Good afternoon, everyone. I would like to take a moment to introduce myself. My name is Mariano Berges, and I have been acting as CEO of Soltec since June 2024. I'm here today with our CFO, Andrés Carretero, who joined Soltec also in July 2024. Before diving into the details, I want to sincerely apologize for the delay in presenting our financial results corresponding to the first semester of 2024. We fully understand the importance of transparency and the trust that our stakeholders place in us. This delay was necessary to ensure that our financial statements reflect our situation with complete accuracy and rigor. Today, we will provide a clear and comprehensive overview of our financial performance, the challenges we are facing, and most importantly, the strategic plan we are executing to ensure long-term growth and stability. Soltec was a vertically integrated company operating across the entire value photovoltaic chain.
Our business was structured into two main areas: industrial and energy. Within the industrial division, we have the tracker business, who has represented 80% of the revenues for the first semesters of 2024, totaling EUR 183 million. Also, we have EPC and O&M services. This has represented, in this first semester of 2024, 16% of our revenues, with a total of EUR 38 million. We have our own business that provides comprehensive service offering for managing and maintaining solar plants that covers actually 1.8 GW and accounts for 4% of our revenues, totaling EUR 9 million in this first semester of 2024. On the energy part, we have two areas: the development and the asset management. On the development side, we take care of originating and take from early stage to ready-to-build status PV plants across our core regions.
In the H1 of 2024, we were able to rotate 400 MW in Brazil. The asset management business, basically, we operate our solar assets mainly in Spain and Brazil, with 240 MW currently under operation. Until now, our approach was based on vertical integration, covering all stages of the solar project lifecycle. However, after a thorough strategic review, we have concluded the need to refocus our business on our core strength, that is, solar trackers. Our new strategy moves away from a fully integrated model and towards a focus on core business approach. This means solar trackers will be the anchor of our business. This is a profitable, scalable, non-capital-intensive, and high-value segment where we have deep industry knowledge, proven track record, and an established position in core growing regions and technological leadership.
Project development will support our growth, ensuring a strong pipeline of projects that will fit into our tracker business. Operation and maintenance will complement our core activity, offering added value to our customers and reinforcing long-term relationships. This transformation is designed to focus on optimizing operating costs to enhance margins, improve cash generation, and financial management, and transition towards a non-capital-intensive business model. By focusing on our stronger and most profitable business areas, we will reinforce Soltec's financial stability and long-term sustainability, ensuring we continue to be a key player in the solar industry. As part of our strategic transformation, we have reinforced our management team, combining extensive industry expertise with in-house experience. This new leadership structure is key to executing our strategy, optimizing operations, and reinforcing Soltec's market position. At the same time, we are implementing a new regional strategy based on independent business units.
Each region, EMEA, Americas, and LATAM will operate going forward with more autonomy, managing its own P&L, cash flow, and financial balance. This new structure will allow us to adapt more efficiently to local market dynamics, strengthen decision-making, and ensure financial sustainability in each geography. This combination of strong leadership and an independent regional structure will allow Soltec to be more agile, financially robust, and better positioned for long-term success. We are focusing on solar trackers because this is where we have the strongest experience, the greatest competitive edge, and the best opportunities for stable and profitable growth. There are three key reasons why this is the right move. First, our industry track record. We have delivered almost 19 GW of solar trackers, and we have worked with many of the world's leading utilities and IPPs who have developed 20% of the global installed PV capacity till now.
Second, the quality of our products and ability to innovate. We pioneer two key solar trackers and continue to develop disruptive and innovative technologies like floating solar and agrivoltaics. Third, our strategic market position. We operate in high-growth regions for trackers like the U.S., Brazil, Colombia, Chile, Spain, and Italy, with deep knowledge of local regulations and a strong commitment to local content requirements. This is what we know best, where we create the most value, and how we will ensure Soltec's long-term profitability and leadership in the industry. With that, let me pass the floor to Andrés, who will guide us through the key financial results for the H1 of 2024.
Good afternoon, everyone, and thanks, Mariano. It's a pleasure to be here today to walk you through Soltec's financial results for the H1 of 2024. First, I would like to acknowledge that the last months have been a challenging period for the company. However, we are implementing the necessary steps to address these challenges and restructure our financial position, preparing Soltec for long-term stability and growth. Before going into the details, I would like to structure the presentation of our financial results in a way that makes them easier to understand. Given the complexity of our business, we will break down the numbers into three key levels. First of all, the overall results for Soltec Power Holdings, which are the consolidated financials, including all the business units together. Second, the industrial division covering trackers, EPC, construction services, and O&M.
