Altus Power Inc (NYSE:AMPS), a leader in solar energy solutions, has reported a significant increase in its financial performance for the third quarter of 2023. The company's operating revenues saw a substantial 48% rise, reaching $45.1 million, primarily driven by the successful completion and acquisition of additional solar energy facilities.
The green energy firm also marked a remarkable turnaround in profitability, with GAAP net income reported at $6.8 million. This is a notable improvement over the net loss of $96.6 million recorded in the same quarter the previous year, which was largely attributed to changes in the non-cash remeasurement of alignment shares.
Further financial highlights from the quarter include:
- A 50% increase in Adjusted EBITDA to $29.1 million.
- A steady Adjusted EBITDA margin of 64%.
- Net Cash Provided by Operating Activities climbed by an impressive 82%, amounting to $23.6 million.
Altus Power has maintained its positive outlook for the year, reaffirming its adjusted EBITDA guidance for 2023, which is projected to be between $97-103 million. This figure represents an approximate 70% growth compared to the previous year.
In line with its growth strategy, Altus Power has entered into an agreement to acquire 121 megawatts (MW) of solar assets for $120.4 million, aiming to expand its operations within North and South Carolina. Moreover, the company is on track to complete construction of approximately 75 MW of new assets by the end of this year.
Innovation remains a key focus for Altus Power as it unveiled Altus IQ, an AI-powered carbon accounting platform designed to assist businesses with sustainability efforts. The company's total installed portfolio reached approximately 721 MW by the end of the quarter, with trailing twelve-month generation surpassing 730,000 megawatt-hours. This achievement has enabled clients to avoid over 517,000 metric tons of CO2 equivalent emissions.
Co-CEOs Gregg Felton and Lars Norell expressed their confidence in Altus Power's trajectory and resilience amidst challenging market conditions. They highlighted the record growth in adjusted EBITDA and operating cash flows demonstrated by the Q3 results as evidence of the company's strong performance.
The financial statements reflect increases in cost of operations, general and administrative expenses, and depreciation, amortization, and accretion expenses—trends consistent with the company's expansion efforts. Nonetheless, operating income showed a slight improvement to $10.8 million for Q3 2023.
As of September 30, 2023, Altus Power's balance sheet boasted total assets of $1.78 billion, up from $1.37 billion at the end of 2022. The company also reported cash and cash equivalents of $68.2 million and total equity standing at $503.1 million, positioning it well for future growth and investment opportunities.
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