Spruce Power Holding Corp (SPRU) Q1 2025 Earnings Call Highlights: Revenue Surge and Strategic ...
Revenue: $23.8 million in Q1 2025, up from $20.2 million in Q4 2024 and $18.3 million in Q1 2024.
Operating EBITDA: $12.3 million in Q1 2025, compared to $10.7 million in Q1 2024.
Net Loss: $15.3 million attributable to stockholders in Q1 2025.
Core Operating Expenses (OpEx): $18 million in Q1 2025, up from $16.6 million in Q1 2024.
Portfolio O&M Expense: $3.9 million in Q1 2025, down from $5.3 million in Q4 2024.
SG&A Expense: $14.1 million in Q1 2025, down from $15.5 million in Q4 2024, up from $13.5 million in Q1 2024.
Total Cash: $96.5 million at the end of Q1 2025, with $61.9 million unrestricted.
Long-term Debt: $723.8 million with a blended interest rate of 6%.
Interest Rate Hedges: Positive mark-to-market of $18.1 million at quarter end.
Warning! GuruFocus has detected 3 Warning Signs with SPRU.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Revenue grew 30% year-over-year, driven by the acquisition of rooftop assets from New Jersey Resources.
Operating EBITDA increased by 15%, reflecting improved financial performance.
Spruce Power Holding Corp (NYSE:SPRU) has a robust balance sheet with close to $100 million in cash, mostly unrestricted.
The company is actively seeking new acquisition opportunities that meet disciplined return hurdles.
Spruce PRO, the third-party solar servicing platform, is off to a good start with a significant deal with ADT, covering approximately 60,000 systems.
Higher operating and maintenance (O&M) expenses have been a challenge, although efforts are underway to reduce these costs.
Cash burn during the period was affected by normal winter seasonality and a delay in payment collections from NJR assets.
The company is experiencing higher SG&A expenses, which increased from the prior year period.
The CFO, Sarah Wells, is leaving the company, which may lead to transitional challenges.
Market conditions are challenging, slowing down growth despite disciplined acquisition strategies.
Q: Great to see Spruce PRO landing ADT with 60,000 solar systems. How should we think about the scale of revenue opportunity there and the lead times to building up that business to a critical mass? Also, how have your other conversations and marketing at Spruce PRO been going so far this year? A: Christopher Hayes, Independent Chairman of the Board: Spruce PRO is a capital-light endeavor leveraging infrastructure investments made over the last 5 to 7 years. We have a deep pipeline of prospects and are excited about the team and market reception. We aim to make another announcement in the next quarter and believe we can operate profitably.
Q: I understand that Spruce will refinance its SP 1 loan next year in April. What does the environment look like for that refinancing? A: Christopher Hayes, Independent Chairman of the Board: The SP 1 loan is due in April 2026. We are confident we can secure like-for-like terms and are exploring more favorable credit options. We remain confident in our liquidity profile and refinancing ability.
Q: Could you give more color on the SRECs for the Spruce 5 acquisition? They make up close to 2/3 of the revenue for SP 5. Why is that so high compared to your other assets, and should we consider that level as recurring? A: Christopher Hayes, Independent Chairman of the Board: New Jersey has deep liquidity and high prices in the SREC market, which we expect to continue. We view this as a recurring revenue element.
Q: Could you comment on the CFO transition and your plans to fill the role? A: Christopher Hayes, Independent Chairman of the Board: Sarah Wells has been with us for 7 years and is moving to a private company. We respect her decision and are actively searching for a replacement, with an interim announcement expected soon.
Q: Could you talk about the durability of your business model from a policy perspective compared to your industry peers? A: Christopher Hayes, Independent Chairman of the Board: Our model is less affected by policy changes as we are a third-party operator and owner, buying portfolios post-installation and tax credit monetization. We see deep liquidity in our M&A pipeline, and rising utility rates benefit our business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Why ABM Industries Topped the Market Today
Not one, but two analysts upgraded their recommendations on the company. Both now believe investors should buy its shares. 10 stocks we like better than Abm Industries › ABM Industries (NYSE: ABM) stock kicked off the trading week on a high note Monday, closing more than 3.5% higher in price following two recommendation upgrades from analysts tracking the stock. That performance was more than good enough to eclipse the bellwether S&P 500 index, which essentially flatlined that day. Those pundit updates came one business day after ABM released its second quarter of fiscal 2025 earnings report. The company notched a minor beat on the consensus analyst estimate for revenue but missed slightly on that for profitability. Investors didn't greet this development warmly, and their immediate reaction as a group was to trade out of ABM's shares. The situation flipped on Monday, however, as the pair of pundits published new takes on the stock before market open. The first upgrade came from Baird's Andrew Wittman. He upgraded his recommendation on ABM to outperform (i.e., buy) from the previous neutral at a price target of $56 per share. According to reports, Wittman feels the sell-off was unjustified and leaves the stock attractively priced, especially since the company has been effective at securing new work. His peer Joshua Chan at UBS also became notably more bullish on ABM with a recommendation change to buy from neutral (in his case, tagging the stock with a $50 per share price target). According to reports, Chan was particularly encouraged by renewed growth in the company's core business and industry segment. Personally, I'd fall between those bearish investors selling off ABM stock Friday and the analysts upping their recommendations. Yes, the company has reported some encouraging developments of late, but it's neither a strongly growing business nor a high-yielding dividend payer. I'd probably look elsewhere for stocks with better potential. Before you buy stock in Abm Industries, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Abm Industries wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 173% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Abm Industries. The Motley Fool has a disclosure policy. Why ABM Industries Topped the Market Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
2 hours ago
- Business Insider
EPR, MO, and BTI: The Dividend Kings Offering Sturdy Yields and Stock Price Gains
In today's market, dividend investors often face a tough choice: high-yield stocks that risk becoming yield traps due to poor performance, or growth stocks with solid returns but minimal income. However, a select group of dividend stocks is managing to offer the best of both worlds—strong yields and solid performance. Not only are these stocks the so-called 'Dividend Kings', but they've also provided rather decent stock price appreciation in recent months. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter EPR Properties (EPR), Altria (MO), and British American Tobacco (BTI) are three dividend stocks worth watching, each offering an attractive yield of over 6%. Unlike many high-yield plays driven by declining share prices, these names have delivered substantial gains over the past year, making them standouts in the current landscape. EPR Properties (NYSE:EPR) While quarterly dividends are appreciated, monthly dividends offer even greater appeal—and that's precisely what EPR Properties provides. The stock currently offers an attractive 6.1% yield, nearly five times higher than the S&P 500 (SPX). Importantly, this yield isn't the result of a declining share price; EPR has been a strong performer, climbing 40% over the past 12 months. Despite this impressive rally, the stock remains reasonably valued, trading at just 11x forward funds from operations (FFO)—a key valuation metric for real estate investment trusts (REITs). As a firm, EPR specializes in owning and developing experiential properties across the U.S. Its portfolio includes a wide range of venues such as movie theaters, fitness centers, 'eat-and-play' destinations (like bowling alleys and golf entertainment venues such as TopGolf), amusement parks, water parks, and ski resorts. With 331 properties and over 200 tenants throughout the U.S. and Canada, EPR benefits from a broad and diversified income base. The company has paid a dividend for 27 consecutive years. However, it should be noted that while this is a monthly dividend payer, the company didn't pay a dividend for 15 months during 2020 and 2021 as it grappled with the effects of the COVID pandemic. While this is a concern worth being aware of, I don't think it's a cause for significant worry going forward as the pandemic and the lockdowns presented an extreme, unprecedented scenario for all businesses to deal with, especially ones like EPR that