Maxeon Solar's Q2 loss widens even as sales grow

Singapore-based solar cell and panel maker Maxeon Solar Technologies Ltd (NASDAQ:MAXN) saw its attributable net loss expand to USD 77 million (EUR 65.6m) in its second quarter through July 4, regardless of the improved revenues and shipments.

The company, a spin-off of SunPower Corp (NASDAQ:SPWR), closed the second quarter with revenues totalling USD 175.9 million, which rose from roughly USD 165 million both in the previous quarter and the year-ago period. In its financial report released on Thursday, CEO Jeff Waters explained that the trimester was “very productive” for Maxeon thanks to the strong performance of the distributed generation (DG) business, which paves the way for stronger sequential growth in future quarters.

Revenues in the European DG channel reached an all-time high, while the utility-scale segment was unstable due to market pricing outside the US but bidding trends are emerging that support strong 2022 growth, according to the CEO.

The table below gives more details about Maxeon’s second-quarter performance.

“With a stronger balance sheet, strong growth indicators and continued operational progress, we at Maxeon continue to grow in our confidence in our financial transformation," Waters said.

Maxeon noted it is working to enhance its manufacturing footprint and product lines and ramp up the production of the Maxeon 6 panels this year while phasing out the legacy Maxeon 2 line. It is also gearing to expand its performance line module assembly capacity in the US in the first half of 2022. An application has been filed with US regulators for a 3-GW solar cell and module factory, which Maxeon expects will kick off production as early as 2023.

Looking ahead, Maxeon made preliminary third-quarter projections, based on current market conditions, production capacity and the uncertain COVID-19 environment. Details are given in the table.

(USD 1.0 = EUR 0.852)

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