Sunation Energy, Inc. · NASDAQ:SUNE
Sunation Energy — Investor Presentation (March 2025)
26 slides from Sunation Energy's investor presentation, Mar 17, 2025
Slide 1: Powering the Energy Transition Since 2003
Investor Presentation March 2025 Nasdaq: SUNE Powering the Energy Transition Since 2003
Slide 2: Forward Looking Statements
2 / Powering the Energy Transition Forward Looking Statements This presentation includes certain forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 , including statements regarding future financial performance, future growth, and future acquisitio
Slide 3: Our Vision
3 / Powering the Energy Transition Our Vision SUNation Energy is more than just a solar company. We believe that energy independence is essential for a sustainable future. Our core business units are strong; however, their performance has been masked by high corporate overhead and industry pressures
Slide 4: SUNation Energy: Powering the Energy Transition
4 / Powering the Energy Transition SUNation Energy: Powering the Energy Transition 2022 Year Public Acquires HEC and E - Gear 22,000+ Systems Installed 1 2003 Year Founded $50 M+ Customer Solar Savings 2 1 As of September 30, 2024 2 As of September 30, 2024 Business : Leading provider of residential
Slide 5: Solar and Battery Storage; Grid Services/VPP Technology
Solar and Battery Storage • Provide solar power systems, battery storage, and related services to residential and commercial customers primarily in New York / Florida ( SUNation ) and Hawaii (Hawaii Energy Connection) • Complete all functions in house, from sale to install • Focused historically on
Slide 6: Customer Centric Approach Drives High Satisfaction and Referrals
6 / Powering the Energy Transition Customer Centric Approach Drives High Satisfaction, Customer Referrals, and Low Client Acquisition Costs 1 Google Reviews (weighted) as of April 2023 ; includes HEC and SUNation ; ²Represents referred jobs sold / total jobs sold during January to March 2023 ; inclu
Slide 7: #1, #2 Player in Territories Where Operate
7 / Powering the Energy Transition #1, #2 Player in Territories Where Operate • The Long Island, New York market (PSEG territory) area of SUNation , with one of the highest per kilowatt energy costs in the United States, exhibits the largest number of middle - class single - family owner - occupied
Slide 8: Riding the "Solar Coaster"
8 / Powering the Energy Transition Riding the “Solar Coaster” Macro Events • After an historic performance in 2022, the beginning of 2023 brought about significant industry challenges: • Silicon Valley Bank bankruptcy » Triggered an overnight change in solar payments to EPCs nationally and financial
Slide 9: Corporate Transformation Substantially Complete
9 / Powering the Energy Transition Corporate Transformation Substantially Complete • New leadership and Board with relevant industry, capital markets, and public company experience • Raised new capital and restructured capital stack • Invested in new technologies, cut operating expenses • Transition
Slide 10: Performance Overview
10 / Powering the Energy Transition Performance Overview ($ in Millions) Revenue Gross Margin Operating Expenses Net Income (Loss) 1 1 From continuing operations Q1 2024 Q2 2024 Q3 2024 $13.2 $13.5 $14.7 36.4% 35.4% 35.6% Q1 2024 Q2 2024 Q3 2024 $7.0 $6.8 $6.8 Q1 2024 Q2 2024 Q3 2024 $1.2 $(6.9) $(3
Slide 11: Executive Leadership Team with Deep Industry Experience
11 / Powering the Energy Transition Executive Leadership Team with Deep Industry Experience Scott Maskin – Chief Executive Officer and Director • Co - Founder of SUNation Solar Systems in 2003 • Master Electrician with decades of relevant construction experience • More than two decades of solar indu
Slide 12: Underpenetrated and Growing U.S. Solar Market
12 / Powering the Energy Transition Underpenetrated and Growing U.S. Solar Market 6.0% 6.2% 6.5% 6.8% 7.6% 9.6% 10.5% 10.5% 10.6% 10.7% 10.8% 10.9% 11.1% 11.2% 11.6% 11.7% 11.8% 14.4% 15.0% 15.2% 17.8% 19.5% 20.5% 21.1% United States Romania Turkey South Africa Moracco China Brazil Portugal Denmark
Slide 13: Estimated U.S. Solar Growth
13 / Powering the Energy Transition Estimated U.S. Solar Growth • Solar accounted for 66% of all new electricity - generating capacity added to the U.S. grid in 2024. (1) • The Inflation Reduction Act helped the market grow in 2022 into 2023 by increasing tax credits long - term • C&I sectors are ex
