Soltec Power (SOL) Q1 2024 earnings summary

Executive summary

• Achieved record Q1 2024 revenues of EUR 121 million, up 58% year-over-year, marking the best first quarter in company history, with strong volumes and execution across both divisions.

• EBITDA reached EUR 11 million, reversing a negative EUR 4.6 million in Q1 2023, with both Trackers and Energy divisions contributing positively; net profit was EUR 1.3 million versus a loss of EUR 9.6 million last year.

• Solid backlog of EUR 619 million as of March 31, 2024, providing strong visibility for the remainder of the year.

• New management structure proposed: Mariano Berges as CEO, Raúl Morales as Executive Chairman, to enhance operational efficiency and align with best practices.

• United States now represents 34% of revenues, expected to reach 50% in coming years.

Financial highlights

• Q1 2024 revenues reached EUR 121 million, a 58% increase compared to Q1 2023.

• Tracker division delivered 813 MW in Q1 2024, nearly triple the volume of Q1 2023, with revenues of EUR 117.4 million and an EBITDA margin of 5.7%.

• Gross margin for tracker projects was 24% in Q1 2024.

• Energy division revenues reached EUR 3.2 million, with Adjusted EBITDA of EUR 4.9 million, driven by operational assets and asset rotation in Brazil.

• Consolidated net financial debt stood at EUR 230.3 million at March 2024, up from EUR 220.4 million at year-end 2023.

Outlook and guidance

• Tracker business expected to deliver between 5 and 6 GW in 2024, including build-and-hold volumes from 2023.

• Backlog of EUR 619 million and pipeline of up to EUR 16.8 billion provide strong revenue visibility.

• Strategic update and new business plan to be presented in the second half of 2024, aiming to capitalize on renewable sector growth and expand in the US and Europe.

• Targeting 750 MW to 1 GW of projects under operation or construction by end of 2025.

• Expectation of growing EBITDA margin in trackers division as volumes increase.