Swiss solar products manufacturer Meyer Burger Technology AG has reported a fivefold increase in its net loss for the first half of 2024, driven by rising operating costs and a significant decline in revenues.
This financial downturn comes as the company pivots its business focus from Germany to the United States, including the closure of its module production facility in Freiberg, Germany. Additionally, Meyer Burger has halted a 2-GW solar cell production project in Colorado Springs due to a lack of essential third-party financing.
In its recently delayed first-half financial report, the company indicated that it is in advanced discussions with a group of bondholders to secure fresh capital aimed at addressing a high double-digit million funding gap created by the project's termination and the ongoing financing needs for its module factory in Goodyear, Arizona.
The manufacturer stated, “The plant in Arizona is already largely installed and in the ramp-up phase, set to reach the nominal capacity of 1.4 GW.” Production volumes are anticipated to increase with the ramp-up of a second line in Goodyear, set to begin at the end of this year.
Looking ahead, Meyer Burger forecasts annual revenues between CHF 350 million and CHF 400 million (USD 461.8 million/EUR 424.3 million) and an EBITDA of approximately CHF 70 million by 2026, contingent on the successful ramp-up of all production lines. However, the company has cautioned that its significant level of indebtedness and cash burn raises concerns about its ability to continue operating without a successful restructuring and completion of its financing efforts in the immediate future. Meyer Burger warned, “There is no assurance that this will be achievable or on terms attractive to Meyer Burger and its shareholders.”
