Maxeon maintains plans for New Mexico despite financial losses, shipment delays

A Singapore-based solar company that committed to an estimated $1 billion investment and 1,800 jobs at a planned Albuquerque manufacturing facility is standing on shaky financial ground as it nears a year of blocked imports to the U.S.

The news comes in the company’s financial filings released Wednesday, which show a reported net loss of $614.3 million in fiscal year 2024 — more than double the deficit from the year prior.

Nonetheless, New Mexico officials are standing by Maxeon Solar Technologies amid the turmoil, and the solar manufacturer still aims to start production in the state next year.

That’s despite ongoing shipping delays as a result of Maxeon’s battle with Customs and Border Protection over an alleged lack of documentation to prove the company’s compliance with forced labor regulations, which the company denies. In July 2024, CBP started withholding Maxeon’s shipments into the U.S. from Mexico and, in March this year, denied the company’s protests, according to the solar company.

“That’s almost $100 million worth of product that’s just been sitting,” New Mexico Economic Development Secretary Rob Black said in an interview. He added that Maxeon can’t send any new product to customers in the more than three dozen states it ships to.

Revenue for fiscal year 2024 added up to $509 million for Maxeon, a significant drop from its fiscal year 2023 revenue of $1.1 billion, according to the filings.

Maxeon CEO George Guo in a Wednesday news release said the company’s financial results reflect a “continued challenge” posed by CBP. Guo, named CEO in October, said Maxeon has “commenced legal action” against CBP with the U.S. Court of International Trade.

“Despite our thorough and transparent supply chain mapping and submission of extensive documentation demonstrating full compliance with the Uyghur Forced Labor Prevention Act, CBP’s determination has not changed,” Guo said.

New Mexico officials are hopeful the situation will be resolved. Black said when he and Gov. Michelle Lujan Grisham visited Singapore a couple of weeks ago, they met with Maxeon officials to discuss the situation.

“We feel very confident that it’s been an inappropriate withholding at the border. ... So we still remain very optimistic about what Maxeon could bring to the state and, frankly, to the U.S.,” Black said.

The company also announced this week that, moving forward, it will be “focusing exclusively on the U.S. market,” including with parts suppliers — which takes into account import tariffs the Trump administration has levied on most countries.

Maxeon’s planned physical presence in the U.S. comes in the form of a massive solar cell and panel facility under construction in Albuquerque’s Mesa del Sol. In early April, Maxeon announced an amendment of its leased facility for construction timelines, “some of which are now underway.” Maxeon didn’t disclose the timelines in the news release.

Late last year, the company committed to a five-year building lease in Albuquerque to begin solar module assembly on a smaller scale in 2026.

The company needs to secure additional financing to deploy the Mesa del Sol facility, according to Maxeon’s new financial filings.

It has divested and liquified non-U.S. assets and restructured debt interest payments, according to Maxeon Chief Financial Officer Dmitri Hu.

“We continue to contemplate a few other financial restructuring initiatives, all targeted towards ensuring Maxeon remains resilient in the face of near-term headwinds,” Hu said.

Local and state governments have pitched millions of dollars in economic incentives for Maxeon to set up shop in Albuquerque. But Black said his agency hasn’t released any funds yet, which depends on concrete milestones, like hiring workers.

“They do want to move forward and focus on U.S. manufacturing. That’s what they’ve done; they’ve refocused their entire company to do that,” Black said.

Shares of the company’s stock were trading at $3.04 on Thursday, down roughly 10% for the day and nearly 60% year to date.

Going forward, Maxeon said it will stop reporting its earnings every quarter and instead file audited financial statements required of a foreign private issuer. Hu said the company is also delaying holding a conference call with investors to discuss financial results, “until there is better visibility of the macroeconomic landscape and its impact on our transformation initiative.”

“Considering ongoing restructuring and the volatile policy environment, we are unable to provide financial guidance for the foreseeable future,” he said.