MPC Energy Solutions (MPCES) Q1 2026 earnings summary

Executive summary

• Portfolio includes four projects (three operational: Mexico, Colombia, El Salvador; Guatemala completed construction but awaits permit), totaling 49 MW, with major asset sales (Project Merlin: San Patricio and Santa Rosa & Villa Sol) agreed and expected to close by end of Q2 2026.

• Overhead costs reduced by 31% year-over-year in Q1 2026, mainly from lower headcount.

• Sale of La Perla (El Salvador) completed, recovering historic costs with potential upside if further developed.

• Earn-out payment of $0.3 million from previously sold Planeta Rica (Colombia) collected after Q1, boosting free cash.

• Free cash position decreased as funds were allocated to bridge the Guatemala project until sale and operational start.

Financial highlights

• Q1 2026 revenue was $2.5 million, down 14% year-over-year (like-for-like down 3%) due to a metering error in Mexico and weather impacts in Colombia.

• EBITDA for Q1 2026 was $1.8 million, down 17% year-over-year (like-for-like down 8%); EBITDA margin at 71%.

• Free cash at quarter-end was $7.5 million, down from $8.96 million at year-end 2025, mainly due to overhead and Guatemala funding.

• Total assets stood at $124.1 million, with an equity ratio of 32% and project debt of $72.1 million.

• Net loss from continuing operations was $978,000; EPS from continuing operations was $(0.04).

Outlook and guidance

• On track to close the sale of San Patricio (Guatemala) and Santa Rosa & Villa Sol (El Salvador) by end of Q2 2026.

• Full-year 2026 projections: energy output 75 GWh, revenue $7.5 million, project EBITDA $5.5 million, group EBITDA $3.2 million, group EBITDA margin 43%, EBIT margin 21%.

• Overhead spending for 2026 expected at $2.3 million.

• Plans to begin shareholder distributions after transaction closes and proceeds are collected, pending AGM approval.

• If only two projects remain, profitability possible only with significant organizational downsizing.