Primoris Services (PRIM) Q1 2025 Earnings Call May 06, 2025 10:00 AM ET Speaker0 Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to the Primoris Services Corporation First Quarter twenty twenty five Earnings Conference Call and Webcast. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call ...

Financial Data and Key Metrics Changes - For the second quarter of fiscal 2025, the company reported an NFEPS of $1.78 per share, an increase from $1.41 per share in the previous year, reflecting improved performance across various segments [22][10][12] - The fiscal 2025 NFEPS guidance has been raised by $0.10 to a revised range of $3.15 to $3.30 per share, exceeding the long-term growth target of 7% to 9% [10][12][30] Business Line Data and Key Metrics Changes - New Jersey Natural Gas showed higher utility gross margin due to a recent base rate case settlement, contributing significantly to the overall NFE [22][11] - Clean Energy Ventures reported higher NFE driven by the sale of its residential solar portfolio, which is expected to generate a net benefit of approximately $0.30 per share for fiscal 2025 [22][23] - The storage and transportation segment improved performance, particularly at Leaf River, contributing to higher revenues [22][10] Market Data and Key Metrics Changes - The company continues to see consistent customer growth in New Jersey Natural Gas, driven by new construction and system expansions, with a customer base predominantly residential [14][60] - The company has invested $254 million in New Jersey Natural Gas this year, with 46% of that CapEx providing near real-time returns [16][15] Company Strategy and Development Direction - The company emphasizes disciplined capital deployment, operational excellence, and strategic innovation across all business segments to ensure long-term sustainable growth [9][10] - The Clean Energy Ventures segment is diversifying its project pipeline, with a focus on avoiding overreliance on any single market or policy regime [19][20] - The company is proactive in managing energy affordability through various programs, including BGSS incentive programs, which have saved customers nearly $800 million over the last ten years [15][16] Management's Comments on Operating Environment and Future Outlook - Management highlighted that the current macroeconomic environment, particularly regarding tariffs, is being monitored closely, with minimal expected impact on operations due to domestic sourcing of materials [26][27][29] - The company remains well-positioned for sustained long-term growth, supported by a strong balance sheet and liquidity [29][30] Other Important Information - The company plans capital expenditures ranging from $1.3 billion to $1.6 billion for fiscal 2025 and 2026, aligning with its long-term growth targets [23][24] - The adjusted funds from operations to adjusted debt ratio is projected to range between 19% to 21% for fiscal 2025, maintaining financial flexibility [24] Q&A Session Summary Question: Timing and capital requirements for Leaf River expansion - Management indicated that the total capital costs for the Leaf River expansion are estimated between $175 million to $200 million, with no finite timeline set for advancing the project [34] Question: Cost exposure to tariffs for Clean Energy Ventures - Management acknowledged the fluid situation regarding tariffs but emphasized that existing contractual protections should mitigate potential impacts on project costs [37][38] Question: Expected economics of Leaf River compared to existing caverns - Management stated that the decision to build will depend on securing appropriate returns and contracts, with a focus on ensuring a clear understanding of construction costs [47] Question: Regulatory environment and affordability initiatives - Management expressed confidence in the regulatory environment following the completion of recent rate cases and highlighted ongoing efforts to maintain affordability for customers [50][52] Question: Customer growth fundamentals - Management noted that customer growth is driven by a strong service territory with high per capita income and ongoing energy efficiency programs [60][61] Question: Focus on the Energy Master Plan - Management mentioned that comments have been submitted regarding the Energy Master Plan, with expectations of a new plan following the gubernatorial election [66]

