MPC Energy Solutions (MPCES) Q2 2026 earnings summary

Executive summary

• Closed sale of projects in Guatemala and El Salvador (Project Merlin) in July 2026, collecting $28.3 million in proceeds, with $2.2 million in escrow and $2.8 million allocated as minimum cash for 12 months post-sale.

• Operational recovery after a weak Q1, with improved Q2 performance and confirmation of 2026 guidance; overhead costs reduced by 18% year-over-year despite non-recurring divestment and legal expenses.

• Legal settlement in El Salvador exceeded expectations, negatively impacting free cash.

• Regulatory and legal challenges in Mexico are impacting project valuation, divestment plans, and may require restructuring of Los Santos' PPA and financing.

• Continued asset rotation strategy, with major divestments including Planeta Rica (Colombia) in 2025 and Project Merlin (Guatemala and El Salvador) in July 2026.

Financial highlights

• H1 2026 revenue (like-for-like) was $5.3 million, down 1% year-over-year; EBITDA (like-for-like) was $3.8 million, down 6%; EBITDA margin (like-for-like) was 72%.

• Power production, energy output, and revenue in H1 2026 were largely in line with the previous year.

• Cost base down 18% year-over-year, with non-recurring expenses from project sales and legal settlements.

• Free cash at end of June was $3.4 million, projected to reach $33 million by year-end after factoring in divestments and overhead.

• Total assets at $123.2 million, equity ratio at 32%, project debt at $72.0 million, and consolidated cash at $9.3 million as of H1 2026.

Outlook and guidance

• 2026 guidance confirmed: energy output of 75 GWh, revenues of $7.5 million, project EBITDA $5.5 million, group EBITDA $3.2 million, and free cash projection of $33 million.

• Anticipates another project divestment by year-end and plans to distribute around $29 million to shareholders, pending legal and board approvals.

• Additional contribution from San Patricio (Guatemala) in July 2026 provides upside to guidance.

• Overhead spending for 2026 expected at $2.3 million.