AMPS
Altus Power, INC
NYSE
8-K: Altus Power Reports Strong Q2 2024 Results, Revises Full-Year Guidance
Sentiment:
Quarterly Report
8 August 2024 4:13 PM
Altus Power announced a 13% increase in revenue and a significant jump in net income for the second quarter of 2024, while also revising its full-year guidance.
Worse than expected
The company revised its full-year revenue and adjusted EBITDA guidance downwards, indicating that the results are worse than previously expected.
Summary
- Altus Power reported a 13% increase in revenue for the second quarter of 2024, reaching $52.5 million, compared to $46.5 million in the same period last year.
- The company's GAAP net income for Q2 2024 was $33.1 million, a substantial increase from $3.4 million in Q2 2023, primarily due to a non-cash gain from the remeasurement of alignment shares.
- Adjusted EBITDA for the quarter was $31.2 million, a 2% increase compared to $30.6 million in the second quarter of 2023.
- Altus Power increased its portfolio size by 42% compared to the second quarter of 2023, and generated 364 million kilowatt hours of clean electric power.
- The company has revised its full-year 2024 revenue guidance to $196-201 million and adjusted EBITDA guidance to $111-115 million.
- Altus Power reaffirmed its 3-year guidance of 20-30% compound annual growth rate (CAGR) on megawatts and 20-25% CAGR on revenue and adjusted EBITDA.
Sentiment
Score: 6
Explanation: The sentiment is moderately positive due to strong revenue growth and a significant increase in net income, but tempered by the downward revision of full-year guidance and a relatively small increase in adjusted EBITDA.
Positives
- Altus Power experienced a significant increase in net income, primarily due to a non-cash gain.
- The company's revenue and adjusted EBITDA both showed year-over-year growth.
- The company has substantially increased its portfolio size and power generation.
- Altus Power is the largest commercial-scale solar provider, indicating a strong market position.
- The company has a large number of community solar subscribers, demonstrating a strong customer base.
Negatives
- The company has revised its full-year revenue and adjusted EBITDA guidance downwards.
- The increase in adjusted EBITDA was relatively small at 2% compared to the revenue increase of 13%.
- Operating expenses and general and administrative expenses increased due to personnel growth to support ongoing initiatives.
Risks
- The company faces risks related to pending acquisitions, including the possibility that they may not close or be successfully integrated.
- There are risks associated with obtaining necessary regulatory approvals and maintaining customer relationships.
- The company is subject to litigation and regulatory risks related to solar asset acquisitions.
- Economic, business, regulatory, and competitive factors could adversely affect Altus Power.
- The company's forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially.
Future Outlook
The company has revised its full-year 2024 guidance for revenue and adjusted EBITDA, while reaffirming its 3-year growth targets for megawatts, revenue, and adjusted EBITDA.
Management Comments
- Gregg Felton, CEO of Altus Power, stated that the company continued to prudently scale its portfolio and capitalize on long-term growth opportunities in Q2 2024.
- The CEO also highlighted that the company has increased its revenues and adjusted EBITDA four-fold over the past five years.
Industry Context
Altus Power's results reflect the growing demand for renewable energy and the increasing adoption of solar power, particularly in the commercial sector. The company's position as the largest commercial-scale solar provider indicates a strong competitive standing in the industry.
Comparison to Industry Standards
- Altus Power's 42% portfolio growth year-over-year is a strong indicator of its expansion in the commercial solar market, outpacing many competitors.
- The company's adjusted EBITDA margin of 59% in Q2 2024, while a decrease from 66% in Q2 2023, is still competitive within the renewable energy sector, though some companies may achieve higher margins through different business models or cost structures.
- Compared to companies like SunPower or First Solar, which focus on different segments of the solar market, Altus Power's focus on commercial-scale projects positions it uniquely, with a large portfolio of nearly 1 gigawatt.
- The company's revised full-year guidance suggests a more conservative outlook compared to some of its peers, which may be due to specific project timelines or market conditions.
Stakeholder Impact
- Shareholders may experience mixed reactions due to strong Q2 results but reduced full-year guidance.
- Employees may see continued growth and opportunities within the company.
- Customers will benefit from the increased clean energy generation and portfolio expansion.
- Suppliers may see increased business opportunities due to the company's growth.
- Creditors will be interested in the company's financial performance and ability to meet its obligations.
Next Steps
- The company will continue to focus on scaling its portfolio and capitalizing on long-term growth opportunities.
- Altus Power will continue to make presentations to investors using the provided earnings presentation.
- The company will host a conference call to discuss the second quarter 2024 financial results.
Key Dates
- April 28, 2024: Lars Norell resigned as Co-Chief Executive Officer and director of the Company.
- June 6, 2024: Wood Mackenzie Total Commercial Solar Ownership Rankings date.
- June 30, 2024: End of the second fiscal quarter for which results are reported.
- August 8, 2024: Date of the earnings release and conference call.
Keywords
solar power, renewable energy, adjusted EBITDA, net income, revenue, commercial solar, clean energy, portfolio growth, financial results, community solar
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.