Solaria Energía y Medio Ambiente, S.A.

Good afternoon, everyone, and welcome to Solaria 2026 First Quarter Results Webcast. My name is David Guengant, the Head of IR of Solaria.

I am joined today by Arturo Diaz-Tejeiro Larranaga, our Chief Executive Officer. During this call, we'll discuss our business outlook and make forward-looking statements.

These comments are based on our predictions and expectations as of today. During this presentation, we'll begin with an overview of the results and the main development during this period given by our CEO, Arturo.

And following this, we'll move on to the Q&A session. I would also like to highlight that you have to submit all your questions via the web.

Thank you very much again. I will now hand over the word to Arturo.

Thank you, David, and thank you to everyone joining this conference call. And as always, I will move extremely fast around the presentation, and we will go to the Q&A session.

And of course, we have started the year accomplishing with all of our targets. As you can see, we have improved our production, our revenues, our EBITDA number, our net profit.

It's like I think that we have improved versus 2025 in more than 50% all the numbers of the company. It's extremely -- I think it's enormous and exponential growth that will follow during the same reading the next quarters.

And probably we will achieve during 2026, a record from results point of view. And I think that first comment that is significant and is important is our guideline for the full year 2026 is EUR 330 million of EBITDA.

And my comment around this is that we have a strong level. We are extremely comfortable around this target.

I think that with this first quarter results, with this EUR 113 million of EBITDA, we are sending a clear message to the market that the target -- the EBITDA target for 2026 will be achieved. And of course, as you know, in the last 2 weeks, we have done a lot of -- we have made a lot of news that we have increased capital.

We have raised money for the growth of the company for the next years. We have raised close to EUR 300 million: EUR 180 million of shares raising capital and EUR 120 million that came from our own shares that we have sold.

We have achieved EUR 300 million of new money that we will use in the growth of the company in the next years, growth based on data center, especially infrastructure, digital infrastructure and artificial intelligence. And of course, we will start giving some guidelines about numbers and the things that will happen in the next quarters.

EBITDA, I have mentioned incredible growth, more than 50%. Net profit more than 50%.

Probably we will continue with this reading during the next quarters. And as I have mentioned, we are going to -- it's not the correct word, probably we are going to [ shore ] our EBITDA guideline for this year.

It's like we -- hopefully, we will have a great year during 2026. From capacity expansion, we have -- we are adding new capacity, new PV assets, at the same time, new batteries that is critical for us.

And probably, we will start with the construction of wind power. And from capacity, I think that last year, we achieved 3 gigawatts of capacity functioning.

We are extremely focused today in adding battery storage capacity. All of our assets will include battery that is strategic for Solaria and for the business plan for the future.

And we are in the process of hybridization of all of our assets. That is critical.

Investments. We continue with a strong investment.

This quarter, we made strong investment in different activities, especially as I have mentioned, in batteries, and we continue growing in storage and in PV generation. Under construction, we have today an enormous volume under construction, more than 1.2 gigawatts of capacity under construction.

We will add more as we will explain then during the presentation where we are, but focus obviously in Spain, Italy, Portugal, as we have explained in other presentations, and especially focus on batteries and wind activity. Batteries.

We have included here a slide mentioning the profitability of the batteries. It's not a secret.

Our estimation is that we are able to -- we have a project -- extremely high project IRR that gives to us the opportunity to recuperate all of our investment, all of our CapEx in less than 3 years. That is a really good number.

And our intention is to continue including in all of our assets, assets functioning, the 3 gigawatts new assets to include in all of our assets, batteries. And of course, I think that the new business, the new market is not based only in solar generation.

It's based on solar generation plus batteries. Today, the solar technology includes not only the daily hours of sun radiation, includes daily hours of sun radation plus night with batteries.

And this is a game changer in our view because it gives to us more capacity, and we are able to capture better prices with batteries. Flagship projects.

We continue constructing flagship projects. As you know, we are going to finish during this year, next year, Villaviciosa.

Villaviciosa is associated with a PPA of data center and it is one of our most ambitious projects in Europe, and hopefully will be connected during the next year and first half of next year. And our intention is to add to this complex, to Villaviciosa complex, to add batteries and to add wind in the future.

