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.

• 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.

• Net profit declined 34% to €57.1m, with EBIT dropping 22% to €100.3m.

Financial highlights

• 9M 2024 total revenues: €157.4m (down 9% YoY) or €135.1m (down 8% YoY); EBITDA: €131.6m (down 14%); EBIT: €100.3m (down 22%); 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; €184m invested year-to-date, mainly for new plants and land.

• Net financial debt stands at €1,057m (3.7% average cost), with 83.5% of debt at fixed or swapped rates; debt increased due to new project financing and land acquisitions.

• Total assets increased 12% to €1.85B; equity rose 11% to €582.5M.

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.

• Expects energy prices to normalize in Q4 2024, supporting achievement of annual targets.

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

• Plans to reach 3GW of wind capacity in Europe by 2030 and accelerate battery hybridization as regulation evolves.