SunPower Corp. said that it added 13,000 customers during the second quarter as residential bookings rose 16% from the previous quarter and 67% year over year.
The company said it expects volume and margin improvements in its residential business to continue into the third quarter, with volume expected to grow more than 40% compared with 2020.
SunPower also said that during the second quarter it grew its single- and multi-family new homes backlog by 10% from the first quarter to more than 220 MW. It said demand remains high for its SunVault residential storage product with attach rates of 23% in its direct sales channel. The company said it expects SunVault growth to accelerate in the second half given that lead times have returned to normal.
Residential gross margin for the quarter was 23%. That was up 160 basis points from the first quarter and more than 600 basis points year over year. The increase was primarily driven by a lower cost of capital, by supply chain initiatives, and by an ongoing shift from component sales to higher margin full-system sales, which totaled more than 55% of residential installations for the quarter.
Financial results
The company reported second quarter GAAP revenues of $308.9 million. That was up from $306.4 million in the first quarter and $217.7 million in the second quarter of 2020. It reported GAAP net income of $75.2 million. That was up from a loss $48.4 million in the first quarter and a positive $55.9 million a year earlier.
The results translated to net income of $0.40 a share, up from $(0.28) in the first quarter, and $0.31 in the second quarter of 2020.
SunPower’s CEO Peter Faricy said the company made progress during the second quarter on a number of initiatives to expand its market, including increasing its dealer footprint, expanding its financial platform to include loan servicing, and announcing a strategic alliance with Wallbox. Faricy said the alliance will enable SunPower to offer residential customers a “simple and cost effective integrated solar, storage and EV solution” that will lower energy costs while reducing strain on the grid.
During the second quarter the company’s commercial and industrial business posted a roughly 30% increase in megawatts recognized year over year, bringing the segment’s total installed base to 1 GW. The business segment increased its backlog by 20% year over year and finalized an agreement with California Resources Corp. to develop up to 45 MW of behind-the-meter solar projects.
The company said that demand for its Helix BTM storage solution remained high. It said it now has more than 35 MWh installed and a pipeline in excess of 230 MWh.
Additionally, the company said it is seeing continued success in its front-of-the-meter storage initiatives with more than 20 MWh currently under contract and a pipeline in excess of 500 MWh. The company said its community solar pipeline is now more than 150 MW.
SunPower said it continued to make progress toward its goal of lowering its cost of capital to 5.5%, while also continuing to invest in digital and product initiatives to reduce customer acquisition costs.
Performance outlook
Looking ahead to the third quarter, SunPower said it expects volume and margin improvements in its residential business with volume expected to grow more than 40% versus 2020.
The company said it expects third quarter GAAP revenue of $325 to $375 million, GAAP net loss of $10 to $0 million, and megawatts recognized of 125 MW to 150 MW.
For fiscal year 2021, the company said expects GAAP revenue of $1.41 to $1.49 billion, GAAP net income of $40 to $60 million, and megawatts recognized of 540 MW to 610 MW. Residential megawatts recognized are expected to be in the range of 340 MW to 380 MW.
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