Maxeon’s Q3/2022 Revenues Went Up 25% Annually

• Maxeon Solar's Q3/2022 revenues and shipment was in line with the forecast
• DG business and Performance Line modules led the business, mainly in the EMEA market
• It has guided to ship between 680 MW to 720 MW of modules in Q4/2022 with revenues between $290 million and $330 million

Singapore headquartered solar module producer Maxeon Solar Technologies met its financial guidance for Q3/2022, reporting 25% annual improvement in revenues with $275 million along with shipment guidance with 605 MW, while also experiencing a gross loss of $-15.7 million and GAAP net loss of $-44.7 million (see Maxeon Solar's Q2/2022 Gross Loss Widened).

Revenue generation reached the maximum with $137 million in the Europe Middle East Africa (EMEA) markets, the US & Canada markets bringing in another $107 million, $30 million from the Asia Pacific, and $3 million from Latin America.

The distributed generation rooftop segment remains the breadwinner for Maxeon contributing $228 million in the reporting quarter revenues. The remaining $47 million came from large scale power plants.

In terms of segments, it is the Performance Line modules that drove shipments with 337 MW, followed by 268 MW IBC panels.

"The DG business also executed on strategic expansion initiatives in the United States which are expected to help Maxeon achieve overall profitability next year. Specifically, we secured the first bookings with our new residential partner Greentech Renewables," said Maxeon's Interim CEO Mark Babcock.

Management said the company remains on track to achieve 1.8 GW of its P-series module production capacity in early 2023 in the US. Plans are also moving forward for an incremental 3 GW of cell and module fab in the US that's timed to come online in 2025. It is currently in the midst of selecting a suitable site and secure a loan from the US Department of Energy (DOE) for the 3 GW site.

While Maxeon obviously wants to profit from the attractive US Inflation Reduction Act, it has turned its back on manufacturing in Europe, where it was even awarded as part of the Small Scale Innovation Fund of the European Commission to build a 1.4 GW module factory (see Innovative EU Projects Selected For €118 Million Funding). Moreover, in October it became public that Maxeon shut down its solar PV manufacturing facility in France's Porcelette citing challenging price environment (see Maxeon Solar's French Production Line Discontinued).

Guidance

For Q4/2022, Maxeon guides for its shipments to range between 680 MW to 720 MW, bringing in revenues of $290 million and $330 million. Gross profit/loss is forecast as $-1 million to $9 million, while adjusted EBITDA is expected to be in the negative with $-17 million to $-27 million.

Shen added, "Despite a slightly lowered revenue estimate, overall we see an improvement in forecasts for GMs, Core EPS, and adjusted EBITDA as a result of higher margin volume for the year."

During the last quarter of the year, Maxeon estimates capital expenditure of $16 million to $20 million to upgrade the Maxeon 6 line in Malaysia, arrange equipment for 1.8 GW Performance Line in the US, and develop Maxeon 7 technology with a pilot operating line.

"We are evaluating our Maxeon 7 capacity growth plan and because of that, our previous capital expenditure indication for retrofitting Maxeon 3 production lines is no longer relevant," it added.

Meanwhile, Maxeon is facing competition on a rather new front. While it remains on top of TaiyangNews Top Solar Modules Listing of Highest Efficient Commercial Modules in October 2022, it has lost its long-time sole efficiency leadership. Now, it has to share the top slot with China's LONGi Solar which has just launched also a back contact module with the same efficiency of 22.8% but a higher power rating (see Top Solar Modules Listing—October 2022).