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Mar 31
Emeren Group Q1 2025 Earnings Report
Emeren Group reported a decrease in net revenue but an increase in gross margin and net income for the first quarter of 2025.
Key Takeaways
Emeren Group reported a net income of $1.5 million for the first quarter of 2025, a significant improvement from a net loss of $5.5 million in the same period last year, primarily driven by an unrealized foreign exchange gain. Total net revenues decreased to $8.2 million from $14.6 million year-over-year, mainly due to reduced EPC services and DSA revenue, though electricity generation revenue increased. Gross profit was $3.2 million, with a higher gross margin of 39.4%.
Net income for Q1 2025 was $1.5 million, a substantial improvement from a net loss of $5.5 million in Q1 2024.
Total net revenues decreased to $8.2 million in Q1 2025 from $14.6 million in Q1 2024, primarily due to decreases in EPC services and DSA revenue.
Gross profit was $3.2 million in Q1 2025, with the gross margin increasing to 39.4% from 29.6% in Q1 2024, mainly due to favorable margin contribution from electricity generation.
An unrealized foreign exchange gain of $6.2 million significantly contributed to the net income, contrasting with a $3.3 million loss in the prior year.
Emeren Group
Emeren Group
Emeren Group Revenue by Segment
Emeren Group Revenue by Geographic Location
Revenue by Segment
Solar power project development Revenue
CapyFin.comElectricity generation Revenue
CapyFin.comDSA Revenue
CapyFin.comOthers Revenue
CapyFin.comRevenue by Geographic Location
China Revenue
CapyFin.comUnited States Revenue
CapyFin.comUK Revenue
CapyFin.comFrance Revenue
CapyFin.comPoland Revenue
CapyFin.comItaly Revenue
CapyFin.comHungary Revenue
CapyFin.com Forward Guidance
The company expects revenue from solar/storage power projects to increase generally in parallel with its business growth. It believes its cash and cash equivalents, project assets, and continued support from financial institutions will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months. However, changes in financial results or operating plans from current assumptions could negatively impact liquidity.
Positive Outlook
- Expects revenue from solar/storage power projects to increase with business growth.
- Believes current cash and cash equivalents, project assets, and financial support are sufficient for liquidity needs for the next 12 months.
- Continuously evaluates opportunities for acquisitions or strategic transactions.
- Plans to finance significant future transactions with a combination of cash, long-term indebtedness, and equity issuance.
- IPP and DSA businesses remained strong, continuing to drive high-margin revenue.
Challenges Ahead
- Liquidity could be negatively impacted if financial results or operating plans change from current assumptions.
- Inability to sell current project assets at reasonable prices in the near term could negatively affect liquidity.
- Increased uncertainty and complexity in supply chain planning and cost management due to recent tariff measures.
- Sustained or escalated trade restrictions could adversely affect business, financial condition, or results of operations.
- CEO transition may adversely affect business, operations, and strategic initiatives, including execution of strategic initiatives, meeting performance goals, and maintaining operational continuity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income