Emeren Announces Fourth Quarter and Full Year 2024 Financial Results
Rhea-AI Summary
Emeren Group (NYSE: SOL) reported Q4 and full year 2024 financial results, highlighting resilient performance despite challenges. The company generated $92.1 million in revenue for FY2024, down 13% Y/Y, with a 26.2% gross margin. Q4 revenue was $34.6 million with $4.8 million gross profit.
Key achievements include $10.5 million Q4 operating cash flow and $6.9 million adjusted EBITDA for 2024. The company's IPP and DSA segments showed strong performance, with secured DSA contracts totaling over 2.8 GW and expected to generate $84 million in contracted revenue.
Notable transactions include the sale of a 17 MW solar portfolio in Poland, 462 MW BESS DSA in Italy, and 65 MW solar projects in Germany. The company ended Q4 with $50.0 million in cash, up 40% sequentially. For 2025, Emeren projects revenue of $80-100 million with 30-33% gross margin.
Positive
- Generated $10.5M in Q4 operating cash flow and $5M+ in free cash flow
- Secured $84M in contracted DSA revenue with additional $100M+ under negotiation
- Strong cash position of $50M, up 40% from Q3
- Successfully monetized 200 MW of solar PV and 1.3 GW of BESS projects in 2024
- IPP segment delivered 64% of total gross profit with high margins
Negative
- Revenue declined 13% Y/Y to $92.1M in FY2024
- Q4 net loss widened to $11.8M from $2.0M in 2023
- Operating loss of $0.5M for full year 2024
- Project timing delays affected Q4 revenue recognition
- Experienced significant FX losses due to strong US dollar
News Market Reaction
On the day this news was published, SOL declined 19.05%, reflecting a significant negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Delivered Strong Free Cash Flow in Q4 2024
- Achieved High-Margin Expansion Driven by IPP and DSA Businesses
Fellow Shareholders,
2024 was a year of resilience, disciplined execution, and strategic growth for Emeren. Despite currency headwinds and project sale delays, we successfully monetized renewable energy assets, expanded our energy storage footprint, and generated positive free cash flow in Q4. Our Independent Power Producer (IPP) and Development Service Agreement (DSA) segments provided high margins and stable cash flows, while strategic project monetization strengthened our financial position. We ended the year with
Resilient Growth Driving Free Cash Flow
In Q4 2024, we generated
Our capital-light model fueled profitable growth while supporting investment. Strong liquidity and efficiency position us to capitalize on 2025 project sales and opportunities.
Executing High-Margin Expansion
Our resilient high-margin IPP and DSA segments enabled us to deliver
Although project timing delays in the
Q4 2024 Highlights
We achieved significant milestones across key markets in Q4, strengthening our position in renewable energy monetization and energy storage.
Europe :- Completed the COD sale of a 17 MW solar project portfolio in
Poland , with 15 MW under a PPA, reinforcing our presence in a key market. - Executed a 462 MW DSA of battery energy storage system (BESS) in
Italy with Arpinge, expanding our footprint in energy storage. - Finalized the sale of 65 MW of solar projects to Trina in
Germany through a mixed DSA/SPA structure, reflecting the strength of our development partnerships. United States :- Closed the COD sale of a 2.8 MW community solar project to Altus Power, demonstrating progress in the distributed generation segment.
China :- Commissioned 18 MWh BESS projects, successfully integrating them into Huaneng Power International's Virtual Power Plant (VPP) platform, strengthening our participation in
China's evolving energy market.
These achievements highlight our ability to execute across multiple regions, ensuring efficient project monetization, expanding our renewable energy portfolio, and strengthening contracted cash flow generation.
