Maxeon’s Q3 2024 results were marred by the continued detention of its modules at the US border
Global oversupply and intense competition continued to pull down solar module prices
Its shipments also declined from 526 MW in Q2 2024 and 628 MW in Q3 2023, to 199 MW in Q3 2024
Nasdaq-listed solar PV manufacturer Maxeon Solar Technologies’ Q3 2024 financial results were ‘distorted’ due to its modules being detained by the US Customs and Border Protection (CBP). Its $88.56 million revenues for the quarter, declined by almost 52% compared to the previous quarter, and 61% vis-à-vis last year.
Maxeon CEO George Guo added, “On top of this, we continue to observe depressed prices as a result of the global oversupply and intense competition. The average market price for high efficiency and mainstream crystalline modules like our IBC products and Performance line products has dropped by approximately 43.5% and 28.6%, respectively, since January 2024.”
Net loss of $393.94 million widened from $34.23 million in the previous quarter, and from a net loss of $108.25 million last year. Adjusted EBITDA was in the negative at $225.7 million, compared to -$36.57 million in Q2 2024 (see Maxeon Withdraws FY 2024 Guidance After Gross Loss In Q2).
Its gross loss expanded from the last quarter’s $7.78 million to $179.1 million in the reporting quarter. A year ago in Q3 2023, the company earned a gross profit of $2.73 million, when it also announced job cuts (see Maxeon Solar Announces Restructuring; Job Cuts To Follow).
Solar module shipments declined from 526 MW in Q2 2024 and 628 MW in Q3 2023 to 199 MW in Q3 2024.
Along with the modules stuck at the US borders, the manufacturer also listed fixed costs associated with factory shutdowns and low production levels, and costs and write-offs from ongoing restructuring, as the factors responsible for the results.
The manufacturer is currently undertaking strategic changes for the business as it focuses all its resources on the US market. A 2 GW solar panel manufacturing factory in Albuquerque, New Mexico is part of this strategy. It is also selling non-US assets to the TCL Group (see Maxeon Announces 2 GW US Solar Module Manufacturing Plant).
“As we establish our new strategy to transform Maxeon, we are highly focused on our financial position. We intend to reserve sufficient liquidity for daily operations, while we recapitalize the company to fund our restructuring and growth,” added Maxeon CFO Dmitri Hu.
Maxeon has not provided any financial guidance for Q4. It has also decided to defer the customary earnings conference call for Q3 till the ongoing restructuring is complete.