Maxeon's net loss widens in Q2, accelerates US capacity plans

Solar installation. Source: Maxeon Solar Technologies Ltd

August 19 (Renewables Now) - Singapore-based solar cell and panel maker Maxeon Solar Technologies Ltd (NASDAQ:MAXN) on Thursday reported a net loss attributable to the stockholders of USD 87.9 million (EUR 86.3m) for the second quarter of 2022, which is a widening from USD 77 million a year ago.

In the three months ended July 3, the gross loss at the spin-off of SunPower Corp (NASDAQ:SPWR) expanded to USD 39.3 million from USD 2.8 million, impacted by higher freight rates and materials costs. The gross margin deteriorated to a negative 16.5% from a negative 1.6% a year ago.

Shipments increased to 521 MW from 434 MW in the same quarter of 2021, with revenue growing to USD 238.1 million from USD 175.9 million.

The company also said it recently completed a USD 207 million private convertible bond issuance to its significant shareholder Zhonghuan Singapore Investment and Development Pte Ltd (TZE SG), securing the necessary funding for its Maxeon 7 conversion project in the Philippines and Mexico.

“The Maxeon 7 pilot line achieved its performance targets and, with funding recently secured, we now plan to scale the technology,” said chief executive Jeff Waters. “Our Performance Line remains on track to reach 1.8 GW early next year and based on recent passage of the Inflation Reduction Act, we are accelerating plans to add an incremental 3 GW in the US," the CEO added.

Swiss manufacturer Meyer Burger Technology AG (SWX:MBTN) yesterday said it will speed up its US expansion after securing a big contract in the country and in anticipation of manufacturing support from the Inflation Reduction Act.

Maxeon’s outlook for the third quarter includes shipments of 580 MW-620 MW and a gross loss of between USD 10 million and USD 20 million.

Some figures from the company's results:

Figures in USD million Q2 2022 Q2 2021 H1 2022 H1 2021
Revenue 238.1 175.9 461.2 341.3
Gross profit (loss) (39.3) (2.8) (52.3) (1.8)
Operating profit (loss) (75) (40.9) (125.4) (77)
Net profit (loss) attributable to the stockholders (87.9) (77) (147) (115.8)

(USD 1 = EUR 0.983)

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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