Sunworks boosted by Solcius deal as residential revenue jumps

US solar and storage installer Sunworks has seen its second quarter revenue surge following its acquisition of peer Solcius earlier in the year.
In the three months to the end of June, Sunworks posted revenue of US$32.1 million, up from US$9.9 million recorded in the same quarter last year, reflecting a US$22.8 million contribution from Solcius.
While Sunworks recorded gross margin of 47.2%, compared to 24.9% in Q2 2020, reflecting the contribution from Solcius as well as “operational improvements”, the company posted a net loss of US$1.9 million, compared to a net loss of US$1.5 million in the same quarter last year.
“With the integration of Solcius largely completed, we have made meaningful progress in improving all facets of our organisation,” said Gaylon Morris, who became Sunworks CEO in January.
When Sunworks announced its US$51.8 million deal acquisition of Solcius in April, the company said the deal would create a solar provider with a presence in 12 US states.
As a result of the transaction, the portion of Sunworks’ revenue from residential installations has increased significantly. While the residential market represented 19% of revenues in Q2 2020, it increased to 78% in the most recent quarter.
Sunworks management revealed in the company’s results announcement that the uncertain macroeconomic environment created by the COVID-19 pandemic will continue to have a “significant, adverse impact” on the business.
Revenue and gross profit in Q2 were both negatively impacted by governmental responses to the COVID-19 pandemic, Sunworks said, which delayed pre-construction approvals and installation activity for some solar projects.
“Of concern is how the COVID-19 pandemic continues to spread and could continue to adversely impact our ability to source materials used in our operations or affect our ability to complete ongoing installations in a timely manner,” the company said.