Maxeon increases sales and losses in the second quarter

Module manufacturer Maxeon Solar continues to report rising losses for the second quarter, despite increasing sales volumes and revenues.
The Singapore-based manufacturer of modules under the brand of sister company Sunpower sold a total capacity of 521 megawatts (MW), up 6.8 percent from the first quarter (488 MW) and up 20 percent from the same quarter last year (434 MW). Revenue of $238.1 million was up 6.7 percent from Q1 2022 ($223.1 million) and 35.4 percent higher than Q2 2021 ($175.9 million). However, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was a significantly negative $36.8 million. In the first quarter of the year, there had been a loss of $33.6 million, and in Q2 2021 it was minus $23.5 million.
A major contributor to the second-quarter losses were costs to settle a dispute with a silicon supplier, which Maxeon reports at $15.2 million. The company also cites $3.3 million in additional costs from the difference between the silicon purchased under the long-term purchase agreement and the more favorable market prices achievable without that agreement. In previous quarters, Maxeon also incurred losses in the millions of dollars because it had to sell unneeded silicon in inventory at prices below its own purchase price. The silicon supply agreement, which was concluded before the 2020 split of the US solar group Sunpower into the two companies Sunpower and Maxeon, has burdened Maxeon’s balance sheet from the beginning.

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