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Sep 30, 2024
Emeren Group Q3 2024 Earnings Report
Emeren Group reported solid profitability despite softer-than-anticipated revenue due to project sales delays.
Key Takeaways
Emeren Group's Q3 2024 revenue reached $12.9 million, with a gross profit of $5.6 million and a gross margin of 43.8%. The company achieved an operating profit of $2.1 million and a net income of $4.8 million, supported by a foreign exchange gain. Focus remains on high-margin growth, with the IPP segment contributing significantly.
Revenue reached $12.9 million, impacted by delays in project sales closings.
Gross profit was $5.6 million, with a gross margin of 43.8%.
Net income was $4.8 million, supported by foreign exchange gains.
The Independent Power Producer (IPP) segment generated $9.4 million, driven by seasonal strength in European assets.
Emeren Group
Emeren Group
Emeren Group Revenue by Segment
Revenue by Segment
DSA Revenue
CapyFin.com Forward Guidance
Emeren Group anticipates Q4 revenue between $40 and $45 million, with a projected gross margin of 20% to 25%. Adjusted full-year revenue guidance is $97 to $102 million, with an expected gross margin of approximately 30%. Expects to achieve EBITDA of $15 million to $20 million in 2024.
Positive Outlook
- Strong pipeline and favorable market conditions expected to drive substantial growth in Q4.
- IPP revenue expected to be between $24 million and $26 million with gross margin of around 50% for 2024.
- DSA expected to contribute more than $20 million in revenue during 2024.
- EBITDA contributions from IPP and DSA segments are expected to exceed $50 million in 2025.
- Strengthening presence in fast-growing solar and battery storage markets.
Challenges Ahead
- Certain project sales in Europe may extend into 2025 due to delays in government approvals.
- Full-year revenue guidance adjusted to a range of $97 to $102 million due to strategic move from sales to IPP for Hungarian projects and revised timing of project sales.
- Revenue was lower than anticipated due to timing issues, particularly delays in government approvals for three projects in Europe.
- Cash used in operating activities was $5.6 million.
- Cash and cash equivalents decreased to $35.8 million compared to $50.8 million in Q2 2024.