Q3 2025 Arise AB Earnings Call Transcript
Key Points
- Arise AB (FRA:A4W) has a robust and complementary business model with three main segments: development, production, and solutions.
- The company has expanded its operations from Sweden to six different geographies, covering wind, solar, and BESS technologies.
- Arise AB (FRA:A4W) has a strong operating cash flow of SEK322 million for the quarter, driven by successful projects.
- The company is on track to meet its financial target of reaching a 10,000 megawatt pipeline by year-end.
- Arise AB (FRA:A4W) has a solid financial position with a strong cash reserve and access to a EUR40 million facility, enabling further growth and acquisitions.
- Net sales for the quarter decreased to SEK88 million, primarily due to lower revenue recognition within the development segment.
- The company reported a profit after tax of minus SEK9 million, or minus SEK0.18 per share.
- Revenue recognition for Project Fasicon is paused due to cost uncertainties related to the turbine supplier.
- The impairment test showed an excess value of EUR40 million, significantly lower than the EUR70 million from the previous year, mainly due to price curve adjustments.
- There is uncertainty regarding the completion of ongoing transactions by year-end, which could impact the company's ability to meet its 400 megawatt sales target for 2024 and 2025.
Welcome to the Arise Q3 report 2024. (Operator Instructions).
Now I will hand the conference over to the speakers, CEO, Per-Erik Eriksson; and CFO, Markus Larsson. Please go ahead.
Thank you very much. I will start with a brief introduction of Arise starting with, our three business segments. We have to the left, the development business. We have currently some 9,500 megawatts in our pipeline, closing the GAAP to 10,000 megawatts which is our financial targets to reach this year. We have since inception divested some 1,620 megawatts.
So that's the development business, our production business, IPP business. We have at the moment 172 megawatts in home production corresponding to an annual production budgeted on their production of some 430-gigawatt hours per year. And the third leg is our solutions business or services business. We have currently some 2,350 megawatts under management and currently 105 megawatts under construction for a second project.
We think we
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