By Katherine Hamilton
Sunnova Energy International shares rose after the company said it is ushering in a new chief executive amid cost-cutting efforts.
The stock rose 4%, to 52 cents, on Monday. It has lost 90% of its value over the past year and reached a 52-week low of 47 cents last week.
Paul Mathews, who was formerly Sunnova's chief operating officer, will now serve as president and chief executive effective immediately, the solar energy company said.
He succeeds William Berger, the company's founder, who is stepping down as chairman, president and chief executive, and plans to remain as an advisor for a period of time to help with the transition.
The announcement was unexpected and adds some uncertainty about the business, Jefferies analysts led by Julien Dumoulin-Smith said in a note.
"CEO Berger was the face of the company and relationship with dealers was seemingly predicated on him, particularly given the trying backdrop," Dumoulin-Smith said.
Solar energy is facing broad concerns as there is uncertainty about whether incentives from the Inflation Reduction Act will remain under President Trump. There are also concerns about whether the residential solar third-party model is viable in the long-term, Dumoulin-Smith said.
Mathews is expected to focus on stronger cash generation and cost efficiency as part of Sunnova's $70 million cost-reduction initiative. The company is aiming to simplify operations to focus on high-margin customers and earlier this month closed a $185 million loan facility.
In February, Sunnova said it would cut about 300 jobs, which it expected would create about $35 million in annual savings. Dumoulin-Smith noted that is about half of the company's cost-saving goal, and said it was unclear where the remaining $35 million in savings would come from.
Mathews joined Sunnova in January 2023. Before that, he held leadership roles at United Parcel Service.
Berger made a total compensation of $5.9 million in 2023, while Mathews made about $2 million.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 10, 2025 14:19 ET (18:19 GMT)
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