Latest news with #SunnovaEnergyInternational
Straits Times
8 hours ago
- Business
- Straits Times
Sunnova files for bankruptcy amid rooftop solar struggles
The US residential solar industry is reeling from a torrent of headwinds, including high interest rates. PHOTO: ST FILE SAN FRANCISCO – Sunnova Energy International, one of the largest US rooftop solar companies, filed for bankruptcy in Texas following struggles with mounting debt and diminishing sales prospects. The company listed US$10 billion to US$50 billion (S$64.33 billion) of both liabilities and assets, according to a court filing. Sunnova had been negotiating with creditors to fix its capital structure since March, when it issued a going concern warning and cited 'stubbornly high interest rates, along with regulatory and political uncertainties' making consumers and capital providers more cautious. Sunnova also recently terminated most of its US$3 billion partial loan guarantee with the US Energy Department, which was intended to help provide panels to low-income customers. In early June, it said it was firing about 55 per cent of its workforce, following the bankruptcy filing of a subsidiary. The US residential solar industry is reeling from a torrent of headwinds, including high interest rates, rising tariffs on imported equipment and reduced state incentives in California, the nation's biggest rooftop market. Republicans in the US House have advanced a tax and spending bill that would would end tax credits for companies that lease rooftop systems as well as homeonwers who buy them. If those provisions become law, it would devastate the sector, analysts say. Sunnova became the second major publicly traded rooftop company to file for bankruptcy in the past year, following SunPower in August 2024. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Yahoo
03-03-2025
- Business
- Yahoo
Sunnova Stock Hits All-Time Low on 'Going Concern' Warning
Sunnova Energy International said it may not be able to continue as a "going concern" in a year because of financial difficulties. The solar power company has been plagued by falling demand for its alternative energy products. Sunnova shares lost nearly two-thirds of their value, sinking to their all-time Energy International (NOVA) shares tanked more than 60% to trade at an all-time low Monday when the solar power company warned it might not be able to stay in business as demand for its alternative energy products sank. The company said that without additional funding, its "unrestricted cash, cash flows from operating activities and availability and commitments under existing financing agreements are not sufficient to meet obligations and fund operations for a period of at least one year from the date we issue our consolidated financial statements" for the year ending Dec. 31. Because of that, Sunnova believes "substantial doubt exists regarding our ability to continue as a going concern" 12 months after making the upcoming filing with regulators. The company noted that for fiscal 2024, solar energy system and product sales revenue decreased by 13% year-over-year to $298.4 million, mainly due to decreases in inventory sales revenue. Operating expenses rose 12% to $1.08 billion. Founder and CEO William "John" Berger explained that during 2024 and the first two months of this year, Sunnova took steps to address its financial condition, "including mandating domestic content for our dealers to increase our weighted average ITC percentage, raising price, simplifying our business to reduce costs, and changing dealer payment terms to align with our own funding sources." ITC, or Investment Tax Credit, refers to federal tax breaks given to homeowners and businesses that purchase solar energy systems. Sunnova also announced it has signed a three-year term loan agreement with several lenders for $185 million, which will have the company pay 15% in interest per year. Shares of Sunnova Energy International lost nearly two-thirds of their value on the news. Read the original article on Investopedia Sign in to access your portfolio
Associated Press
17-02-2025
- Business
- Associated Press
Sunnova Streamlines Operations to Enhance Cash Generation
Sunnova Energy International, Inc. ('Sunnova' or 'the Company') (NYSE: NOVA), an industry-leading adaptive energy services company, today announced an optimization of its business aimed at streamlining its operations and prioritizing its highest-value customer segments to drive efficiency and higher cash generation. As part of this effort, the Company is reducing costs, primarily overhead, and optimizing its workforce through a reduction of nearly 300 positions, mostly within its commercial organization. These actions will reduce its workforce by more than 15%, contributing approximately $35 million towards total estimated annual cash savings of approximately $70 million, contributing to a leaner and more agile organization. The Company estimates that its cash savings will come from a mix of lower expenses and lower cash components of capitalized costs. These refinements reflect Sunnova's commitment to capital efficiency, cash generation, and emphasis on its high-margin lease (i.e., Third-Party Ownership or 'TPO') product. By aligning its resources with its most cash-generative areas, the Company is positioning itself for long-term success in an evolving market environment characterized by persistently high interest rates and policy uncertainty. 'As we continue to focus on capital efficiency and our high-margin core customers through TPO origination, we must always optimize within the current economic and policy landscape,' said William J. (John) Berger, Chief Executive Officer of Sunnova. 'To better position Sunnova for long-term success, we are taking proactive steps to streamline our operations while maintaining a strong foundation to support our valued dealer network and end-use customers. These decisions are never easy, and we recognize the impact they have on every member of the team. To those who will not be moving forward with us, we are committed to providing support during this transition and deeply appreciate all they have given to our organization. We are deeply grateful for their contributions and are committed to supporting those affected during this transition,' added Berger. With these changes, the Company will continue to invest in areas that deliver high margin, enhance customer experience, and create long-term value for our stakeholders. Sunnova will provide more details on its upcoming fourth quarter and full year 2024 earnings conference call. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as 'may,' 'will,' 'should,' 'expects,' 'plans,' 'anticipates,' 'going to,' 'could,' 'intends,' 'target,' 'projects,' 'contemplates,' 'believes,' 'estimates,' 'predicts,' 'potential' or 'continue' or the negative of these words or other similar terms or expressions that concern Sunnova's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding Sunnova's strategy, originations, results of operations and funding structures, including repayment of existing facilities, incurrence of new indebtedness, and forward flow transactions. Sunnova's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast or finance our business due to fluctuations in the solar and home-building markets, availability of capital and indebtedness, supply chain uncertainties, results of operations and financial position, our competition, changes in regulations applicable to our business, the federal administration and related political risk, and our ability to attract and retain dealers and customers and manage our dealer and strategic partner relationships. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova's filings with the Securities and Exchange Commission, including Sunnova's annual report on Form 10-K for the year ended December 31, 2023 and quarterly reports on Form 10-Q for the quarter ended September 30, 2024, and subsequent annual and quarterly reports on Form 10-K and Form 10-Q. The forward-looking statements in this release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law. 203-581-2114 [email protected] Sunnova Investors & Analysts: Rodney McMahan 713-997-2444 INDUSTRY KEYWORD: ALTERNATIVE ENERGY ENERGY OTHER ENERGY UTILITIES SOURCE: Sunnova Energy International Inc. Copyright Business Wire 2025. PUB: 02/17/2025 10:15 AM/DISC: 02/17/2025 10:15 AM
