Emeren (SOL) Q3 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, December 23, 2025 astatine 11:16 AM CST 16 min read

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Nov. 14, 2024 astatine 4:30 p.m. ET

• Chief Executive Officer — Yumin Liu

• Chief Financial Officer — Ke Chen

Yumin Liu: Thank you, Gary. Thank you, everyone, for joining our telephone today. To start, I'll supply an overview of our operational show for Q3 2024. Then, our CFO, Ke Chen, volition locomotion done our Q3 fiscal results and our outlook. In Q3, our institution executed connected its bottommost enactment focus, achieving coagulated profitability contempt softer than anticipated gross resulting from delays successful closing scheduled task sales. With $12.9 cardinal successful revenue, we achieved a gross nett of astir $5.6 million, yielding a coagulated gross borderline of 43.8%, $2.1 cardinal successful operating nett and $4.8 cardinal successful nett income attributable to Emeren Group Limited's communal shareholders. Strong EBITDA of $8.5 cardinal further reflects our committedness to sustainable profitability and halfway concern resilience.

Our nett income was supported by overseas speech summation exceeding $4.6 million, arsenic the euro strengthened during the quarter, offsetting a akin overseas speech nonaccomplishment aboriginal successful the year. With Europe generating a bulk of our gross successful Q3, we benefited from a beardown euro. Besides, our absorption connected precocious borderline maturation remains robust. The autarkic powerfulness producer, oregon IPP, conception generated $9.4 million, driven by seasonal spot successful European assets. Our Development Service Agreement, oregon DSA, exemplary besides expanded successful cardinal markets, adding $1.3 cardinal from Italy, $1 cardinal from France and $0.9 cardinal from our archetypal artillery vigor retention system, our champion task portfolio successful the U.S.

Revenue was little than anticipated owed to timing issue, peculiarly delays successful authorities approvals for 3 projects successful Europe. This stay successful our pipeline and are expected to lend to gross erstwhile approvals are secured. Let's determination to the advancement of each of our concern segments. First, [indiscernible] DSA. In Q3, we executed a 394 megawatt BESS DSA with PLT energia and completed the merchantability of 57 megawatt star projects to Trina done a mixed DSA/SPA structure. Our DSA attack is simply a game-changing, reliable, and scalable concern exemplary that enables america to monetize projects astatine aboriginal to mid-stages portion securing high-quality contracted revenue.

This strategical exemplary delivers unsocial benefits, including affirmative currency travel and effectual hazard mitigation passim the task lifecycle. Building connected this momentum, we besides signed our archetypal DSA declaration successful the U.S. for a 72 megawatt BEES merchandise portfolio successful California. As of September 30, we person secured DSA contracts with 9 partners, including Glennmont Partners, Matrix Renewables, and PLT Energia, covering 28 projects totaling implicit 2.1 gigawatts, with 84% allocated to artillery vigor retention strategy oregon BESS, and 16% allocated to PV, resulting successful an expected contracted gross exceeding $69 cardinal to beryllium monetized wrong the adjacent 2 to 3 years. Additionally, implicit 2 gigawatt of DSAs are nether negotiation, estimated to bring different $100 cardinal revenue.