SPWR - Earnings call transcript Q2 2021

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Operator

Good afternoon. Welcome to the SunPower Corporation Second Quarter 2021 Results Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions].

conference being today's reminder, a call recorded. is As turn over to would now call to like I Mr. the Okunski, Bob Vice President at Relations SunPower of Corporation. Investor sir. you, Thank

You may begin.

Robert Okunski

you. to welcome earnings Thank call. like quarter conference second XXXX everyone would I our to

on out and on On Peter comments as XXXX, will a as Faricy, will quarter, beyond. the update who from summary SunPower, well with of the growth of our we XXXX call provide today, initiatives start in CEO strategic an view

SunPower's CFO, financial Sial, then review as Following our quarter Manu Peter's will our second results provide comments, well as guidance.

this As will website. a reminder, a replay Investor of available of the today our Relations page call on later be

regarding During press reports on will earnings appendix various slide non-GAAP forward-looking XX-K Safe today's presentation that for information to are the Harbor quarterly make uncertainties well may of release, additional non-GAAP that factors appropriate GAAP and today's call. the refer our in statements subject risks today's release reconciliations. these presentation, today's those today's our as certain the during call, of to reference as affect those see documents XXXX earnings we Please for that will we Form forward-looking press our and are Also, Please XX-Q. to statements. metrics described

of the website. additional have the Peter and same like historical Events the Finally, supplemental PowerPoint over to our we Presentations reference detailing a also turn on In call CEO enhance have that, page this set also Relations metrics. of a I'd Investor will posted datasheet Faricy, to the call, location, to slides, SunPower. which posted Peter? during of With we call we

Peter Faricy

good everybody. And Bob. to afternoon Thanks,

reiterate I into I want get about future how the quarter, the we the of SunPower. of Before excited am specifics to

XXX I and confident of backwards XXX opportunities customers units, trust. on than ever keeping together, needs of I into the can deep first the with I'm each mentioned front in these goal first earning say have starting with about would our more and us. our my working business of our around after days center the we diving call As of customer days,

this future look and us driving will offerings digital Our the investing energy such fast key believe make by position execution four take We long-term are our focus solar Number position and going XXXX, going our capitalize to forecast adoption to X. remain growth areas, for well continuing confident revenue our an I'd saw behalf product in finally, and affordable. These continued improvement number as investing I'm network; customers. doing our strategic further as value digital QX new as the include, momentum, four, QX relentlessly approach world growth turn industry-leading customers opportunity. the and and in slide Please leveraging customer as guidance, beyond. significant to on Please our three, XXXX two, of reliable, with the our pleased we highest products in drive customers. of a and to EBITDA long-term expanding of we control three, focus while initiatives. while innovate were on forward, growth, why of areas. in one, our overview remarks Number customer class remains experience four, our QX slide now residential initiatives to our provide in X. best-in-class ability strong and and solar financial today market emphasis to world expansion in products class to the our on our number We growing my growth on bookings their experience; Number TAM strategic lifetime needs. two, to our what in as to increased customers greater market; well strong to and investment performance, balance to opportunity. and execution sheet. And dealer drive best industry-leading on turn our SunPower met the those in we our and like creating expanding of initiatives to with the quality one, the customer value strategic tremendous due a easy, providing further

rose by QX Specifically, for and our industry-leading where driven QX solar our see residential we QX continue solutions execution last increasing of year. performance was bookings strong demand as XX% residential versus storage to

policy dealer New and industrial execution customer profitability we further our benefiting sequentially are from overall XX%, led as in XXX and and as last also both basis gross were positive margin tailwinds, residential versus year-over-year as and up increased Strong up to adds improvement points well expansion solar, also benefiting commercial to demand residential sequentially in up increasing year. business.

