Photon Energy Group reports strong revenue growth and doubling of EBITDA in 2024

Photon Energy Group has reported a 26.3% increase in revenue for 2024, reaching CZK 2.24 billion, alongside a 135.5% year-on-year surge in EBITDA to CZK 219 million. The company also reduced its net loss to CZK 342 million, compared to CZK 396 million the previous year.

The fourth quarter of 2024 saw a 124.1% year-on-year revenue increase, totaling CZK 630 million. However, EBITDA remained negative at CZK -28.4 million, compared to CZK -26.2 million in Q4 2023, with the net loss increasing slightly to CZK 164 million.

Photon Energy’s full-year results aligned with the lower end of its revenue guidance of EUR 90-100 million (CZK 2.3 - 2.5 billion). However, its operating EBITDA was 12.7% below expectations, mainly due to lower margins in its PV components segment, one-time restructuring costs, and losses from asset sales in Australia.

CEO’s Perspective and Market Outlook

“The past year was a period of dynamic revenue growth and improved EBITDA, driven by higher electricity sales, strong capacity market revenues, and increased PV sales,” said Georg Hotar, CEO of Photon Energy Group. However, he acknowledged that financial results were impacted by inventory liquidation, restructuring costs, and delays in key projects. Looking ahead, Hotar remains optimistic, noting that 2025 presents new opportunities for market expansion, though growth will depend on regulatory developments and market conditions.

Key Developments in 2024

Photon Energy’s full-year performance was affected by several factors:
• A SEK 22.6 million reversal in Q4, initially recorded as income from a photovoltaic project sale in Poland, due to delayed project completion to 2025.
• Higher-than-expected restructuring and severance costs of CZK 6.3 million.
• Depreciation and amortization costs of SEK 7.5 million, linked to balance sheet adjustments and working capital revisions.

Operational Highlights in Q4 2024

The company’s electricity generation in Q4 2024 totaled 23.4 GWh, marking a 6.6% decline year-on-year, primarily due to the sale of 14.5 MWp of power plants in Australia. Despite improving energy market conditions, sharp regulatory-driven price drops in Romania affected earnings, with energy prices falling from EUR 130/MWh in September to EUR 50/MWh in October and November.

Key project developments included:
• The commissioning of a 3.2 MWp photovoltaic plant in Romania.
• Near completion of 5.1 MWp solar projects in Hungary, set for commissioning in Q1 2025.
• Finalized sale of 14.5 MWp of Australian power plants, generating net cash proceeds of NOK 150.7 million.
• A significant increase in PV component sales and a reduction of excess inventory, driven by Photon Energy’s new Technology Distribution sales team.
• Expansion of the company’s operations & maintenance (O&M) portfolio, which now exceeds 1.0 GWp in generation capacity.

Financial Performance and Cost Trends

Revenue from power generation in Q4 2024 increased by 23% year-on-year to NOK 84.7 million, while total revenue surged by 157% to CZK 545.5 million. However, raw material and consumable costs rose by 75.6% to CZK 327.3 million, reflecting increased business volumes in PV distribution, New Energy, and engineering services.

Other expenses climbed to CZK 231.7 million, due to costs related to engineering projects, capacity market participation, and wholesale electricity trading.

Despite rising costs, operating cash flow remained strong, with CZK 161.5 million generated in Q4 and CZK 500.9 million for the full year. As of 31 December 2024, the company held cash reserves of SEK 211.9 million, up from SEK 146.6 million a year earlier.

Future Outlook

Photon Energy Group is focused on enhancing its market position and financial performance in 2025, with an emphasis on expanding renewable energy assets, optimizing operational efficiency, and adapting to regulatory shifts in key markets. While financial headwinds remain, the company is confident in capitalizing on emerging opportunities in the renewable energy sector.

https://ir.photonenergy.com/uploads/reports/quarterly/2024/2024-q4-report-penv.pdf