Latest news with #EUR170
Yahoo
02-04-2025
- Business
- Yahoo
SMA Solar Technology AG (SMTGF) Q4 2024 Earnings Call Highlights: Navigating Challenges with ...
Group Sales: EUR1.5 billion in 2024, down from EUR1.19 billion in 2023. Group EBITDA: Minus EUR16 million in 2024, compared to EUR311 million in 2023. Free Cash Flow: Minus EUR184 million in 2024, improved from minus EUR220 million at the end of Q3 2024. Total Order Backlog: EUR1.36 billion at the end of 2024. Home Segment Revenue: EUR170 million in 2024, down 71% from EUR580 million in 2023. Commercial & Industrial (C&I) Revenue: EUR184 million in 2024, down from EUR479 million in 2023. Large Scale Revenue: EUR1.18 billion in 2024, up from EUR845 million in 2023. EBITDA Margin: Minus 1% in 2024, compared to 16% in 2023. Net Cash: EUR84 million at the end of 2024, down from EUR283 million in 2023. Gross Cash Flow: EUR111 million in 2024, down from EUR333 million in 2023. Net Working Capital: EUR473 million at the end of 2024, up from EUR392 million in 2023. Shareholders' Equity: Decreased to EUR553 million from EUR686 million in 2023. Provisions: Increased to EUR233 million from EUR201 million in 2023. Warning! GuruFocus has detected 4 Warning Signs with SMTGF. Release Date: March 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SMA Solar Technology AG (SMTGF) reported strong performance in the large-scale segment, with revenues increasing from EUR845 million in 2023 to EUR1.18 billion in 2024. The company's order backlog reached EUR1.36 billion at the end of 2024, indicating strong future demand. The Americas region saw a significant increase in revenue share from 25% to 40%, driven by the large-scale segment. SMA Solar Technology AG (SMTGF) is implementing a restructuring and transformation program aimed at improving long-term cost efficiency and reducing liquidity requirements. The company is focusing on cybersecurity, sustainability, and energy system stability, positioning itself as a leader in advanced inverter and battery technology. Group EBITDA fell to minus EUR16 million in 2024 from EUR311 million in 2023, primarily due to low sales and increased costs. The Home and Commercial & Industrial (C&I) solutions segments experienced significant revenue declines, with the home segment decreasing by 71% from EUR580 million in 2023 to EUR170 million in 2024. Free cash flow was negative at minus EUR184 million, impacted by increased net working capital and reduced sales in Home and C&I segments. The company recorded impairments on inventories and capitalized development projects, contributing to the negative financial performance. SMA Solar Technology AG (SMTGF) plans to reduce its workforce by approximately 1,100 full-time equivalents as part of its restructuring efforts. Q: Your guidance is EUR1.5-1.65 billion, but your backlog is EUR1 billion. How do you expect to fill the gap, especially with the market still weak? A: Jurgen Reinert, CEO: We are seeing a slow recovery in the Home and Business Solutions segment as distributor stocks deplete. We expect a slight improvement in order intake throughout the year. For large-scale, we are confident in maintaining market share despite some market reluctance, particularly in the US. Q: What is the break-even level for the Home and C&I business after restructuring? A: Barbara Gregor, CFO: It's too early to provide a specific break-even level as we are still aligning personnel and costs within divisions. We expect to have a clearer picture in the second half of the financial year. Q: Can you comment on the competitive environment in large-scale and any changes? A: Olaf Heyden, COO: The competitive landscape remains largely unchanged with key players like Sangro, Power Electronics, and us. Tesla has become a notable competitor in storage solutions. Q: How do you perceive the current situation in the US market, and what are your plans for accessing it? A: Olaf Heyden, COO: We see some reluctance in large-scale orders but have 90% of our planned revenues for this year already secured. We are localizing transformer production with a partner to meet local content requirements and are monitoring upcoming regulatory announcements. Q: What is driving the slight comeback in demand for residential and C&I markets? A: Olaf Heyden, COO: The main driver is the depletion of distributor stocks. Additionally, the cost of systems has decreased significantly, making them more attractive despite stable electricity prices and high interest rates. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
26-03-2025
- Business
- Yahoo
Verbund AG (OEZVF) (Q4 2024) Earnings Call Highlights: Navigating Challenges with Strategic ...
