Solaria Energía y Medio Ambiente (SLR) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong financial results, with revenue up 83% to €73.2M and net profit up 127% to €53.4M, driven by the Generia transaction, higher energy prices, and new partnerships.

• Major expansion into solar, wind, batteries, and data centers, with 1.4 GW under construction and 2 GW of new developments starting this year.

• Strategic focus on hybridization (solar, wind, batteries), international growth in Italy, Germany, and the UK, and leveraging grid infrastructure for data centers and real estate.

• Announced a 10% share buyback program, funded by a dedicated credit line, with daily execution and no time limit.

• Maintained a strong balance sheet to support further investment and expansion.

Financial highlights

• Revenues rose 67% to €81M; EBITDA up 77% to €74M; net profit up 127% to €53.4M; EBIT up 93% to €62.7M year-over-year.

• EBITDA margin at 101% in Q1 2025; net profit margin at 73%; EBIT margin at 86%.

• Merchant revenue reached 25% in Q1, with a target to reduce to 20% by year-end as new PPAs are signed.

• Achieved average electricity price of €59.4/MWh in Q1, with 75-76% fixed-price PPAs and 20-30% merchant exposure.

• CapEx for batteries set at €80,000/MWh (four-hour cycle), including all installation costs.

Outlook and guidance

• 2025 EBITDA guidance reaffirmed at €245–255M, a 24% increase over 2024, with potential for upward revision after H1.

• 1.4 GW of new capacity expected online in 2025; major contracts and data center business to drive growth.

• Plans to install 500 MWh of battery storage in Spain within 12 months, supported by government subsidies.

• International expansion ongoing in Italy, Germany, and the UK, leveraging favorable regulatory environments.

• Long-term contracts like the Trafigura PPA provide revenue visibility.