023.

• Total debt at year-end was approximately $6.6B; liquidity improved to over $700M.

Outlook and guidance

• 2025 Adjusted EBITDA Proportionate guidance: $825–$875M, a 13% increase at midpoint; Free Cash Flow per share guidance: $0.75–$0.95, up 10% at midpoint.

• Growth driven by Boswell Springs, new battery storage in Chile, and Hale Kuawehi commissioning.

• Guidance assumes 100% of LTA production and 95% asset availability.

• Targeting to bid over 500 MW and win around 400 MW in 2025.

• Management expects minimal impact from new U.S. tariffs on Canadian energy resources.