Executive Summary

Q2 2024 revenue was $3.847M, down 36% year over year due to lower Romanian power prices, deferred sale of green certificates, and the December 2023 sale of Italian assets; sequentially, revenue rose from $2.180M in Q1 2024 as seasonality improved .
Gross margin compressed to 59% from 83% YoY as Romanian contracted energy costs spiked; net loss from continuing operations widened to $6.837M vs $2.890M in Q2 2023; EPS (continuing) was -$0.10 vs -$0.05 YoY and -$0.13 in Q1 2024 .
Balance sheet deleveraging progressed: H1 bond debt reduced by ~$80M to ~$86.6M via disposals (Italy, Poland, Netherlands), but Solis bonds remain in covenant breach with monthly waivers through late 2024 and late interest paid; going concern risk persists .
Strategic pivot to microgrids: binding heads of terms with Hover Energy; three additional Hawaii Wind‑Powered Microgrid projects (total 1MW, ~1.3GWh/year) contracted, ~$3–$4M total value, installations targeted for Q4 2024 with revenues “immediately thereafter” — a key near‑term catalyst .
S&P Global consensus estimates were unavailable for CLIN in our data access; therefore beats/misses vs Street cannot be assessed and estimates likely need refresh post asset sales and JV updates (values unavailable via S&P Global due to mapping limitations).

What Went Well and What Went Wrong

What Went Well

Debt reduction and portfolio rationalization: ~$80M bond repayment in H1 2024 from asset sales (Italy, Poland, Netherlands) lowered Solis bond balance to ~$86.6M, reducing interest burden and improving flexibility .
Production growth despite headwinds: Q2 operating assets delivered ~18.3 GWh clean energy; US power production up 156% period‑over‑period on parks coming online; Romania production up 8.6% PoP .
Microgrid strategy momentum: “Microgrids…should provide faster time to revenues and cashflows and require less equity to deploy,” CEO said, highlighting joint venture with Hover and Hawaii orders, a complementary segment to utility solar .

What Went Wrong

Revenue and margin compression: Revenues fell 36% YoY to $3.847M and gross margin dropped to 59% (from 83%) due to lower Romanian electricity prices, deferred green certificate sales, and higher energy acquisition costs under contracts below prevailing market rates .
Operating losses widened: Net loss from continuing ops increased to $6.837M (vs $2.890M YoY) on lower gross profit, higher SG&A (+72% YoY) associated with Nasdaq listing costs, and losses tied to debt issuance/fair value movements .
Financing and execution risks: Solis bond covenant breaches continue with only month‑to‑month waivers; unpaid interest incurs penalties; several US/European project loans are in default/renegotiation; the 80MW US acquisition did not close as sellers failed conditions .

Financial Results

Metric	Q2 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$6.015	$2.180	$3.847
Gross Margin (%)	83%	58% (H1 context)	59%
Net Loss from Continuing Ops ($USD Millions)	$(2.890)	$(8.659)	$(6.837)
Diluted EPS – Continuing Ops ($USD)	$(0.05)	$(0.13)	$(0.10)
Interest Expense – Continuing Ops ($USD Millions)	$(4.408)	$(4.984)	$(4.106)
SG&A ($USD Millions)	$(1.894)	$(3.747)	$(3.254)
Depreciation & Amortization ($USD Millions)	$(0.924)	$(0.568)	$(0.543)
Consolidated EBITDA ($USD Millions)	$6.078	$(0.569)	$(1.059)

Segment revenue breakdown:

Segment Revenue ($USD Thousands)	Q2 2023	Q2 2024
Europe	$5,982	$3,754
United States	$33	$93
Total Continuing	$6,015	$3,847

Revenue by product/offtake type (continuing ops):

Offtake Type ($USD Thousands)	Q2 2023	Q2 2024
Country Renewable Programs (FIT)	$935	$203
Green Certificates (FIT)	$3,017	$2,021
Energy Offtake Agreements (PPA)	$2,063	$1,623
Total Continuing	$6,015	$3,847

KPIs:

KPI	Q2 2023	Q1 2024	Q2 2024
MWh Sold – Romania	15,343	9,064	16,674
MWh Sold – United States	612	842	1,572
Total MWh Sold (continuing)	18,963	9,906	18,246
Operating Nameplate Capacity (MW DC) – Romania	40.1	40.1	40.1
Operating Nameplate Capacity (MW DC) – United States	3.8	3.8	3.8
Total Operating MW DC (continuing)	43.9	43.9	43.9

Portfolio snapshot (as of June 30, 2024, press release table):

Geography	Operating (MW DC)	In Construction (MW DC)	Pre‑Construction (<12m) (MW DC)	Q2 Clean Power (GWh)	Q2 Revenue ($M)	Q2 Gross Profit ($M)
Romania	40.1	—	—	16.7	3.8	2.2
U.S.A.	3.8	45	15	1.6	0.1	0.1
Italy/Spain	— / —	— / 32	217 / —	—	—	—
Total	43.9	45	264	18.3	3.9	2.3

