By Brian Lantier, CFA
NASDAQ:SUUN
READ THE FULL SUUN RESEARCH REPORT
Late last week, PowerBank Corporation (NASDAQ:SUUN), formerly SolarBank, released its fourth-quarter and full-year fiscal 2025 results. These results included several positive highlights, but the delay of several projects reaching permission to operate, along with large write-offs and impairment charges, caused the quarterly results to fall short of our projections.
On an operating basis, the company’s revenues for the quarter of CAD 16.8 million fell well short of our CAD 33.4 million forecast, primarily due to engineering, procurement, and construction (EPC) projects that did not receive permission to operate during the quarter as we had anticipated.
Operating expenses were broadly in line with our projections, except for Consulting Fees and Professional Fees, which totaled over CAD 5.2 million in the fourth quarter. The company’s consulting fees remain elevated, and we expect the company will attempt to rein in those costs in fiscal 2026.
PowerBank made significant strides in 2025 by shifting its strategy toward operating as an IPP. However, with IPP revenues still accounting for less than 20% of total revenues in the quarter, there will likely continue to be large quarterly swings in revenues based on when large projects receive the PTO.
We have adjusted our model to reflect that seven large projects representing 48 MW of capacity are expected to reach PTO in FY 2026. Our revenue forecast for FY 2026 is now $74.3 million (CAD 105.5 million), and we are introducing a FY 2027 revenue estimate of $78.3 million (CAD 111.2 million). Our revenue forecasts are based on our analysis, and the company has not provided guidance.
It appears as though all of the company's most advanced projects have seen their time to PTO get pushed out by roughly two quarters. Given the significant turmoil that has faced the US solar market in the past nine months – including threats of tariffs on panels and batteries and the rapid phaseout of support for clean energy initiatives – this slowdown may not be surprising, but it will need to be monitored closely in fiscal 2026.
With many companies pushing to start projects before July 2026, when the accelerated elimination of the solar tax credit takes effect, PowerBank may face challenges securing the resources and staffing needed to complete its projects on time. If these timelines are further extended, it could impact our valuation calculations later in fiscal 2026.
We would direct investors to our full report for a more detailed discussion of the company’s results and our updated model.
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