own experiential properties that require people to be out and about to be successful. Since resuming dividend payouts in July 2021, EPR has been paying these monthly dividends consistently and incrementally increasing the payouts over time. I'm bullish on this unique REIT based on its strong momentum over the past year, inexpensive valuation, 6%+ dividend yield, and attractive monthly payout schedule, making it a strong option for income investors. Is EPR a Good Stock to Buy? EPR earns a Hold consensus rating based on three Buys, five Holds, and two Sell ratings assigned in the past three months. The average EPR stock price target of $54.75 implies ~3% downside potential from current levels. Altria (NYSE:MO) Unlike EPR, Altria Group—the parent company of Marlboro cigarettes in the U.S., as well as electronic cigarette brand NJOY, and on! nicotine pouches—doesn't pay a monthly dividend. Instead, it follows the more traditional quarterly schedule. However, it makes up for that with an even higher yield of 6.8%, surpassing EPR's payout. And importantly, this yield isn't the result of weak performance—Altria shares have climbed ~27% over the past year. Beyond its generous yield, Altria offers exceptional dividend reliability. As a Dividend King, the company has increased its dividend for 55 consecutive years—a testament to its long-term commitment to shareholders. Altria is also returning capital through share buybacks. In Q1 2025, the company repurchased $326 million worth of stock, leaving $674 million remaining under its current authorization, which it aims to complete by the end of the year. Shares of Altria are also cheap, trading at just 11x earnings. This represents a significant discount to the broader market as the S&P 500 currently trades at roughly 21x. While tobacco companies are rarely associated with high growth, it's important to note that Altria is not a business in decline. The company is projecting steady, if modest, earnings per share growth of 2–5% for 2025. Notably, Altria is seeing strong momentum in its smokeless products segment—its on! nicotine pouches registered 18% year-over-year shipment growth in the most recent quarter, signaling a fruitful long-term market offering. I remain bullish on Altria, driven by its nearly 7% dividend yield, its remarkable track record of consistent dividend growth, and its attractive, undemanding valuation. Is Altria Group a Buy, Sell, or Hold? MO earns a Hold consensus rating based on three Buys, three Holds, and two Sell ratings assigned in the past three months. MO's average stock price target of $56.86 implies ~4% downside potential from current levels over the coming year. British American Tobacco (NYSE:BTI) Like Altria, British American Tobacco is a global leader in tobacco and nicotine products, delivering impressive returns—shares are up ~55% over the past 12 months. The company owns iconic cigarette brands, such as Lucky Strike, and markets Camel, American Spirit, and Newport in the U.S. Its portfolio also includes next-generation products, including Vuse vapor devices and Velo nicotine pouches. BTI currently offers an appealing dividend yield of 6.2%, paid quarterly. The company has a strong track record of 26 consecutive years of dividend growth on a GBP basis, though U.S. investors should note that payouts may vary in USD terms due to currency fluctuations. Valuation-wise, BTI appears attractively priced, trading at just 10.4x projected 2025 earnings—slightly below Altria's multiple and roughly half the valuation of the broader market. In addition to its dividend, BTI is actively returning capital to shareholders through stock buybacks. Following the partial sale of its stake in Indian conglomerate ITC, the company raised its 2025 buyback program to £1.1 billion. I'm bullish on BTI due to its strong yield, consistent dividend history, sizable share buyback program, and compelling valuation. What is the Price Target for BTI Stock? On Wall Street, BTI stock carries a Moderate Sell consensus rating based on coverage from just two analysts. According to Rashad Kawan from Morgan Stanley, BTI is rated a Sell with a price target of $35.50, indicating approximately 25% downside risk in BTI stock over the coming months. In his most recent research note, Kawan reaffirmed his Sell rating based on BTI's latest earnings release, published in February of this year. Meanwhile, John Eade from Argus Research issued a Hold rating on BTI at the turn of the year and has not changed his stance since. Three Strong Choices for Income Investors In today's market, it's rare to find stocks that offer both attractive dividend yields and strong performance, but EPR Properties, Altria, and British American Tobacco all manage to deliver on both fronts. I'm bullish on all three and consider them strong picks for income-focused investors. Each stock offers a dividend yield above 6%, trades at a reasonable valuation, and has posted impressive gains over the past year, making them far from typical yield traps. Among the three, my top picks are EPR and Altria. EPR stands out for its monthly dividend payments, differentiated business model, and diverse revenue streams. While both Altria and BTI are compelling options, I give the edge to Altria due to its exceptional track record of consistent dividend growth spanning more than five decades.
