Soltec closes negotiation period with banks to safeguard its operating capacity

• The solar tracker business played a decisive role in Soltec’s financial improvement, closing 2024 with total revenue of €326.3 million, up 30.8% from the previous year.
• The lack of guarantees since May of that year slowed the contracting of new projects, affecting the growth rate in recent quarters.
• The divestment process in non-strategic businesses continues, aimed at strengthening liquidity and profitability.
• Soltec is immersed in a restructuring process and is in negotiations with financial institutions and suppliers, alongside a fundraising search, to reinforce its capital structure.
• The company received an extension to complete the restructuring of its debt until June 26.

Murcia, June 20, 2025.

Soltec presented its financial results for 2024 this Friday. During the year, the company achieved consolidated revenue of €326.3 million, representing a 30.8% increase over the previous year. The solar tracker business was the main growth driver, generating €310.5 million. This business line, considered strategic in the new business model, also posted adjusted EBITDA of €28.6 million, consolidating its operational strength and priority role in the company’s new approach.

Despite the challenges and complications the group’s financial situation caused at the operational level, throughout the year Soltec supplied 3.7 GW in solar trackers, consolidating its position as a leading international supplier and reinforcing its collaboration with top-tier utilities and independent power producers (IPPs), having fulfilled its commitments to customers.

Strategic reorganization of the group

As part of its reorganization process, Soltec drew up a new strategic plan aimed at ensuring its long-term viability and strengthening its business model, centered on its core activity, solar tracker supply, which has historically been a profitable business, with solid margins and a quality product in a market with attractive growth prospects.

As a first step, the company decided to wind down operations in its EPC (construction services) and AM (asset management) divisions, the businesses that have limited the group’s profitability and liquidity in recent years.

In 2024, revenue from the construction division — currently undergoing a divestment process — fell 46.7%, from €134.6 million in 2023 to €71.7 million. These activities posted losses of €46.1 million, being a high-risk, low-margin business, reinforcing the strategic decision to focus the business on more profitable segments. A similar situation occurred in the asset management division, which accumulated losses of €38.4 million and is also undergoing divestment, being a capital-intensive business with lower profitability and greater operational complexity.

In addition, the company launched a comprehensive cost optimization and restructuring plan across all areas and businesses. This program includes implementing best practices in operational control, internal reporting and treasury management, and encompasses more than 40 initiatives already identified aimed at improving business margins and contributing to sustainable, profitable growth.

The group’s consolidated result closed the year with a net loss of €205.8 million, affected by temporary impacts stemming from the situation created by the lack of liquidity and guarantees.

These financial difficulties had a significant impact on the company’s operations and caused a substantial reduction in expected contracts, the cancellation of already-signed projects in which much of the costs had already been incurred, supply chain blockages with resulting cost overruns and late-delivery penalties, and provisions or guarantee enforcements. Lastly, extraordinary accounting effects were recorded, mainly related to the impairment of operating plant value in Brazil and the write-off of deferred tax assets pending greater visibility on their future recoverability.

Financing needs

In this context, Soltec is immersed in a financial restructuring process and is in negotiations with financial institutions and suppliers to reinforce its capital structure. The company received an extension of the pre-insolvency deadline to restructure its debt until June 26, while continuing talks with the various creditors begun in September 2024.

Soltec faces a liquidity situation requiring an immediate response. The company has accumulated gross financial and commercial debt of €412 million, much of which falls due within the next twelve months. This financial strain jeopardizes short-term operational continuity and has already caused the loss of business opportunities, due to the inability to provide bank guarantees since May 2024.

In this regard, and as part of the restructuring plan, Soltec began a capital-raising process several months ago aimed at securing funds to help improve the company’s liquidity and implement the new strategic plan. This process is in its final stage, having received a binding investment offer from IME Spain General Partner, advised by DVC Partners. The proposal envisages a €30 million capital injection, after which IME Spain would hold 80% of the company’s shareholding. In addition, further liquidity will be provided through a debt instrument with an initial value of €15 million.

A viable company

Mariano Berges, CEO of Soltec, noted that “the results show we have a very different operational and financial reality. In terms of management, and despite the difficulties caused by the lack of liquidity, we managed to grow our sales. Our solar trackers lead the market and have established themselves as our main growth driver and our future guarantee.”

In this new stage, the new management team is fully focused on ensuring the company’s viability and capitalizing on the opportunities the market offers.

A more robust new capital structure is expected once the restructuring is complete, with significantly reduced debt, both financial and commercial, a new long-term amortization schedule and the availability of new guarantee lines that will allow Soltec to resume its bidding and project execution capacity, in line with its track record.

The global solar energy landscape remains favorable, consolidating as one of the leading renewable energy sources worldwide. The growing penetration of solar trackers is one of the key factors driving this energy source’s expansion.

In this regard, Soltec continues to position itself as one of the leading, recognized companies for its solar supply. It has a quality product, strong positioning and a solid presence in high-growth markets such as the United States, Brazil and the EMEA region. The company is also recognized for its innovation and efficiency capabilities, standing out for advanced solutions such as trackers for agrivoltaic or floating applications. With more than 21 GW installed in recent years, Soltec remains an international benchmark in the solar sector.