And as I have explained, Villaviciosa is linked with a PPA with Merlin Properties, a PPA for a data center that will be constructed in the area. I have mentioned one of the key points today is that we have raised EUR 300 million 2 weeks ago, and it was a great successful in the company.

Why? Because this money will be used for the growth, the significant growth that we will have during the next 3 to 5 years, and that will be focused on data center, artificial intelligence and batteries.

And I think that we have received -- we appreciate a lot the extremely high support that we have received from the market, from the stock markets. And we want to arrange an Investor Day in the second half of this year in order to explain new business that we will enter, new business, new contracts, new business models that we are going to show to the market.

And I think that our intention is to arrange to complete -- change completely the business model of the old Solaria. We want to pass through -- you know that at the beginning of Solaria, we work in manufacturing activities, then we go to a utility company, to an IPP company.

Now we are an infrastructure player involving different activities of the infrastructure business, and we will explain during our Investor Day. Of course, EBITDA target, I have mentioned.

You can imagine that the EBITDA target for 2026 will be achieved. And we have strong level of visibility, and we are comfortable, as I have mentioned.

And obviously, it's not a secret that we will achieve during 2026. I'm extremely worried about the future and the new guidelines that we should give to the market during our Investor Day in the second half of this year.

Of course, Capital Markets Day. We will arrange a Capital Markets Day in London probably in the third quarter, but we will say to the market.

And second half of this year, we are going to arrange the Investor Day. And we will give an update of our EBITDA guideline.

We will give an update about new business that we are going to enter and new contracts and new joint ventures. I think that it's more interesting now to go to the questions and to enter directly in the Q&A session.

And once again, thank you for your time.

The first question comes from Beatrice Gianola from Mediobanca. Can we provide more detail on the Infra business trend?

Specifically, does this segment already include the contribution from the data center agreement announced last year?

Yes, we have included contribution from data center agreement signed last year. I mentioned in the results presentation 2025 that our projection for the Infrastructure division could be EUR 70 million.

I think that we are going to stay in more than EUR 70 million. I think that we are signing new contracts.

We will explain to the market in the next quarters. Our data center business is functioning great.

And I think that new contracts will be reported and new cash generation will come from the data center business. I think that we have included in the first quarter a number of close to EUR 40 million globally in the infrastructure side.

And probably the worst quarter, if you talk about the full year's results, the worst quarter will be the first quarter that we are presenting today.

Next question coming from Beatrice is regarding the energy sales. Despite the additional capacity installed, energy sales increased by only EUR 3.5 million versus first quarter of 2025.

Is this mainly related to power price evolution? Or is -- are there other operational dynamics at play?

Additionally, how do we expect power prices to evolve over the coming quarters?

I think that it's a combination. Solaria is -- if you have followed other utilities that has presented results, Solaria is not an exception.

It's a combination of radiation, weather and capture price and both situation that has affected the numbers in generation. I'm extremely -- I'm positive about the future of prices of energy, especially associated with data center growth.

Probably, we are leaving the worst moment for generation, especially for solar from capture price point of view. I think that we are leaving the worst moment.

Probably in the future, we will see strong improvements on prices, especially if we add all the data center capacity that market is talking. And if we are able to connect not only solar globally, if we are able to connect close to 20 gigawatts of capacity that are warranted today, probably price of electricity could change completely, but it requires time.

It requires at least 3 to 4 years. At the same time, battery effect.

We are living because we are connecting -- we have connected during the last year, and we are connecting now new batteries. We are achieving great numbers.

We are using the batteries and the hybridization concept to improve solar capture price because today, as I have explained, we are not talking about solar prices. We are talking about solar plus batteries prices.

And the average price could be great. If you add batteries, you change completely the game.

And as I have explained, the key target for us during 2026 will be to add to all of our assets functioning to add batteries. And this is critical in order to warranty better prices of electricity.

Next questions come from Fernando Garcia from RBC. Following the entry of Stoneshield in the shareholder structure of GravyX in first quarter of 2026, how we expect the stand-alone battery business to evolve in the following quarters?

And the second question from Fernando is, could we comment about the potential entry in the shareholding of the DC joint venture with Telefónica and ACS?

GravyX, I think that we are extremely happy with this joint venture. I think that it will be a great -- one of the great successful of the company because we are going to grow not only in Spain or Italy, we are going to grow with them globally in the battery -- stand-alone battery business.

