Encavis (ECV) Q3 2024 earnings summary

Executive summary

• Revenue and earnings declined significantly in the first nine months of 2024 due to adverse weather, lower electricity prices, and project delays, despite ongoing portfolio expansion and new project connections.

• Major strategic developments included a framework agreement for 500 MW of solar projects in Germany, expansion in Spain, and a 114 MW solar park in Germany.

• KKR-led consortium launched a successful public takeover offer, with 87.41% acceptance, expected to close by end of 2024.

• MSCI upgraded Encavis' ESG rating to "AA" following improvements in HR management and CO2 reduction measures.

Financial highlights

• Operating revenue for 9M 2024 was €322.2m, down 12% year-over-year; operating EBITDA fell 22% to €190.9m, and operating EBIT dropped 38% to €99.0m.

• Consolidated operating earnings were €26.4m (margin 8%), compared to €88.6m (margin 24%) in the prior year.

• Net cash flow from operating activities was €171.2m, down from €183.7m; cash flow from investing activities was -€320.4m, mainly for new solar and wind projects.

• IFRS consolidated earnings for 9M 2024 were -€9.7m, compared to €58.9m in 2023; EPS was -€0.08 versus €0.34.

Outlook and guidance

• 2024 revenue guidance lowered to €425m (-8% vs. original), EBITDA to €260–270m (-13% to -10%), EBIT to €135–145m (-23% to -17%), and operating cash flow to €225–235m (-13% to -10%).

• Technical availability/performance of plants expected to remain above 95% for the year.

• Guidance assumes no major legislative changes or significant weather deviations.