Solar construction firm iSun expects to double its revenue in 2021 compared to last year despite supply chain delays and labour shortages impacting its Q2 performance.
The Vermont-based EPC and electric vehicle charging solutions provider reported second quarter revenue of US$4.3 million, representing a 57% increase on the same period in the prior year.
However, the firm’s quarterly loss widened in Q2 to US$2.4 million, compared to a loss of US$900,000 in Q2 2020. The company said the ongoing challenges presented by COVID-19, such as supply chain delays and labour availability, slowed its progress in executing on its solar project backlog.
“Moving forward we are confident that we have mitigated the short-term margin deterioration, however we anticipate ongoing margin pressure related to material pricing and labour shortages on previously executed contracts,” John Sullivan, iSun CFO, said in a conference call with investors.
Solar EPC Peck changed its name to iSun earlier this year following its acquisition of solar-powered EV infrastructure provider iSun in January. The company has since entered the utility-scale solar EPC segment with the purchase of the intellectual property of Oakwood Construction Services.
Since those deals, the firm has closed a development services agreement for eight utility-scale solar projects totalling 118MW and has been awarded a contract to build 18 off-grid solar carports and EV charging stations at remote locations.
CEO Jeff Peck said that while iSun has installed nearly 3,000 residential solar systems, the company is aiming to expand its footprint in the rooftop sector through additional mergers or acquisitions. He said the firm’s additional M&A activity in the second half of 2021 “will further enable iSun to accelerate solar adoption across all sectors”.
In addition to its goal of doubling 2021 revenue on last year’s figure of US$21.1 million, iSun expects improvements in EBITDA performance through the year, driven by improved project execution compared to the first half.