Non‑GAAP note: EBITDA/segment EBITDA are management non‑GAAP measures; see segment disclosures and reconciliation in 10‑Q .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2 2024	Not provided	Not provided	Maintained (no formal guidance)
Gross Margin	FY/Q2 2024	Not provided	Not provided	Maintained (no formal guidance)
OpEx/SG&A	FY/Q4 onward	Cost rationalization ongoing	~$2–3M annual fixed cost reductions to be recognized in future periods	Maintained narrative; quantified savings
Project pipeline/microgrids	2024–2025	JV heads of terms	Hawaii microgrid contracts (1MW, ~$3–$4M), installation Q4 2024	Raised execution detail
80MW US acquisition	2024	Planned close by June 2024	Sellers failed closing conditions; timing uncertain	Lowered (delay)

No explicit quantitative revenue/EPS guidance ranges were provided in Q2 materials; management emphasized cost reductions, deleveraging, and microgrid JV execution .

Earnings Call Themes & Trends

Note: No Q2 2024 earnings call transcript was found after comprehensive search; themes below reflect 10‑Q MD&A and press releases for Q2 and Q1.

Topic	Previous Mentions (Q-2 = Q1 2024)	Current Period (Q2 2024)	Trend
Debt and Solis bonds	Covenant breaches; month‑to‑month waivers to Nov 2024; plan to repay via disposals	Balance reduced to ~$86.6M; waivers extended; late interest penalties; going concern reiterated	Ongoing risk; deleveraging progress
Energy prices/margins (Romania)	Lower prices; fewer green certificates sold; margin pressure	Continued price pressure; deferred green certificate sales; gross margin down to 59%	Persistent headwind
Microgrid strategy/JV	Amended Hover agreement timing; JV discussions	Binding heads of terms; Hawaii projects (1MW, ~$3–$4M), Q4 install, immediate revenue	Accelerating execution
Asset sales/portfolio shift	Italy sale finalized, planning disposals; Poland/NL sales in Q1 2024	Reflects in reduced debt and discontinued ops; portfolio focused on Romania/US	Completed transition; focus on core
Nasdaq compliance	Bid price/MVLS deficiency notices; exploring options	MVLS notice persists; working to regain compliance	Unresolved
Project financing/defaulted loans	US/Spain project loan extensions/defaults; renegotiations	Defaults/renegotiations ongoing; some extensions achieved	Mixed progress

Management Commentary

“Microgrids are a rapidly growing segment…should provide faster time to revenues and cashflows and require less equity to deploy…support business operations while we wait for the utility projects to come on stream” — Vincent Browne, CEO .
“Revenues and gross margins both dropped significantly as a result of market forces, such as energy rates…we have increased [Nasdaq] costs…Despite this we have made good progress in business development” — CEO .
On Hawaii microgrids: “Installations…begin in Q4 2024…revenues following immediately thereafter…total contract value…between $3–$4 million” .

Q&A Highlights

No Q2 2024 earnings call transcript or Q&A was located after document search; therefore, no Q&A themes or clarifications can be provided for this quarter.

Search summary: We listed and read all available Q2 filings and press releases (8‑K with Exhibits, 10‑Q). No earnings call transcript was found for Q2 2024 in the document catalog .

Estimates Context

S&P Global consensus EPS and revenue estimates for CLIN were unavailable via our access due to a missing company mapping; consequently, we cannot provide a beat/miss assessment vs Street at this time. Values unavailable via S&P Global (mapping limitation).
Actuals: EPS (continuing) -$0.10; revenue $3.847M for Q2 2024; any estimate comparisons should be updated once S&P coverage reflects the post‑SPAC structure and asset sales .

Key Takeaways for Investors

Deleveraging is real but incomplete: ~$80M bond repayment reduces interest drag, yet covenant breaches and late interest penalties keep financing risk elevated; month‑to‑month waivers through late 2024 underscore headline risk .
Fundamentals under pressure: YoY revenue/margin declines are concentrated in Romania price dynamics and contract mix; watch optimization of offtake contracts and timing of green certificate sales to stabilize gross margins .
Microgrids as near‑term bridge: Hawaii deployments in Q4 2024 can create earlier cash inflows, diversify revenue, and lower equity intensity vs utility solar — a potential stock reaction catalyst on execution newsflow .
Execution watch‑items: Defaulted/extended project loans, Nasdaq compliance path (bid/MVLS), and the uncertain timing of the 80MW US acquisition remain swing factors on sentiment and valuation .
Non‑GAAP indicators deteriorated: Q2 consolidated EBITDA swung to -$1.059M vs $6.078M YoY; segments show US drag offsetting Europe; focus on SG&A control and cost rationalization benefits in H2 .
Seasonal lift vs Q1 visible: Sequential revenue improved with Q2 seasonality; monitor Q3 for continued production benefits and contract repricing progress .
Re‑rating hinges on financing clarity: A structured resolution of Solis bonds (refinance, waivers into maturity, or asset transfer impacts) and visible microgrid/utility project milestones are key to reducing going‑concern overhang .

Sources: Q2 2024 8‑K press release and Exhibit 99.2 ; Q2 2024 10‑Q ; Q1 2024 10‑Q .

Alternus Clean Energy, Inc. (CLIN)·Q2 2024 Earnings Summary