Sunnova's Solar Setback: Revenue Miss, Cash Flow Woes Sink Stock Over 50%

Sunnova Energy International Inc. NOVA shares are trading lower premarket on Monday after the company reported fourth quarter and full-year results.

Revenue of $224.127 million, missing the consensus of $234.51 million.

Revenue from customer agreements and incentives rose by 43% year over year (Y/Y) in 2024, led by a higher number of solar energy systems in service, larger average system sizes, and an increase in battery attachment rates from 27% in 2023 to 34% in 2024.

As of Dec. 31, 2024, total cumulative solar power generation under management reached 3.0 gigawatts, while energy storage grew to 1,662 megawatt hours.

The Houston-based company also announced an operational optimization to cut annual cash costs by $70 million.

As of December 31, 2024, the company had total cash and restricted cash of $548.1 million.

William J. (John) Berger, Sunnova’s founder and CEO, said, “While total cash increased, unrestricted cash remained relatively flat, below our estimated $100 million increase.”

”This miss was primarily due to lower tax equity contributions stemming from timing delays of ITC sales, fewer installed systems, and funds received in December classified as restricted,”

“During 2024 and the first two months of 2025 we acted on several initiatives, 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.”

”We believe, these actions better position Sunnova in the current environment and support positive cash in 2025 and beyond.”

Outlook: The company has withdrawn its guidance and plans to provide updates in future earnings reports.

Price Action: NOVA shares are down 51.9% at $0.7985 premarket at the last check Monday.

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