Genie Energy Q4 Earnings Dip Y/Y, Margin Pressures Persist in 2025

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Shares of Genie Energy Ltd. GNE have lost 6.3% since reporting results for the fourth quarter of 2024. This compares to the S&P 500 index’s 2.8% decline over the same time frame. Over the past month, the stock has edged down 1.7% compared with the S&P 500’s 8.3% fall.

Financial Performance

Genie Energy’s earnings per share for fourth-quarter 2024 were 24 cents, a 33.9% decrease from 37 cents in the prior-year quarter.

For the fourth quarter of 2024, GNE’s consolidated revenues declined 1.9% year over year to $102.9 million from $104.9 million. Gross profit was $33.5 million, down 0.5% from the prior-year quarter. The company’s gross margin improved to 32.5% from 32.1%. Loss from operations narrowed significantly to $20.8 million from a loss of $34.2 million a year earlier due to a lower non-cash charge for its captive insurance operations.

The net loss attributable to common shareholders was $15.3 million, or $0.58 per diluted share, compared with a loss of $24.5 million, or $0.90 per diluted share, in the prior-year quarter. On a non-GAAP basis, which excludes the impact of the insurance loss reserve, net income was $6.5 million, down from $10 million in the fourth quarter of 2023.

For the year, revenues dipped 0.8% year over year to $425.2 million. Gross profit declined 5.3% to $138.5 million, with the gross margin compressing to 32.6% from 34.1%. Adjusted EBITDA reached $48.5 million, achieving the upper end of management’s guidance but falling short of the $58.2 million recorded in 2023. Net income attributable to common shareholders was $12.6 million compared with $19.2 million in the prior year.

Genie Energy Ltd. Price, Consensus and EPS Surprise

 

Genie Energy Ltd. Price, Consensus and EPS Surprise
Genie Energy Ltd. Price, Consensus and EPS Surprise

Genie Energy Ltd. price-consensus-eps-surprise-chart | Genie Energy Ltd. Quote

Retail Energy & Renewables Segments

Genie Retail Energy (“GRE”), which supplies electricity and natural gas to residential and small business customers, recorded revenues of $98.4 million for the quarter, which was flat year over year. Electricity sales were $82.1 million, unchanged year over year. Natural gas revenues increased 7.5% to $16.2 million. Despite the positive impacts of increased customer meters, lower revenue per kilowatt-hour offset this gain. Income from operations in the segment fell 15.9% to $12.6 million. Adjusted EBITDA declined 13% to $13.4 million, reflecting reduced electricity margins and higher customer acquisition costs.

For the year, GRE revenues decreased 1.6% year over year to $403.3 million, with electricity sales of $350.5 million. Natural gas revenues declined 6.9% to $52.1 million. Income from operations dropped 21.4% to $56.5 million. The adjusted EBITDA fell 20.4% to $58.4 million.