Solaria Energía y Medio Ambiente (SLR) Q4 2024 earnings summary

Executive summary

• Transitioned from pure solar/wind generation to include real estate, energy, and data center businesses as part of a five-year strategy, with major milestones in project authorizations and regulatory wins in Italy.

• Achieved resilient 2024 results: EBITDA over €200 million, revenue between €176.9M and €239.4M, and net profit of €88.6M, despite lower power prices and higher taxes.

• Strong investment activity with over €290M invested, and a robust pipeline for future growth, including over 1.5 GW under construction and 3.1 GW ready to build.

• Expansion into hybridization with wind and batteries, leveraging regulatory changes in Spain and Italy to integrate storage and support new business models.

• New business lines (Genergia, data centers) showing strong growth, with significant external investment and strategic partnerships.

Financial highlights

• EBITDA exceeded €200 million for 2024, with revenue growth of 4% to €239.4M and net profit at €88.6M, despite a 27% drop in average selling price and new taxes.

• Net sales fell 8% to €176.9M, while infrastructure revenues grew 26% to €30.5M.

• 2025 EBITDA target reaffirmed at €245–255 million, assuming an average merchant electricity price of €45/MWh.

• Significant CapEx investments made, with €291M invested and a stable cash position maintained.

• Net financial debt (ex-IFRS16) stood at €937M, with an average cost of debt at 3.7% and a 13-year average tenor.

Outlook and guidance

• 2025 EBITDA guidance set at €245–255 million, not including extraordinary items from new business lines.

• Over 1.4 GW of new capacity to be added in 2024/2025, with a total of 6 GW targeted by end of 2026.

• Expansion into data centers and international markets (Italy, Germany, UK) expected to drive long-term growth.

• Anticipates strong cash generation from data center and Genergia businesses.

• Regulatory changes in Italy and Spain support renewable deployment and new business models.