SunPower downgrades FY21 guidance as supply chain woes bite commercial, legacy business units

Facebook
Twitter
LinkedIn
Reddit
Email
The Blue Raven Solar acquisition will enhance SunPower’s presence in 14 US states. Image: SunPower.

US solar installer SunPower has downgraded its full year 2021 revenue guidance, pointing to delays in its commercial and industrial projects business.

The installer yesterday (3 November 2021) confirmed a Q3 revenue and earnings missed, first revealed last month, with revenues of US$323.6 million and earnings of US$17.5 million, falling short of the previously-issued revenue and earnings bottom-ends of US$325 million and US$21 million respectively.

However the company’s residential arm continues to grow, with residential bookings up 36% year-on-year to 108MW from 14,200 new customers in the quarter, cementing SunPower’s strategy to double down on the US residential PV market.  

Presenting its Q3 2021 results, SunPower said its full year revenue and earnings guidance for the year, including the CIS and Legacy business units it recently said it was considering the future of, is now below the prior guidance of US$1.41 – 1.49 billion and US$110 – 130 million figures previously given, respectively.

SunPower said this was down to project schedule delays affecting its CIS business, which is impacting both revenue and adjusted earnings from the unit, while revenues from SunPower’s Light Commercial division are also now expected to be lower than previously forecast.

In guidance for the fourth quarter, SunPower said it expected revenue excluding the CIS and Legacy business units to be in the range of US$330 – 380 million, with adjusted earnings falling in the range of US$28 – 46 million. CIS and Legacy business revenue for Q4 is forecast for a range of US$31 – 41 million, however the divisions are expected to incur a loss of between US$5-10 million as a result of supply chain impacts.

As a result, total net income guidance for Q4 2021 has been given a range of US$5-10 million.

While SunPower reported growth in its residential business, its total installations slipped sequentially from 125MW reported in Q2 2021 to 121MW in Q3. Adjusted earnings for the quarter also fell 21.2% sequentially to US$17.5 million, however this was more than double the US$8.6 million recorded in the corresponding period last year.

Peter Faricy, chief executive of SunPower, said the results were validation of the company’s decision to increase its focus on the US residential solar market and pointed to an increasingly favourable environment for solar, buoyed by recent policy initiatives in the country.

“The time is now for homeowners to adopt solar energy and storage, with flexible financing options and favorable clean energy incentives currently under consideration by Congress that make it easier for consumers to help fight against the increasing impact of climate change. Along with our recent acquisition of Blue Raven Solar and new leadership hires, there is a bright future for the next phase of SunPower,” Faricy said.

As a result, SunPower has reiterated its residential business guidance of 345 – 375MW installed from 55,000 – 60,000 new customers and a >US$0.70/w gross margin run rate.

Furthermore, the company has also reiterated the FY 2022 earnings guidance given last month when the business announced the Blue Raven acquisition.

4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.
27 October 2022
The advanced technology and innovative features of the new ES G2 3kW to 6kW single phase hybrid inverter enable increased savings, with smart loading for optimally timed energy consumption. Join this 40-minute webinar to learn how a true hybrid inverter operates to maximise PV based savings and how the ES G2 addresses the requirements of residential customers.

Read Next

September 30, 2022
US renewable energy major Brookfield Renewable has agreed to spend up to US$2 billion in order to acquire both Scout Clean Energy and Standard Solar.
September 30, 2022
Utility-scale renewables developer Intersect Power has secured US$3.1 billion in project financing to complete its 2.2GW near-term clean energy portfolio in the US.
September 29, 2022
Heather Zichal has announced she will leave the American Clean Power Association (ACP) after two years as its CEO.
PV Tech Premium
September 29, 2022
US solar and storage developer Avantus is scaling up a strategy of deploying high-capacity factor power plants that aim to maximise transmission infrastructure while limiting curtailment.
September 28, 2022
The ENACT Installer App automates the complete journey of the customer, right from first contact to complete installation.
September 27, 2022
Nearly a third of all renewable technologies employment came from the solar PV industry in 2021, according to a new report from the IRENA.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 4, 2022
New York, USA
On-Demand Webinars, Solar Media Events
October 11, 2022
Virtual event
Upcoming Webinars
October 18, 2022
10am (EDT) / 4pm (CEST)