- Maxeon Solar Technologies lowered its forecast due to lower demand for solar products.
- The company cited rising interest rates, large inventories and changes to California solar rules as hurting sales.
- Maxion said it will focus on corporate and industrial clients as residential demand declines.
Shares of Maxeon Solar Technologies (MAXN) fell more than 30% on Friday after the solar products provider cut its guidance for the full year due to lower demand.
The Singapore-based company now expects 2023 revenue in a range of $1.25 billion to $1.35 billion, down from a previous forecast of $1.4 billion to $1.6 billion. It expects adjusted EBITDA of $80 million to $100 million, compared to a previous forecast of $95 million to $120 million.
CEO Bill Mulligan said that “the demand environment in the global distributed generation (DG) market has weakened significantly” late in the second quarter. He cited rising interest rates, large inventory channels industry-wide, and the impact of policy turmoil in California. That case changed the way homeowners were compensated by using solar panels to power their grid, which made installing them less attractive.
Mulligan noted that the company did not meet its volume and revenue targets for the quarter, and expects “challenging market conditions to continue at least through the third quarter, particularly in the residential sector.” Because of this, he indicated that the sales team would focus on the commercial and industrial sector.
Shares of Maxeon Solar Technologies traded at their lowest since July 2022 following the news.