full on to and the We system basis with give closer system lease lease XXX as confidence than by QX, system sales and to lease full XX% look but our second half our better loan in Full In continue the us unit only component while better the loan and of to we our points sales. sales providing execute of total provide we increased component targets, customer relationship end XXXX. our economics, initiatives visibility not loan into to convert bookings buyers. a These sales. proportion trends and

demand the reaching about our storage future quite remains our remain sales attach in SunVault bullish XX% as channel. solution very with also high direct We rates of

strides last actions customer times the we lead experience made to and improve mentioned significant over the past we few months. have quarter, took in reducing As

we balance the product to strongest financial in the beginning in rollout last X. additional slide our progress of improving history. second it And dealers we a are the sheet of year accelerate June. to the significant been full our result, made We've also Please turn As expect to in to SunVault our the has growth number that as pleased have resumed in foundation is quarter. we say half

programs to unit our position the us debt seven. business gives the $XXX shift are confident below our we're in initiatives flexibility drive positive slide and margin months. like very comfortable individual cash summary, in I'd of demand are now less million financial of performance that With times Enphase Please XXXX over trends, to reduction to target further turn cost XX flow. second and now of last balance capital given And position strong continuing business is as believe sheet quarter, now and our business end the and the our de-levered our with leverage long-term shares. head strong the number will EBITDA. we our We have X.X expansion, to In growth. Also, segments. cash to invest we we of significantly of this drive liquidity than net sufficient the

expansion to residential and continued in Our lead business times. customer growth, improvement new we strong saw margin our SunVault outperform as

Residential we count customers our Specifically, XXX,XXX. to lower brings from new and year-over-year over the This XX%, total we quarter, capital cost margin XX,XXX to points quarter the sales. as during of shift as the demand added high. basis a was up both customer remains for our for solutions gross benefited system industry-leading XXX continuing

homes bookings. performed with strong grew XX% New year-over-year megawatts well also as

quarter in demand run third the our a key which initiatives. remains more for the And Our is homes year. the and on bookings now XXX quarter. expect in before, a growth as $XX SunVault We multifamily our half exited megawatts, second mentioned I driver this SunVault finally, starting than million rapid current is ramp of of rate high. now includes backlog a

slide Moving industrial please to to business, and on commercial our turn number X.

well year-over-year, with CIS as higher up to solution segment performed volumes grew Year-to-date installs approximately revenue Our deployments. storage well. as XX% XX% due increased

our to This of For develop California XX see storage we the XXX behind-the-meter XX backlog, includes megawatts strong of project above contract including quarter, continue we trends, a added projects, megawatts significant recent from to the up as megawatt Poso at now oilfield. our Mount Corporation to to demand Resources solar.

more We we onsite continue XXX under of demand as projects awarded. see storage have contract for storage or megawatts than to solid now

are making and of community efforts market. progress we our initiatives, offsite storage for our the solar Finally, on front-of-the-meter including expansion commercial growth strong

some X, on market the increasing we slide of so in see we why residential highlight why we and are bullish our to the key market. Turning what we drivers this as investment of are

and but First, demand, ways in a for customers their consolidate adjacent increased footprint. as markets, control from we look space, only to large not and in growing very opportunities energy solar TAM residential also see the

the as from these of through discussed and standalone policy as growth Second, quarter, materially the potential support last will share tailwinds of extension IPC We strong California. federal we outside believe expect tailwinds level to increasing level benefit and expand for solar as storage. credits, from well from both solar the state a storage

solar believe including on continue Please number today technology just storage, EVs customers our strategic us will started. than services opportunities feel we initiatives a for XX% energy XX. We that In we in opportunity to partnership with adjacent the with getting will Third, of EV offer are and have this slide in initiatives, our recently on bit. more be that and greatest announced to invest those summary, we More growth. near-term turn focus Wallbox.

experience customer buying it as technology by the best-in-class our easy to using class solar online. world make creating book buy of is First, to as process a

all and Second, home product all solar, and offering by storage, that product energy. a smart the the most market. highest focusing EV, affordable segments solutions, performing suite selling includes chargers for This driven and on clean developing combines of

superior with on our expand but to experience, to providing our also solutions dealers. a customer markets, only to Third, continuing network world not a dealer class new focus enhanced

direct penetration, accessing long expanding as We our share will to drive also consumers. new channel well of new continue a states, tail including to market, greater our investments the as market

see of will, financing to purchase new major the solar will in and offerings financial increasing the our continue solar approach of Finally, demand us This financing model financial easier. stage to develop meet products. barriers growing to an to advantage interconnected On at that any energy digital value highlight we We we flexible chain. and And adoption. in the our to make acquire upfront the allow and customers of ecosystem. investment order slide costs for therefore, remain XX,

uniquely exploring to energy value expanding services, expanded times these our with our best-in-class, experience We solution. these segments. to to we more believe customers efficient move ability entry from us are strategy example, capture a points, and and such depending smart than remains storage EVs For And as up with to to other customer energy us focus down value SunPower products two top services. solar each the compared customer our the and chains serve focus enables on priority services we customer the highest of as lifetime this the flows believe we to Customer in home enables cash approach EV, multiple and for are positioned SunVault.

