Executive Summary

Q1 2024 delivered strong top-line growth and in-line execution: revenue was $40.7 million (+38% YoY) and adjusted EBITDA was $19.7 million (+23% YoY), while GAAP diluted EPS was $0.05; management reaffirmed FY 2024 guidance for revenue ($200–$222M) and adjusted EBITDA ($115–$135M) .
Altus emphasized secular demand drivers (AI, EVs, crypto, hydrogen, re-shoring) and the firm’s positive exposure to rising retail power prices via variable-rate contracts (54% of MWs); ARR at 3/31/24 was $196M including ~$13M from the January Vitol acquisition .
Development cadence is slower than anticipated due to longer enterprise contracting cycles and delays in community solar program implementations; management is reviewing the pipeline with a focus on execution certainty while continuing to lean into operating asset acquisitions .
Seasonality is material: Q1 is typically the lowest quarter; management expects higher revenues and margins in Q2 and Q3, with full-year adjusted EBITDA margin implied at 59–60% under current guidance .
Near-term catalysts: Investor Day messaging on portfolio return profile, variable-rate exposure to rising utility prices, pipeline review outcomes, and incremental acquisitions supported by a $204M quarter-end cash balance and access to Blackstone facilities .

What Went Well and What Went Wrong

What Went Well

Strong YoY growth from portfolio scale-up: revenue $40.7M (+38% YoY) and adjusted EBITDA $19.7M (+23% YoY) on 210 million kWh generated; net income increased to $4.1M YoY, aided by non-cash alignment shares remeasurement gains .
Strategic acquisitions and market positioning: closed 84MW Vitol acquisition, adding ~$13M ARR; largest commercial-scale solar owner in the U.S., with 981MW and >24,000 community solar customers .
Positive exposure to rising retail power rates via contract mix and demand trends: “over half” of assets on variable pricing, and management highlighted secular demand (AI/EVs/crypto/hydrogen/manufacturing) as tailwinds; “greater than anticipated increases in retail power prices would represent upside” .

Quote: “Over half of our assets have variable price contracts, providing our investors with positive exposure to rising utility rates…Greater than anticipated increases in retail power prices would represent upside without associated additional investment.”

What Went Wrong

Slower-than-expected development cycle: delays driven by enterprise contracting pace and community solar program rollouts; pipeline placed under review to improve execution certainty and velocity .
Adjusted EBITDA margin down sequentially on seasonality and rising OpEx/G&A: Q1 adjusted EBITDA margin was 48% vs 51% in Q4 2023 and 64% in Q3 2023, with management calling out sequential OpEx increases as asset base grows .
Visibility limited on near-term new builds: while reaffirming FY guidance, mix between new builds and operating acquisitions remains subject to pipeline review outcomes; management flagged expectation that remaining asset additions come online in 2H 2024 .

Financial Results

Quarterly Trend (oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenue ($USD Millions)	$45.1	$34.2	$40.7
Adjusted EBITDA ($USD Millions)	$29.1	$17.3	$19.7
Adjusted EBITDA Margin %	64%	51%	48%
GAAP Net Income ($USD Millions)	$6.8	($40.0)	$4.1
GAAP Diluted EPS ($USD)	$0.03	($0.17)	$0.05

Notes: Q4 2023 GAAP loss was driven by a non-cash loss from alignment shares remeasurement; Q1 2024 GAAP net income benefited from a non-cash gain from alignment shares remeasurement .

YoY Comparison (Q1 2023 → Q1 2024)

Metric	Q1 2023	Q1 2024
Revenue ($USD Millions)	$29.4	$40.7
Adjusted EBITDA ($USD Millions)	$16.0	$19.7
Adjusted EBITDA Margin %	55%	48%
GAAP Net Income ($USD Millions)	$3.8	$4.1
GAAP Diluted EPS ($USD)	$0.03	$0.05
Generation (kWh, Millions)	137	210

Estimates vs Actuals (Q1 2024)

Metric	Actual	S&P Global Consensus	Beat/Miss
Revenue ($USD Millions)	$40.7	N/A*	N/A
GAAP Diluted EPS ($USD)	$0.05	N/A*	N/A
Adjusted EBITDA ($USD Millions)	$19.7	N/A*	N/A

*Values via S&P Global were unavailable due to missing CIQ mapping. Values retrieved from S&P Global.

Segment/Portfolio Breakdown (as of Q1 2024)

State	MW	% of Portfolio
New York	205	21%
New Jersey	177	18%
Massachusetts	150	15%
California	120	12%
North Carolina	67	7%
Minnesota	60	6%
South Carolina	42	4%
Hawaii	34	4%
Nevada	21	2%
All other	105	11%

KPIs

KPI	Q1 2024
Operating Portfolio (MW)	981
Generation (kWh, Millions)	210
Community Solar Subscribers	>24,000 (added ~4,000 in Q1)
ARR ($USD Millions)	$196 (incl. ~$13 from Vitol)
Contract Mix (MWs)	Variable 54%; Fixed 28%; Fixed with escalator 18%
Cash Balance ($USD Millions)	$204 at quarter-end
Financing Draw	$101M Blackstone facility @ 6.45% (fixed)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($USD Millions)	FY 2024	$200–$222M	$200–$222M	Maintained
Adjusted EBITDA ($USD Millions)	FY 2024	$115–$135M	$115–$135M	Maintained
Adjusted EBITDA Margin % (implied)	FY 2024	N/A	59%–60% (implied)	New detail (commentary)
Seasonality (Revenue mix)	FY 2024	N/A	Q1 18–20%; Q2 25–29%; Q3 29–31%; Q4 22–26%	New detail (presentation)

