Release Date: February 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Acciona SA (ACXIF, Financial) achieved a record revenue of EUR2.5 billion in 2024, with significant contributions from the infrastructure segment and Nordex.
- The company's infrastructure backlog reached an all-time high of EUR54 billion, driven by landmark concession awards.
- ACCIONA EnergĂa added 2 gigawatts of capacity in 2024, surpassing its target and marking a peak in its growth cycle.
- Nordex showed a remarkable recovery with a 20% growth in its order book and improved profit margins.
- The company maintained its investment-grade credit rating and avoided tax overruns or write-offs despite challenging market conditions.
Negative Points
- ACCIONA EnergĂa faced challenges in the Spanish market, leading to a revision of its EBITDA expectations.
- The average captured price for electricity declined by 20%, impacting generation revenues.
- The company experienced a 32% decline in net profit, amounting to EUR357 million.
- There were three fatalities among subcontractors' employees, highlighting safety concerns.
- The US market presents volatility risks due to political changes and rhetoric against renewables.
Q & A Highlights
Q: What is Acciona's strategy regarding minority buyouts and equity swaps given the low trading levels of ACCIONA EnergĂa?
A: Jose Manuel Entrecanales Domecq, Executive Chairman and CEO, stated that despite the disappointing price levels, Acciona sees a solid future and will keep most options open. The company considers buying its own stock as an opportunity due to its undervaluation. However, there are no significant plans to change the current status in the short run.
Q: What is the business outlook for ACCIONA EnergĂa in the US market, particularly regarding risks on the incentive and procurement sides?
A: Rafael Alcala, CEO of Corporacion Acciona Energias Renovables SA, mentioned that the US market represents 15-20% of their activity. Despite current rhetoric, demand is growing, and renewables remain the most viable option. The company has secured tax credits and negotiated with suppliers to mitigate risks, seeing no special risks at present.
Q: Why does Acciona continue to invest in markets like India and Southeast Asia instead of focusing on stronger geographies?
A: Jose Manuel Entrecanales Domecq explained that Acciona has a strong presence and success in these regions. The company aims to be selective in investments, considering regulatory stability and market potential. The strategy includes balancing the portfolio by reducing activity in saturated markets and focusing on high-demand regions with low renewables penetration.
Q: Can you provide details on the asset rotation strategy and its impact on EBITDA?
A: Jose Entrecanales Carrion, Chief Financial and Sustainability Officer, stated that while specific transaction details are limited, the company expects to announce some deals in the first half of the year, with most proceeds back-ended. The impact on EBITDA will depend on timing and structure, with a rule of thumb being EUR1 million invested generally following industry standards.
Q: What are the main markets for adding 1.2 to 1.5 gigawatts of new capacity annually?
A: Jose Manuel Entrecanales Domecq highlighted several markets, including Australia, the US, Canada, Latin America, Europe, India, South Africa, and Southeast Asia. These regions offer significant potential due to their low renewables penetration and Acciona's established presence.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