us simple will This and XX. by turn partnership offer end convenience slide solution customers, giving EV like are SunPower while with about charging for call partnership how recently to Before a Please our customers to talking excited and enable on solar adding announced I seamless those the we're Manu, we turn solar over Wallbox. I'd to that charging about site. with already to

As are part storage customers. differentiated EV on collaborate solar fully home. This This for agreement partner we a integrated charging charging that will that at customers of to of also home solar, help also clean Wallbox's Both us and XXX% further addressable provides partner. market. the reach solution strategy is offer additional charging expand larger our part products the EV will installation companies will preferred our partnership, and

dealers. rolling SunPower. start to and by Manu? With the call to of like our over second of Manu CFO this expect the feedback the from both program Sial, are quarter, encouraged turn to I'd that, We early and customers half out this

Manavendra Sial

Peter. slide our provided have to select results consolidated Thanks, we metrics. turn where and XX Please financial

of than to benefit year, as up XXX dealer we EBITDA and the saw year pleased adjusted during XXX the efforts as bringing our to added demand expansion for also our residential We performance year-over-year. flow first are of quarter increase new base dealers bookings business financial drove half last to partners. second starting quarter XX% compared at were level. We We're the see we the more our in as positive with unit the cash strong materially in dealer the

OpEx, Non-GAAP you products, gross XX% cost given of if C&I XXXX. we our of $X.XX balance the confidence addition, Residential margin initiatives, chain gross $X.XX. second as continue increased per versus watt, XXXX sequentially as of was exclude and investments the XXX% more was margin up This beyond. capital. and see Consolidated XXXX. for grew as backlog lowering more and our $X.XX. $X.XX than into per watt well our solutions supply was this watt trend was gives which of capital In XXXX. watt, rather we OpEx per per non-GAAP than improvement us up of versus in devco to cost quarter expect approximately OpEx deployment digital And And

in half we see on and enable key and a focused customer growth cash as installed of our fund OpEx increasing the to expansion the our the partnership storage investments and digital long-term We're long-term also addition year believe margin EV residential improve with new that experience relationships customers and long-term product are TAM driver our will We and initiatives of flows. customer with base. second SunPower of large

beyond. we addition, loan revenue combined In servicing lease launched and capabilities, XXXX our we our servicing materially and improve servicing will with residential in

improve and invested our on second capital in XX% return exceeded a XXXX. Analyst We capital target efficiency to of continue our quarter Day a

of added cost incremental residential and ahead capital a target X.X%, see capital We capacity strong of also of by in million finance our initiatives. further unit a We for cash room business and at of given sheet Analyst debt Day lower generation. improvement loan balance of blended cost enabled repaid project $XX recourse

balance guidance. to Peter Please residential enabler turn key discuss would like business. XX. strength As is I slide mentioned, our fast to now drive a and our expansion significant to growing in sheet TAM a growth

XX% expect third the in expected volume and business, grow residential our For we improvements with sequential prior volume year. margin to quarter, versus

the Specifically, megawatts. of megawatts XXX and third of GAAP $XXX million million quarter XXX to expects to recognized megawatts revenue $XXX company

to Third compared EBITDA has $XX years. of quarter linearity the be million, range improved the adjusted as previous will two in million to significantly $XX

will the the our range million incremental of of million inclusive on $XXX growth versus and be up customer of full-year $XXX residential For up to our initiatives $XX and and beyond. million, of unchanged three XXXX fiscal will that times EBITDA XXXX, in further and remains guidance year experience business XXXX to accelerate adjusted in spend digital

megawatts $X.XX the range XXX megawatt For billion Residential and the of megawatts. recognized company XXX to recognized to in megawatts to $X.XX billion revenue megawatts. fiscal XXX are GAAP expected of megawatt XXXX, year expects XXX to of be

timing Our megawatts impact third year XXXX growth project compared recognized the increasing in to of and light commercial investment and and our guidance business. quarter total includes solutions residential revenue new initiatives C&I

adjusted XX% to achieving the see our With increasing questions. confidence tailwinds and in continue EBITDA both have than would of to XXXX. turn call businesses strong We that, in growth for like in I greater over

