US smart home firm ADT to exit loss-making residential solar ops

US security and smart home solutions provider ADT Inc (NYSE:ADT) has decided to exit its residential solar business at a time when it was suffering from deteriorating conditions in the sector driven by macroeconomic headwinds.

ADT Solar provides vertically integrated rooftop solar and battery backup solutions to customers across more than 20 states. It was launched with the USD-825-million (EUR 758m) acquisition of Sunpro Solar in 2021.

The exit, which may include the transfer of components of the business to other parties, has been approved by ADT’s board after a detailed strategic review. The move is expected to result in one-time exit charges and cash expenditures, which have not been estimated yet.

In November 2023, following a continued underperformance of the solar business, the Boca Raton, Florida-based smart home company announced it is taking decisive action to streamline the unit to focus on the top-performing markets and rationalise the overhead and infrastructure of the business accordingly. The measures included a restructuring of the solar footprint by reducing it to 16 from 38 branches.

“The decision to exit solar operations was made after careful deliberation, and we expect this strategic action to drive substantial operational and financial benefits to ADT,” the company’s CEO Jim DeVries said in a statement on Wednesday.

ADT’s solar segment reported an adjusted EBITDA loss of USD 89 million in the first nine months of 2023.

(USD 1.0 = EUR 0.919)

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