MPC Energy Solutions (MPCES) Q2 2026 earnings summary

Executive summary

• Completed sale of projects in Guatemala and El Salvador (Project Merlin), collecting $28.3 million in proceeds, with $2.2 million held in escrow pending post-closing milestones.

• Operational recovery underway after a weak Q1, with key metrics improving and 2026 guidance confirmed.

• Legal dispute in El Salvador settled for $2 million, exceeding the provision and negatively impacting free cash.

• Regulatory and operational challenges in Mexico, including increased transmission charges and a metering error, are impacting revenue and margins.

• Asset rotation strategy continues, with further divestments and shareholder distributions planned.

Financial highlights

• H1 2026 project revenue was $5.3 million, down year-over-year; project-based EBITDA was $3.8 million, a 6%–13% decrease, mainly due to a metering error in Mexico.

• Operating margin in Mexico dropped to 68% from 75% last year; El Salvador plant EBITDA margin at 87%.

• Free cash at end of June was $3.4 million, with projected year-end free cash of $33 million before distributions.

• Consolidated cash as of H1 2026 was $9.3 million; equity ratio at 32%.

• Net loss from continuing operations was $2.85 million; basic EPS from continuing operations was $(0.13).

Outlook and guidance

• 2026 guidance confirmed: energy output of 75 GWh, revenue of $7.5 million, project-based EBITDA of $5.5 million, and positive group EBITDA and EBIT.

• Full-year proportionate revenue expected at $11.6 million and project EBITDA at $8.6 million.

• Distribution of up to $29 million to shareholders expected in Q3 2026, subject to board and legal approvals.

• Focus remains on closing divestments and increasing distributable cash.