AMPS
Altus Power, INC
NYSE
8-K: Altus Power Announces Fourth Quarter and Full Year 2024 Financial Results; Acquisition by TPG Pending
Sentiment:
Earnings Release
17 March 2025 5:00 PM
Altus Power reports a 26% increase in full-year 2024 revenue and announces a pending acquisition by TPG.
Better than expected
Full year revenue increased by 26% to $196.3 million.
Adjusted EBITDA for the full year increased by 20% to $111.6 million.
Summary
- Altus Power announced its financial results for the fourth quarter and full year 2024.
- Full year 2024 revenues reached $196.3 million, a 26% increase compared to 2023.
- The company reported a GAAP net loss of $10.7 million for the full year 2024, compared to a net loss of $26.0 million in 2023.
- Adjusted EBITDA for the full year 2024 was $111.6 million, a 20% increase compared to the previous year.
- The adjusted EBITDA margin for the full year 2024 was 57%, compared to 60% in 2023.
- Altus Power surpassed 1 GW in operating assets.
- The company completed approximately 56 MW of new-build assets and added approximately 96 MW of assets in operation.
- Altus Power successfully structured an innovative tax equity transaction and partnership model.
- The year-ending cash balance was $123 million.
- On February 5, 2025, Altus Power signed a merger agreement to be acquired by TPG through its TPG Rise Climate Transition Infrastructure strategy for $5.00 per share in an all-cash transaction valuing the company at approximately $2.2 billion, including outstanding debt.
- Fourth quarter 2024 operating revenues totaled $44.5 million, a 30% increase from $34.2 million in the same period of 2023.
- Fourth quarter 2024 GAAP net loss totaled $56.5 million, compared to a net loss of $40.0 million for the same period last year, primarily driven by a $7.1 million non-cash loss from remeasurement of alignment shares and income tax expense of $35.5 million.
- Adjusted EBITDA for the fourth quarter of 2024 was $23.8 million, a 37% increase from $17.3 million in the fourth quarter of 2023.
Sentiment
Score: 7
Explanation: The sentiment is moderately positive due to strong revenue and EBITDA growth, offset by a net loss and pending acquisition uncertainties.
Positives
- Full year revenue increased by 26% to $196.3 million.
- Adjusted EBITDA for the full year increased by 20% to $111.6 million.
- Altus Power surpassed 1 GW in operating assets.
- The company successfully structured an innovative tax equity transaction and partnership model.
- Fourth quarter revenue increased 30% year-over-year.
- Fourth quarter adjusted EBITDA increased 37% year-over-year.
Negatives
- The company reported a GAAP net loss of $10.7 million for the full year 2024.
- The adjusted EBITDA margin decreased from 60% in 2023 to 57% in 2024.
- Fourth quarter 2024 GAAP net loss totaled $56.5 million, compared to a net loss of $40.0 million for the same period last year.
- The fourth quarter net loss was primarily driven by a $7.1 million non-cash loss from remeasurement of alignment shares and income tax expense of $35.5 million.
Risks
- The completion of the acquisition by TPG is subject to stockholder and regulatory approvals.
- Disruptions from the pending transaction may harm the company's business.
- The company faces the risk of not retaining and hiring key personnel.
- Potential adverse reactions or changes to business relationships may result from the acquisition announcement.
- The company is subject to continued availability of capital and financing and rating agency actions.
- Business uncertainty during the pendency of the transaction could affect the company's financial performance.
- Restrictions during the pendency of the transaction may impact the company's ability to pursue certain business opportunities or strategic transactions.
- The company faces risks related to litigation and/or regulatory actions related to the transaction or the proposed acquisition of solar assets.
- Altus Power may be adversely affected by other economic, business, legislative, regulatory, credit risk and/or competitive factors.
Future Outlook
Altus Power will not be providing a financial outlook for 2025 due to the pending acquisition by TPG.
Management Comments
- To support our ongoing growth opportunities, we've continued to focus on efficient capital markets execution as demonstrated by the new credit facility and innovative tax partnership we executed in 2024, said Gregg Felton, CEO of Altus Power.
