SunPower, a prominent solar technology and energy services provider, announced its second-quarter financial results, indicating steady revenue growth. However, the company also addressed prevailing market conditions and made adjustments to its guidance in response to ongoing challenges.
In the second quarter, SunPower reported revenue of $464 million, marking an 11 percent increase year-over-year. Despite the growth in revenue, the company faced a net loss of $30 million and an EBITDA of approximately ($3) million.
“To adapt to prevailing market conditions and help ensure SunPower maintains its competitive edge, we are reducing our cost structure,” said Peter Faricy, CEO of SunPower. He highlighted the decision to reduce labor costs and implement measures to enhance operational efficiency across all areas of the company.
As a result of the market challenges and the need to optimize operations, SunPower revised its 2023 guidance. The net loss projection for 2023 was adjusted to ($90) million-($70) million, reflecting the company’s cautious approach to financial expectations.
Additionally, the company lowered its customer guidance for 2023, now expecting 70,000–90,000 incremental customers. SunPower explained that over 70 percent of the projected installations in the second half of 2023 are already accounted for through the execution of existing backlog. This includes the anticipated recognition of all California NEM 2.0 backlog by year-end and stronger-than-expected New Homes bookings.
SunPower also revised its guidance for Adjusted EBITDA per customer before platform investment to $1,450-$1,650. This change was made to reflect higher installation costs than initially anticipated, as well as the impact of lower market pricing and higher levels of inventory carried this year following the supply chain disruptions experienced in 2022.
In line with the efforts to streamline operations, the company aims to reduce Platform Investment to $50 million-$70 million for the year, demonstrating its commitment to optimizing capital allocation.
As a result of the adjustments and market challenges, SunPower now expects its full-year Adjusted EBITDA to be in the range of $55 million-$75 million.
Despite the revised guidance, SunPower remains focused on its commitment to providing innovative solar solutions and driving sustainable energy adoption. The company will continue to navigate the evolving market landscape while striving to deliver reliable and efficient solar products and services to its customers.