SunPower Q2 revenue drops on delayed job completions

Overview

• US residential solar firm's preliminary Q2 revenue fell sharply due to delayed job completions

• Company implemented cost cuts and replaced Direct Division management after quality control issues

• Preliminary results show Q2 non-GAAP operating loss narrowed slightly from prior quarter

Outlook

• SunPower expects Q3 2026 revenue to exceed $75 mln

• Company forecasts Q3 2026 operating loss to narrow to less than $1 mln

• Company plans further cost reductions of $5.9 mln in Q3 2026

Result Drivers

• JOB DELAYS - Co said revenue decline was mainly due to about 1,105 delayed jobs in the Direct Division that could not be submitted for funding because of quality control issues

• COST CUTS - Co reduced quarterly fixed operating expenses by $7.1 mln through layoffs, a four-day workweek and other measures

• MANAGEMENT CHANGES - Co replaced Direct Division management after discovering violations of quality specifications

Company press release: ID:nGNX52frtY

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction supplies & fixtures peer group is "buy"

• Wall Street's median 12-month price target for SunPower Inc is $4.70, about 872.5% above its July 27 closing price of $0.48

• The stock recently traded at 2 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)