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• EBITDA: More than EUR 200 million, with a target for 2025 set between EUR 245 million and EUR 255 million.

• Construction Capacity: Currently involved in constructing more than 1.5 gigawatts, with plans to add an additional gigawatt this quarter.

• Total Capacity Ready to Build: Over 3.1 gigawatts.

• Financial Debt: 93% project finance, fixed interest rate, with a 13-year tenor.

• Electricity Price Impact: Average market price in January was EUR 85 and EUR 78 in February.

• Generia Capital Increase: EUR 125 million pre-agreement with a US infrastructure fund.

• Data Center Connection Points: Over 600 megawatts, with expectations to exceed 1 gigawatt soon.

• New Tax Impact: 7% of revenues, affecting OpEx cost by EUR 7 million in 2024.

• Wind Portfolio: 2.2 gigawatts ready to start construction in the coming years.

• Warning! GuruFocus has detected 5 Warning Signs with XMAD:SLR.

Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Solaria Energia y Medio Ambiente SA (XMAD:SLR) achieved over EUR200 million in EBITDA, maintaining and even increasing revenue despite challenging electricity prices.

• The company is expanding its business model to include real estate associated with renewables and data centers, which are key parts of its future strategy.

• Solaria is involved in the construction of more than 1.5 gigawatts of capacity, with plans to add additional gigawatts, positioning itself as a leader in solar energy in Europe.

• The company has secured a EUR125 million capital increase for its Generia business, ensuring its growth over the next few years.

• Solaria is a leading company in Europe for data center connections, with plans to expand its capacity to 1.5 gigawatts, generating significant cash flow without requiring CapEx.

Negative Points

• The company faced a tough year due to high electricity prices and a new government tax, which impacted operating costs by EUR7 million in 2024.

• Solaria's financial debt is heavily reliant on project finance, which could pose risks if market conditions change.

• The company is not planning to sell assets in the short term, which may limit its ability to quickly raise cash if needed.

• There are uncertainties around the permitting process for wind projects, which could delay construction timelines.

• The stock market is not recognizing the value of renewable energy companies, including Solaria, which could affect investor sentiment and stock performance.

Q & A Highlights

Q: What is Solaria's power price assumption for 2025 guidance? A: The power price assumption for 2025 is EUR45 for merchant prices. (Jose Arturo Diaz-Tejeiro Larranaga, CEO)