SunPower’s Q3/2021 Financial Results

• SunPower added 29% more new customers in Q3/2021, and increased its pipeline for new homes systems to 230 MW
• It recognized 121 MW in the quarter, including 92 MW for residential and increased residential bookings 36% YoY to 108 MW
• Management cited project delays and lower revenues from Light Commercial, SunPower has lowered its adjusted EBITDA guidance (sans CIS and legacy business) for FY 2021 to be between $96 million and $114 million

American residential solar power company SunPower Corporation exited Q3/2021 with 14,200 new customers, representing annual growth of 29%, excluding Blue Raven's 1,500. It had a bookings run rate of $80 million for its battery product SunVault and remains on track for $100 million bookings runrate by year end.

As it recognized 121 MW during the reporting quarter including 92 MW for residential, its residential bookings increased 36% YoY to 108 MW. SunPower's pipeline for new homes systems is robust with visibility toward an incremental 58,000 homes representing up to 230 MW including multi-family housing.

Management admitted receiving 'indications of strong interest' for its Commercial & Industrial Solutions (CIS) business as it explores strategic options for that segment. SunPower focuses its energies into the Residential & Light Commercial (RLC) business for which it acquired residential installer Blue Raven in October 2021 (see Blue Raven Acquired By SunPower In US).

Jeffrey Osborne, research analyst at investment bank Cowen, said, "We envision the business unit would be attractive to infrastructure funds seeking exposure to commercial assets. Management plans on providing an update on this process in 4Q21." Philip Shen of Roth Capital Partners expects SunPower to announce more acquisitions in the near future.

Guidance
For Q4/2021, SunPower has guided for its revenue guidance (sans CIS and Legacy) as between $330 million to $380 million and adjusted EBITDA of $28 million to $46 million. Its CIS and Legacy business is guided to report revenues of $31 million to $41 million and adjusted EBITDA of $-10 million to $-5 million due to project delays and supply chain impacts. GAAP net income guidance, including all segments, is $-5 million to $15 million.

Expecting CIS project delays and lower revenues from Light Commercial, SunPower has lowered adjusted EBITDA guidance (sans CIS and legacy business) for FY 2021 to be between $96 million and $114 million and residential volumes of 345 MW to 375 MW recognized.

For the same reason, it expects FY 2021 revenues and adjusted EBITDA to be below previously guided $1.41 billion to $1.49 billion and 110 million to $130 million, respectively (see SunPower Q2/2021 Revenues Grow YoY To $309 Million).

Anticipating strong residential demand and federal policy tailwinds, SunPower forecasts annual residential volume growth above 35% in 2022.