On August 8, 2024, Altus Power Inc (AMPS, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Altus Power Inc is a developer, owner, and operator of large-scale photovoltaic and energy storage systems across the United States, serving commercial, industrial, public sector, and community solar customers.
Performance Overview
Altus Power Inc (AMPS, Financial) reported second-quarter revenues of $52.5 million, a 13% increase compared to $46.5 million in the same period last year. However, this figure fell short of the analyst estimate of $63.09 million. The company’s GAAP net income surged to $33.1 million, a significant increase from $3.4 million in Q2 2023, primarily driven by a non-cash gain from the remeasurement of alignment shares.
Key Financial Achievements
Altus Power Inc (AMPS, Financial) achieved an adjusted EBITDA of $31.2 million for Q2 2024, a 2% increase from $30.6 million in the same quarter last year. The growth in adjusted EBITDA was mainly due to increased revenue from additional solar energy facilities, although this was partially offset by higher operating and general administrative expenses.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Operating Revenues | $52.5 million | $46.5 million |
| GAAP Net Income | $33.1 million | $3.4 million |
| Adjusted EBITDA | $31.2 million | $30.6 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Altus Power Inc (AMPS, Financial) reported total assets of $2.13 billion, up from $2.09 billion at the end of 2023. The company’s cash and cash equivalents stood at $78.4 million, a decrease from $160.8 million at the end of 2023. The reduction in cash reserves was primarily due to capital expenditures and payments for acquiring renewable energy businesses.
Challenges and Future Outlook
Despite the revenue growth, Altus Power Inc (AMPS, Financial) faces challenges such as increased operating expenses and the need to support ongoing growth initiatives. The company revised its full-year 2024 revenue guidance to $196-201 million, down from the previously stated range of $200-222 million. Adjusted EBITDA guidance was also revised to $111-115 million from $115-135 million.
“Altus Power has assembled a portfolio of highly attractive assets that will generate long-term value for our investors. In Q2 2024, we continued to prudently scale our portfolio and capitalize on long-term growth opportunities,” said Gregg Felton, CEO of Altus Power.
Conclusion
Altus Power Inc (AMPS, Financial) demonstrated strong net income growth in Q2 2024, although it missed revenue estimates and faces challenges in managing operating expenses. The company's strategic focus on expanding its portfolio and capitalizing on long-term growth opportunities remains a key driver for future performance.
Explore the complete 8-K earnings release (here) from Altus Power Inc for further details.
