- SunPower’s Q1/2021 revenues of $306.4 million were led by its RLC business segment
- Company reported GAAP gross margin of 16.3%, while revealing net loss of $-48.4 million
- Community solar business added 25 MW in the reporting quarter taking its total pipeline for this segment to 115 MW
- For Q2/2021, it expects to report GAAP revenues of $295 million to $345 million, net loss of $-12 million to $-1 million
- Annual guidance for 2021 remains unchanged with 35% annual revenue growth and MW recognized growth of close to 25%
Solar energy company SunPower Corporation of the US managed to grow its Q1/2021 revenues on annual basis by over 5% to $306.4 million, yet compared to the previous quarter, the numbers dropped by more than 10%. It recognized 127 MW in Q1/2021.
The Residential and Light Commercial (RLC) business segment led revenues with 22% gross margin for the segment, followed by Commercial and Industrial Solutions (C&I Solutions) that registered annual revenue growth of around 20%.
For the RLC segment, SunPower said its overall bookings increased by 25% and that it is progressing on addressable market expansion initiatives as multi-family, loan servicing, and long-tail. It counts more than 363,000 customers under the RLC division with single and multi-family new homes backlog exceeding 200 MW. It accepted long installation lead times attributing it to efforts to improve installation and commissioning customer experience. It expects lead times to return closer to expected levels by the end of Q2/2021.
On the other hand, it saw YoY MW growth of 34% for the C&I Solutions while claiming a backlog of more than 275 MW for this segment ‘giving the company strong 2022 commercial project visibility’. For its community solar business, SunPower touts a 115 MW pipeline, having added 25 MW in Q1/2021.
Company’s GAAP gross margin for the reporting quarter at 16.3% reflected a growth from 10% in Q1/2020, and drop from 22% in Q4/2020. It suffered net loss of $-48.4 million, compared to net income of $21.5 million a year back, and $412.5 million in Q4/2020. Adjusted EBITDA for the group came in as $19.1 million.
“We continue to see homeowners and businesses across the country looking for cleaner, lower-cost energy with resiliency becoming a critical factor in their decisions. SunPower is delivering the industry’s leading solutions today while investing in the highest growth markets including storage, energy services, and expanding our community solar efforts. With these strategic initiatives and favorable national policy proposals, we are on track to achieve our 2021 goals and drive growth in 2022 and beyond,” said Peter Faricy, the new CEO of SunPower who replaced Tom Werner from April 19, 2021 (see SunPower CEO Tom Werner To Step Down After 18 Years).
The management is confident of being in a position to capitalize on the Biden Plan with the Investment Tax Credit (ITC) extension.
For Q2/2021, SunPower expects its residential business to do well, aiming for around 20% sequential volume growth for its RLC division, and more than 50% annual growth, partially offset by timing of certain project milestones in the C&I Solutions business that’s expected to be in line with last year.
It expects to report GAAP revenues of $295 million to $345 million, net loss of $-12 million to $-1 million, while recognizing 120 MW to 150 MW, and adjusted EBITDA of $16 million and $27 million range.
For 2021, its guidance remains largely unchanged with 35% annual revenue growth and MW recognized growth of close to 25%. “Given strong industry tailwinds, further anticipated federal policy support as well increased demand for its residential and commercial storage solutions, the company continues to expect 2022 Adjusted EBITDA growth of greater than 40%,” it stated.
Recently, SunPower spin-off Maxeon Solar expanded its existing supply agreement with SunPower to also include its Performance Solar Panels for the latter to be used for its distributed generation business (see Maxeon Solar Shares Plans To Expand Further Into US Market).