Maxeon Solar reports $179 million Q3 loss

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From pv magazine USA

Maxeon Solar Technologies, a major solar panel manufacturer headquartered in Singapore, reported its third quarter earnings. 

The company posted a $179 million loss in Q3 2024. The company said earnings were “distorted” by the detainment of solar modules by U.S. Customs and Border Patrol (CBP). 

Maxeon said due to the uncertainty of CBP detentions, the company is unable to issue revenue guidance for the fourth quarter 2024. 

With products unable to enter the U.S. market, Maxeon shipped 199 MW of solar panels. This is a fraction of the Q3 2023 total of 628 MW shipped. 

Revenues in Q3 2024 totaled $88.6 million, with a net loss of $179 million. This compares to Q3 2023 revenues of $227.6 million and a net profit of $2.7 million in Q3 2023. 

Chief executive officer George Guo said the loss can also be blamed on “fixed costs associated with factory shutdowns and low production levels, and costs and write-offs from our ongoing restructuring.” 

Maxeon recently announced a business pivot to its geographical strategy, stating the intent to serve the U.S. market exclusively.  

“As we establish our new strategy to transform Maxeon, we are highly focused on our financial position. We intend to reserve sufficient liquidity for daily operations, while we recapitalize the company to fund our restructuring and growth,” said Dmitri Hu, chief financial officer.

In pursuit of this new strategy, the company announced it will lease a factory site in Albuquerque, New Mexico with plans to operate a facility with 2 GW of solar panel manufacturing capacity in early 2026.

“We continue to observe depressed prices as a result of the global oversupply and intense competition,” Guo added.

“The average market price for high efficiency and mainstream crystalline modules like our IBC products and Performance line products has dropped by approximately 43.5% and 28.6%, respectively, since January 2024,” Guo said.

The company said it would defer holding a conference call to discuss quarterly results until the ongoing restructuring is complete.

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