Genie Energy's Q4 2024 Earnings: Renewables Shine Amid Mixed Results

Genie Energy Ltd. (GNE) reported its fourth-quarter and full-year 2024 earnings on March 10, 2025, revealing a mixed bag of results that highlight the company's strategic shifts and growth opportunities. While the retail energy segment faced headwinds, the renewables business, GREW, showed remarkable progress, driving overall growth and profitability.

Strong Performance in Renewables

GREW, Genie Energy's renewables business, saw a staggering 120% increase in gross profit compared to 2023, surpassing $6 million. This significant growth was driven by operational efficiencies, strategic investments, and the inclusion of Roded, an environmental tech recycling business that began generating its first revenues. Michael Stein, CEO of genie energy, highlighted that "GREW made tremendous progress in 2024, with gross profit increasing by over 120% compared to 2023, surpassing $6 million." The company's ability to hold SG&A increases to single digits further bolstered its bottom line performance, allowing it to reinvest savings into growth initiatives.

Strategic Shifts at Genie Solar

Genie Solar completed its strategic migration to utility-scale project verticals, a move that positions the company to capture long-term residual value from power generation. In the fourth quarter, Genie Solar closed its first solar financing deal, returning approximately $7 million in cash to the balance sheet. This deal not only provided immediate financial benefits but also demonstrated the company's ability to leverage asset-backed finance deals to boost returns on equity. Michael Stein explained that "Genie Solar completed its strategic migration to utility-scale project verticals, allowing the company to capture long-term residual value from power generation. In Q4, Genie Solar closed its first solar financing deal, returning approximately $7 million in cash to the balance sheet. The company plans to use similar asset-backed finance deals to boost returns on equity."

Mixed Results in Retail Energy

While the renewables segment shone brightly, the retail energy segment faced challenges. Consolidated revenue in the fourth quarter decreased by 1.9% to $102.9 million, driven by a reduction at GRE. Electricity margins were lower than in the year-ago quarter due to a migration toward fixed price meters. However, the company added 23,000 net new meters in the fourth quarter and over 60,000 during the full year, marking a 17% increase in its customer base.

Financial Highlights

For the full year 2024, Genie Energy achieved the high end of its adjusted EBITDA guidance, reporting $48.5 million. The company's consolidated net loss attributable to Genie common shareholders decreased to $0.0058 per share from $0.009 per share a year earlier. Genie Energy also repurchased approximately 661,000 shares for $10.4 million in 2024, demonstrating its commitment to returning value to shareholders.



Outlook for 2025

Looking ahead, Genie Energy expects to continue building its meter book in 2025, with growth opportunities in Texas and California, among other markets. The company maintains its annual consolidated adjusted EBITDA guidance at $40 million to $50 million for 2025. Genie Energy also plans to continue building cash reserves, opportunistically buy back stock, and pay dividends while investing in growth across both new and established businesses.

Conclusion

Genie Energy's Q4 2024 earnings call highlighted the company's strategic shifts and growth opportunities, particularly in the renewables segment. While the retail energy segment faced challenges, the renewables business showed remarkable progress, driving overall growth and profitability. As Genie Energy continues to invest in growth initiatives and strategic shifts, it is well-positioned to capture long-term residual value from power generation and sustain its competitive positioning in the renewable energy market.