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Jun 30, 2024
Emeren Group Q2 2024 Earnings Report
Achieved solid progress with disciplined growth and strong operating discipline.
Key Takeaways
Emeren Group reported $30.1 million in revenue, a gross profit of $9.4 million, and a net income of $0.4 million in Q2 2024. Despite a year-over-year revenue decline of 11% due to reduced RTB sales, the company achieved a rebound from a net loss in Q1 2024. The company reaffirmed full year revenue guidance of $150 to $160 million.
Generated $30.1 million in revenue, underpinned by a gross profit of $9.4 million and a gross margin of 31.2%.
Operating profit was $3.0 million and net income was $0.4 million, reflecting a disciplined approach to growth.
Signed over 2 GW of projects with 8 DSA partners in Europe, with contracted revenue of over $60 million expected over the next 2-3 years.
IPP assets exhibited strong growth and profitability, contributing approximately 29% of total revenue for the quarter.
Revenue by Geographic Location
Forward Guidance
The company anticipates Q3 revenue between $25 to $28 million, with gross margin between 35% and 38%. Full year 2024 revenue is expected to range from $150 to $160 million, with a gross margin of approximately 30%. Net income in 2024 is expected to be around $22 million, with earnings per ADS of approximately 43 cents. IPP revenue is expected to be between $24 million and $26 million, with a gross margin of approximately 50%. DSA revenue is expected to be around $20 million in the second half of 2024.
Positive Outlook
- Advancing early-stage projects.
- Securing additional DSA partnerships in Europe and the U.S.
- Optimizing strategies to maximize the value of our development pipeline.
- Q3 revenue will fall within the range of $25 to $28 million, with gross margin between 35% and 38%.
- Operating profit is expected to grow in line with revenue, with a continued focus on cost management and efficiency.
Challenges Ahead
- Full-year net income will be affected by the earlier write-offs and foreign exchange losses.
- Revenue declined 11% year-over-year, primarily due to reduced RTB sales in Europe.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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