Operator

[Operator Instructions].

of line the Kallo Ben Baird. from comes question with first Our

Benjamin Kallo

your dive only then, are questions, SunPower first you if get think chances What want the have Peter, can few do to up. business then the and the commercial, days? across different I guess a improve follow ask I industry maybe and you what a XXX business, to like the observations residential into from and maybe And model? you

Peter Faricy

first to only I not each First to of think days the me in accelerate value is XXX lifetime surprise the of biggest but my customers, for the opportunity accelerate the customers. those number all, of for

kind year X.X would million the data the at use I million the end to research it today. and is creates from the if high going have two consumers last on grow of suggest third-party do an decade. of solar install of easy So, people Wallbox XX% help over to example, of how number isn't One, electric vehicles it consumer those opportunities as side. XX chargers speed partnership we because this

and one ready be So, and we vehicle, get by consumers power that they help time And sun. and and essential. the in But vehicles And includes offer to everything it's option. helps not their decade. vehicles, electric do for that develop more so get issue we installation may ready XX electric from power their as their in an powered electric that really which they're the that the and life, of their the want how their isn't of can needs running the the of be company grid end the How everything the aware we case by charger as appliances, bigger all It's to the vehicles buy we million the sun? easiest soon off includes itself, go. to is of, is the you of

partnership really catalyst we forward. And a recognizing a on big solar. market we the me, SunPower. be customer. go focused a big change this game going solar, changer is is forward, storage, EV for that had a were one-time And for we're really we're And we with think for and is a in us excited we because relationship consumers. with as look beyond, to primarily So, about the Historically, and have how we to really as to chargers lifetime relationship pretty hope those

very So, the for and potential about excited growth. very future excited partnership the about

was same commercial we exist think about for businesses, The both. I great believe, Ben, I'll well-positioned second for interestingly both and are say industrial. enough, And your question, conditions, growth.

likely Solar way incentives more be things. prices they both are are businesses and power the demand frankly, there's to declining, commercial change from to policy increasing. consumers And

businesses So, – call reason are more are us. those of right really we term. about The great really opportunities doubling They're see demand. residential having both in we talked more down front in near is on this

area still the And on said well. So more as the we're we're Ben, question you going about focus now. growth both. to think, of I potential optimistic have But you that's for very one

Benjamin Kallo

appetite the your what fresh think chain? with the of for which consolidation? the do about parts further it you And would think consolidation where And you occur? in eyes, Lastly, do value space,

Peter Faricy

customers. Well, our really primary focus has on been

to help feel a be do opportunity scale would from think position, very a how or flexible standpoint want excited positioned. to us we customers about feel the as go we'd in to We're serve positioned I choose really position we're balance So, right grow history, that and our go service forward. we've for think is will. we of, we you if would strongest had sheet us there Because where advantageous acquisition the I and an in if now, well like well to this better, really we But acquire was product, we an thought that.

Operator

the Brian Sachs. Goldman line Our next with Lee comes question from of

Brian Lee

on shy Maybe one, of But what the revenue just I coming outlook XXXX bit for you guidance. for little in think it's before. new first the Manu. range, at had Maybe the this is inferred a

billion I think XX% year-on-year plus. or $X.X

So, you pushing out Is getting a you parse is wanted a little issue? seeing walk exposure? can a the RLC? a as a the Or just to you us timing drivers have cancelled? of of And bit, I then And CIS? projects just bit this segment Or is follow-up. reflection more to there. through that in more weakness give Or it out? can color Are kind it little

Peter Faricy

Brian, over I revenue, it as But of it you two is to Manu. will say, a bit I'll a look at turn little different worlds. take our

know On go prospects quite and has forward. side, we growth been revenue we're little growth our from business following a the we slower a residential of it as bit as the you with time. than expected has lumpiness, little pleased over commercial the and CVAR

So, of go want I'll that more in of come you we're as we as through came it'll QX. Manu, to less forward. more do some backlog pleased add well? color in the with QX through But say and to backlog that

Manavendra Sial

Yeah. Brian, I'll make two comments.

