Polysilicon sales loss dents Maxeon’s revenue forecast-beating opening quarter

Maxeon’s module production plant in Mexico realised its first module delivery in the US during Q1 2022. Image: Maxeon Solar Technologies.

Maxeon Solar Technologies saw its gross loss widen in Q1 2022 despite outlook-beating revenue after the sale of excess polysilicon at a loss dragged on its performance.

The PV module manufacturer’s gross loss reached US$12.9 million in the opening quarter, up by more than US$2 million sequentially, after losing US$8.3 million through the sale of excess polysilicon, done so to reduce its inventory.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The increase is due to a US$5.9 million loss on firm purchase commitments that had to be fulfilled in the quarter ending 3 July 2022.

Despite an increase in its gross loss, the module supplier exceeded its revenue forecasts, reaching US$223 million, while module shipments in Q1 2022 were 488MW, in line with its quarterly guidance and an increase from Q1 2021’s shipments of 379MW.

Maxeon revealed it was realising greater shipments of modules to Europe, figures for the continent soaring 75% year-on-year on the back of heightened demand, while its market share in Italy in particular topped 25% in the last quarter.

Jeff Waters, CEO at Maxeon, said: “While supply chain conditions remain challenging, we remain focused on executing on our key transformation initiatives.”

The module supplier gave an update on the production ramp-up of its Maxeon 6 and Performance line for the US market, two products that are “critical” for Maxeon’s return to profitability in 2023 and key to its transformation.

Waters said that Maxeon 6 capacity will reach 500MW during the second half of 2022, while the Performance line will be ramped up in the first half of next year and with the module supplier on track to treble its capacity expansion by the end of the fiscal year.

“As these projects near completion, our focus will pivot to Maxeon’s next transformation steps led by Maxeon 7, the ramp of storage sales, direct US residential market entry and North America capacity expansion,” added Waters.

Moreover, the company announced the delivery of its first modules for the US utility-scale market coming from its facilities in Mexico, where it aims to have 1.8GW of dedicated capacity for the US by early 2023.

In guidance for Q2 2022, Maxeon expects module shipments to come in at the 460MW – 490MW range, slightly lower than its outlook for Q1 2022.

Its forecasted revenue range for Q2 2022 is US$215 – 230 million, equating to a gross loss of US$15 – 25 million.

27 June 2024
9am BST
FREE WEBINAR -This special webinar will take a deep dive into the latest PV ModuleTech Bankability Ratings pyramid, capturing the relative bankability status of the top 70-80 PV module suppliers globally. In addition to revealing the latest ranking of global PV module suppliers, PV Tech’s Head of Research, Finlay Colville, will show the depth of analysis and commentary included within the report for module suppliers. A key output from the webinar will be to learn which PV module suppliers have moved up the rankings pyramid in recent years and why this growth has been achieved. Conversely, some of the companies that have fallen down the rankings will be discussed, in particular those suffering from market-share losses and financial problems.
8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.

Read Next

June 20, 2024
Today at the Intersolar trade show in Munich, PV Tech Premium sat down with Bill Mulligan, CEO of Singapore-headquartered solar manufacturer Maxeon.
June 19, 2024
Singapore-headquartered solar manufacturer Maxeon Solar Technologies has filed a patent infringement lawsuit against Aiko Solar and its partners in Europe.
June 19, 2024
A leading German solar distributor has predicted “crazy” ongoing pricing pressures in Europe as the PV industry continues to face huge product oversupply and competition prompted by the easing of the recent energy crisis in Europe.
June 19, 2024
Global Solar Council offers policy recommendations to increase the installed solar capacity and address barriers slowing its deployment.
June 5, 2024
GCL Tech is to build the Middle East's first polysilicon plant and the company's first overseas facility in the UAE.
June 3, 2024
Polysilicon prices have stabilised but remain low, with average n-type prices dropping further, according to the latest industry data.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 2, 2024
Athens, Greece
Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Upcoming Webinars
July 10, 2024
9am (BST) / 10am (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland