PV inverter manufacturer SolarEdge Technologies posted record quarterly revenues in Q2, thanks in part to a strong performance in Europe.
The company recorded Q2 revenues of US$480.1 million, up 45% year-on-year and significantly above its guidance for the quarter, while revenues from its solar segment stood at US$431.5 million, a 39% increase on Q2 2020.
Within the firm’s solar segment, 46.5% of revenues were from Europe, 40.6% from the US and 12.9% from the rest of the world.
SolarEdge CEO Zvi Lando said during a conference call with investors that the strong solar sales were led by record revenues in markets such as the Netherlands, Italy and Poland, as well as the company’s best quarterly performance in the rest of the world.
He said the company is also seeing progress in penetrating the small-scale PV project market, with a 35MW plant being installed in Japan and a 77MW installation in Taiwan that is expected to begin delivery in Q3. “We are finding ourselves in larger and larger ground-mount installations around the world,” Lando said.
SolarEdge reported Q2 GAAP net income of US$45.1 million, up 23% year-on-year, while GAAP gross margin was 32.5%, an increase on the 31% figure in the same quarter of 2020.
The Q2 figures do not include residential battery shipments, which the company started towards the end of the quarter. With the firm continuing to ramp up manufacturing, it is expecting to ship 25-30MWh of its residential storage systems to the US and Europe in Q3.
Despite the positive results, the company has recently been affected by reduced output at a contract manufacturer’s factory in Vietnam as a result of a COVID-19 lockdown in the country. Lando said the company is mitigating the challenge by increasing output at its manufacturing facilities in China, Hungary and Israel, adding: “This really requires some expedited shipments and additional tariffs due to a higher portion of shipments coming from China to the United States.”
Boosted by sales of its residential battery, SolarEdge expects Q3 revenues to be between US$520 million – US$540 million. Third quarter revenues from the sale of solar products are forecasted to be within the range of US$460 million and US$480 million.
Conference call transcript from Seeking Alpha.