I think well. Peter covered it

Our with residential as tailwinds. rapidly business sequentially, as growing increasing is year-on-year quite well

mix projects CIS are while On moving XXXX. business and we of the those has got a tailwinds side and the of the has business of some seeing to the projects house,

specifically incremental bode will our of both into well also that's importantly, businesses, the XXXX strong go is and invest EBITDA gross as And residential we to OpEx the really us really residential More allowing that margin. but beyond. on backs for

Brian Lee

of this points longer-term RLC achieved comments it of a of impact? shipments in headwinds, profiles it Should to question, we kind segments like speak of then, the to And there, see well. tracking the of I that to starting been lows wanted volumes half. a sort and maybe to true of and segments be the the Can be. just there. there's ramp, newer to margin the where XQ seems given the SunVault back you as the versus half? newer back like margin to the different haven't that's above maybe expect well, terms is second XQ? the cost product, is impact having ramp RLC, should related could bit a Peter's two do in kind vantage near-term specific any see target new be there of profile medium different achievements But The two as SunVault sort just out to margin guess, seen around into flesh we you would about Seems full that What hitting in we again. CIS thinking for

Peter Faricy

I'll questions SunVault it start on me different your let guidance. quick Manu for turn to on off. you two over comment and a Brian, I'll give

very So, to the we're talk particular. from a and lot product a both we demand perspective, of now. consumers pleased on in there's SunVault dealers, demand the side, right our When And for we the head we into and in the anticipate year and given we Texas some months, had of of that as beyond. instability grid the from fall the growing examples and the winter last

that exiting run how So, QX bookings exited SunVault more of to we one run ready and commission our dealers focused more number thing rate. is rate we're and on million units. more more $XXX do with, at anticipate get And million $XX we the we

the to want little guidance and So, go on from all a do and growth for well? it's the bit perspective, also we're forward looking as CIS to business SunVault on year. both Manu, good a comment of you rest SunVault systems the

Manavendra Sial

the first I'll cover me that Let then In resi second, CIS order. Brian. and the cover

back half view. years. as to is turnaround well significant expect profitable you the We think is going that from inherent CIS a better in year-on-year, which the top business. margin from I a point as couple from knew So, in of second significantly last the year, a margins we of perspective the perspective, quarter quarter. then our of lumpiness And business recall, second the think that, Having more the be I the business the CIS into the importantly, line said both reflective of are

going mentioned you script, really increase exiting Markets talked this the to watt. with bodes that's the north margin residential in So, margin. a year of watt Capital the going into in tailwind my business. We're we be XXXX. the At a that of that, the terms as our the I CIS Day, of per volume of about has in really at and about From think margin gross had the we're $X.XX business well sequential gross performance growth business, perspective, pleased as resi

Peter Faricy

Brian. thing that Just acquisition come add-on. pleased attach are that's one our really the solar, in business on reason like that, most no of along We're And SunVault, more acquisition relatively SunVault the customer sales is there's solar. solar for important high, costs costs a with where customer real incremental a

margin it's accretive and from a we're that. with very So, perspective, pleased

Operator

from with next of Maheep Mandloi Our question comes the line Suisse. Credit

Maheep Mandloi

or maybe And we we exclusivity and should What revenue table talk Wallbox if Peter, each probably how can bring of does here. to you think about next maybe about the not you do that entail probably year? this contribution, year, then either to what more partnership Wallbox? the for

Peter Faricy

Both I of partnership. working established, would call, us what preferred a have

but se, we're they're preferred installation not preferred EV partner. per and partner our exclusivity there's their charging any So,

best we have value to that and the products performance, product if panels take look great world, through world. a really want reasons to we're our Wallbox offer in is line you think how solar in we that's with consumers. at highest the the We work products. products best value One the provide about Maxeon, with And the to of we a attracted in have they

do opportunity value forward a also time? see be we start you about same great also opportunity not they're the performance as storage going, and product to and but chargers, on How the only in begin electric innovation. SunVault, having we for company your Wallbox, think a way with vehicle from like at the how as being for leader an to well. provide for battery as service that innovation leverage So, very also So, think to focused about leader we you you offer. we and is to where battery begin look do two product And that's storage EV we see every opportunities addition, the

the of in more say. partnership we would obviously, we're tuned, about as I the total. stay on working And together space the parts in very So, opportunity, go. excited We're EV

Maheep Mandloi

follow-up. just a Maybe

how you Somewhat if can revenue we unrelated batteries, on the much for talk growth maybe batteries. about expect

