Emeren Group Q4 2024 Earnings Report
Key Takeaways
Emeren faced revenue declines in Q4 2024 due to project timing delays but maintained a resilient financial position with strong contributions from its high-margin DSA and IPP businesses. The company reported revenue of $34.6 million, a net loss of $11.8 million, and a gross margin of 13.9%. Despite foreign exchange losses impacting profitability, Emeren increased its cash position and remains well-positioned for 2025 growth.
Q4 2024 revenue declined 23% year-over-year to $34.6 million.
Net loss widened to $11.8 million due to foreign exchange losses.
Gross margin improved to 13.9% from 11.3% in Q4 2023.
Cash and cash equivalents increased to $50.0 million.
Emeren Group
Emeren Group
Emeren Group Revenue by Segment
Emeren Group Revenue by Geographic Location
Forward Guidance
Emeren expects revenue growth in 2025, driven by high-margin IPP and DSA segments, along with strong project monetization.
Positive Outlook
- Expected revenue growth in 2025, with a range of $80 million to $100 million.
- Projected gross margin expansion to 30%-33%.
- High-margin IPP revenue expected between $28 million and $30 million.
- DSA segment projected to contribute $35 million to $45 million.
- Strong contracted revenue base of $84 million in DSA agreements.
Challenges Ahead
- Foreign exchange volatility may continue to impact net income.
- Project timing delays could affect near-term revenue recognition.
- High debt-to-asset ratio increases financial risk.
- Operating losses remain a challenge despite margin improvements.
- Competitive landscape in renewable energy markets continues to intensify.
Revenue & Expenses
Visualization of income flow from segment revenue to net income