Turbogen (TURB) H2 2024 earnings summary

Executive summary

• Focus on R&D and commercialization of multi-fuel microturbine CHP systems for local electricity and heat generation in buildings, targeting the US and European markets.

• No commercial revenues yet; company is in transition from R&D to initial demonstration and commercial deployment.

• Significant uncertainty remains regarding successful product development, market entry, and ongoing funding needs.

• Adopted efficiency plan in late 2023, including workforce reduction and executive pay cuts, to address financial constraints.

Financial highlights

• Net loss for 2024: ₪18.9 million, compared to ₪21.1 million in 2023.

• R&D expenses decreased to ₪5.2 million in 2024 from ₪7.8 million in 2023.

• Cash and cash equivalents at year-end 2024: ₪1.2 million (down from ₪1.7 million in 2023).

• Negative working capital of ₪20.6 million and equity deficit of ₪27.5 million as of December 31, 2024.

• Adjusted EBITDA loss for 2024: ₪9.3 million, improved from ₪12.3 million in 2023.

Outlook and guidance

• Plans to install 5–10 demonstration systems in the US over the next 36 months.

• Commercial sales expected to begin after successful demonstrations and regulatory approvals.

• Ongoing need for significant capital raises (up to $35 million) to fund operations and growth.

• Strategic focus on both “energy as a service” and direct system sales models.