Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Altus Power Inc (AMPS, Financial) achieved a significant milestone by surpassing one gigawatt of operating assets, enhancing its market leadership in commercial scale solar.
- The company reported a 30% increase in revenue for Q3 2024 compared to the same period in 2023, driven by portfolio growth and increased sales of clean electricity.
- Altus Power Inc (AMPS) successfully structured a new form of tax equity transaction, unlocking new opportunities for value creation.
- The company announced new Community Solar projects in Colorado and Maine, expanding its Community Solar states to nine and growing its customer base by 500% over the last two years.
- Altus Power Inc (AMPS) reaffirmed its 2024 guidance range of $196 million to $201 million in revenue and $111 million to $115 million in adjusted EBITDA, indicating confidence in its growth trajectory.
Negative Points
- Interconnection delays with utilities remain a challenge, impacting the operational timeline of some Community Solar projects.
- Increased operating and interest expenses partially offset the revenue gains, affecting net income growth.
- The company faces uncertainties related to potential changes in federal incentives under the new administration, which could impact future project economics.
- Altus Power Inc (AMPS) is undergoing a strategic review to unlock shareholder value, but there is no assurance of a specific transaction or outcome.
- The company is experiencing increased general and administrative expenses due to targeted investments, which could pressure margins if not managed effectively.
Q & A Highlights
Q: Can you provide an update on the completion of the 80 megawatts under construction and what we should expect by year-end?
A: We expect to complete the majority of the 80 megawatts by the end of 2024, with the remainder finalized in the first half of 2025. We have ongoing construction activities, including recent additions in Maine.
Q: What factors will determine whether you achieve the high or low end of your 2024 guidance?
A: The primary factors are the operational performance of our existing portfolio and weather conditions in Q4. New megawatts added in November will have limited impact on this year's revenue.
Q: How might changes to the Inflation Reduction Act (IRA) under a new administration affect your business, particularly Community Solar?
A: We don't anticipate significant changes to the IRA provisions relevant to our business. We view certain provisions as potential upsides rather than risks, and we remain optimistic about our operating environment and ability to execute our plans.
Q: Are you seeing improvements in utility interconnection delays for Community Solar projects?
A: Interconnection delays are a consistent challenge, but they vary by utility and location. We have several Community Solar projects coming online successfully in various states, indicating that the issue is not widespread.
Q: How is your partnership with CBRE progressing in promoting solar within their ESG portfolio?
A: CBRE is actively advising clients on ESG and sustainability, with Altus Power featuring prominently in these discussions. Their connectivity with Fortune 500 companies provides significant opportunities for us.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