Revenue: Not explicitly mentioned in the transcript. EBITDA: Decreased by 22.5% to EUR3.48 billion. Hydro Segment EBITDA: Decreased by 23% to EUR3 billion. New Renewables Segment EBITDA: Decreased by 25% to EUR170 million. Sales Segment EBITDA: Increased to EUR7 million. Grid Segment EBITDA: Decreased to approximately EUR284 million. Gas Connect Austria EBITDA: Approximately EUR86 million. Group Result: Decreased by 17% to EUR1.87 billion. Operating Cash Flow: Decreased to EUR3.25 billion. Free Cash Flow After Dividends: Decreased to EUR145 million. Net Debt/EBITDA: At 0.6 as of December 31. Dividend Proposal: EUR2.8 per share for 2024. CapEx Plan: Increased to EUR5.9 billion over the next three years. 2025 EBITDA Guidance: Between EUR2.7 billion and EUR3.3 billion. 2025 Group Result Guidance: Between EUR1.35 billion and EUR1.75 billion. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Verbund AG (OEZVF) reported a significant increase in hydro generation, with a 9.6% rise to 33,448 gigawatt hours compared to 2023. The company successfully commissioned new renewable power plants in Spain, Austria, and Germany, contributing to increased generation from wind and PV. Verbund AG (OEZVF) completed important projects like the 45-megawatt ReiBeck II pumped-storage power plant and the 11-megawatt Gratkorn run-of-river power plant. The sales segment showed improvement, with EBITDA increasing to a slightly positive value of EUR7 million, driven by lower procurement costs. The company plans to invest EUR5.9 billion over the next three years, focusing on growth and maintenance, particularly in the regulated Austrian electricity grid and renewable generation projects. Verbund AG (OEZVF) experienced a decrease in average achieved contract prices, impacting overall results despite increased generation volumes. EBITDA in the hydro segment decreased by 23% to EUR3 billion due to lower achieved contract prices. The new renewables segment saw a 25% decrease in EBITDA to EUR170 million, affected by lower achieved prices and higher operating expenses. The Grid segment recorded lower contributions from Gas Connect Austria and Austrian Power Grid, with a significant negative impact expected in 2025. The company faces uncertainty regarding the Austrian windfall tax and potential adjustments to the price cap, which could affect future financial results. Q: What is the impact of the new tax in Austria on Verbund's financials, and how does it affect future projections? A: Peter Kollmann, CFO, explained that the new tax could range between EUR50 million to EUR100 million for 2025. The government aims to collect EUR200 million annually from the energy sector, and Verbund, being a major player, will contribute significantly. The tax's future impact depends on potential changes in the price cap and the ability to offset investments against the tax. Q: Can you provide more details on Verbund's hedging strategy and achieved power prices? A: For 2025, Verbund has hedged approximately 74% of its production at EUR117 per megawatt hour. The unhedged portion is currently marked at EUR90, leading to a mark-to-market price of EUR109. For 2026, 42% is hedged at EUR80, with a mark-to-market price of EUR82. Q: How does Verbund plan to manage the lower hydro coefficient and potential buybacks of power? A: The hydro coefficient is currently 14% below the long-term average. Verbund typically hedges only 80% of its production, reducing the likelihood of needing to buy back power. However, if conditions remain dry, there is a possibility of buybacks, although it is considered a low-probability event. Q: What are Verbund's plans for renewable investments, particularly in Spain, and how do they manage risks associated with these projects? A: Andreas Wollein, Head of Group Finance and Investor Relations, stated that Verbund aims to develop 1.7 gigawatts of renewable capacity in Spain, focusing on solar and wind projects. They plan to mitigate risks through long-term PPAs, although some merchant exposure will remain to optimize generation. Q: How does Verbund view the potential for increased gas plant utilization in light of lower hydro production? A: Verbund's CCGT in Mellach is efficient and modern, but the company does not plan further investments in gas plants, as it focuses on renewable energy. The existing gas plant can help stabilize the system during low hydro production periods. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