Third, the energy division, which includes project development and asset management. With this breakdown, we aim to give you a clear picture of the performance of each business unit and the factors that are driving and impacting the financial results for this period. Now, let's take a look at the key financial figures, starting with the consolidated accounts. Revenues reached EUR 237 million, marking a 28% increase compared to the same period in 2023, when the company recorded EUR 184 million. Adjusted EBITDA was negative at EUR 6 million, showing an improvement from the negative EUR 10 million recorded in the H1 of last year. However, the net result shows a loss of EUR 126 million, mainly due to some accounting adjustments, asset impairments, and losses in our construction business.
Additionally, the results have been impacted by potential liquidated damages accrued as a result of the operational challenges and project execution delays, which we will explain further on shortly. As Mariano previously explained, our business is structured in two main areas. The first one, the industrial business, which includes trackers, EPC, construction services, and O&M. This unit generated EUR 231 million in revenue, but it was impacted by losses mainly attached to the EPC business, which is a business that the company is in the process of discontinuing due to the very low margins and high operational risks that have been dragging cash and profitability over the past years. Additionally, this business unit was impacted by penalties accrued in relation to project execution delays that have been driven by temporary cash flow imbalances, which the company is actively working to resolve.
We have the energy business, which covers project development and asset management activities. Revenues were EUR 6 million, but this segment recorded big net losses mainly due to the impairment of the energy assets in Brazil, which we will explain further in more detail. One additional factor that impacted our financial net results is the close to EUR 40 million loss of deferred tax assets. Under normal business conditions, this would be used to offset future profits, but as a precautionary measure, given the restructuring process the company is undertaking, we have provisioned them as a loss for the moment. Once the company goes back to normal operations and stability, these tax credits should be activated again.
Finally, it's important to mention that there are close to EUR 30 million in structural costs that are not directly allocated to any specific business unit and that are included in the overall consolidated financial results of Soltec Power Holdings. These costs are capturing mainly corporate expenses, overhead, and other company operating expenses, and we will be optimizing the future as part of the strategy going forward. Now, if we take a closer look at our industrial division, which includes tracker, construction services, and O&M, we can see that the revenues in this segment reached EUR 231 million, which means an increase from the EUR 175 million in the H1 of 2023. However, the EBITDA was negative at EUR 22 million, mainly due to the losses in the EPC business.
The net result for the industrial division was a loss of EUR 50 million, which is mainly driven by the following temporary impacts.
First, the significant losses of the EPC business, which recorded a negative EBITDA of close to EUR 30 million. This business unit will be discontinued, as we've already commented, given that it's a high-risk and low-margin business that does not fit and align with our strategic focus on profitability and financial stability going forward. Second, the impact of liquidated damages related to project execution delays, which has been driven by cash constraints that are impacting the supply chain overall. Third, the allocation of part of the deferred tax asset loss, which has been provisioned as a precautionary measure for the time being, until Soltec finalizes the restructuring process. This prudent approach ensures that our financial statements reflect the current situation, but these tax credits should be reactivated once our financial position and growth is stable.
Despite these temporary challenges, our tracker business remains strong and profitable, which reinforces our decision to focus on this segment as our core and anchor business going forward. If we look to the tracker business on a standalone, isolated from the construction unit, we can see that the business generated EUR 183 million in revenue, with an EBITDA of EUR 28 million and a net profit of EUR 21 million. This result includes one of the impacts related to the current cash constraints derived from the bill and hold contracts that were signed at the end of 2023, which led to cost overruns and penalties for project execution delays. If we exclude these temporary impacts from the operating results, the resulting figures demonstrate the strength and the underlying performance of a tracker business.
We can see that revenues would have been EUR 187 million, which are slightly higher than reported, and the EBITDA figures would have been close to EUR 33 million. These numbers are not including the overall structural costs that we previously mentioned that are not currently allocated to any specific business unit. This outcome, as we've already mentioned, reinforces our strategic decision to focus and double down on trackers, where we have a strong market position, deep industry expertise, and a competitive advantage. By focusing on a high-value and capital-efficient business model, we will strengthen Soltec's financial position and long-term sustainability. Next, we move on to the energy division, which includes project development and asset management, and where asset impairments have had a significant impact on the financial results. Revenues reached EUR 6 million, reflecting the positive impact of the development project rotation strategy.