$XXX guidance million the think revenues prior was of I the for year.

are industry? XX% rate XX%, of penetration where Like, you're to on this that about or do you term, are years we rates. we or talking you're booking the rate I'm we XX% sort rate. Longer in attachment down looking closer And run XXX%? So, for penetration already now? at a should few what's Where target? increased in think the settle

Peter Faricy

really to One Well, down to SunVault, on I are quarter, out. last we as purposely our rate, did dealers couple experience slow a we run sure because our of great mentioned that guess prepared customers observations. a and is, we want roll make that have well

guidance you continue day, talking much are on the that as the $XXX provided dealers their not that imagine attach But of when and consumers that third maybe that. it's like over want a few our rate in the larger we along from to million solar. to for on to who year. and like So, for we're the hit storage single every fourth with the That haven't our time. point attach on something to And it's to specifics next quarter of talk will the have to But rate XX% for XX% pleased easy of years looks we our to customers rate have we that $XXX go. will quarter beginning run view million

kind you haven't model provided we we think for mental as that's as of a that good forward. think go to I about But guidance. So,

Operator

comes of next line Our question Partners. Philip the from Shen with Capital ROTH

Philip Shen

average some Are at Manu, possible to like? get share to on what SunVault think looks it if The And you do would first do near be point SunVault. you that? profile term? or the on or below average resi is for you you're one so, Peter at corporate margin back corporate

Peter Faricy

more provide please? color want there, some you to Manu,

Manavendra Sial

Sure.

stronger at than I think operating perspective, to expect the EBITDA leverage the because gross our margins. level, And residential than average from it should you margin EBITDA. just margin a the much should the SunVault then of slightly be average better be

Philip Shen

guidance high? is it's you And or driven It think from I guys talk do little these Or – no, projects guess through cited maybe said, earlier. get us you ask. with could or XXXX? so by My you business Is that think you pushed modules give logistics? are wondering more I but XXXX why into it even projects to was might with days amount. And seems this risk through been pushed push pushed seeing tough to I of that we you XXXX? seeing And Can friction the how the figured a general with Brian getting out talking XXXX. I'd is But you if know like were just trackers color have on out. steel we're getting into pricing modest out much a perhaps lumpy.

Peter Faricy

was about these that? from pushed Phil, as clarify, quarter are quarter color and projects you that give like earlier think just unusual this I a my business, Eric, the from QX specific little backlog the about in commercial operate. the to to things ones to have more move we this third QX. that It is do some a most to you And of comment actually know, because not complex XXXX. not was to of dynamics behind second want the sort bit that

Eric Potts

add this And solar asset much are it. on projects through We to in working we're working asset, and really we projects. some actual working linearity and make addition, the from delays, is utility to grid. on to on that we'll Adding permitting the of our also which has in perspective, created the begin more before have the been perfecting component becomes side that we as frequent asset we sure mobilization, sell commercial around really to the we're storage you mentioned. work storage seen And creating Really forward. a perfection before It greater asset. as project the delays more moving haven't continue solar our

Philip Shen

wondering Peter, your mind? could you one you potential other what think financial you And in for if new talked offerings. prepared might the remarks, was about in have then share question. I I

Peter Faricy

is a difficult reasons options. is, consumer in the talking news consumers, we're they is we're financing favor upfront what for cost the perspective. when of financing from of solar the the that our and great say We think lack talk I is about indifferent to consumer And choice two option. us top you

improvements a continue a out cash, of consumers identified number we the both dealer few a those us offer perspective. of also over easier and from products and that lease see from a So, perspective and roll of next course loan. easier, we've easier years, the make to and choice you'll consumer And to

process a is in simplify solar that everybody the make can really goal afford. United to Our States the product and this

And stay that. number opportunities more follow a We've identified So, deal. tuned. we think of on a are that big to

Operator

next the Harrison question comes Our from line Piper Kashy with of Sandler.