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2023)	Previous Mentions (Q4 2023)	Current Period (Q1 2024)	Trend
AI/tech-driven demand & retail rates	Introduced Altus IQ; capital access emphasized	Record expansion; approaching 1GW; Vitol closing Jan’24	Detailed secular demand thesis; positive exposure via variable contracts	Strengthening narrative
Development pipeline & execution	Construction ramp; ~75MW expected by YE’23	74MW new builds; pipeline >1GW	Slower cadence; pipeline review to improve velocity	Moderating cadence; focus on execution
Operating acquisitions	121MW Carolinas deal	Closed Vitol 84MW in Jan’24	Robust buyer’s market; accretive opportunities	Increasing role near term
Community Solar expansion	>20,000 subscribers	~240MW serving CS customers	>24,000 subscribers (+4,000)	Growing
Financing & liquidity	New construction facility; WAIR 4.35% existing LT debt	~$470M financings Q4; $219M YE cash; no equity expected	$204M cash; $101M Blackstone draw @ 6.45%	Stable funding; fixed-rate coverage
Regional buildout	721MW across 25 states	896MW across 25 states	981MW; NY 205MW; MD/IL projects slated 2025–26	Broadening footprint
Seasonality & margin profile	64% adj. EBITDA margin; guidance mid-high 50%	FY adj. EBITDA margin 60%	Q1 48%; FY implied 59–60%; Q2/Q3 strongest	Reaffirmed seasonality pattern

Management Commentary

Strategic positioning: “Altus Power owns the largest portfolio of commercial scale solar generation in the U.S.…Over half of our assets have variable price contracts, providing our investors with positive exposure to rising utility rates” .
Growth drivers: “Artificial intelligence, electric vehicles, cryptocurrency mining, hydrogen and the domestic manufacturing renaissance…consume copious amounts of electricity…There is likely to be enormous investment required…borne by consumers in the form of higher retail power prices” .
Pipeline review: “The pace at which these projects are advancing is much slower than we were anticipating a year ago…drivers…include the measured pace of negotiation… and delayed implementation of some community solar programs…putting our development process and pipeline under review with a focus on ensuring execution certainty” .
Guidance & seasonality: “We are reiterating our 2024 guidance…Second and third quarters should be by far the highest…bring our full year margin to 59% to 60%” .
Financing: “Executed an additional $101 million draw from our Blackstone facility at a fixed rate of 6.45%…finished first quarter with a cash balance of $204 million” .

Q&A Highlights

Sales cycle and pipeline velocity: Enterprise customer contracting cycles are longer than expected; management is reviewing engagement strategies with CBRE to improve transaction velocity and provide increased clarity on the pipeline .
Operating acquisitions market: Robust opportunities amid industry consolidation and financing challenges for smaller developers; returns are “quite healthy,” supporting near-term growth via acquisitions .
Guidance composition: Management emphasized ARR ($196M) and contribution from the operating portfolio as drivers while the pipeline review is a factor; mix of new builds vs acquisitions may evolve .
Community Solar onboarding: Education remains critical; dense markets support scaling subscribers; >24,000 subscribers and ~290MW serving CS customers, with ConEd territory highlighted .
Regional projects and timing: MD (~14MW) and IL programmatic builds expected to energize in late 2025 or 2026; early projects in CA/CO with former Unico team .

Estimates Context

We attempted to retrieve S&P Global consensus for Q1 2024 revenue, EPS, and EBITDA; data was unavailable due to missing CIQ mapping for AMPS. We will update comparisons when S&P data becomes available. Values retrieved from S&P Global.

Key Takeaways for Investors

Revenue/EBITDA growth intact and FY guide reaffirmed; expect stronger Q2/Q3 on seasonal generation and onboarding, with full-year adjusted EBITDA margin implied at 59–60% .
Portfolio mix (54% variable) provides positive leverage to rising retail power prices amid secular electricity demand growth (AI/EVs/crypto/hydrogen/manufacturing)—a key medium-term re-rating driver .
Near term, operating asset acquisitions appear attractive in a buyers’ market; watch for additional deals and Vitol integration benefits (ARR +$13M) .
Development cadence is the key risk to near-term new build contributions; pipeline review outcomes and improved enterprise contracting velocity are pivotal catalysts .
Liquidity and financing access remain strong (cash $204M; Blackstone facilities; fixed-rate draw 6.45%); supports growth without equity issuance signal from prior quarter .
Trading implications: Expect narrative focus on variable-rate exposure and secular demand at Investor Day; strong seasonal print potential in Q2/Q3 could be a positive stock catalyst if execution meets reiterated guidance .
Monitor community solar program timelines and subscriber growth, particularly in dense markets (e.g., ConEd territory) for incremental ARR and margin lift .

References: Earnings call transcript (May 9, 2024) –; Q1 2024 8-K press release and presentation (May 9, 2024) ; Q4 2023 8-K (Mar 14, 2024) ; Q3 2023 8-K (Nov 13, 2023) .

Altus Power, Inc. (AMPS)·Q1 2024 Earnings Summary