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AP

Altus Power, Inc. (AMPS)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 revenue was $44.47M, up 30% YoY, with Adjusted EBITDA of $23.79M (53% margin); GAAP diluted EPS was $(0.38) as a large tax expense and alignment share remeasurement drove a net loss .
  • Sequentially, revenue and Adjusted EBITDA fell versus Q3 (seasonality and subscriber timing), while margins compressed from 63% in Q3 to 53% in Q4 .
  • Altus entered a definitive agreement to be acquired by TPG at $5.00 per share; the company did not host a Q4 earnings call and withdrew 2025 guidance pending the transaction, with closing expected in Q2 2025 .
  • FY 2024 results: revenue $196.27M (+26% YoY), Adjusted EBITDA $111.62M (+20% YoY), year-end cash, cash equivalents, and restricted cash of $123.39M; surpassed 1 GW operating assets, completed ~56 MW new-build and added ~96 MW of assets in operation during 2024 .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue grew 30% YoY in Q4 to $44.47M and Adjusted EBITDA rose to $23.79M (+37% YoY), reflecting portfolio scale and new assets placed into service .
    • Management highlighted strong commercial-scale positioning and efficient capital markets execution including innovative tax equity structures; “we’re positioned to deliver even greater value…with the flexibility and resources to accelerate deployment” (CEO Gregg Felton) .
    • FY 2024 saw meaningful portfolio expansion, surpassing 1 GW operating assets and year-end cash of $123M; Adjusted EBITDA reached $111.62M (57% margin) .

  • What Went Wrong

    • Q4 GAAP net loss of $56.48M due to a $35.49M tax expense and $7.15M non-cash loss from alignment shares remeasurement; diluted EPS of $(0.38) versus $(0.17) in Q4 2023 .
    • Sequential decline vs Q3: revenue fell from $58.68M to $44.47M and Adjusted EBITDA from $36.97M to $23.79M; margin compressed from 63% to 53% .
    • Continued operational friction with utility interconnections (discussed in prior quarters), impacting timing of project energization; management emphasized pipeline robustness but acknowledged delays (e.g., New York community solar site not yet operational as of Q3 call) .

Financial Results

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD Millions)$52.46 $58.68 $44.47
Adjusted EBITDA ($USD Millions)$31.15 $36.97 $23.79
Adjusted EBITDA Margin (%)59% 63% 53%
GAAP Net Income (Loss) ($USD Millions)$33.15 $8.61 $(56.48)
Diluted EPS ($USD)$0.23 $0.11 $(0.38)

YoY Q4 comparison:

  • Revenue: $44.47M vs $34.19M in Q4 2023 (+30%) .
  • Adjusted EBITDA: $23.79M vs $17.33M in Q4 2023 (+37%) .
  • Adjusted EBITDA Margin: 53% vs 51% .
  • GAAP Net Loss: $(56.48)M vs $(39.96)M; diluted EPS $(0.38) vs $(0.17) .

Segment breakdown: Not disclosed in Q4 2024 materials .

KPIs:

  • Generation: Q3 2024 333M kWh (context); Q2 2024 364M kWh; Q4 not disclosed .
  • Operating Asset Base: surpassed 1 GW in 2024 .
  • Year-end cash, cash equivalents, and restricted cash: $123.39M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)FY 2024$200–$222 (Q2 initial) $196–$201 (Q2 revised, Q3 reaffirmed) Lowered
Adjusted EBITDA ($USD Millions)FY 2024$115–$135 (Q2 initial) $111–$115 (Q2 revised, Q3 reaffirmed) Lowered
FY 2025 OutlookFY 2025Not previously providedNo outlook due to pending TPG transaction Withdrawn/Not provided

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Go-to-market and pipeline optimizationRefocused on market-specific approach; deprioritized top-down CBRE enterprise-only path; added leadership for early-stage development Reported early benefits from targeted market strategy and increased velocity of conversions Press release reaffirmed market leadership; no call hosted Improving execution
Community Solar growth & subscriber rampCredits deferred in Q2 due to subscriber ramp; expect ~$4M revenue recognized in H2 Expanded to ~30,000 customers across 9 states; active projects in ME/MD/CO Not disclosed; continued portfolio scale Growing, operational ramp ongoing
Utility interconnection delaysHighlighted delays (e.g., NY project), pushing timelines right Continued frustration on specific utility interconnections; mitigation via diversified pipeline Not discussed (no call)Persistent headwind
IRA/policy/macroEmphasized secular tailwinds (rising power demand, higher utility rates) Management did not foresee material adverse changes to IRA provisions most relevant to business Not discussed (no call)Supportive backdrop
Financing and tax equity innovationDetailed sources of financing; capacity on facilities New tax credit transfer partnerships; $23M proceeds in Q3 Year-end cash $123.39M; reiteration of tax partnership success Strengthening
M&A/consolidation landscapeAcquisition mix ~75% operating projects; market fragmentation as opportunity Strategic review initiated; later culminated in TPG deal TPG go-private agreement at $5.00/share Strategic pivot

Management Commentary

  • CEO on strategic position and pending TPG acquisition: “we’re positioned to deliver even greater value…with the flexibility and resources to accelerate deployment, drive innovation and expand access to clean energy at scale” .
  • CFO on subscriber timing (prior quarter): deferred community solar revenue given rapid subscriber growth; estimated ~$4M to be recognized in H2 2024 .
  • Management on IRA policy (prior quarter): “we don’t anticipate that the new administration would materially alter the provisions of the IRA which are most relevant to our business” .

Q&A Highlights

  • Project timing/guidance drivers (Q3): High-end of FY guidance depends more on operating performance and weather than late-year project energizations .
  • Interconnection delays (Q3): Specific utilities causing protracted schedules; mitigation via robust pipeline; notable NY site still awaiting utility completion .
  • Capital allocation and returns (Q3): Focus on efficient revenue growth; floating-rate PPAs enable participation in rising utility rates; redevelopment of legacy assets to increase capacity and power sales over time .

Estimates Context

  • Wall Street consensus via S&P Global for AMPS Q4 2024 was unavailable at the time of this analysis due to a Capital IQ mapping issue (no SPGI CIQ company mapping for AMPS). As a result, estimate comparisons (EPS, revenue, EBITDA) to consensus could not be provided from S&P Global.
  • The company did not provide 2025 guidance and did not host a Q4 earnings call due to the pending TPG transaction, limiting forward estimate context from management .

Key Takeaways for Investors

  • Q4 print: strong YoY revenue and EBITDA growth but weaker sequential results and margin compression; the large tax expense and alignment shares remeasurement drove the net loss and negative EPS .
  • Operational cadence: timing effects (seasonality, subscriber ramp) and interconnection delays remain important to near-term revenue recognition, even as portfolio scale supports long-term growth .
  • Strategic catalyst: the $5.00/share go-private deal with TPG is the dominant near-term stock driver; closing expected Q2 2025 pending approvals, delisting to follow .
  • Financing strength: innovative tax credit transfers and ample facility capacity underpin funding for growth; year-end cash and liquidity position provide resilience .
  • Medium-term thesis: commercial-scale solar incumbency, floating-rate PPAs, redevelopment opportunities, and community solar expansion underpin cash generation; watch policy stability (IRA adders) and utility interconnection progress .
  • Risk monitors: utility interconnection timelines, tax expense volatility, estimate visibility (consensus data unavailable), and transaction completion risk with TPG .
  • Actionable: with a definitive merger agreement in place, trading dynamics hinge on deal spread and regulatory timeline; fundamental updates are likely constrained until closing given no 2025 outlook and no Q4 call .