Soltec Power (SOL) H2 2024 earnings summary

Executive summary

• Revenues increased 30.8% year-over-year to €326.3M, driven by higher tracker sales and project execution.

• Net loss widened to €205.8M, impacted by liquidity constraints, lack of bank guarantees, cost overruns, penalties, asset impairments, and tax loss provisioning.

• Adjusted EBITDA fell to -€17.2M from €18.8M in 2023, reflecting operational and financial headwinds.

• The company entered a pre-insolvency situation due to non-extension of working capital facilities and lack of bank guarantees.

• Underwent strategic reorganization, focusing on core solar tracker operations and divesting from EPC and Asset Management divisions.

Financial highlights

• Revenues: €326.3M (up €76.8M YoY).

• Adjusted EBITDA: -€17.2M (down €36M YoY).

• Net profit: -€205.8M (down €182.4M YoY).

• Gross margin on sales: 27% (down from 41% in 2023).

• Gross financial and commercial debt: €412M, mostly maturing within 12 months.

Outlook and guidance

• New strategic plan focuses on core tracker supply business, discontinuing services and asset management to optimize costs and enhance profitability.

• Restructuring plan aims to reduce gross debt, extend repayment calendars, and secure new liquidity.

• Cash injection of €30M and €15M loan from DVC Partners/IME Spain in exchange for 80% equity stake, subject to final negotiations.

• Pipeline exceeds €1.5B with a probability of success above 33% post-restructuring.