Financial Data and Key Metrics Changes - The company reported a revenue increase of 39% year-over-year, reaching $130 million, and adjusted EBITDA rose by 84% to $132 million [6][24][28] - Net income surged to $102 million, a 316% increase compared to $24 million in the previous year, largely driven by the Sunlight transaction [28][29] - The company reaffirmed its full-year guidance for 2025, expecting revenues between $490 million and $510 million and adjusted EBITDA between $360 million and $380 million [30] Business Line Data and Key Metrics Changes - Revenues from electricity sales increased by 21% to $110 million, attributed to new operational projects, with significant contributions from Atrisko and the Israel solar and storage cluster [24][26] - The Sunlight transaction contributed $42 million to adjusted EBITDA and $97 million to pretax profit, reflecting the higher valuation of the entire cluster [28][29] Market Data and Key Metrics Changes - The company secured financing of $1.5 billion for three major projects, demonstrating strong access to capital despite market uncertainties [9][29] - In Europe, there is rising demand for energy storage, with the company starting construction on 1.3 GWh of energy storage projects in Italy, Spain, and Sweden [12] Company Strategy and Development Direction - The company aims to triple its growth every three years, supported by a diversified supply chain strategy that mitigates tariff impacts [14][20] - The focus remains on meeting increasing energy demand from utilities across America, with a robust project pipeline [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business model and the ability to navigate changes in trade policies, with minimal impact on project economics [20][22] - The company is optimistic about the potential for revenue adjustments due to PPA negotiations, but currently does not foresee changes in guidance for 2025 [36][37] Other Important Information - The company has entered the standalone energy storage market in Poland, with 3.2 GWh under development [12] - A significant milestone was reached with the financial close for Country Acres and Quail Ranch, further supporting expansion plans [9][29] Q&A Session Summary Question: Potential for negotiations affecting revenue expectations - Management is optimistic about project results and does not foresee significant changes in revenue expectations due to PPA adjustments [35][36] Question: Update on CapEx negotiations and tariff impacts - Management indicated that negotiations are ongoing, with some contracts having automatic adjustments to mitigate tariff impacts [38][39] Question: Update on US pipeline qualifying for IRA credits - Management confirmed that projects under construction are fully covered by safe harbor provisions, with efforts ongoing for future projects [46] Question: Current financing environment - The company has successfully closed major financing transactions, indicating a resilient financing environment despite market challenges [49][50] Question: Tariff impact on non-Tesla sourced storage - Management stated that 20% of storage sourced from Chinese suppliers is protected through existing contracts and prior deliveries [51] Question: Sensitivity to tariffs from other countries - The company has a diversified supply chain strategy to mitigate risks from tariffs imposed on various countries [56][57] Question: Growth signs in Europe - Management noted strong demand for energy storage projects in Europe and ongoing development in Israel, particularly in agrosolar and data centers [58][60]

First Quarter 2025 Earnings Presentation 1 Legal disclaimer This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this present ...

Enlight Renewable Energy (ENLT) Q1 2025 Earnings Call May 06, 2025 08:00 AM ET Speaker0 Good day, and thank you for standing by. Welcome to the Enlight's First Quarter twenty twenty five Earnings Call. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jono Weiss, Director, IR. Please go ahead. Speaker1 Thank you, operator. Good morning, everyone, and thank you for joining our first quarter twenty twenty five earnings conference call for Enlight Rene ...

SolarEdge Technologies Nasdaq l SEDG Safe Harbor Use of Forward-Looking Statements and Non-GAAP Measures Statements contained in this presentation may contain forward-looking statements that are based on our management's expectations, estimates, projections, beliefs and assumptions in accordance with information currently available to our management. This discussion contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the ...

1Q 2 5 E A R N I N G S P RE S E N TA T IO DISCLAIMER 1Q25 EARNINGS PRESENTATION Forward Looking Statements May 6, 2025 Thi s presentation contains forward-looking statements that are based on our management's beli efs and assumptions and on informati on currently available to our management. Forward-looking statements inclu de informati on concerning our possible or assumed future results of operations, business strategies, financing and investment plans, competitive position, indu stry and regulatory envir ...

Financing to accelerate SolarBank's growth as an owner of solar power projects in the U.S.TORONTO, May 6, 2025 /PRNewswire/ - SolarBank Corporation (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) ("SolarBank" or the "Company") announced today that CIM Group ("CIM"), a real estate and infrastructure owner, operator, lender and developer, and the Company have entered into a Mandate Letter providing for up to US$100 million in project based financing for a portfolio of 97 MW of solar power projects located in the Un ...

