Soltec will focus the future of its business on the supply of solar trackers to drive its recovery

• The company reported consolidated revenues of €236.5 M in the first six months of 2024.
• Meanwhile, Soltec is progressing in the implementation of its strategy, with a focus on the solar tracker supply business and the optimisation of its financial and operational structure. This follows a loss of €126 M in the first half of the year, with measures focused on efficiency, cash generation and sustainability.
• The company has a diverse and prominent portfolio, including leading international companies. Solar trackers constituted almost 80% of the company’s revenues in the first half of 2024, with €183 million, further consolidating the resilience of this sector and aligning with the strategic plan currently in place.
• In addition, Soltec is implementing a transformation plan that includes more than 45 specific actions applied to the eleven key areas of the company and aimed at optimising operating expenses, improving profitability and cash generation.
• Soltec’s board is firmly confident in refinancing the credit facility and obtaining the new line of guarantees.
• In parallel, the company is in talks with potential investors to strengthen the financial structure and boost the company’s future.

Madrid, 27 of february 2025. Soltec is set to direct its future business strategy towards the provision of solar trackers, with the objective of re-establishing its position as a leading entity within the photovoltaic sector. This strategic decision follows the achievement of consolidated revenues of €236.5 M in the initial six months of 2024, marking a 28% increase compared to the same period in 2023. Historically, the solar tracker business has been one of the most relevant and profitable segments of the company’s activity, having generated revenues of €183 million in the first six months of 2024.

Up to June 2024, Soltec has delivered 18.7 GW of solar trackers and has supplied more than 400 projects in 17 different countries, consolidating its position as a key player in the sector. This volume of activity is proof of its capacity and leadership in this business division, collaborating with the main utilities and independent power producers (IPPs) in the photovoltaic market.

Its customer base includes some of the largest companies in the sector, which together account for approximately 20% of global installed capacity, demonstrating the market’s confidence in its technology and expertise.

These results, and the growth prospects of the solar tracker market, reflect its operational strength and potential to return to growth.

Strategic focus on the solar tracker business

As part of its strategic plan, Soltec has decided to abandon less profitable sectors, such as construction and asset management, to focus on its core business, solar trackers. The company’s new roadmap aims to strengthen its liquidity position by optimising operations, management efficiency and cash generation. To this end, the company will focus on strengthening this line of business, which has maintained solid and profitable margins in recent years, ensuring long-term sustainability and growth. Soltec, with a range of products that are a reference in the sector, is committed to innovative and specialised solutions. Its focus on solar trackers reaffirms its commitment to technological development and innovation, which, together with its extensive experience and highly qualified teams, positions it as a key company in the market.

Financial optimisation and strategic plan 2025

Soltec is implementing a strategic transformation plan, with more than 45 actions focused on 11 key areas such as cash management, supply chain optimisation, restructuring of the commercial model or optimisation of the organisational structure, among others.

The company’s key objectives include strengthening its financial structure and liquidity, improving the management of its financial and operational commitments to ensure a more efficient and sustainable structure. The management team is also working on refinancing its credit facility and obtaining a new line of guarantees, which will allow the company to return to growth and reinforce its financial solidity in the run-up to 2025.

The objective is to optimise the structure of operating and financial expenses, as well as to correct the temporary negative impacts that have led to the €126 M loss recorded at consolidated level in the first half of 2024. This figure reflects the accounting impact of a comprehensive review of the company’s current risks and operations, and the necessary adjustments have been identified to ensure that the accounts accurately represent the financial reality of the company.

It should be noted that €126 M of the adjustments have no impact on the company’s cash flow. Specifically, €38 M of negative adjustments have been recorded by Soltec in relation to deferred tax assets (accumulated tax losses). Under normal conditions, these tax losses could be offset against future profits to reduce tax payments. However, due to the context of financial restructuring and for accounting prudence, these bases have been deactivated, and their loss has been accounted for.

Once the restructuring process is completed, these bases can be re-recognised as an asset and will contribute positively to future results. At a consolidated level, Soltec’s industrial activity has experienced losses of €50 million. A significant portion of these losses is attributable to the construction services sector, a business line that the company has chosen to exit due to its suboptimal profit margins and considerable operational risk. This sector has been draining profitability and cash generation from the solar tracker business in recent years. Concurrently, the operation and maintenance (O&M) business continues to operate, as it is a lucrative and valuable service for Soltec’s client base.

The losses also include cost overruns and the impact of potential penalties caused by delays in project execution, largely due to the company’s current financial situation because of timing mismatches between collections and payments and the limited availability of guarantees.

In the energy segment, the company incurred losses of €62.8m. Of these losses, more than €27m relate to the impairment of PV assets in Brazil, linked to two operational PV plants, Araxá and Pedranópolis, with a total of 225 MW. This adjustment responds to the restatement of the value of these assets, taking into account current market conditions and future cash flows generated. Furthermore, these projects were constructed in a context marked by cost overruns resulting from the global component crisis after the pandemic, which has led to their book value exceeding the current market value.

It is important to note that this impairment and its reflection in losses will not impact the company’s cash flow. The sale of these assets is part of Soltec’s portfolio rotation and optimisation strategy, which prioritises the less capital intensive, more profitable and efficient business lines.

Internationalisation will be key

Soltec, with projects in 17 countries, will continue to focus on internationalisation, promoting the businesses and geographies with the highest growth and profitability. One of the keys will be the United States, where the company generates around 25% of its business and where it plans to continue to grow, being one of the markets with the highest volume and expected growth.

The United States, EMEA (Spain, Italy) and Latin America (Brazil, Chile) will remain key markets for Soltec. The company’s solid presence and positioning in these countries, together with their growth prospects and high volume of activity, position them as strategic geographies, both for the supply of solar trackers and for the development of projects.

Strengthening the financial structure

Soltec is in negotiations to restructure the credit facility, which matures in September 2024, and the new guaranteed line, which will allow it to continue to execute its business plan. On the other hand, the company is focusing its efforts on more profitable and less capital-intensive businesses, with a view to maximising value creation and cash generation. In this context, it is implementing a process of orderly divestment of energy assets with the aim of repaying the loan with Incus, which will help to strengthen the Group’s financial structure and reduce ongoing financial costs. At the same time, the company is in discussions with potential investors who share the company’s long-term strategic vision and who will help to strengthen the financial structure and future of the company.

Innovation

Soltec will continue to strengthen its commitment to innovation and promote technologies that minimise environmental impact. A pioneer in the development of 2P and 1P solar trackers, the company will continue to be at the forefront of the energy transition, developing ground-breaking products such as trackers for floating and agricultural applications, which will also influence the growth of the solar tracker market.

A pioneer in technological innovation, the company has advanced solutions such as Diffuse Booster and TeamTrack, which significantly improve annual energy production. The Diffuse Booster algorithm, based on sensors and integrated weather forecasting, can increase production by up to 5.3% during activation in Mediterranean and tropical regions, and by 6.9% in higher latitudes under cloudy conditions. TeamTrack optimises annual production by up to 6.2% compared to conventional systems through topographical analysis and anti-shading strategies, without the need to install additional sensors.

Among its innovations, Soltec offers cutting-edge disruptive solutions, such as FLOTUS, the first floating solar tracker, and technologies adapted for agricultural applications, highlighting its commitment to the global energy transition.

The company will continue to develop advanced algorithms and AI-based solutions, such as machine learning, for predictive maintenance of PV plants, optimising their performance, reducing downtime and reducing the need for manual interventions.