MPC Energy Solutions (MPCES) Q1 2026 earnings summary

Executive summary

• Portfolio includes four solar PV projects in Central America: three operational (Mexico, Colombia, El Salvador) and one (Guatemala) nearing commercial operation, with Guatemala awaiting final permits.

• Q1 2026 was marked by weaker operational performance due to poor weather in Colombia and a metering error in Mexico, impacting revenue and EBITDA.

• Significant cost discipline achieved, with overhead and headcount reduced by over 30% year-over-year.

• Sale agreements for San Patricio (Guatemala) and Santa Rosa & Villa Sol (El Salvador) signed; closing contingent on Guatemala's operational status, expected by end of Q2 2026.

• Sale of La Perla (El Salvador) completed, with potential upside if project is built.

Financial highlights

• Revenue decreased 20% year-over-year to $2.5M (like-for-like down 3%); EBITDA declined 8% to $1.8M; EBITDA margin dropped to 71%.

• Free cash reserves decreased to $7.5M, mainly due to $1M investment in Guatemala and overhead spending.

• Overhead costs reduced by more than half since 2023, with a 25%-30% reduction targeted for 2026.

• $300,000 earn-out payment from Colombia project sale collected after Q1, not reflected in Q1 numbers.

• Total assets at $124.1M, equity ratio at 32%, consolidated cash at $11.5M.

Outlook and guidance

• Targeting $7.5M in revenue and $3.2M group EBITDA for 2026, with energy output projected at 75 GWh.

• Guatemala expected to achieve commercial operation by end of Q2 2026, enabling closure of project sales.

• Plans to begin distributing cash to shareholders in 2026, pending AGM approval and transaction closings.

• Considering further divestments as current scale is insufficient for a listed company.

• Overhead spending for 2026 expected at $2.3M.