Yahoo
2 hours ago
- Yahoo
Avista reaches all-party, all issues settlement in Idaho general rate cases
If approved, new rates would take effect beginning Sept. 2025 and Sept. 2026 SPOKANE, Wash., June 09, 2025 (GLOBE NEWSWIRE) -- Avista (NYSE: AVA), the Staff of the Idaho Public Utilities Commission, Clearwater Paper Corporation, Idaho Forest Group, LLC and Walmart Inc., parties to the Company's electric and natural gas general rate cases, have reached a settlement agreement that has been submitted to the Idaho Public Utilities Commission for its consideration, and which would resolve all issues in the proceeding. If approved, the settlement agreement is designed to increase annual base electric revenues by $19.5 million or 6.3%, effective Sept. 1, 2025, and by $14.7 million or 4.5%, effective Sept. 1, 2026. For natural gas, the settlement agreement is designed to increase annual base natural gas revenues by $4.6 million or 9.2%, effective Sept. 1, 2025, and reduce base revenues by $0.2 million or 0.4%, effective Sept. 1, 2026. The settlement capital structure includes a 9.6% return on equity (ROE) with a common equity ratio of 50% and a rate of return (ROR) on rate base of 7.28%. 'This settlement agreement will provide new rates in Idaho that are fair and reasonable for our customers, the Company, and our shareholders,' said Heather Rosentrater, Avista President and CEO. 'This is a constructive outcome. Our customers will benefit from longer recovery periods for certain deferred costs, which mitigates the bill impact of improved recovery of our costs to serve our customers. This agreement provides us with the opportunity to earn a fair return in Idaho while we invest in and maintain our infrastructure so we can continue to provide the reliable energy our customers expect.' Residential Customer BillsIf the settlement is approved, a residential electric customer using an average of 939 kilowatt hours per month would see a 6.7% billed increase of $6.95 per month for a revised monthly bill of $111.25 effective Sept. 1, 2025, and a 4.7% billed increase of $5.22 per month for a revised monthly bill of $116.47 effective Sept. 1, 2026. A residential natural gas customer using an average of 66 therms per month would see a billed 6.8% increase of $4.11 per month for a revised monthly bill of $64.74 effective Sept. 1, 2025, and no rate change effective Sept. 1, 2026. 2025 & 2026 Electric Revenue Impact by Rate Schedule Rate Schedule Description 2025 Billing Change 2026 Billing Change Residential Service Schedule 1 6.7% 4.7% General Service Schedules 11 & 12 6.7% 4.8% Large General Service Schedules 21 & 22 8.0% 5.6% Extra Large General Service Schedule 25 6.5% 4.6% Extra Large General Service 25P Schedule 25P 1.6% 1.2% Pumping Service Schedules 31 & 32 8.0% 5.6% Street & Area Lights Schedules 41 - 49 4.6% 3.3% Total 6.6% 4.6% 2025 & 2026 Natural Gas Revenue Impact by Rate Schedule Rate Schedule Description 2025 Billing Change 2026 Billing Change General Service Schedule 101 6.7% 0.0% Large General Service Schedules 111 & 112 0.0% - 1.1% Interruptible Service Schedules 131 & 132 0.0% 0.0% Transportation Service Schedule 146 0.0% - 2.6% Total 5.4% - 0.2% The actual percentage rate change will vary by customer rate schedule and will depend on how much energy a customer uses. Avista serves more than 145,000 electric and 93,000 natural gas customers in Idaho. Avista's Original RequestAvista's original request was designed to increase annual base revenues by $43.0 million (or 14.4% on a billed basis) effective on Sept. 1, 2025, and $17.7 million (or 5.2% on a billed basis) effective on Sept. 1, 2026. For natural gas, the rate request was designed to increase annual revenues by $8.8 million (or 10.3% on a billed basis) effective on Sept. 1, 2025, and $1.0 million (or 1.0% on a billed basis) effective on Sept. 1, 2026. The electric and natural gas requests were based on a proposed rate of return (ROR) on rate base of 7.68% with a common equity ratio of 50% and a 10.4% return on equity (ROE). Customer ResourcesTo assist customers in managing their energy bills, Avista offers services for customers such as comfort level billing, payment arrangements and Customer Assistance Referral and Evaluation Services (CARES), which provide assistance to medically vulnerable customers through referrals to area agencies and churches for help with housing, utilities, medical assistance and other needs. Avista provides energy efficiency and outreach programs that include rebates and incentives as well as tips and resources to help customers manage their energy use and energy bills. Customers can learn more at About Avista Corp. Avista Corp. is an energy company involved in the production, transmission and distribution of energy as well as other energy-related businesses. Avista Utilities is our operating division that provides electric service to 422,000 customers and natural gas to 383,000 customers. Our service territory covers 30,000 square miles in eastern Washington, northern Idaho and parts of southern and eastern Oregon, with a population of 1.7 million. AERC is an Avista subsidiary that, through its subsidiary AEL&P, provides retail electric service to 18,000 customers in the city and borough of Juneau, Alaska. Our stock is traded under the ticker symbol 'AVA'. For more information about Avista, please visit This news release contains forward-looking statements regarding the company's current expectations. Forward-looking statements are all statements other than historical facts. Such statements speak only as of the date of the news release and are subject to a variety of risks and uncertainties, many of which are beyond the company's control, which could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. SOURCE: Avista Corporation -2516- Contact:Media: Lena Funston (509) 495-8090, Stacey Walters (509) 495-2046, Avista 24/7 Media Access (509) 495-4174
