By ADT, the Boca Raton-based home-security company, has announced that it will be exiting its residential solar business. This decision comes as the sector faces economic challenges and higher interest rates. The company reported an adjusted EBITDA loss of $89 million for the first nine months of 2023 due to operational difficulties and macroeconomic headwinds.
Following a strategic review and a previously announced restructuring of its footprint, ADT’s board has approved the exit from the solar business segment. The company expects to incur one-time exit charges, but the exact amount has not yet been determined.
ADT’s Chief Executive, Jim DeVries, emphasized that this decision was made after careful deliberation and is expected to drive significant operational and financial benefits for ADT. The company will be reallocating its resources and focusing on its core smart home and security business.
This strategic shift signifies ADT’s commitment to maximizing value for its shareholders and concentrating on its core business strengths. By exiting the residential solar sector and focusing on smart home security, ADT aims to position itself for future growth and success.
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