Business Line Performance
DSA
The DSA business serves as a cornerstone of our high-margin growth strategy, providing strong revenue visibility while enabling us to monetize projects at early- and mid-development stages. We extended our DSA model into key markets, generating approximately
As of December 31, 2024, we have secured DSA contracts with nine partners for 40 projects totaling over 2.8 GW, comprising
With
Solar Power Project Development
In addition to completing major transactions in
IPP
The IPP segment was a cornerstone of our profitability, providing stable and predictable cash flows from long-term operating assets. In 2024, IPP revenue accounted for approximately
Our well-balanced IPP portfolio spans
With
Full-Year 2024 Financial Summary
For full-year 2024, we generated
Despite FX headwinds, operating cash flow improved significantly toward breakeven, reaching negative
Our disciplined execution, successful project monetization, and strengthened financial position provide a strong foundation to scale our business efficiently while maintaining capital discipline.
[1] Net loss attributed to Emeren Group Ltd. |
Outlook & Catalysts
Looking ahead, we are confident in our ability to execute our growth strategy and deliver strong financial performance in 2025. The delay in Q4 revenue recognition does not reflect a loss of business, but rather timing issues, with the sale of these projects expected to close in 1H 2025. With a highly contracted revenue base, continued expansion of our DSA and IPP businesses, and strong tailwinds in the renewable energy sector, we are positioned for sustained profitability and long-term shareholder value creation.
Key drivers supporting our 2025 financial outlook include:
- Strong contracted revenue base: We have secured about
$84 million $100 million - Profitability from high-margin segments: Our DSA and IPP businesses are key profit drivers, contributing strong gross margins and stable cash flows. With increasing energy storage integration and disciplined execution, our emphasis on high-margin growth drives sustained profitability and financial strength.
- Robust solar PV and BESS monetization pipeline: With
75% of our DSA pipeline concentrated inEurope , as well as strong solar and energy storage project sales in key markets, we are well-positioned to capitalize on growing demand. Overall, by the end of Q4 2024, our pipeline included over 4.3 GW of advanced-stage storage projects and 2.4 GW of advanced-stage solar PV projects, reinforcing our long-term growth potential. - Expansion in BESS and merchant power trading: Our newly commissioned 18 MWh BESS in
China is now fully integrated into the Huaneng Power International VPP platform, and we are set to benefit fromChina's merchant power market opening in 2025, unlocking new revenue streams through energy arbitrage.
We expect full-year 2025 revenue to be in the range of
For the first half of 2025, we anticipate revenue in the range of
Full Year 2024 Financial Highlights:
- Revenue of
$92.1 million 13% Y/Y, reflecting project timing shifts despite strong execution in high-margin segments. - IPP and DSA contributed
52% of total revenue, which demonstrates solid and stable revenue visibility. - Maintained a strong
26.2% gross margin, despite a slight Y/Y decline in gross profit to$24.1 million - Operating loss narrowed significantly to
$0.5 million $8.7 million - Adjusted EBITDA surged
102% Y/Y to$6.9 million - Net loss widened to
$12.5 million $3.2 million
$ in millions | 2024 | 2023 | Y/Y |
Revenue | -13 % | ||
Gross profit | 24.1 | 25.0 | -4 % |
Operating loss | (0.5) | (8.7) | +94 % |
EBITDA | (2.1) | 4.9 | ( |
Adjusted EBITDA | 6.9 | 3.4 | +102 % |
Net loss attributed to Emeren Group Ltd | ( | ( | -292 % |
Revenue by segment:
Segment ($ in thousands) | 2024 | % of Total |
Project development | 25,874 | 28 % |
IPP | 28,903 | 31 % |
DSA | 18,959 | 21 % |
EPC | 17,332 | 19 % |
Others | 999 | 1 % |
Total | 92,067 | 100 % |
Note: "Others" comprises revenue from ancillary revenues and expenses and other unallocated costs and expenses.
