Solaria Energía y Medio Ambiente (SLR) Q3 2024 earnings summary

Executive summary

• Data centre joint ventures and powerland solutions are positioned as a long-term recurring revenue driver, with 1.7GW of solutions and multiple JVs under negotiation covering 1.4GW of the IPP portfolio under construction.

• The company is expanding into the UK with a 1GW onshore wind and solar PV target by 2030, and aims for a 3GW wind target across Europe, with new offices in Birmingham.

• Installed capacity is set to double, with strong production growth (+15%) partially offsetting a 32% decline in average prices, resulting in a 9% drop in revenues and a 14% decrease in EBITDA year-over-year.

• EBITDA targets for FY2024 are reiterated at €205–215m, with FY2025 guidance raised to €245–255m, supported by new asset connections and the data centre division.

• Strategic push into data centers, negotiating joint ventures with American and European partners for cloud and AI infrastructure.

Financial highlights

• 9M 2024 total revenues: €157.4m, down 9% year-over-year; EBITDA: €131.6m, down 14%; net profit: €57.1m, down 34%.

• Energy production rose to 2,120GWh (+15%), but average price fell 32% to €49/MWh.

• Operating cash flow reached €149m, with €184m invested year-to-date in Spain, Italy, and Germany.

• Net financial debt stands at €1,057m (3.7% average cost), with 83.5% of debt at fixed or swapped rates.

• Personnel expenses rose 9% due to provisions for closures; operating expenses increased due to new plants and taxes.

Outlook and guidance

• EBITDA guidance for FY2024 is €205–215m (+5% vs. 2023); FY2025 guidance is €245–255m (+20% vs. 2024E), driven by new asset connections and data centre revenue streams.

• Price recovery is underway, and the company expects further growth and diversification of its 20GW portfolio.

• Energy prices are expected to normalize in Q4 2024, supporting achievement of annual objectives.

• Plans to double installed capacity to 3,033 MW in operation by 2025.

• Expects regulatory changes in Spain and Italy by 2025 to accelerate battery installations.