SunPower Q2/2021 Revenues Grow YoY To $309 Million

• SunPower's Q2/2021 revenues grew to $308.9 million, thanks mainly to the growth in residential segment
• It recognized 125 MW in the quarter, of which 83 MW came from the residential segment
• Company secured 150 MW of community solar pipeline during the period while growing its contracted or awarded capacity 25% in the CIS business
• For 2021, it has guided for annual revenues of $1.41 billion to $1.49 billion

US based solar energy company SunPower Corporation grew its Q2/2021 revenues to $308.9 million, up by 42% on annual basis, driven mainly by the growing demand for solar in the residential segment. Of 125 MW recognized during the reporting quarter, 83 MW was for the residential segment.

Management shared that the company's Q2 residential bookings went up 67% compared to Q2/2020 (see SunPower Exceeds Q2/2020 Revenue Guidance).

It added 13,000 new customers in the reporting quarter taking its total customers installed base to 376,000, and reported 220 MW of new homes in backlog, including multi-family homes. Management touted strong demand for its SunVault residential storage solution and sees its growth in H2/2021.

In the commercial and industrial solutions (CIS) business, it experienced 135% YTD revenue growth and shared 260 MW of contracted or awarded capacity that grew 25% YoY. It also secured a 150 MW community solar pipeline during the period along with 230 MWh of behind-the-meter (BTM) storage projects contracted or awarded.

SunPower's new CEO Peter Faricy said, "New customer adds were also up sequentially and year over year as we are benefiting from increasing demand in residential solar, dealer expansion and positive policy tailwinds, benefiting both residential and our commercial and industrial business."

Cowen's Jeffrey Osborne commented, "We see continued tailwinds in the segment driving growth for 2H21 and 2022, in particular from SunPower's SunVault storage product as well as supportive policy, which could become more favorable with potential moves by the Biden administration."

Guidance

SunPower has guided for its revenues to grow to between $325 million to $375 million in Q3/2021 with adjusted EBITDA of $21 million to $31 million, and GAAP net income of $-10 million to $0 million. In terms of MW, it expects to recognize 125 MW to 150 MW in the next quarter with residential alone contributing between 90 MW to 100 MW.

On annual basis, for 2021 the management expects to exit the year with $1.41 billion to $1.49 billion of revenues and adjusted EBITDA of $100 million to $130 million. GAAP net income for the entire year should be around $40 million to $60 million. During the course of the year, it sees its MW recognized to grow to 540 MW to 610 MW, comprising 340 MW to 380 MW of residential segment.

Philip Shen of Roth Capital Partners was not impressed much with the guidance as he pointed out, "Despite strength in its residential business, the C&I outlook is weak with lumpiness, delays, and project push- outs, in part as management works to add storage to its backlog." He added, "The new CEO is charting a course for SPWR to be a universal solutions provider with a plan to integrate the whole-home with solar, storage, EV charging, and intelligence. We look forward to what Peter Faricy can bring to the table and the new path ahead for SPWR."

Peter Faricy joined SunPower to replace Tom Werner as the CEO who stepped down after 18 years in the top seat (see SunPower CEO Tom Werner To Step Down After 18 Years).