Solaria Energía y Medio Ambiente (SLR) Q2 2024 earnings summary

Executive summary

• H1 2024 financial results were resilient despite a weak electricity price environment, with sales/revenue down 2% year-over-year and energy production up 22%, while EBITDA fell 5% and net profit declined 17%.

• Strategic diversification advanced, including expansion into data centers (first 40 MW AI data center deal, 270 MW assured capacity, 1 GW+ target), wind/battery projects, and international growth.

• 1.4 GW under construction remains on track, with new authorizations in Spain and a 5 GW pipeline in Germany.

• Significant progress in infrastructure, asset rotation, and land business (Generia), including M&A activity and new partnerships.

Financial highlights

• H1 2024 revenues were €97.8 million (some reports: €82.96 million), EBITDA €84.3 million, and net profit €41.6 million; EBITDA margin remained high at 102%.

• Operating cash flow was strong at €76 million, with €112 million invested in H1 2024.

• Net financial debt stood at €1,064 million, with an average cost of debt at 3.7% and 14-year average tenor.

• Net finance expense increased 16% to €16.79 million due to new plant financing.

• Equity increased 12% to €588.25 million, and total assets rose 9% to €1.79 billion.

Outlook and guidance

• FY2024 EBITDA guidance is €205–215 million, rising to €245–255 million in 2025, with €1 billion cash generation expected over four years.

• Improvement in business metrics expected in H2 2024 due to anticipated energy price recovery.

• Progressive connection of 1.4 GW under construction over the next 6–10 months, with Catalonia assets connecting in Q4 2024.

• Buyback program considered if share price remains undervalued and cash position is strong.

• Plans to expand data center capacity to 1,000 MW, with a 200 MW AI data center project underway.