Maxeon Solar Continues to Cut Losses in Q2, Reports 98.2% YoY Improvement

The company's revenue surged 9.4% YoY, hitting $348.37 million


Solar module manufacturer Maxeon Solar Technologies recorded a net loss of $1.51 million during the second quarter (Q2) of the financial year (FY) 2023, an improvement of 98.2% on a year-over-year (YoY) compared to a net loss of $87.92 million.

The company’s revenue was recorded at $348.37 million, an increase of 9.4% YoY.

The higher revenue with balanced cost and operating expenses helped improve the company’s performance compared to the same period last year when both the cost of revenue and operating expenses were higher.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) accounted for a gain of $30.24 million, a huge improvement compared to a loss of $36.83 million during the corresponding period in 2022.

Maxeon’s Chief Executive Officer Bill Mulligan said, ” Our United States DG business delivered strong results with higher-than-planned shipments to SunPower as well as material gross margin contribution from our new Maxeon residential channel. While demand in some segments of the U.S. residential market has cooled, customer appetite for our premium products remains healthy, particularly in markets where the effect of rising interest rates has been offset by increased power costs and where constrained roof space plays to our product efficiency advantage.”

He added, “We were also pleased to recently celebrate the completion of our 1.8 GW capacity expansion in Mexicali.  These two milestones position the company well for continued expansion in the U.S. utility-scale market.”

The company has recently announced a 3 GW TOPCon photovoltaic-silicon cell and shingled-cell performance line solar module manufacturing facility to be developed in Albuquerque, New Mexico.

During the quarter, the company established a total North American utility-scale module production capacity and fulfilled a 968 MW delivery commitment for its project called “Gemini.” It also chose a site in New Mexico for a U.S.-based cell and module facility.

The company, however, witnessed a decline in performance when compared to Q1. It said the global distributed generation market experienced a notable weakening in its demand environment during late Q2.

This weakening was attributed to a combination of factors, including higher interest rates, the disruptive impact of policy changes in California, and a substantial buildup of channel inventory across the industry.

While the distributed generation sales team achieved the planned average selling price (ASP) and gross profit, they fell short of the volume and revenue targets.

1H 2023

During the first half (1H) of 2023, the company recorded a net profit of ₹18.96 million, a YoY increase of 112.9% compared to a loss of $146.96 million.

The company’s revenue during 1H was recorded at $666.71 million, a YoY increase of 44.5% compared to $461.16 million.

The good performance through Q1 helped end the 1H in profit despite the minor Q2 loss.

The company posted $324 million in revenue for the fourth quarter of the financial year 2022, a year-over-year (YoY) increase of 46%. The company shipped 734 MW of solar modules during the quarter, up 27% YoY from 577 MW.


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