Sunnova Streamlines Operations to Enhance Cash Generation
HOUSTON–(BUSINESS WIRE)–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.
About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence™. For more information, visit http://www.sunnova.com.
Contacts
Sunnova Media Contact:
Russell Wilkerson
203-581-2114
Sunnova Investors & Analysts:
Rodney McMahan
713-997-2444
