Paul Mathews named as president and CEO of this struggling residential solar energy company, as it repositions to improve cash flow.
One week ago Sunnova Energy, a residential solar-plus-storage installer, said its cash flow was not sufficient to meet obligations and fund operations, and it outlined steps it would take to try to reverse the downward spiral. As part of its repositioning, the company has named Paul Mathews as president and chief operating officer, with William (John) Berger stepping down.
Mathews joined Sunnova in January 2023 and was most recently chief operating officer. He’s hailed as strengthening the foundation of the business and significantly improving its customer service capabilities.
As president and CEO, Mathews will focus on disciplined growth, stronger cash generation, cost efficiency, and enhancing the customer experience, Sunnova reports. He will do this by implementing the recently stated actions including a $70 million cost reduction initiative, refinancing certain of its obligations due during the look-forward period and simplifying operations to better serve “high-margin” customers.
The company noted that it recently closed a $185 million loan facility arranged by JP Morgan in an attempt to increase liquidity.
“Paul is an experienced operator, a disciplined cost manager, and a proven leader with a deep understanding of the customer experience,” said Sunnova director Anne Slaughter Andrew. “At a time when the Company is executing a strategic repositioning for positive cash generation, we’ve asked Paul to be a change agent and deliver on the core needs of the business while creating value for our stakeholders. He brings an operational rigor and strategic mindset necessary to lead the Company for long-term success. We are confident he will succeed.”
Prior to joining Sunnova two years ago, Mathews spent nearly two decades at UPS where he served in many roles including president of U.S. industrial engineering and president of engineering – strategy and planning. In these roles, Mathews led the planning and execution of global engineering and operations strategies to reduce expenses and improve operational efficiencies.
“I am honored to step into this role and excited by the opportunities ahead of us,” said Mathews. “I have witnessed firsthand the dedication of our colleagues, loyalty of our dealers and partners, and trust of our customers. While we recognize the near-term challenges we face, I am committed to pursuing stability, driving a hard pivot to profitable growth, and strengthening the Company’s foundation for the future. I want to thank John for his vision, for building the Sunnova platform, and for establishing such a strong team. I am deeply grateful for the confidence he and the Board have placed in me to lead Sunnova into our next chapter.”
Mathews joins the Sunnova board of directors, and C. Park Shaper has been named as chair of the board. John Berger, who founded Sunnova more than 12 years ago and led the company through a successful initial public offering, expressed confidence in Mathews’ ability to lead.
“Paul is the right leader to guide Sunnova into the future,” Berger said. “He has proven himself as a trusted and capable leader, building a strong culture and driving significant improvements in our service and operations. His immediate impact upon joining the Company earned him a promotion to COO last year, and I believe now is the right time to pass the reins to Paul.”
After the company’s fourth quarter earnings call last week, stock plunged over 70%. It opened trading today at $0.50, up 0.40%.
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