Revenue by region:
Region ($ in thousands) | 2024 Revenue | % of Total |
66,963 | 73 % | |
7,273 | 8 % | |
17,831 | 19 % | |
Total | 92,067 | 100 % |
Q4 2024 Financial Highlights:
- Revenue of
$34.6 million 23% Y/Y and up169% Q/Q. - Gross profit of
$4.8 million 6% Y/Y and15% Q/Q. - Operating loss of
$4.4 million 35% Y/Y improvement, despite a$6.5 million - Adjusted EBITDA of negative
$2.4 million 27% Y/Y gain in performance. - Cash and cash equivalents at the end of Q4 2024 were
$50.0 million $35.8 million - Net loss widened to
$11.8 million $2.0 million
$ in millions | Q4'24 | Q3'24 | Q/Q | Q4'23 | Y/Y |
Revenue | +169 % | -23 % | |||
Gross profit | 4.8 | 5.6 | -15 % | 5.1 | -6 % |
Operating Income (loss) | (4.4) | 2.1 | ( | (6.7) | +35 % |
EBITDA | (11.5) | 8.5 | ( | 1.1 | ( |
Adjusted EBITDA | (2.4) | 4.1 | ( | (3.2) | +27 % |
Net Income (loss) attributed to Emeren Group Ltd | ( | ( | ( | -504 % |
Revenue by segment:
Segment ($ in thousands) | Q4'24 | % of Total |
Project development | 18,457 | 53 % |
IPP | 5,414 | 16 % |
DSA | 9,507 | 28 % |
EPC | 493 | 1 % |
Others | 679 | 2 % |
Total | 34,550 | 100 % |
Note: "Others" comprises revenue from ancillary revenues and expenses and other unallocated costs and expenses.
Revenue by region:
Region ($ in thousands) | Q4'24 Revenue | % of Total |
25,901 | 75 % | |
5,249 | 15 % | |
3,400 | 10 % | |
Total | 34,550 | 100 % |
Advanced-Stage and Early-Stage Solar Development Project Pipeline
Project Pipeline by Region (as of December 31, 2024):
Region | Advanced | Early Stage | Total (MW) |
| 1,439 | 3,855 | 5,294 |
| 941 | 1,296 | 2,237 |
China | 28 | — | 28 |
Total | 2,408 | 5,151 | 7,559 |
Project Pipeline by Country (as of December 31, 2024):
Country | Advanced | Early Stage | Total (MW) |
399 | — | 399 | |
100 | 163 | 263 | |
214 | 3,033 | 3,247 | |
129 | 177 | 306 | |
114 | 5 | 119 | |
483 | 477 | 960 | |
941 | 1,296 | 2,237 | |
28 | — | 28 | |
Total | 2,408 | 5,151 | 7,559 |
Advanced-Stage and Early-Stage Solar Storage Project Pipeline
Project Pipeline by Region (as of December 31, 2024):
Region | Advanced | Early | Total (MW) |
3,108 | 3,023 | 6,131 | |
1,105 | 1,057 | 2,162 | |
43 | — | 43 | |
Total | 4,256 | 4,080 | 8,336 |
Project Pipeline by Country (December 31, 2024):
Country | Advanced | Early | Total (MW) |
878 | 50 | 928 | |
170 | 275 | 445 | |
10 | 1,522 | 1,532 | |
14 | — | 14 | |
2,036 | 673 | 2,709 | |
— | 503 | 503 | |
1,105 | 1,057 | 2,162 | |
43 | — | 43 | |
Total | 4,256 | 4,080 | 8,336 |
Notes: The average hours per MW vary across regions. For example, in the
Growing IPP Asset Portfolio in Attractive PPA Regions
As of December 31, we owned and operated IPP assets comprising approximately 293 MW of solar PV projects and 54 MWh of storage.
Operating Assets | PV Capacity (MW) | Storage (MWh) |
China DG | 167 | 54 |
102 | - | |
24 | - | |
Total | 293 | 54 |
Q4 2024 Financial Results:
All figures refer to the fourth quarter of 2024, unless stated otherwise.
