SunPower returns to non-GAAP profit in Q2, revenues grow

Sunpower modules. Author: pgegreenenergy. License: Creative Commons, Attribution 2.0 Generic.

August 4 (Renewables Now) - SunPower Corp (NASDAQ:SPWR) on Tuesday reported a 34.5% increase in GAAP net profit from continuing operations in its second fiscal quarter through July 4, 2021, and returned to profit on a non-GAAP basis.

The US solar firm booked a GAAP net profit of USD 75.2 million (EUR 63.3m) and revenues of USD 308.9 million, which improved from USD 217.7 a year before. The company noted that its financial results on a non-GAAP basis exclude net adjustments related to a mark-to-market gain on equity investments and a gain on sale and impairment of residential lease assets.

During the reporting period, SunPower enjoyed strong consumer demand for its solar and storage solutions in both residential and commercial markets. "Consumer demand for better, more resilient energy is increasing and with more than 100 million homes in the US that could benefit from solar and storage, we see a significant opportunity to meet that demand," said CEO Peter Faricy.

The table below gives more details about SunPower’s performance in the second quarter.

Amounts in US dollars Q2 2021 Q2 2020
GAAP revenue 308.9m 217.7m
Non-GAAP revenue 308.9m 217.7m
GAAP gross margin 19.8% 11.8%
Adjusted EBITDA (loss) 22.2m (4.3m)
GAAP net profit (loss) 75.2m 55.9m
Non-GAAP net profit (loss) 10.4m (17.2m)

The Residential and Light Commercial (RLC) segment had a gross margin of 23%, up by over 600 basis points on a yearly basis thanks to a lower cost of capital, supply chain initiatives and the switch to higher-margin full system sales. This segment fetched adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of USD 28 million. In the meantime, the Commercial and Industrial Solutions (C&I Solutions) segment lifted its total installed base to 1 GW and expanded its backlog by 20% on the year.

SunPower’s CEO said that the company is on track to achieve its 2021 forecast and is “well positioned to drive growth and profitability in 2022 and beyond." GAAP revenue and net profit are seen at USD 1.41 billion-1.49 billion and USD 40 million-60 million, respectively. Adjusted EBITDA is still expected to be within the USD 110 million-130 million range.

For the third quarter, it expects GAAP revenues of USD 325 million-375 million, GAAP net loss of USD 10 million-0 million, adjusted EBITDA of between USD 21 million and USD 31 million, and 125 MW-150 MW in MWs recognised.

Sequential volume and margin improvements are anticipated in the residential business, with volume seen to grow more than 40% from a year earlier, SunPower said.

(USD 1.0 = EUR 0.842)

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Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

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