Kashy Harrison

SunVault Just partnership. in questions. XX%, Wallbox to margins. profile your on this will two Today, residential gross interrelated penetration you're You at follow-up increase? have

following investors Peter, XXX-day years? just mind the your have so, thinking about that margin be several the you curious, I'm gross review, And next do a for target should residential in long-term over business

Peter Faricy

very made driven in two we've our we're remarks, on process in the talked couple about tremendous we the we've past of prepared serving side, residential the the the really we've And And On customers. efficiency financial progress of progress One then, services. down is, sources. with has got doubled years. pleased as

I'd of improvement. They're going as primary have first made But been not days, some modest. residential margin those core be I two big expansion. gains to do years. they're more business, areas opportunities past say as the we've the the couple these for my in quite XXX see large In So, of further

new as view, my from of the opportunity, the industry big in the consumer. value lifetime just think person is the I a

this about powered to we do. what are headed, you is That's core want the the everything sun. of As We're going from where that. at think people

about the in people it think opportunity, have is perspective, as that allow your it's control app, can changes them battery your all attractive. cars, dollar money? trust appliances, to your and they the which we're margin bigger opportunities here forward. not think From opportunity potential, your today, consumers going pool, like I would to margin make more great like is a move How can all and needs? rate more we the the you So, look place energy How if of whether storage. And we dramatically, people we forward, we may you their something such think how will. house, their got with. save mySunpower about But think has So. margin the in in we much more but put make work if we dollar I opportunity really

Kashy Harrison

could as In perhaps long-term better, And business opportunity about into are more associated business to direction TAM dig talked the second you if and this is on my going this early to margins Peter, question, follow-up, expect was question, investment with right now EBITDA with flow? business. maybe you the you I associated my just it's a commercial the a the keeping response when in the contribute evident meaningfully better. an detail in to very of more the cash do that opportunity SunPower And thesis resi, family? business is large wondering

Peter Faricy

questions, fair those way. think by I are very the

the these long-term of that, took think about and I It's a the of it really on turn we're view industrial corner business, to if large need the renewable As most are requirement. if part projects commercial States, is, a going you United the attractive energy. we scale

You can't residential. only rely upon

need difference the in make of order targets a deliver residential to in kind to need to and the material commercial world. we You hit

take the and As added where been infrastructure look I historic at question. buildings solar, have being one a we bill, without commercial number it's the areas government infrastructure that's targets the in and schools on like side, to the specifically leader package existing industrial

of is think a a forward me This bit little perspective. a residential. is I growth really looking. investment biggest that It's So, business different than nature the for a thesis attractive from

industrial. And it's some and the But forward. I I growth still prospects nature that's go probably we it's think part will have that it. it attractive periods, of lumpy that's So, business got as a most fact commercial of tremendous the by think

Operator

comes line with James. the Pavel Raymond of question from final Our

Pavel Molchanov

could on perspective California that's largest new have going what supposedly their be next I'm or metering tracking you any your curious the to expectations historically? if net seed, within days. is XX provide in market to do

Peter Faricy

of that Well, how thing be and failed guess, net I way At to number solar proposals The to there. been think easiest on something arm could being proposals the we would to the in from just solar a The anti-consumer. move was consumers United the moving that and us. renewable it. doing from of to of opposite get support set failed, States the We they're power And a the of I energy. there's declined, arm say working first that day, they It's or to destroyer. takes addition recent be in moving change end is California most should the is, metering. anti-consumer, also a interesting benefit all, reason job across and the to away it's benefits not

in California. of We thousands have employees

Our now the industries dealers energy US. have industry and best job we in have California, one employees growth thousands renewable in the of the right of is

the really manufacturing incentives and perspective will the driving going it. We for that's families more for bill that So, support States. likely and those that critical anti-consumer future our day, really save of We of the United could part families and more of And is infrastructure and and it number end I to other that And versions legislation components solar support At be and is affordable. that federal of allow to of forward lower the money are solar. bigger critical anti-job. more and XXX middle it of And that's adopt the The homes pass incentives difficult make a the families. more solar those the middle think can we low the it's support of the United income to today. states are, million have various for more States. there's production income

want maintain And who do the right will arm that's that believe these forward. and thing consumers. forward, we to So, incentives work as really we we go arm we go for to as with those

Operator

Thank the back call you. I'll to management over for remarks. turn closing now

Peter Faricy

at Okay. call. Thank Thanks. Bye. And the we'll everyone. you, see earnings next

Operator

that Ladies your gentlemen, Thank and for today's you participation. concludes conference call.

disconnect. You may now

Sunpower (SPWRQ) 4 Aug 212021 Q2 Earnings call transcript