Revenue
Revenue of
Gross Profit and Gross Margin
Gross profit was
Operating Expense
Operating expenses were
Net loss attributable to Emeren Group Ltd's common shareholders
Net loss attributable to Emeren Group Ltd's common shareholders was
Diluted net loss attributable to Emeren Group Ltd's common shareholders per American Depositary Share ("ADS") was
Cash Flow
Cash provided by operating activities was
Financial Position
Cash and cash equivalents at the end of Q4 2024 were
Net asset value (NAV) is approximately
Our debt-to-asset ratio at the end of Q4 2024 was
Conclusion
The renewable energy sector is benefiting from strong tailwinds, driven by the global shift toward sustainability and the increasing role of solar and energy storage to meet rising power demand. Our disciplined execution, robust contracted revenue base, and expanding presence in high-margin segments position us for sustained growth. As we enter 2025, we remain focused on leveraging our strengths in Development Service Agreement (DSA), Independent Power Producer (IPP), and energy storage to drive long-term value creation. With a clear strategy, strong financial foundation, and commitment to innovation, we are confident in our ability to capitalize on industry momentum and deliver lasting shareholder value.
Conference Call Details
We will host a conference call today to discuss our fourth quarter and full year ended December 31, 2024 after the
Please register in advance to join the conference call using the link provided below and dial in 10 minutes before the call is scheduled to begin. Conference call access information will be provided upon registration.
Participant Online Registration:
https://register.vevent.com/register/BI53bf135272a04765b47f029df565b83d
Audio-only Webcast:
https://edge.media-server.com/mmc/p/wfuup2dn
Additionally, an archived webcast of the conference call will be available on the Investor Relations section of Emeren Group Ltd's website at https://ir.emeren.com/.
About Emeren Group Ltd
Emeren Group Ltd (NYSE: SOL), a renewable energy leader, showcases a comprehensive portfolio of solar projects and Independent Power Producer (IPP) assets, complemented by a significant global Battery Energy Storage System (BESS) capacity. Specializing in the entire solar project lifecycle — from development through construction to financing — we excel by leveraging local talent in each market, ensuring our sustainable energy solutions are at the forefront of efficiency and impact. Our commitment to enhancing solar power and energy storage underlines our dedication to innovation, excellence, and environmental responsibility. For more information, go to www.emeren.com.
Safe Harbor Statement
This press release contains statements that constitute ''forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the
For investor and media inquiries, please contact:
Emeren Group Ltd - Investor Relations
+1 (925) 425-7335
ir@emeren.com
The Blueshirt Group
Gary Dvorchak
+1 (323) 240-5796
gary@blueshirtgroup.co
Appendix 1: Unaudited Consolidated Statement of Operations | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||
(in thousands, except per ADS data and ADS) | |||||||||
Net revenues | $ 34,550 | $ 12,860 | $ 44,972 | $ 92,067 | $ 105,642 | ||||
Cost of revenues | (29,763) | (7,229) | (39,899) | (67,945) | (80,629) | ||||
Gross profit | 4,787 | 5,631 | 5,073 | 24,122 | 25,013 | ||||
Operating expenses: | |||||||||
Sales and marketing | (59) | (8) | (105) | (183) | (398) | ||||
General and administrative | (9,196) | (3,959) | (9,272) | (23,131) | (25,961) | ||||
Other operating expenses, net | 80 | 477 | (2,075) | (1,312) | (5,624) | ||||
Impairment loss of assets | - | - | (366) | (1,691) | |||||