- As we move toward our pending acquisition by TPG through its the TPG Rise Climate Transition Infrastructure strategy and transition to a private company, we are positioned to deliver even greater value to our customers and partners with the flexibility and resources to accelerate deployment, drive innovation and expand access to clean energy at scale.
Industry Context
Altus Power operates in the commercial-scale solar energy sector, which is experiencing growth driven by increasing demand for clean energy solutions. The acquisition by TPG, a climate-focused investment firm, reflects the growing interest and investment in the renewable energy sector.
Comparison to Industry Standards
- Without specific competitor data, it's difficult to provide a precise comparison.
- However, a 26% revenue growth and 20% adjusted EBITDA growth are generally positive indicators in the renewable energy sector.
- Companies like SunPower and Enphase Energy are key players in the broader solar industry, and their financial performance can serve as a benchmark.
- The adjusted EBITDA margin of 57% is a key metric to compare against industry peers to assess profitability.
Stakeholder Impact
- Shareholders will vote on the proposed acquisition by TPG.
- Customers and partners may benefit from the increased flexibility and resources under TPG's ownership.
- Employees face potential uncertainty during the transition period but may benefit from new opportunities under private ownership.
Next Steps
- The company will seek stockholder approval for the acquisition by TPG.
- The company will work to satisfy customary closing conditions, including regulatory approvals, to complete the acquisition.
- The company will transition to a privately-held company upon completion of the transaction.
Key Dates
- 2024-04-28: Resignation of Lars Norell as Co-Chief Executive Officer and director of the Company
- 2025-02-05: Altus Power signed a merger agreement to be acquired by TPG
- 2025-03-17: Date of report and press release announcing Q4 and Full Year 2024 financial results
- Second Quarter 2025: Expected completion of the acquisition by TPG, subject to approvals and closing conditions
Keywords
AMPS
Altus Power, INC
NYSE
Sector: Utilities
Filings with Classifications
Better than expected
17 March 2025 9:03 PM
Earnings Release
- The company's full year revenue increased by 26% compared to the previous year.
- The company's net loss decreased compared to the previous year.
- The company's Adjusted EBITDA increased compared to the previous year.
Worse than expected
17 March 2025 5:02 PM
Annual Results
- The company reported a net loss of $10.667 million for the year ended December 31, 2024, compared to a net loss of $25.973 million for the year ended December 31, 2023, and a net income of $52.167 million for the year ended December 31, 2022.
Better than expected
17 March 2025 5:00 PM
Earnings Release
- Full year revenue increased by 26% to $196.3 million.
- Adjusted EBITDA for the full year increased by 20% to $111.6 million.
Capital raise
13 March 2025 9:01 PM
Merger Announcement
- TPG Guarantor has committed to capitalize Parent in an aggregate amount of up to $920,371,158 (the Equity Financing) at or prior to the Closing.
- Parent has obtained financing commitments pursuant to a debt commitment letter, dated as of February 5, 2025 (the Debt Commitment Letter) for the purpose of (a) refinancing the APAGH Term Loan concurrently with the Closing of the Merger and the other Transactions (the Refinancing), (b) paying fees and expenses incurred in connection with the Refinancing and the transactions related thereto and (c) making distributions to indirectly fund a portion of the Merger Consideration (the Committed Debt Financing).
Better than expected
6 February 2025 7:14 AM
Merger Announcement
- The acquisition price represents a 66% premium to Altus Power's unaffected closing price on October 15, 2024.
Better than expected
6 February 2025 7:11 AM
Merger Announcement
- The acquisition price represents a 66% premium to Altus Power's unaffected closing price, indicating a better than expected outcome for shareholders.
Capital raise
6 December 2024 4:44 PM
Annual Results Amendment
- The company has an at-the-market (ATM) program to offer and sell up to $200 million of shares of Class A common stock.
- The company is seeking to raise additional capital from borrowings under existing debt facilities, third party tax equity investors, and cash from operations.
Worse than expected
6 December 2024 4:44 PM
Annual Results Amendment
- The company's net income decreased from a profit of $52.2 million in 2022 to a loss of $26 million in 2023, indicating worse than expected results.