Adjusted EBITDA was negative at EUR 34 million, mainly due to the asset impairments, specifically in relation to Araxá and Pedranópolis operating projects in Brazil, with a combined capacity of 225 MW. The adjustment in the book value of these assets is reflecting the lower-than-expected returns and a more conservative valuation of project future cash flows, aligned with current market conditions and environment. Both projects were built after COVID and therefore impacted by supply chain disruptions and inflation in construction and overall CapEx expenses. As a result of this, the final CapEx required to build the projects was significantly higher than expected, which impacted returns and led to an impairment in the book value according to current expected market value.
This adjustment ensures that our financial statements are reflecting accurately the fair value of the energy assets and aligns with our strategic decision to exit the asset management division, given that it's a capital-intensive business with lower-than-expected returns and therefore does not fit and align with our current focus and strategy. The net results of this energy division show a loss of EUR 52 million, reflecting the high cost of a debt facility, which the company entered to finance the asset management division a few years back. Additionally, this result includes a proportional share of the deferred tax asset loss, which, as already mentioned, we have provisioned in the financial results as a precautionary measure due to our ongoing restructuring process. As explained above, part of the company's strategy to enhance the financial structure and cash management is to divest over time the asset management business unit.
This activity is capital-intensive, with lower-than-expected returns, and does not fit with our focus on a high-value and capital-efficient model going forward. In this sense, the company will gradually rotate and sell all existing construction and operating assets, ensuring an ordered and value-maximizing process. In parallel, the company will retain the project development activity, as it plays a key role in feeding the pipeline for our tracker business, which will create additional commercial opportunities and strengthen our market position. As explained, these financial results reflect the current complex period for Soltec, but they also mark the turning point for the implementation of a new strategy and transformational plan. We have a clear roadmap and a defined strategy to drive sustainable growth focused on core region, on core business, operational efficiency, and financial stability. With this, we conclude the financial review.
I'll hand it back to Mariano, who will now walk you through our strategic roadmap and next steps.
Thank you, Andrés. Now, I would like to walk you through an update on the key operational indicators for each of our divisions. It is important to note that our current financial restructuring process has inevitably impacted on some of these metrics, particularly in areas requiring capital deployment and project execution. However, despite this temporary challenge, we are confident that once this process is behind us, our strong track record and industry position will allow us to regain momentum and reinforce Soltec's role as a key player in the solar market. Let's start with our track record and market position in the tracker business. Soltec has built a strong reputation in the solar tracker market, with a demonstrated ability to scale, deliver, and maintain long-term relationships with the industry's leading players.
Until the H1 of 2024, we have installed over 19 GW of solar trackers, with an average annual growth rate of 58%. We serve top-tier utilities and independent power producers worldwide. Collectively, our clients account for approximately 20% of the world's installed PV capacity today. While the current restructuring process has impacted our operations, our technology, market position, and strong client relationships continue to be key competitive advantages. Once we stabilize our financial situations, these fundamentals will allow us to accelerate sales and regain momentum. The demand for solar energy continues to grow, and we are confident that Soltec will remain a trusted partner for large-scale solar projects worldwide. With a clear strategy and a solid customer base, we are preparing for sustainable growth and long-term success. In regard to our backlog and pipeline, our financial restructuring has inevitably had an impact.
Without financial guarantees and given the operational challenges we have faced, we have focused on completing the projects we already had in execution rather than taking on new commitments. As a result, our backlog is lower in the short term, but this approach reinforces trust with our clients and ensures that ongoing projects are successfully delivered. At the same time, we have continued to build a strong pipeline, prioritizing medium and long-term opportunities in our key markets. This strategic focus positions us well for future growth, ensuring that once our restructuring is complete, we will have a robust set of potential projects ready to materialize. While the backlog reflects temporary challenges, our pipeline demonstrates our ability to secure opportunities that will drive Soltec's future. Another of our key strengths is innovation.
At Soltec, we are not just a tracker manufacturer; we are a technology-driven company committed to developing cutting-edge solutions that maximize energy efficiency, adapt to diverse environments, and reduce costs for our clients. Our broad product portfolio includes both 1P and 2P trackers, ensuring adaptability to different project needs, from large-scale utility plants to challenging terrains. We integrate advanced tracking algorithms that optimize solar capture, improving energy output and increasing project profitability. Additionally, our trackers are designed with market-specific adaptations, such as solutions tailored for the U.S. market, where we comply with local regulations, adapt to extreme weather conditions, and enhance wind resistance through robust engineering. We have designed flexible and innovative solutions tailored to the most demanding conditions, from rock terrains to agrivoltaic applications and floating solar. Soltec's engineering expertise ensures that our trackers perform efficiently regardless of the environment.