Total operating expenses | (9,175) | (3,490) | (11,818) | (24,626) | (33,674) | ||||
Income (loss) from operations | (4,388) | 2,141 | (6,745) | (504) | (8,661) | ||||
Other (expenses) income: | |||||||||
Interest (expenses) income, net | (231) | (431) | (574) | (559) | (411) | ||||
Investment (loss) gain | - | (4) | 39 | (4) | 278 | ||||
Unrealized foreign exchange (loss) gain | (9,047) | 4,615 | 5,850 | (8,522) | 5,892 | ||||
Total other (expense) income , net | (9,278) | 4,180 | 5,315 | (9,085) | 5,759 | ||||
Income (loss) before income tax | (13,666) | 6,321 | (1,430) | (9,589) | (2,902) | ||||
Income tax benefit (expenses) | 1,124 | (647) | (2,051) | (2,021) | (2,529) | ||||
Net income (loss) | (12,542) | 5,674 | (3,481) | (11,610) | (5,431) | ||||
Less: Net income (loss) attributed to non-controlling interests | (755) | 831 | (1,531) | 867 | (2,245) | ||||
Net Income (loss) attributed to Emeren Group Ltd | (11,787) | 4,843 | (1,950) | (12,477) | (3,186) | ||||
Income (loss) attributed to Emeren Group Ltd per ADS | |||||||||
Basic | $ (0.23) | $ 0.09 | $ (0.04) | $ (0.24) | $ (0.06) | ||||
Diluted | $ (0.23) | $ 0.09 | $ (0.04) | $ (0.24) | $ (0.06) | ||||
Weighted average number of ADS used in computing loss per ADS* | |||||||||
Basic | 51,317,227 | 51,254,956 | 55,197,797 | 51,845,257 | 56,526,716 | ||||
Diluted | 51,317,227 | 51,352,136 | 55,197,797 | 51,845,257 | 56,526,716 | ||||
*Each American depositary shares (ADS) represents 10 common shares | |||||||||
Appendix 2: Unaudited Consolidated Balance Sheet | |||
As of | |||
Dec 31, 2024 | Dec 31, 2023 | ||
(in thousands) | |||
ASSETS | |||
Current assets: | |||
Cash and cash equivalents | $ 50,012 | $ 70,174 | |
Accounts receivable trade, net | 21,121 | 27,123 | |
Accounts receivable unbilled, net | 41,330 | 59,598 | |
Advances to suppliers | 568 | 4,283 | |
Value added tax receivable | 8,005 | 7,103 | |
Project assets, current | 54,267 | 39,914 | |
Prepaid expenses and other current assets, net | 16,085 | 18,255 | |
Total current assets | 191,388 | 226,450 | |
Property, plant and equipment, net | 194,839 | 163,114 | |
Project assets, non-current | 14,444 | 36,610 | |
Operating lease, right-of-use assets | 19,931 | 21,057 | |
Finance lease, right-of-use assets | 4,574 | 14,192 | |
Other non-current assets | 22,390 | 16,928 | |
Total assets | $ 447,566 | $ 478,351 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | 11,892 | 16,203 | |
Advances from customers | 5,042 | 5,375 | |
Amounts due to related parties | 4,028 | 4,967 | |
Long-term borrowings, current | 1,181 | 1,385 | |
Income tax payable | 606 | 2,102 | |
Salaries payable | 1,265 | 718 | |
Operating lease liabilities, current | 659 | 363 | |
Failed sales-leaseback and finance lease liabilities, current | 5,014 | 4,559 | |
Other current liabilities | 19,831 | 21,320 | |
Total current liabilities | 49,518 | 56,992 | |
Long-term borrowings, non-current | 23,515 | 22,685 | |
Operating lease liabilities, non-current | 19,252 | 20,575 | |
Failed sale-leaseback and finance lease liabilities, non-current | 13,767 | 11,258 | |
Deferred tax liabilities | 3,494 | 3,532 | |
Total liabilities | $ 109,546 | $ 115,042 | |
Commitments and contingencies | |||
Shareholders' equity | |||
Common shares | 806,714 | 806,714 | |
Additional paid-in capital | 15,104 | 14,728 | |
Treasury stock, at cost | (49,146) | (41,938) | |
Accumulated deficit | (453,040) | (440,563) | |
Accumulated other comprehensive loss | (19,116) | (13,629) | |
Emeren Group Ltd shareholders' equity | 300,516 | 325,312 | |
Non-controlling interest | 37,504 | 37,997 | |
Total shareholders' equity | 338,020 | 363,309 | |
Total liabilities and shareholders' equity | $ 447,566 | $ 478,351 | |
Appendix 3: Unaudited Consolidated Statement of Cash Flow | |||||||
