Sunrun stock beats Q2 expectations with higher volumes and margins

Published 07/08/2025, 11:28
Sunrun stock beats Q2 expectations with higher volumes and margins

Investing.com - Sunrun (NASDAQ:RUN), currently trading at $9.07 and showing significant volatility with a beta of 2.37, reported second-quarter installations of 227.2 megawatts, exceeding both Wolfe Research’s estimate of 205.3 megawatts and consensus expectations of 203 megawatts. According to InvestingPro analysis, the company’s financial health score is currently rated as WEAK, with 15+ exclusive ProTips available for subscribers.

The solar company also reported strong battery storage installations at 391.5 megawatt-hours versus Wolfe Research’s estimate of 354.1 megawatt-hours, driven by a 69% attach rate, up from 66% in the previous quarter. Aggregate subscriber value reached $1,553 million, surpassing Wolfe Research’s estimate of $1,305 million. The company operates with a significant debt burden, with a debt-to-equity ratio of 5.23 and total debt of nearly $13.7 billion.

Sunrun raised its contracted net value creation guidance for the year to $1.0-1.3 billion from the previous $650-850 million, while maintaining its cash generation guidance at $200-500 million, which includes safe harbor acquisitions. For the third quarter, the company expects aggregate subscriber value to be $1,500-1,600 million.

The company generated positive cash flow of $27 million in the quarter, significantly higher than Wolfe Research’s estimate of approximately $1 million. Management reported some slowdowns in both tax equity and debt markets as the Onshoring the Benefits of Building Better (OBBB) legislation was finalized, but noted that $1.7 billion of tax equity has been raised year-to-date.

Wolfe Research maintained its Peerperform rating on Sunrun, citing impressive execution but ongoing policy uncertainty, particularly regarding Treasury’s pending guidance related to the Trump executive order, which could impact the residential solar market and safe harbor plans. InvestingPro’s comprehensive analysis shows the stock is currently undervalued, with analysts setting price targets ranging from $7 to $21. Get access to the full financial health analysis and detailed Pro Research Report, along with 1,400+ other top stocks, by subscribing to InvestingPro today.

In other recent news, Sunrun Inc . reported its Q2 2025 financial results, showcasing a significant earnings per share (EPS) surprise with an EPS of $1.07, surpassing the forecast of -$0.1064. The company’s revenue reached $569.3 million, slightly above the expected $558.15 million. Despite these strong financial results, Sunrun’s stock experienced a decline in after-hours trading. Additionally, JPMorgan raised its price target for Sunrun to $20.00 from $16.00, maintaining an Overweight rating. This adjustment followed Sunrun’s second-quarter results, where the company reported a contracted value that significantly exceeded expectations. The positive performance was attributed to a record storage attachment rate, higher installation volumes, and reduced operating costs. JPMorgan noted that Sunrun also increased its full-year 2025 guidance. These developments provide investors with important insights into Sunrun’s recent activities and performance.

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