Our solutions not only maximize energy production, but also optimize land use and reduce installation costs, making solar energy even more competitive and accessible worldwide. We have designed flexible and innovative solutions tailored to the most demanding conditions. Soltec's energy division plays a key role in supporting our tracker business, ensuring a strong project pipeline while maintaining a low capital-intensity approach through co-development models. With a 10.3 GW pipeline across five countries, our strategy remains to rotate assets as to ready-to-build status, securing a right-to-match for tracker supply while generating returns. As part of our strategic transformation, we are exiting the asset management business and will gradually sell our operational assets, prioritizing value maximization. Meanwhile, we will continue developing projects efficiently through partnerships, reinforcing our core focus on solar tracker manufacturing. This shift strengthens Soltec's financial flexibility and long-term growth potential.
We have already covered the financial results in detail, so I will move quickly through this section and pass it over to Andrés to discuss some key financial aspects. We'll go through the next slides briefly as they summarize information we have already explained and move directly to the cash flow and debt position, which are key areas of focus of the company. Andrés, over to you.
Thank you, Mariano. I think we can move on to the cash flow slide. Now, as Mariano mentioned, we're going to take a closer look to our cash flow and debt position, which are central and key to our financial strategy going forward. In terms of cash flow, Soltec remains fully committed to strengthening cash flow generation, liquidity, and maintaining financial discipline.
As of the end of June 2024, our cash and cash equivalents stood at EUR 26 million compared to the EUR 32 million at the beginning of the year. The company is currently actively looking to implement cash optimization initiatives, improving working capital management, financial discipline, and prioritizing cash generation to enhance liquidity and support financial stability. Regarding the syndicated loan and the restructuring process, as the company already disclosed at the end of September 2024, the revolving credit facility that we have with a syndicate of lenders was accelerated in September 2024, given that one of the lenders decided not to extend the maturity to the end of November 2024. Accordingly, the company initiated the negotiations with the lenders to reach an agreement and restructure the debt.
The company has been granted an initial extension for the restructuring process until March 2026 , and discussions with lenders are progressing constructively.
Our target is to reach an agreement that aligns with our strategic plan and ensures financial stability as we move forward. All these efforts are part of our broader plan to restore confidence, improve efficiency, and position Soltec for future growth. On top of that, the company is actively seeking a strategic partner aligned with our long-term vision in order to help us strengthen our business, provide financial stability, and support the consolidation of Soltec leadership in the solar industry. Our main objective with all these financial initiatives is to successfully execute our strategic plan and ensure Soltec's long-term stability and growth. Despite the current challenges, our future is clear. We have a strong tracker business with a positive market outlook and growth prospects, a leading position, and a well-defined strategy to drive profitability and reinforce our financial position.
I will now hand it back to Mariano, who will take you through our strategic plan and the key steps that we are taking to shape the future of Soltec.
Thank you, Andrés. Now, I'd like to walk you through our strategic plan, which will guide Soltec's transformation and position the company for sustainable growth. We have gone through a challenging period, but we remain confident in our core tracker business, our technology, and our market position. Our plan is clear. We focus on our most profitable and scalable segment, that are the solar trackers, while optimizing our operations and strengthening our financial structure and capitalizing on market opportunities. This strategy is built on five key pillars, which I will now explain in detail. First, we are streamlining our business to focus on what we do best: solar trackers, and it's what's most profitable.
This means discounting capital-intensive activities like EPC and asset management, which will allow us to optimize costs, improve cash flow, and transition to a more scalable and profitable model. However, this does not mean stepping away entirely from key complementary activities. Project development will continue, but under a low capital-intensive model, leveraging our existing expertise and teams to build a strong pipeline for trackers. Likewise, we will maintain our O&M services, as they provide significant added value to our clients by ensuring long-term project performance and customer loyalty. This shift not only strengthens our financial position, but also ensures that we preserve the strategic activities that directly support our core business. With almost 19 GW installed worldwide, Soltec has built a strong reputation as a trusted partner for top utilities and IPPs. However, our goal is not just to maintain, but to strengthen this position.
To do so, we are enhancing product innovation, optimizing our supply chain, and reinforcing local manufacturing capabilities to reduce logistic costs and improve efficiency. While we dropped in 2023, our historical track record speaks for itself. Since 2012, we have ranked sixth globally, and in 2017 and 2019, we were among the top suppliers. Although 2024 rankings are not yet available, our objective is clear: to climb back among the industry leaders by capitalizing on our expertise and market strengths. Moreover, while we work to reinforce our competitive position, we do so in the context of a rapidly expanding solar market. Solar continues to be a dominant renewable energy source, and over 75% of new capacity additions between 2022 and 2028 are expected to incorporate trackers.