Three Months Ended | Twelve Months Ended | ||||||
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | ||||
(in thousands) | |||||||
Net cash provided by (used in) operating activities | $ 10,371 | $ 7,236 | $ (4,215) | $ (23,488) | |||
Net cash provided by (used in) investing activities | (5,013) | 6,941 | (15,658) | 15,309 | |||
Net cash provided by (used in) financing activities | 2,772 | (3,563) | (5,928) | (25,263) | |||
Effect of exchange rate changes | 6,126 | 379 | 5,639 | (3,672) | |||
Net increase (decrease) in cash and cash equivalents and restricted cash | 14,256 | 10,993 | (20,162) | (37,114) | |||
Cash and cash equivalents and restricted cash, beginning of the period | 35,756 | 59,181 | 70,174 | 107,288 | |||
Cash and cash equivalents and restricted cash, end of the period | $ 50,012 | $ 70,174 | $ 50,012 | $ 70,174 | |||
Use of Non-GAAP Financial Measures
To supplement Emeren Group Ltd's financial statements presented on a US GAAP basis, Emeren Group Ltd provides non-GAAP financial data as supplemental measures of its performance.
To provide investors with additional insight and allow for a more comprehensive understanding of the information used by management in its financial and decision-making surrounding pro-forma operations, we supplement our consolidated financial statements presented on a basis consistent with
- EBITDA represents net income before income tax expense (benefit), interest expense, depreciation and amortization.
- Adjusted EBITDA represents EBITDA plus discount of electricity subsidy in
China , plus share-based compensation, plus impairment of long-lived assets, plus loss/(gain) on disposal of assets, plus foreign exchange loss/(gain).
Our management uses EBITDA, Adjusted EBITDA as financial measures to evaluate the profitability and efficiency of our business model. We use these non-GAAP financial measures to access the strength of the underlying operations of our business. These adjustments, and the non-GAAP financial measures that are derived from them, provide supplemental information to analyze our operations between periods and over time.
We find these measures especially useful when reviewing pro-forma results of operations, which include large non-cash impairment of long-lived assets and loss on disposal of assets. Investors should consider our non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP.
Appendix 4: Adjusted EBITDA | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
Dec 31, 2024 | Sep 30, 2024 | Dec 31, 2023 | Dec 31, 2024 | Dec 31, 2023 | |||||
(in thousands) | |||||||||
Net income (loss) | $ (12,542) | $ 5,674 | $ (3,481) | $ (11,610) | $ (5,431) | ||||
Income tax expenses (benefit) | (1,124) | 647 | 2,050 | 2,021 | 2,529 | ||||
Interest expenses (income), net | 231 | 431 | 574 | 559 | 411 | ||||
Depreciation & Amortization | 1,917 | 1,781 | 1,979 | 6,919 | 7,438 | ||||
EBITDA | $ (11,518) | $ 8,533 | $ 1,122 | $ (2,111) | $ 4,947 | ||||
Discount of electricity subsidy in China | (35) | (83) | 603 | 272 | 656 | ||||
Share based compensation | 133 | 106 | 203 | 370 | 1,443 | ||||
Loss on disposal of property, plant and equipment | - | - | 616 | - | 2,128 | ||||
Interest income of discounted electricity subsidy in China | (2) | 130 | 60 | (198) | 109 | ||||
Foreign exchange loss (gain) | 9,047 | (4,615) | (5,850) | 8,522 | (5,892) | ||||
Adjusted EBITDA | $ (2,375) | $ 4,071 | $ (3,246) | $ 6,855 | $ 3,391 | ||||
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SOURCE Emeren Group Ltd
FAQ
What is Emeren's (SOL) revenue guidance for 2025?
How much contracted DSA revenue does SOL have secured for future periods?
What was SOL's cash position at the end of Q4 2024?
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