AMPS
Altus Power, INC
NYSE
8-K: Altus Power Reports Strong Third Quarter Growth, Surpasses 1 GW in Operating Assets
Sentiment:
Quarterly Report
12 November 2024 4:30 PM
Altus Power announced a 30% increase in revenue and a 27% increase in adjusted EBITDA for the third quarter of 2024, while also surpassing 1 GW in operating assets.
Better than expected
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.
Summary
- Altus Power reported a strong third quarter for 2024, with revenues reaching $58.7 million, a 30% increase compared to the same period in 2023.
- The company's GAAP net income for the quarter was $8.6 million, up from $6.8 million in the third quarter of 2023.
- Adjusted EBITDA for the third quarter of 2024 was $37.0 million, a 27% increase year-over-year.
- Altus Power's operating asset portfolio surpassed 1 GW as of September 30, 2024.
- The company expanded its Community Solar subscriber base to approximately 30,000 households across nine states.
- Altus Power generated 333 million kilowatt hours of clean electric power in the third quarter of 2024, avoiding approximately 232,000 metric tons of carbon dioxide.
- The company reaffirmed its full-year 2024 guidance of $196-201 million in revenue and $111-115 million in adjusted EBITDA.
Sentiment
Score: 8
Explanation: The document presents a very positive outlook with strong financial results, significant growth in operating assets, and reaffirmed guidance. The company is clearly performing well and is positioned for future success.
Positives
- The company experienced substantial revenue growth of 30% year-over-year.
- Adjusted EBITDA increased by 27% compared to the same quarter last year.
- Altus Power successfully surpassed 1 GW in operating assets, demonstrating significant growth in its portfolio.
- The company's Community Solar program is expanding, reaching more households.
- The company is generating a significant amount of clean energy, contributing to environmental sustainability.
- Altus Power reaffirmed its full-year guidance, indicating confidence in its future performance.
Negatives
- Operating expenses and general and administrative expenses increased due to personnel growth to support ongoing initiatives.
- The company's net income attributable to noncontrolling interests and redeemable noncontrolling interests was a loss of $9.029 million for the quarter.
Risks
- Pending acquisitions may not close in the anticipated timeframe or at all due to unmet closing conditions.
- The company may fail to obtain required consents or regulatory approvals in a timely manner.
- There is a risk that Altus Power may not successfully integrate acquired solar assets into its business.
- The company faces the risk of litigation and/or regulatory actions related to proposed acquisitions.
- Altus Power could be adversely affected by economic, business, regulatory, credit risk and/or competitive factors.
Future Outlook
The company reaffirmed its full-year 2024 guidance for revenue and adjusted EBITDA and expects to grow megawatts at a 20-30% CAGR over the next 3 years.
Management Comments
- Gregg Felton, CEO of Altus Power, stated that the third quarter performance reflects the company's market-leading position in the rapidly growing commercial scale solar sector.
- Gregg Felton highlighted the company's focus on generating clean power directly where it's needed, addressing energy demands and alleviating transmission strain.
Industry Context
Altus Power's results reflect the growing demand for clean energy solutions and the increasing adoption of commercial-scale solar projects. The company's focus on local generation aligns with the trend of distributed energy resources and the need to alleviate grid pressure.
Comparison to Industry Standards
- Altus Power's growth in operating assets to over 1 GW positions it as a significant player in the commercial solar sector, as noted by Wood Mackenzie's rankings.
- The company's adjusted EBITDA margin of 63% is strong, indicating efficient operations and profitability compared to other companies in the renewable energy sector.
- The expansion of the Community Solar subscriber base to 30,000 households demonstrates a successful strategy in a competitive market, with companies like SunPower and NextEra also active in this space.
- The company's focus on vertical integration, from development to long-term ownership, is a strategy also employed by companies like First Solar and Sunrun, allowing for greater control over project lifecycles and costs.
Stakeholder Impact
- Shareholders will benefit from the company's strong financial performance and growth.
- Employees will benefit from the company's growth and expansion.
- Customers will benefit from access to clean, affordable energy.
- Suppliers will benefit from the company's continued growth and demand for materials and services.
- Creditors will benefit from the company's strong financial position and ability to repay debt.
Next Steps
- The company will continue to focus on expanding its portfolio of operating assets.
- Altus Power will continue to grow its Community Solar subscriber base.
- The company will continue to execute its growth plan, targeting a 20-30% CAGR in megawatts over the next three years.
Key Dates
- April 28, 2024: Lars Norell resigned as Co-Chief Executive Officer and director of the Company.
- September 30, 2024: End of the third fiscal quarter, portfolio surpassed 1 GW in operating assets.
- November 12, 2024: Date of the earnings press release and investor presentation for the third quarter 2024 results.
Keywords
solar energy, renewable energy, commercial solar, community solar, adjusted EBITDA, clean energy, financial results, operating assets, power generation
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.