SunPower Q2 revenue drops on delayed job completions

Sunpower

28/07/2026 12:12

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
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$56 mln
$76 mln (2 Analysts)
Q2 Gross Margin
 
47.00%
 

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.)