SolarBank Corp. (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2) Reports Substantial Revenue, Gross Profit Growth, with Key Developments Painting Positive Outlook

• The company’s six-month revenue reached $20.1 million CAD ($14.15 million USD), reflecting steady long-term growth despite seasonal fluctuations.
• Gross profit margin increased to 29.2%, up from 18.4% in the prior year, signaling improved margins.
• Assets surged 372% to $185.3 million CAD ($130.47 million USD) during the six month period, following the acquisition of Solar Flow-Through Funds Ltd.
• Recent $70.3 million CAD ($49.5 million USD) deal with Qcells will drive revenue in upcoming quarters.
• Share price more than doubled in early February, signaling investor interest.

Disseminated on behalf of SolarBank Corporation

SolarBank (NASDAQ: SUUN) (Cboe CA: SUNN) (FSE: GY2), a premier developer and owner of renewable and clean energy projects, specializing in distributed and community solar initiatives throughout Canada and the U.S., posted its fiscal 2025 second-quarter results, emphasizing its six-month revenue of $20.1 million CAD ($14.15 million USD) and improved gross margins. According to the Q2 results, the company’s gross profit rose to $5.9 million CAD ($4.15 million USD) (or 29.2% of revenues), from $4.8 million CAD ($3.38 million USD) in 2024, reflecting a shift toward higher-margin business lines (https://ibn.fm/F30Jw).

Additionally, independent power producer (“IPP”) revenue increased from CAD $0.14 million ($0.07 million USD) to $5.4 million CAD ($3.8 million USD) during the same six-month period, with assets growing 372% to $185.3 million CAD ($130.47 million USD) following the acquisition of Solar Flow-Through Funds Ltd., as compared to $39.2 million CAD ($27.6 million USD) on June 30, 2024. The company ended the second quarter of fiscal 2025 with $33.6 million CAD ($23.66 million USD) in current assets, as compared to $17.6 million CAD ($12.39 million USD) in current assets as of year-end June 30, 2024. The increase is principally the result of the closing of the Solar Flow-Through Funds acquisition.

In addition to the encouraging Q2 results, the company’s stock saw a sharp rally in early February, rising from $3.86 CAD ($2.72 USD) on Jan. 31 to $9.08 CAD ($6.39 USD) by Feb. 10. While the price has since stabilized, the spike suggests growing investor interest in the company’s strategic direction and upcoming projects (https://ibn.fm/ZiPvC).

Beyond the current financials report, SolarBank is positioning itself for sustained expansion moving forward, recently securing additional major financing and strategic partnerships:

• $70.3 million CAD ($49.5 million USD) transaction with Qcells to sell and construct four solar projects in New York, with revenues to be recognized in future quarters (https://ibn.fm/QOyJY). The projects will utilize high-quality Qcells modules that will be manufactured in the U.S. The deal is part of the nearly $2.8 billion USD being invested by Qcells to boost U.S. domestic solar manufacturing and innovation to support and accelerate the U.S. clean energy transition.
• $25.8 million CAD ($18.17 million USD) project finance facility from RBC to develop two battery energy storage systems (“BESS”) in Ontario, a sector with strong long-term growth potential. Representing the company’s first foray into the battery storage sector, construction on the first project, SFF-06, began during the Feb. 10 week (https://ibn.fm/5WEhQ).
• 145 MW of solar projects in the pipeline, expected to reach notice to proceed within the next 12 months.

These projects reinforce SolarBank’s focus on securing stable, recurring revenue streams, including independent power production.

CEO Richard Lu acknowledged that seasonal factors affected Q2 revenue, a common trend in the solar industry, especially in winter months. However, higher-margin power production and asset growth offset the slight decline, leading to improved overall gross profits. “This is stable recurring revenue that is under long-term contracts, and we will continue to grow this business as evidenced by the $25.8 million Royal Bank of Canada debt facility that supports the construction of the BESS projects that we own,” Lu said.

The CEO also pointed out that delays in EPC (engineering, procurement, and construction) revenue were expected, as the company focused on securing a strong development partner. The Qcells deal, finalized at the end of the quarter, means these revenues will now be reflected in the coming periods, he added.

SolarBank’s strong asset growth, rising profit margins, and new revenue streams from power production and storage projects position the company well for continued success. With a robust project pipeline and investor interest reflected in the recent stock price rally, SolarBank sees itself well-positioned for sustained growth in the renewable energy market.

For more information, visit the company’s website at SolarBankCorp.com. This report contains forward looking information. Please refer to https://finance.yahoo.com/news/solarbank-announces-second-quarter-results-120000457.html and the press release referenced in this article for additional details on the nature, assumptions and risk factors associated with this forward looking information.

NOTE TO INVESTORS: The latest news and updates relating to SUUN are available in the company’s newsroom at https://ibn.fm/SUUN

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