Slide 14: Policy Support (Inflation Reduction Act) and Outlook
14 / Powering the Energy Transition Policy Support (Inflation Reduction Act) and Outlook Inflation Reduction Act Enacted in August 2022 • Extended 30% tax credit for installing residential solar until end of 2032 • Standalone battery storage sales eligible • Introduced new “adder” tax credits x 10%
Slide 15: Differentiated M&A Strategy: Highly Fragmented Industry
15 / Powering the Energy Transition Differentiated M&A Strategy to Augment Growth Highly Fragmented Industry Top 10 Residential Solar Installers by U.S. Market Share 1 The top ten installers combined for only 31% of the U.S. market in 2023 1 Source: Wood MacKenzie *Ceased operations or filed for ban
Slide 16: Differentiated M&A Strategy: Focus States and Target Criteria
16 / Powering the Energy Transition Differentiated M&A Strategy to Augment Growth Focus States for Potential Acquisitions 1 Tier 1 Tier 2 Acquisition Target Criteria Targeting solar engineering, procurement, and construction (EPC) companies in the United States Criteria includes: • >$20M in revenue
Slide 17: Differentiated M&A Strategy: Top of Funnel
NV CO TX NM HI NY FL VT NH MA 17 / Powering the Energy Transition Differentiated M&A Strategy to Augment Growth Top of Funnel for Potential Acquisitions 1 Current SUNation Top of Funnel Pipeline ME 1 Based on availability of capital Past performance is not indicative of future results. There is no g
Slide 18: Differentiated M&A Strategy: Acquisition Criteria
18 / Powering the Energy Transition Differentiated M&A Strategy to Augment Growth Acquisition Criteria 1 Primarily located in Tier 1 and Tier 2 states, with emphasis on Top of Funnel pipeline Targets with a customer - centric approach to operations Businesses with exposure to battery storage and val
Slide 19: Cross-Selling Initiatives to Drive Growth
19 / Powering the Energy Transition Cross - Selling Initiatives to Drive Growth Upfront Sale Upfront Sale Upsell / Cross - sell Opportunities Leverage growing installed base for incremental revenue Plus, future opportunities to aggregate customers for grid services, VPP Expansions into Commercial, I
Slide 20: Service and Maintenance
20 / Powering the Energy Transition Service and Maintenance • #1 solar service on Long Island , s erving residential, commercial and institutional clients • ~5% of total revenues as of September 30, 2024, with objective to expand this percentage over time. • High barriers to entry • Enhanced competi
Slide 21: Investment Conclusions
21 / Powering the Energy Transition Investment Conclusions • Refreshed leadership charting a new course for a well - respected, 20+ year old company • Strategic restructuring largely completed, marking a turning point in SUNation’s growth and development • Continued focus on growing revenues, lower
Slide 22: Financials / Appendix
22 / Powering the Energy Transition Forward Looking Statements | Financials / Appendix |
Slide 23: Q3 2024 Consolidated Results
23 / Powering the Energy Transition Q3 2024 Consolidated Results Q3 2023 Q3 2024 Statement of Operations Summary ($ in Millions) $18.3 $14.7 Total Sales $7.0 $5.2 Gross Profit 38% 36% Gross Profit Margin $8.6 $6.8 Total Operating Expenses ($1.6) ($1.6) Operating Loss ($2.3) ($3.3) Net Loss from Cont
Slide 24: Quarterly Improvement
Quarterly Improvement Q3 2024 Q2 2024 Q1 2024 Quarterly Comparison (Q1 vs future quarters) $14,718,386 $13,549,420 $13,219,197 Sales 11% 2% Quarterly Improvement versus Q1 results $6,842,462 $6,818,298 $6,988,402 Total Operating Expenses 46.5% 50.3% 52.9% Total Operating Expense Margin 6.4% 2.6% Qua
Slide 25: Consolidated Balance Sheet
Consolidated Balance Sheet December 31, 2023 September 30, 2024 Balance Sheet Summary ($ in Millions) $3.6 $1.1 Cash & Equivalents $1.8 $1.1 Restricted Cash & Cash Equivalents $5.0 $4.2 Accounts receivable, net $3.6 $2.7 Inventories, net $15.8 $11.7 Current Assets $1.5 $1.3 Property, Plant, and Equi
Slide 26: Non-GAAP Reconciliation Tables
Non - GAAP Reconciliation Tables 26 / Powering the Energy Transition Source: Company SEC filings Q1 2024 Q2 2024 Q3 2024 Adjusted EBITDA (Non - GAAP) Reconciliation 1,202,652 (6,934,017) (3,298,609) Net (loss) income 6,162 (6,633) 509 Taxes (21,555) (18,567) (16,450) Interest Income 764,870 735,634