Delay expected
6 December 2024 4:44 PM
Annual Results Amendment
- Project timelines have been pushed out by approximately 3 to 6 months due to supply chain challenges and permitting and interconnection delays.
Better than expected
12 November 2024 4:31 PM
Quarterly Report
- The company's revenue and net income significantly exceeded the previous year's results.
- The company's installed capacity and adjusted EBITDA also showed substantial improvement.
Capital raise
12 November 2024 4:31 PM
Quarterly Report
- The company has an at-the-market offering (ATM) program to sell shares of Class A common stock.
- The company may offer and sell up to $200 million of shares of Class A common stock pursuant to the Sales Agreement.
Better than expected
12 November 2024 4:30 PM
Quarterly Report
- The company's revenue and adjusted EBITDA exceeded the previous year's results for the same quarter.
- The company surpassed 1 GW in operating assets, a significant milestone.
- The company reaffirmed its full-year guidance, indicating confidence in continued growth.
Capital raise
15 October 2024 4:32 PM
Strategic Review Announcement
- The strategic review is aimed at optimizing access to capital for the company.
- The company is exploring alternative ownership structures, which could include a capital raise.
Better than expected
8 August 2024 4:15 PM
Quarterly Report
- The company's net income and operating revenues significantly increased compared to the same period last year, indicating better than expected financial performance.
- The company's installed solar capacity and megawatt hours generated also showed substantial growth, exceeding expectations.
Capital raise
8 August 2024 4:15 PM
Quarterly Report
- The company has an at-the-market (ATM) program to offer and sell shares of Class A common stock, with a remaining capacity of $200 million.
- The company relies on external financing to grow its business and may seek additional capital from borrowings under existing debt facilities, third-party tax equity investors, and cash from operations.
Worse than expected
8 August 2024 4:13 PM
Quarterly Report
- The company revised its full-year revenue and adjusted EBITDA guidance downwards, indicating that the results are worse than previously expected.
Better than expected
9 May 2024 8:48 PM
Quarterly Report
- The company's revenue, adjusted EBITDA, and electricity generation all increased significantly year-over-year, indicating better than expected performance.
Better than expected
9 May 2024 4:14 PM
Quarterly Report
- The company's revenue growth of 38.4% exceeded expectations.
- The company's net income attributable to Altus Power, Inc. increased from $5.6 million to $7.5 million year-over-year.
- The company's installed solar capacity grew by 45% year-over-year, indicating strong growth.
Capital raise
9 May 2024 4:14 PM
Quarterly Report
- The company has a Controlled Equity Offering Sales Agreement (ATM program) with Cantor Fitzgerald & Co., Nomura Securities International, Inc., and Truist Securities, Inc. to offer and sell up to $200 million of shares of Class A common stock.
- The company may seek to raise additional capital from borrowings under existing debt facilities, third party tax equity investors, and cash from operations.
Better than expected
9 May 2024 4:11 PM
Quarterly Report
- The company's revenue and adjusted EBITDA exceeded the previous year's results, indicating better than expected performance.
Worse than expected
14 March 2024 4:11 PM
Annual Results
- The company reported a net loss of $25.9 million, which is worse than the net income of $52.2 million reported in 2022.
Delay expected
14 March 2024 4:11 PM
Annual Results
- The report mentions that historical timelines for projects from agreed terms to commercial operation have been pushed out by approximately 3 to 6 months due to supply chain challenges and permitting and interconnection delays.
Capital raise
14 March 2024 4:11 PM
Annual Results
- The company may need to raise additional capital in the future to further scale its business and expand to additional markets.
- The company may raise additional funds through the issuance of equity, equity-related or debt securities, through tax equity partnerships, or through obtaining credit from government or financial institutions.
Better than expected
14 March 2024 4:10 PM
Annual Results
- The company's revenue and adjusted EBITDA growth significantly exceeded the previous year's results.
- The company's portfolio size and customer base grew substantially, indicating strong market demand and execution.
- The company's 2024 guidance suggests continued growth, indicating positive future prospects.
Capital raise
31 January 2024 4:30 PM
Merger Announcement
- Altus Power expects to expand its funding facility with Blackstone in the near term to secure long-term financing.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.