And I think that is one of the solutions for the European market, the stand-alone business, battery business, and we will be there. And during our presentation, our Investor Day, we will give strong surprises to the market associated with this.

We think that is one of the ways that we are going to follow for exponential growth in the next years. And batteries, I have explained in different occasions, in different conference calls, 2 business ways to add batteries to the standard PV installation, hybridization concept, is to add batteries in order to improve your final price, your final capture price.

And we are doing -- we are executing now, absolutely. And the other business way is the stand-alone battery concept.

And our platform that we have made and that we have signed with Stoneshield probably will be the key platform for Europe in the battery stand-alone business. And I think that in the second half, we are going to give really good surprises to the market associated with this.

About the joint venture. I'm not going to comment joint ventures that we still haven't signed or we haven't announced.

The company is working today in several contracts, several exciting contracts with key players, with key players that could change completely the face of Solaria and deep collaborations and joint ventures that will give strong support to our results in the next years. And you are mentioning a possible joint venture.

We are negotiating several joint ventures at the same time, all around data centers and artificial intelligence. As I have explained at the beginning, and hopefully, we are going to give really good news to our shareholders and really good surprises in the next month.

And during 2026, I think that it's an exciting year for us. We are going to make and to sign important contracts, and we are going to give really good announcements to the market.

And we are optimistic about the future, and we are optimistic about our partners. We are extremely happy and excited with our partners and our future partners.

Next question is coming from Arthur Sitbon from Morgan Stanley. Can we please indicate if data centers did contribute to revenue in first quarter?

I think we already answered to this question, yes. More than EUR 40 million.

Next question is coming from Philippe Ourpatian from ODDO. About the guidance in the slide, you mentioned that part of the solar project under construction will be COD in 2027 and not reaching the 4.3 gigawatts in operation in 2026.

How is this scope with the guidance maintained? Could we break down these moving parts?

Honestly, I think it's not critical. With the numbers that we are touching today, it's not significant, the generation.

Honestly, I think that Solaria today is an infrastructure global group and our revenues will come from all the divisions, all of our infrastructure divisions. It's not critical if the final connection of this 1 gigawatt will happen in the last quarter or in the first quarter.

But always, we'll try to do our best in order to connect as soon as possible, as always. But today, in the business, in the generation business, it's more important when we start with the PPA, when we start with the batteries, then when we start with only solar generation.

That is today, the price -- the capture price of solar is not extremely good. I think that the key point always is if you are adding the batteries, if you are including PPA and when you start with the supply of the PPA.

Next question comes from Gonzalo Bordona from UBS. First question is can we say -- can we provide detail on what is included in the EUR 50 million EBITDA from Infra in the first quarter?

How recurring is that? And second question is of the 4.3 gigawatts in operation under construction, how much is linked to PPAs already signed?

Of course, I think that it's not recurring. It's more than recurring.

It's we are going to add an enormous volume, normal volume, and this number that we are showing to the market is not significant if you compare with the future of the company. This is the key point.

It's not significant today, the first quarter results and the data center number that we are showing to the market. The key point is the future and the numbers that we are going to give to the market in the next quarter and next year.

And the volume that will come from the data center business activity is enormous. And about if it's linked with PPA.

As you know, approximately PPA, when you sign a data center deal, you need to cover the generation of the data center approximately double capacity than the physical connection that you offer to the customer. It's like if you sell to a customer 100 megawatts in connection, you need to sign a PPA of 200 megawatts.

With all the deals that we are touching, we are fully booked. It's like all of our generation will be linked with PPA for data center.

It's like today, we are worried about if we are able to link correctly all of our demand with generation business. And the PPA data center business is much better if you compare with the standard PPA.

It's much better, better prices, better conditions and limit time. It's like inflation.

The combination of all the things that we include in the contracts of data center, PPA data center is great because it's long term because the standard is 15 years, but we are obligated to extend after 15 years. It's like a limit time for the PPA.

If you cut the PPA contract, the data center lose the connection point. It's like they are obligated to continue with the PPA if they continue with the data center activity.

This is critical because it's unlimited time for the PPA. At the same time, price is completely different because you know that the self-consumption connection point, you save -- final customer save taxes and several costs in the standard invoice, electricity invoice.