Financial Performance - The company reported total revenues and income of $130 million for Q1 2025, a 39% increase from $94 million in Q1 2024 [5][27] - Net income surged to $102 million, reflecting a 316% increase compared to $24 million in the same period last year [5][33] - Adjusted EBITDA rose by 84% to $132 million, up from $72 million in Q1 2024 [5][34] - Cash flow from operating activities increased by 24% to $44 million, compared to $35 million in Q1 2024 [5] Revenue Breakdown - Revenues from electricity sales increased by 21% to $110 million, up from $90 million in Q1 2024 [27][30] - The company recognized $20 million in income from tax benefits, a 516% increase from $3 million in Q1 2024 [27] - Revenue contributions from new projects connected to the grid included $30 million from various projects, with significant contributions from Atrisco, Israel Solar and Storage Cluster, and others [28][30] Project Developments - The company sold 44% of the Sunlight cluster for $52 million, generating an additional $42 million in Adjusted EBITDA and $80 million in net profit for Q1 2025 [6][29] - The total portfolio consists of 33.4 FGW, with 8.6 FGW in the mature portfolio expected to generate annualized revenues of approximately $1.4 billion by 2027 [11][19] - The company has secured $1.8 billion in financing to support the construction of 4.7 FGW of capacity in 2025 [9] Geographic Revenue Distribution - Revenue distribution for Q1 2025 included $42.9 million from MENA, $51.4 million from Europe, and $34.8 million from the U.S., with the U.S. segment showing a 674% increase year-over-year [25][32] - Approximately 81% of operational capacity sells electricity under Power Purchase Agreements (PPAs), with 29% of power sold under inflation-linked PPAs [16] Operational Strategy - The company has effectively mitigated exposure to U.S. import tariffs through diversified procurement strategies, ensuring that projects under construction have no solar panel exposure under current tariff policies [3][8] - The operational portfolio is geographically diversified, with 44% of capacity in Europe, 29% in Israel, and 27% in the U.S. [16] Future Guidance - Total revenues and income for 2025 are projected to range between $490 million and $510 million, with Adjusted EBITDA expected between $360 million and $380 million [29][30] - Approximately 90% of electricity volumes expected to be generated in 2025 will be sold at fixed prices through PPAs or hedges [30]

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the **China Energy and Batteries** sector, particularly the **Energy Storage Systems (ESS)** and **PetroChina** [1][3]. Core Insights and Arguments 1. **Improved Economics for ESS**: The economics of Energy Storage Systems are improving, with a new era of long-duration ESS anticipated. This is expected to enhance the attach rate and duration hours, making them more competitive with China's benchmark on-grid tariff [9][11]. 2. **Arbitrage Opportunities**: Renewable energy trading is creating arbitrage opportunities for ESS, particularly during periods of low solar and wind generation, which leads to spikes in power tariffs [15]. 3. **Battery Degradation Impact**: Battery degradation is a significant concern that could negatively affect the economics of ESS. Control over degradation is crucial for maintaining favorable economics [17][19]. 4. **Forecast for ESS Deployment**: The annual incremental deployment of ESS in China is projected to increase by **23% CAGR** from 2025 to 2030 [26]. 5. **PetroChina's Gas Business**: PetroChina is positioned as a low-cost gas producer, with upstream costs maintained between **Rmb0.7-0.9/cm** (approximately **US$3.1/mmbtu**). This cost structure supports its role as a price-setter in the gas market [35][36]. 6. **Gas Demand Growth**: China's gas demand is expected to grow at a **CAGR of 7-8%** heading into 2030, driven by mandatory peak carbon targets [36]. 7. **Gas Price Reform**: The gas pricing scheme for PetroChina includes significant price hikes of **18.5%** for residential and industrial users during peak seasons, with a shift towards more unregulated pricing [64]. 8. **Retail Engagement Strategy**: PetroChina aims to increase its retail exposure to **40%** by 2035, which is expected to enhance margins [61]. Additional Important Insights 1. **Deflationary Cycle for Gas Import Costs**: The cost of imported gas is entering a deflationary cycle, which is expected to benefit PetroChina's margins [40][43]. 2. **Sensitivity to Oil Prices**: PetroChina's earnings per share (EPS) and dividend per share (DPS) are highly sensitive to fluctuations in oil prices, with projections indicating varying yields based on different Brent price scenarios [53]. 3. **Battery Prices and Exports**: The conference also touched on trends in battery prices and exports, highlighting the competitive landscape for battery manufacturers in China [74][78]. This summary encapsulates the key points discussed during the conference call, providing insights into the current state and future outlook of the energy and battery sectors in China, particularly focusing on the dynamics of ESS and PetroChina's strategic positioning.