One of the ways that a company can expand its earning capability is to expand into a new industry. Sometimes, this expansion works, and other times, it fails and takes resources from the exciting business so that the expansion becomes detrimental.
Although Florida was the top state for solar installation in the early half of 2023, according to the Tampa Bay Times, one Florida-based security company tried to expand its business into the solar industry and ultimately struggled with the expansion in some markets. As a result, it will reallocate some of its holdings and close some of the solar locations.
Florida-Headquartered ADT Security and Its Expansion Into Solar: In 1940, ADT pioneered the first automated burglar system and continues to innovate its services with products like its app ADT pulse and smart home capabilities with Command and Control, according to the company's website. ADT is currently headquartered in Boca Raton, Florida.
Solar Struggles and The Shuttering Of Some Locations: In a November 2023 earnings call, it was revealed that ADT's revenue from solar had decreased. Specifically, revenue from solar was down 68% from the same period as a year ago, although performance in ADT's core business was described as "solid."
As a result of decreased earnings from the solar side of the business, ADT has decided to close 22 of its 38 solar branches. According to The South Florida Business Journal, Florida has branches in Tampa, Destin, Miami, and Jacksonville.
None of the Florida branches are included in locations that will close. The publication noted that ADT was "cutting back on its solar energy holdings after the sector performed below its expectations."
Also according to The Journal, closings will occur in Texas, New Mexico, South Carolina, North Carolina, Iowa, California, Arkansas, Nebraska, and Georgia.
According to Solar Power World, ADT still hopes to be a top 10 solar provider by 2024.
"As we refine our focus, we remain committed to our existing customers, ensuring their projects reach completion. This transition sets the stage for us to re-enter the markets we're currently pulling back from, and I'm confident in the steps we are taking."
The author is not affiliated with ADT or any other security or solar companies.