It's like your PPA could be -- could include better price. You could share the profits of the self-consumption law with the customer.

It's like you are able to increase your final price in the PPA. And usually, you include inflation in all of your contracts.

It's like -- it's the perfect deal for us.

Next question is coming from Philippe Ourpatian from ODDO. Can we elaborate maybe not on GravyX and DCs that we already elaborate, but maybe on Generia, if we can elaborate something about Generia?

In Generia, we continue acquiring land, not only Solaria land, Solaria from third parties. We are growing with good reading.

And hopefully, I think that our intention is to close a global deal in the next quarters that could -- if we close the global deal that we are negotiating, probably we could achieve the business plan in advance. Our intention is during 2026, practically to close all the business plan of Generia in advance.

We will see.

Next questions come from [ Ken Chong ] from Bernstein. Can we provide more color on the DC revenue?

And if today's results change the guidance provided at the CMD? And second question is any more detail on which DC agreement define first quarter 2026results and EBITDA margin in this segment?

So first question is if we have to change the CMD guidance? And second, if we can give some color on EBITDA margin of this Infra business?

If we change the EBITDA guideline, it will be announced and will be explained to the market in our Investor Day. Obviously, as I think that after this call, even with my awful accent and English, you can understand perfectly that we are going to change our EBITDA guideline because, obviously, I think that in this kind of conference call, sometimes it's complicated to explain.

But I think that situation of the company is extremely good. We have cash.

We have contracts. We have customers.

We have a really good business that we have allocated, and we are in a good position. We have connection points for data center business.

We have really good customers, global customers from United States, from Europe. I think that in the Investor Day in London, we will explain our business plan.

But obviously, and this market is moving and is changing extremely fast, and we need to follow the wave. And obviously, you know in November, we gave this guideline to the market in November of last year.

I know that I'm talking in May, and I'm saying that we have a comfortable situation and that we have a high level of visibility of our EBITDA target for 2026. Probably in the CMD of second half, we will give more information and we will give a positive update to the market.

EBITDA margins in the segment, of course, I think that I prefer to wait to the Investor Day, and we will give.

Next question is coming from Arthur Sitbon from Morgan Stanley. Can we comment on recent unconfirmed reports on the potential involvement in the Spanish AI gigafactory?

And what could be the business model?

Probably as I have explained that it's still too early to talk about joint ventures that we haven't signed. we have -- it's not a secret that we are talking with the Spanish government and with the partners of the gigafactory, Spanish gigafactory, and we are studying our participation.

But it's still too early to talk about the business model because I think that always if Solaria enter in a joint venture, it's because it's not for money, it's because we have skills or capacities that we can offer to the joint venture, that we have things that they want to obtain or the skills or activities that they want to contract from Solaria, obviously. And obviously, our business model is not to allocate money and to enter in equity and to be a financial investor.

Our view is if we enter in the capital or if we enter in a joint venture is because we are going to work, and we are going to develop something. But I think it's still too early, and I don't want to give not yet information about this issue.

In the following month, I think that we will report to the market. We will explain to the market.

And trust on us because our business model is extremely clear. We are not only a financial investor.

We are obviously an industrial investor that gives and that includes skills.

Maybe a last question from [ Renta Quatro ] from Eduardo Media and some more analysts. Can we provide an update on the asset rotation process?

In the short term, you will have news because we are executing. And in the short term, we can -- we will give news to the market about asset rotation process and it's not critical because today, we have interest from investors that wants to enter in assets functioning with PPAs or with high level of visibility of the cash flow.

And I think that is something that will happen. And in the next month in the short term, you will see news associated with the asset rotation process.

Okay. So this was the last question.

So thank you very much for your time.

Thank you very much. And in order to give final information, I think that as I have explained, we will arrange in the second half of this year an Investor Day in London.

We will explain new business. We will give an update of our guideline -- of our EBITDA guidelines.

We continue constructing assets with batteries, and we will report new data center contracts and new joint venture with new partners that could contribute to the successful of the company in the next 3, 5 years. And today, we have the equity ready to invest in the key business for us, data center, infrastructure and batteries.

And we are ready and we are ready to enormous and significant growth. Tomorrow, we will be in London in a road show, and we will explain or we will try to explain more details and more things.

Thank you very much.