Genie Energy Ltd. Class B Commo ((GNE)) has held its Q4 earnings call. Read on for the main highlights of the call.
Genie Energy Ltd. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company showcased strong growth in renewables and strategic advancements in solar projects, alongside a robust cash position. However, challenges such as decreased revenue and profit margins, as well as continued losses in renewable segments, were also highlighted. Despite these hurdles, Genie Energy maintained a positive outlook with strategic investments and growth initiatives.
Strong Full-Year Performance
Genie Energy achieved the high-end of its adjusted EBITDA guidance for 2024. The company’s GRE segment added 23,000 net new meters in the fourth quarter and over 60,000 during the full year, marking an impressive increase of nearly 17%.
Growth in Renewables
The GREW segment saw its gross profit surge by over 120% compared to 2023, surpassing $6 million. Additionally, Diversegy’s revenue grew by 70%, and its gross profit increased by 130%, generating over $750,000 in income from operations.
Strategic Advancements in Solar
Genie Energy completed its migration to a utility-scale project vertical and closed its first solar financing deal, which returned approximately $7 million in cash. The company also expects to complete the construction of a community solar project in 2025.
Solid Financial Position
The company reported a consolidated net income attributable to Genie common stockholders of $12.6 million. Its cash, cash equivalents, and marketable securities totaled $201 million, reflecting an increase of $37.6 million over the year.
Decreased Revenue and Profit Margins
Despite some successes, Genie Energy faced a 0.8% decrease in consolidated revenue to $425.2 million, and a 5.3% decrease in consolidated gross profit to $138.5 million. The gross margin also decreased by 150 basis points to 32.6%.
Electricity Sales Pressure
Electricity revenue at GRE remained unchanged, but margin compression on electricity sales led to a decrease in gross profit by 1.8% to $31.9 million.
Losses in Renewable Segments
The renewable segment GREW’s loss from operations improved but remained at $3 million, with an adjusted EBITDA loss of $2.2 million.
Forward-Looking Guidance
Looking ahead, Genie Energy maintains its annual consolidated adjusted EBITDA guidance for 2025 at $40 million to $50 million. The company plans to continue building cash reserves, buying back stock, and paying dividends while investing in growth.
In conclusion, Genie Energy’s earnings call painted a picture of a company navigating both growth and challenges. While there were notable achievements in renewables and solar advancements, the company also faced decreased revenue and profit margins. Nonetheless, Genie Energy remains optimistic about its strategic investments and growth initiatives moving forward.