Turn-Key Solar Provider Adds Record Number of Clients in Q2

Source: Streetwise Reports   08/02/2022

SunPower Corp. shares traded over 9% higher after the company reported Q2/22 financial results highlighting a 63% YoY increase in revenue. The firm confirmed its previous guidance indicating that it expects to add 73,000 to 80,000 net new customers in FY/2022.

All-in-one residential and commercial solar technology and energy services company SunPower Corp. (SPWR:NASDAQ), today announced financial results for the second quarter of 2022 ended July 3, 2022.

The company’s CEO Peter Faricy led off the report by commenting, “There is a ubiquitous need for reliable electricity at an affordable price that isn’t being met with our traditional energy sources … With our strategic growth plan, investment in world-class customer experience, and robust pipeline, SunPower is well positioned to capture the strong resulting demand for solar and storage.”

“This quarter we added a record number of customers, including an all-time high for new home installs, and accumulated a backlog that we expect to set us up for high growth in the second half of the year,” Faricy added.

SunPower highlighted that in Q2/22 it added a record 19,700 customers, which represents a 51% increase compared to Q2/21. In addition, the company’s backlog for retrofit and new home installations increased to 53,000.

The company reported that in Q2/22 GAAP revenue from continuing operations increased by 60.2% to $417.8 million, compared to $260.8 million in Q2/21.

The firm posted a GAAP net loss from continuing operations of $42.5 million, or a net loss of $0.24 per diluted share in Q2/22, versus GAAP net income from continuing operations of $87.1 million, or net income of $0.46 per diluted share in Q2/21.

The firm stated that it continues to execute on all five of its core objectives to maintain its leadership position in providing “the most innovative ecosystem of home energy products with unmatched customer experience.”

The company said it was the only solar provider in the U.S. to receive a four-plus star rating as it achieved an average review score of 4.3. The firm listed that it also demonstrated significant improvement in responding to calls from customers and reducing the time needed to address customer inquiries and concerns.

SunPower noted that working together with First Solar Inc. (FSLR:NYSE) it has made considerable progress on the development of a ground-breaking panel that would be among the world’s most-advanced residential solar panels. The two companies are now discussing the terms for a definitive agreement and expect to come to a formal agreement in Q3/22. Once the agreement is signed, the firms plan to move forward quickly to operationalize production.

SunPower added that it is increasing panel supply from its supplier Maxeon Solar Technologies Ltd. (MAXN:NASDAQ) to meet the unprecedented demand it is experiencing.

The company also advised that it is partnering with IKEA U.S. in order to simplify the solar buying experience and expand reach and access to a new market of consumers. Starting in Fall 2022, IKEA plans to launch Home Solar products and solutions at select stores in California.

The company noted that in June 2022, it completed the sale of its Commercial and Industrial Solutions (CIS) business to TotalEnergies. Additionally, TotalEnergies established a joint venture with Global Infrastructure Partners (GIP) that will hold TotalEnergies’ 51% ownership in SunPower Corp.

The company mentioned that it is reaffirming its prior FY/22 guidance which calls for an increase of 73,000-80,000 net new customers. Each incremental customer added is expected to add between $2,000-$2,400 in adjusted EBITDA, or in aggregate, a total of $90-$110 million in adjusted EBITDA for the year.

SunPower is a solar technology and energy services company based in San Jose, Calif. The firm company delivers all-in-one solar solutions to residential and commercial customers that allow customers to control electricity consumption and resiliency during power outages.

SunPower started the day with a market cap of around $3.45 billion with approximately 173.86 million shares outstanding. SPWR shares opened 6% higher today at $21.01 (+$1.18, +5.95%) over yesterday’s $19.83 closing price. The stock traded today between $20.82 and $22.91 per share and closed for trading at $21.70 (+$1.87, +9.43%).

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( Companies Mentioned: FSLR:NYSE, MAXN:NASDAQ, SPWR:NASDAQ, )