Neoen (NEOEN) Q3 2024 TU earnings summary

Executive summary

• Nine-month 2024 revenue reached €378.4 million, down 5% year-over-year, mainly due to the transition of major assets to long-term PPAs.

• Electricity generation increased 9% year-over-year to 6.0 TWh, with strong battery storage performance in Australia.

• Q3 2024 revenue grew 2% year-over-year, driven by a 77% surge in storage revenue, offsetting declines in wind and solar.

• Secured portfolio reached 10.4 GW, with 8.7 GW in operation or under construction and 1.4 GW of new projects awarded in core markets.

• Regulatory approvals for Brookfield’s acquisition of a majority stake are progressing, with completion expected by end-2024 and a public tender in Q1 2025.

Financial highlights

• Wind revenue fell 10% to €162.4 million, solar revenue declined 6% to €161.3 million, while storage revenue jumped 23% to €54.3 million for the nine-month period.

• Q3 2024 consolidated revenue was €122.7 million, up 2% year-over-year, with storage revenue up 77% due to exceptional market events in Australia.

• Contracted/hedged revenue for wind and solar rose to 89% of segment revenue, up from 83% last year, reflecting the shift to long-term PPAs.

• New assets contributed €20 million in revenue, while asset disposals in 2023 reduced revenue by €9 million.

Outlook and guidance

• 2024 adjusted EBITDA target reiterated at €530–560 million, with margin above 85%.

• 2025 guidance reaffirmed: over €700 million adjusted EBITDA and 10 GW in operation or under construction.

• Q4 2024 expected to see significant revenue growth from new assets, especially Collie One battery.