This is especially true in key regions where we operate, such as the U.S., Europe, and Latin America, where developers are increasingly turning to tracking systems to boost energy output and improve project economics. As the adoption of trackers rises, Soltec takes the opportunity to capitalize on this trend. With our proven expertise and high-performance tracking solutions, we are well-positioned to capture this growth and reinforce our leadership in the sector. We will target the markets, prioritizing the most attractive opportunities for us to maximize growth. We are concentrating on markets where we hold a competitive advantage. The U.S. is our top priority, offering high demand and a strong regulatory framework. Spain, Italy, and Brazil will continue to be key hubs, driven by favorable policies and large-scale solar expansion. Among these, the United States is particularly crucial.
We have been present there since 2015, installing over 3 GW of trackers and serving leading utilities and developers that account for around 19% of the country's installed PV capacity. To consolidate our positions, we are focused on achieving 100% local content requirements by 2026, developing strategic partnerships, and enhancing our product offering to align with U.S. market standards. Strengthening collaboration with key developers and maintaining our specialized 2P tracker model will also be central to our success. Despite external pressures, Soltec's tracker business has consistently demonstrated strong margins. Leading industry players maintain gross margins above 30%, and market fundamentals remain solid, supporting efficiency gains and cost reduction. Although our margins have faced some short-term challenges, we have a clear roadmap to reinforce profitability. By optimizing our supply chain, tightening cost control, and implementing value-driven commercial strategies, we are strengthening Soltec's long-term financial performance.
Despite external pressures, Soltec's tracker business has consistently demonstrated a strong margin. Leading industry players maintain gross margins above 30%, and market fundamentals remain solid, supporting efficiency gains and cost reductions. Although our margins have faced certain challenges, we have a clear roadmap to reinforce profitability. By optimizing our supply chain, tightening cost control, and implementing value-driven commercial strategies, we are strengthening Soltec's long-term financial performance. To successfully implement this strategy, we have launched a comprehensive transformation program consisting of 45 strategic measures focused on cost efficiency, financial discipline, and working capital optimization. The program is centered on reducing structural costs, renegotiating supplier agreements, and strengthening our balances through financial restructuring. These actions will ensure that Soltec becomes a leaner, stronger, and more competitive company in the long term. Soltec innovation is a core pillar of our strategy.
We differentiate ourselves by adapting to complex environments and developing pioneering technologies such as 2P trackers, which offer higher stability and adaptability, agrivoltaics, optimizing land use and sustainability, floating solar that expands solar opportunities in areas with limited land availability. Technologies not only enhance energy production and efficiency, but also allow us to expand into new high-growth markets with strong technical barriers. Before we wrap up, I'd like to take a moment to summarize our key takeaways and reinforce Soltec's vision moving forward. We have outlined a clear and focused strategy built around our core business, solar trackers, while maintaining strategic adjacent activities that add value. Our focus on the core business approach ensures that we maximize efficiency, optimize resources, and position Soltec for sustainable growth. Our vision is to lead the solar tracker market with innovative, high-quality solutions tailored to meet the evolving needs of the industry.
We remain committed to financial discipline, operational excellence, and customer-centric innovation. We have a strong market position, a clear plan, and a solid execution strategy. With these elements in place, we are confident that Soltec is on the right path for long-term success. Before we close, I want to thank you all for your time and attention today. We have gone through our strategy, financial position, and market opportunities, and I hope this session has provided clarity on Soltec's path forward. We are confident in our focus on solar trackers, operational efficiency, and financial discipline to drive long-term success. Our commitment to innovation, strong customer relationships, and market leadership will continue to guide us as we execute this transformation. Now, we will be happy to take your questions. Let's open the floor for the Q&A. Good afternoon, everyone. I'm Mariano Berges, and we are collecting your questions.
Basically, most of them are asking when do we think that we are going to be trading back again. I would like to say that this is something that does not depend on us. We have already sent all the information to the regulator, and the regulator will have to decide at what moment to suspend, to continue the suspension, or to raise the suspension and to be back trading in the market. There are no other questions. We are receiving more questions, but basically, again, just asking when we are going to be back trading at the stock market. I already answered that. If there are no additional questions, we will finalize this Q&A. Thank you, everyone, for your attention today. Bye-bye.