Solaria Energía y Medio Ambiente (SLR) Q4 2024 earnings summary

Executive summary

• Transitioned from pure solar/wind generation to include real estate, energy, and data center businesses as part of a five-year strategy, marking a strategic shift beyond solar PV.

• FY 2024 delivered resilient results with total revenues up 4% to EUR 239.4M and EBITDA stable at EUR 201.3M, despite lower average power prices and increased operating expenses.

• Net profit declined 18% year-over-year to EUR 88.6M, impacted by higher taxes and financial expenses.

• Major milestones included new project authorizations, expansion into the UK, and agreements for data center development.

• Strong investment activity with EUR 291M invested and a robust pipeline for future growth, including significant capacity additions in solar PV, BESS, and wind hybridisation.

Financial highlights

• EBITDA exceeded €200 million for 2024, in line with projections, and rose 0.7% to EUR 201.3M, withstanding a 27% drop in average selling price and the reintroduction of the Spanish IVPEE tax.

• Revenue: €176.9 million (-8% YoY); Net profit: €88.6 million (-18% YoY); Net sales fell 8% to EUR 176.9M, while infrastructure revenues grew 26% to EUR 30.5M.

• Net financial debt (ex-IFRS16) stood at EUR 937M, with an average cost of debt at 3.7% and a 13-year average residual tenor.

• Significant CapEx investments made while maintaining a stable cash position; EUR 291M invested during the year, primarily in new capacity and infrastructure.

• Personnel expenses rose 8% due to increased headcount for expansion; amortization and depreciation increased with new plants coming online.

Outlook and guidance

• 2025 EBITDA guidance set at €245–255 million, not including extraordinary items from new business lines, driven by new asset connections, power price recovery, and new business divisions.

• Strategic focus on doubling installed capacity from 1.6 GW to 3.1 GW, with new projects set to come online in 2025 and 3.1 GW additional capacity planned for 2026.

• Expansion into data centers, hybridization of facilities, and international growth in Italy, Germany, and the UK.

• Positive power price environment expected, with 35% merchant price exposure.

• Ongoing negotiations to unlock value from digital infrastructure and land assets.