From Sherwood News, March 3:
Sunnova warns it may not survive as solar industry flails
Sunnova missed earnings and gave a “going concern” warning. Its peers haven’t done much better.
Residential solar company Sunnova’s stock price plummeted 64% Monday after the company warned investors that it’s unsure whether it will be able to stay in business.
Sunnova Energy also posted quarterly results that missed Wall Street estimates, racking up a loss per share of $1.14, which is an improvement from the same period last year but steeper than the $0.66 analysts polled by FactSet were expecting. It also reported $224 million in sales, $10 million under what the Street was expecting.
But perhaps most worrying to investors, Sunnova said it doesn’t have enough cash coming in to meet its obligations and is suspending guidance. “Substantial doubt exists regarding our ability to continue as a going concern for a period of at least one year from the date we issue our consolidated financial statements,” the company said in its quarterly filing.
“Going concern” is an accounting term that signals the company has reason to believe it may not be able to cover its costs within the next year.
Sunnova has been squeezed by high interest rates and lower state incentives for residential solar, which has weakened demand. President Trump also poses a headwind for the industry: he is hostile to the federal tax credits for renewable energy and has imposed tariffs on China, a major solar panel producer.
Sunnova recently announced that it would lay off 15% of its staff, which it said would save it $70 million in 2025. It also said on Monday that it took out a $185 million loan at 15% interest....
....MUCH MORE
I couldn't recall having ever posted on this one, having zero interest in these sorts of "businesses" but a quick search of the blog turns up one hit in July 2024's "Solar: "SunPower’s Meltdown Could Have Wide Impact" (SPWR)".
