28 February 2024

Soltec closes 2023 with an EBITDA of 56.5 million euros and a margin of 8.5% in tracker supply

Photovoltaic plant with Soltec trackers
  • The group is strengthening its position in the United States, which already accounts for 26% of revenues and is expected to reach 50% of sales in the coming years
  • Consolidated revenues for FY 2023 reached 587.2 million euros with consolidated EBITDA of 56.5 million euros and an EBITDA margin of 9.6%
  • In the fourth quarter of the year, consolidated revenues reached 283.1 million euros with a consolidated EBITDA of 55.9 million euros and an EBITDA margin of 19.7%
  • The company supplied 4.3 GW of solar trackers in the year, reaching a track record of 20 GW since it began operations in 2004
  • The gross margin of the solar tracker business rose to 26% with an EBITDA margin of 8.5% in 2023
  • Soltec takes a further step in its strategic evolution and structures its activity in the tracker and energy businesses, moving towards specialization
  • The company appoints Mariano Berges del Estal as COO and plans to update its business plan during the year

Soltec, a vertically integrated company dedicated to photovoltaic projects, has released this morning its financial results for the FY 2023, after closing a very positive fourth quarter, mainly in the tracker business.

In an international context in which renewables play a fundamental role in achieving energy independence and approaching decarbonisation goals, Soltec is gaining momentum in Europe, the United States and Latin America, confirming the good value proposition of the solar tracker, based on the increased energy efficiency of the product, enhanced by the company’s technological innovations.

Soltec’s consolidated revenues in the fourth quarter were 283.1 million euros (72% higher than in 2022), and for the full year, revenues amounted to 587.2 million euros (3% more than in 2022).

Thanks to the implementation of operational improvements in all its divisions, consolidated adjusted EBITDA reached 56.5 million euros, an increase of 73% compared to the previous year, and net profit amounted to 11.7 million euros.

The company is moving towards greater specialization, segmenting its business into two activities: the tracker supply (tracker division) and power generation (energy division).

In addition, the company has strengthened its operational structure with the appointment of Mariano Berges del Estal as Chief Operating Officer. Berges del Estal is a recognised executive and pioneer in the solar industry, who brings deep experience in the energy sector, a solid financial and operations background at a global level, as well as a valuable track record in executive management. His appointment contributes to strengthening the company’s management structure to meet the company’s growth challenges.

Soltec’s commitment to innovation and technological improvement continues reaping results, and throughout 2023 new products have been launched and optimized for the U.S. market, in addition to enhancing solar tracking algorithms such as “TeamTrack” or “bifacial tracking”, as well as defence algorithms, introducing a revolutionary algorithm against hail.

Raúl Morales, Executive Chairman, CEO and founder of Soltec:

The fourth quarter of 2023 confirms the strength of the demand for solar trackers globally, especially in countries with high solar irradiation, and confirms the good evolution of two of our main markets: Spain and the United States.

Together with the solid results at the end of the year, the trend observed in 2023 leaves us with some fundamental clues about the evolution of the business: i) the volume trend is particularly strong in the last part of the year, which boosts sales in the last quarter; ii) the good performance of gross margins in the tracker business; iii) the healthy regional mix from which our tracker supply volumes come, with the increase in the US market standing out strongly; iv) the favourable mix of our customers both in terms of nationality, as well as in terms of business.

In short, it is worth noting that, in an economic context that continues to be volatile, although clearly positive for those of us involved in renewables, we are materializing our business plan and becoming a leading player in the market, which will be able to generate more value for all its stakeholders thanks to a unique and specialized value proposition.

To strengthen this value proposition, we will be bringing our updated vision of our current business plan to the market, together with our new COO, Mariano Berges del Estal, over the year.

My view remains highly positive, thanks to the good situation of the sector and our ability to execute in our two business lines (trackers and energy), having outperformed the market consensus and reaching our commitment at a consolidated level“.

The solar tracker business (tracker division)

Soltec has supplied 4.3 GW of trackers in 2023, 19% more than in the previous year when the company supplied 3.8 GW. This brings the company’s track record to 20 GW since it began operations in 2004.

The tracker business stands out for its solid gross margins, reaching 26% in 2023, with EBITDA exceeding 48 million euros, representing a margin of 8.5%, compared to margins of 4.7% in 2022.

By region, the United States accounted for 26% of turnover, Europe (mainly Spain) for 35% and Latin America for 39%.

In terms of the operating indicators for the tracker business, backlog (signed contracts pending execution) amounted to 470 million euros for contracts including the trackers supply and other additional services. The pipeline (potential contracts not signed with a certain probability of execution) amounted to 16.8 billion euros.

The development and energy generation business (energy division)

Soltec ended the year with a pipeline of 13 GW of projects at different stages of completion in seven countries: Spain, Italy, Romania, Brazil, Colombia, the United States and Mexico.

From the pipeline under development, 1.4 GW of projects in various stages of development have been rotated in 2023, corresponding to projects in Colombia, Denmark, Spain and Italy, generating more than 9.5 million euros in 2023. In addition, these sales will generate earn-outs based on the fulfilment of development milestones in the coming years.

In terms of asset management, the company ended the year with 230 MW in operation, 25 MW of projects under construction, and 247 MW of projects that will enter the construction phase imminently.

Outlook 2024

The company expects tracker supply to be between 5 GW and 6 GW for FY 2024, with solid gross margins and EBITDA margins in the range of 6-7%.

During 2024, the company will carry out a strategic update of its two business lines