AMPS
Altus Power, INC
NYSE
DEFA14A: Altus Power Announces Strong 2024 Results and Pending Acquisition by TPG
Sentiment:
Earnings Release
17 March 2025 9:03 PM
Altus Power reports a 26% increase in full-year revenue and announces a definitive agreement to be acquired by TPG for approximately $2.2 billion.
Better than expected
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.
Summary
- Altus Power announced its fourth quarter and full year 2024 financial results.
- 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, an improvement from the $26.0 million loss in the previous year.
- Adjusted EBITDA for the full year was $111.6 million, a 20% increase year-over-year.
- Altus Power surpassed 1 GW in operating assets and completed approximately 56 MW of new-build assets.
- The company added approximately 96 MW of assets in operation.
- Altus Power successfully structured an innovative tax equity transaction and partnership model.
- The company's 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 cash.
- The acquisition values the company at approximately $2.2 billion, including outstanding debt.
- The transaction is expected to close in the second quarter of 2025, pending stockholder and regulatory approvals.
Sentiment
Score: 7
Explanation: The sentiment is positive due to strong revenue growth, improved profitability, and the pending acquisition by TPG. However, the net loss and decreased EBITDA margin temper the overall outlook.
Positives
- Revenue increased by 26% year-over-year, reaching $196.3 million.
- Net loss decreased from $26.0 million to $10.7 million.
- Adjusted EBITDA increased by 20% to $111.6 million.
- The company surpassed 1 GW in operating assets.
- Altus Power is being acquired by TPG for $2.2 billion, providing shareholders with a cash payout.
Negatives
- The company reported a GAAP net loss of $10.7 million for the full year 2024.
- Adjusted EBITDA margin decreased from 60% to 57% for the full year 2024.
- Fourth quarter 2024 GAAP net loss totaled $56.5 million, compared to net loss of $40.0 million for the same period last year.
Risks
- The acquisition by TPG is subject to stockholder and regulatory approvals, and may not be completed.
- Disruptions from the transaction may harm the company's business.
- The company may face challenges in retaining and hiring key personnel.
- Changes to business relationships may result from the announcement or completion of the transaction.
- The company's financial performance could be affected by business uncertainty during the pendency of the transaction.
- The company may be adversely affected by economic, business, legislative, regulatory, credit risk and/or competitive factors.
Future Outlook
Due to the pending transaction with TPG, Altus Power will not be hosting a conference call or webcast to discuss its fourth quarter and full year 2024 results, and will not be providing a financial outlook for 2025.
Management Comments
- Gregg Felton, CEO of Altus Power, stated that the company retained its market leadership position in commercial solar and surpassed 1 GW of operating assets.
- Gregg Felton mentioned the focus on efficient capital markets execution, demonstrated by the new credit facility and innovative tax partnership executed in 2024.
- Gregg Felton believes that as Altus Power moves toward its pending acquisition by TPG, it is positioned to deliver even greater value to 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's focus on commercial-scale solar aligns with the growing demand for clean energy solutions. The acquisition by TPG, a climate-focused investment firm, underscores the increasing interest in renewable energy assets.
Comparison to Industry Standards
- Comparing Altus Power's growth to companies like SunPower or Enphase Energy, which focus on residential and commercial solar solutions, Altus Power's focus on commercial-scale projects provides a different market segment.
- First Solar and NextEra Energy are other comparible companies in the renewable energy space.
- Altus Power's Adjusted EBITDA margin of 57% is competitive within the renewable energy sector, but it's important to consider the specific business models and project portfolios of comparable companies when assessing profitability.
Stakeholder Impact
- Shareholders will receive $5.00 per share in cash upon completion of the acquisition.
- Customers and partners may benefit from Altus Power's increased resources and flexibility as a private company.
- Employees may experience changes related to the acquisition and transition to private ownership.
Next Steps
- Obtain stockholder approval for the acquisition by TPG.
- Secure regulatory approvals for the acquisition.
- Complete the acquisition by TPG, expected in the second quarter of 2025.
Key Dates
- February 5, 2025: Signed merger agreement to be acquired by TPG
- March 17, 2025: Announcement of fourth quarter and full year 2024 financial results
- Second Quarter 2025: Expected completion of the acquisition by TPG
Keywords
Altus Power, TPG, Acquisition, Financial Results, Solar Energy, EBITDA, Revenue
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.
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.
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.
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 4:31 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.
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.
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 4:14 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.
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.