Meyer Burger’s H1 2024 losses mount as its sales declined by around 50% to CHF 48.7 million
The US Goodyear module fab ramp-up continues with the 2nd line; it continues to look for capital to bridge the funding gap
Management expects annual sales of around CHF 350 million to CHF 400 million from 2026
Heterojunction (HJT) solar cell and module manufacturer Meyer Burger Technology AG has reported a CHF 317.3 million ($367.4 million) net loss for H1 2024 as it widened from CHF 64.8 million in H1 2023. Its EBITDA loss was CHF 123.5 million ($143 million), while EBIT was in the negative with CHF 321.7 million ($372.5 million).
The management said this reflects the difficult market conditions in Europe, the ramp-up of its production facilities in the US, and the extraordinary impacts of factory closures.
Notably, Meyer Burger shut down its Freiburg, Germany module production location to focus its energies on the US market. Its Arizona, US module factory took off in June 2024, but the manufacturer lowered the annual capacity from 2 GW to 1.4 GW. It later decided not to go ahead with the 2 GW US cell production plant due to the lack of required 3rd party financing. Instead, the company’s German cell plant will cater to the US module fab (see Meyer Burger Shelves 2 GW US Solar Cell Manufacturing Factory Plans).
In September 2024, Meyer Burger announced business restructuring as its CEO and a vocal proponent of European solar manufacturing Gunter Erfurt called it quits (see Gunter Erfurt Leaves Meyer Burger As Company Initiates Restructuring).
For H1 2024, Meyer Burger reiterated the almost 50% year-on-year (YoY) decline in sales of CHF 48.7 million ($56.4 million) for the reporting period, as it announced in the preliminary results (see Meyer Burger Achieved CHF 48.7 Million Sales During H1 2024).
It produced 105.2 MW solar modules during the reporting period thanks to the decision to shut down the German fab, while its module inventories fell from 365 MW at 2023-end to 340 MW at the end of June 2024.
To improve its liquidity, the company plans to sell other assets that are no longer required to financially support operations during the ramp-up phase of the 2nd line at the Goodyear fab in the US. The US offers the best prospects for the company, according to the management, due to ‘fair competition’ through tariffs on solar imports under Section 301, Uyghur Forced Labor Prevention Act (UFLPA), and the anti-circumvention tariffs on solar products from Southeast Asia.
It expects to immediately sell modules produced due to existing long-term off-take agreements as the production volume is largely absorbed by current offtake agreements for the next 3 to 4 years. Once the ramp-up is complete, the management expects annual sales of around CHF 350 million to CHF 400 million ($405 million to 463 million), while EBITDA will be around CHF 70 million ($81 million) from 2026.
Meyer Burger also hopes to secure additional liquidity through module sales from existing inventories to help fill up the ‘high double-digit million’ funding gap required for the completion of the US module plant. The board has commissioned an external independent restructuring consultant to provide it with options for a ‘viable operating business and capital structure.’
“We are confident that the restructuring programme we have outlined provides a path to profitability, upon receiving the required financing. We are doing everything we can to strengthen the Company and establish it as a reliable premium supplier in the USA,” said Meyer Burger’s Executive Chairman Dr. Franz Richter.
Meanwhile, in Germany, the Thalheim cell fab transitioned from M6 to larger M10 wafers as production yield started improving from moderate volumes until May 2024 owing to cell demand from its Goodyear fab.
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