SolarBank Announces Second Quarter Results

Core Insights - SolarBank Corporation reported a decrease in total revenue for the six-month period ended December 31, 2024, amounting to CAD 20.1 million, down from CAD 26.3 million in the same period of 2023 [6][7] - The company experienced a significant increase in gross profit, reaching CAD 5.9 million, or 29.2% of revenues, compared to CAD 4.8 million, or 18.4% of revenues in 2024 [7] - Adjusted EBITDA rose to CAD 2.4 million from CAD 0.3 million in 2024, indicating improved operational performance [7][18] Financial Performance - Total revenue for the six months ended December 31, 2024, was CAD 20,101,585, a decrease from CAD 26,325,066 in 2023 [6] - Cash flow from operating activities decreased to CAD 1,305,247 from CAD 26,655,009 in 2023 [6] - The company reported a net loss of CAD 1,857,441, or CAD 0.06 per basic share, compared to a net income of CAD 2,023,461, or CAD 0.08 per basic share in 2023 [6][8] Revenue Breakdown - Independent power producer (IPP) revenue increased significantly from CAD 0.1 million to CAD 5.4 million during the period [7] - Revenue from Engineering, Procurement, and Construction (EPC) contracts was lower as the company sought partners for advanced projects [5] - A notable transaction of USD 49.5 million with Qcells was secured for the sale and construction of four solar projects in New York State [7] Asset Growth and Financing - The company's assets grew by 372% to CAD 185.3 million following the acquisition of Solar Flow-Through Funds Ltd., compared to CAD 39.2 million at June 30, 2024 [7] - Current assets increased to CAD 33.6 million from CAD 17.6 million as of June 30, 2024, primarily due to the acquisition [8] - A CAD 25.8 million project finance facility from the Royal Bank of Canada was announced to support the development of two battery energy storage system projects [7] Strategic Outlook - The company is focused on expanding its independent power producer assets, which provide stable recurring revenue under long-term contracts [5] - Approximately 145 MW of projects are expected to reach notice to proceed within the next 12 months, indicating ongoing growth in project development [7] - The company aims to maximize returns through a diverse portfolio of renewable energy projects across North America [19]