SUNation Energy reported third‑quarter 2025 results that marked a turnaround from the prior year. Adjusted EBITDA rose to $898,000, cash on hand climbed to $5.4 million – the highest level since 2022 – and total debt fell to $7.9 million, a 59% reduction from the $19.4 million balance at the end of 2024.
Total sales reached $19.0 million, up 29% year‑over‑year from $14.7 million in Q3 2024. The growth was driven by a 54% increase in residential solar sales and a 72% jump in service revenue, while commercial contract revenue declined, offsetting the residential gains. Gross profit improved to $7.2 million, or 38.0% of sales, up from 35.6% in the prior year, reflecting higher residential margins and better cost control.
Debt reduction was a key focus of the quarter. The company eliminated more than $11 million in secured debt during 2025, bringing total debt below $8 million and freeing up cash for future expansion. The $5.4 million cash balance, combined with the lower debt load, strengthens SUNation’s liquidity and positions it to pursue opportunities in high‑cost energy markets.
SUNation reiterated its full‑year 2025 guidance, maintaining a sales outlook of $65 million to $70 million and adjusted EBITDA of $500,000 to $700,000. The unchanged guidance signals management confidence that the current momentum in residential demand and improved margins will sustain growth through the year.
The surge in residential demand is largely attributed to the One Big Beautiful Bill Act, which altered solar tax credits and created urgency for homeowners to install systems before the 2025 credit expiration. CEO Scott Maskin noted that the act “accelerated near‑term solar adoption while adding long‑term industry challenges.” CFO James Brennan highlighted that the debt‑reduction program “enabled the company to capitalize on increased residential demand with efficiency and scale.” The company also emphasized its diversification across residential, commercial, service, and roofing segments and its presence in states with the highest per‑kilowatt‑hour energy costs as key strengths for navigating industry volatility.
Overall, the quarter’s results demonstrate a clear turnaround: a positive adjusted EBITDA, a narrowed net loss, and a higher gross margin. The company’s focus on debt reduction, coupled with the legislative tailwind for residential solar, positions SUNation to maintain financial flexibility and pursue growth in adjacent services such as HVAC and energy‑intensive sectors like data centers and crypto mining.
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