Voltalia SA ((FR:VLTSA)) has held its Q2 earnings call. Read on for the main highlights of the call.
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Voltalia SA’s recent earnings call presented a mixed sentiment, highlighting the company’s strategic transformation plan aimed at self-financed growth and increasing capacity. Despite these positive strides, the company is grappling with profitability pressures, including reported losses and challenges with curtailment, alongside negative EBITDA from service activities. The outlook remains challenging as further losses are expected in the second half of 2025.
Capacity and Production Growth
Voltalia reported a notable increase in its operational and construction capacity, reaching 3.3 gigawatts, a 7% rise from the previous year. Production also saw a significant boost, growing by 14% to 2.4 terawatt-hours, indicating strong operational progress.
Turnover Increase
The company experienced an 8% increase in total turnover, amounting to EUR 257 million. This growth was bolstered by a EUR 35 million contribution from the services sector, reflecting a positive trend in revenue generation.
Strategic Transformation Plan – SPRING
Voltalia introduced its SPRING plan, a strategic initiative set over five years to achieve self-financed growth of 300 to 400 megawatts per year until 2030. The plan aims to enhance profitability and efficiency, marking a pivotal shift in the company’s growth strategy.
Cash Position
The company maintains a robust cash position, with EUR 235 million in cash as of June 2025. This strong liquidity position supports Voltalia’s strategic initiatives and operational stability.
Future Objectives
Voltalia confirmed its operational objectives for 2025, targeting a capacity of 3.6 gigawatts and production of 5.2 terawatt-hours. The company aims for an EBITDA range of EUR 200 million to EUR 220 million by the end of the year, setting ambitious goals for its financial performance.
Profitability Pressure and Loss
The company reported a loss of EUR 40 million for the half year, with EBITDA remaining stable at EUR 78 million. Profitability is under pressure due to significant noncurrent expenses and a 7% decrease in financial results.
Curtailment Challenges
Curtailment has posed a significant challenge, with year-to-date curtailment reaching 14%, exceeding the forecasted 10%. Voltalia is actively seeking solutions, although compensation has not yet been reflected in financials.
Negative Service Activity EBITDA
Despite a 50% increase in turnover, the service activity reported a negative EBITDA of EUR 6.6 million. This is attributed to ongoing sales and M&A projects that have not yet been recognized, impacting profitability.
Expected Net Loss for Second Half
Voltalia anticipates a more substantial net loss for the second half of 2025, driven by pipeline rationalization, restructuring costs, and exiting noncore activities.
Forward-Looking Guidance
Voltalia’s guidance for the 2025 fiscal year outlines several strategic initiatives, including a 7% increase in capacity and an 8% rise in turnover. The company is embarking on the SPRING plan, targeting self-financed growth and improved profitability. By 2030, Voltalia aims to achieve an EBITDA margin of 70-72% in energy sales and 9-11% in services, with plans to resume dividend payments in 2028.
In summary, Voltalia’s earnings call reflects a company in transition, with strategic plans for growth and increased capacity. However, profitability pressures and expected future losses present challenges. The company’s forward-looking guidance indicates a focus on core geographies and technologies, aiming for long-term financial stability and growth.