SolarEdge posts record revenue, shipments for Q2 as strong demand in US and Europe buoys performance

Facebook
Twitter
LinkedIn
Reddit
Email
Almost half of SolarEdge’s Q2 shipment were intended for the residential solar sector. Image: SolarEdge

Inverter and energy management solutions manufacturer SolarEdge has posted record revenues and inverter shipments for Q2 as it benefited from strong demand for its products in the US and Europe, while addressing previous supply chain problems that had hampered performance in the previous quarter.

In Q2 2022, SolarEdge shipped 2.52GW of its inverters, resulting in a record revenue of US$727.8 million, up 11% from US$655.1 million from Q1 2022 and up 52% from the same quarter last year.

At the same time, the company surpassed the 2.5GW shipment level for the first time. Of these, 936MW were sent to the US, 1.2GW to Europe, building on SolarEdge’s strong performance there of late, and 357MW went out to the rest of the world.

In Q1 SolarEdge benefited from high demand for its products in Europe to increase revenues to a then-quarterly record, despite supply chain problems forcing it rely on air freight to sate European demand.

Out of the products shipped this quarter, 51% were commercial products, while the remaining 49% were residential, SolarEdge’s CFO Ronen Faier said in a conference call with analysts.

Its gross margin, however, was 25.1%, down from 27.3% in Q1 and down from 32.5% in the same quarter last year. But the company expects this to rise to between 27-30% for its solar segment in Q3 following a reordering of its supply chain and falling component costs.

SolarEdge has previously said it intends to increasing shipments to the US from a new production plant in Mexico as it looks to save on freight costs and reduce the impact of tariffs on imports.

Faier said this would allow the company to lower tariffs and sea freight costs when shipping to the US and he expects the Mexico facility to have a 100% run rate at the end of Q4, with all of those products heading to the US residential sector.  

He also noted the price of key components, such as aluminium and copper, were decreasing, which would have a positive effect on the company’s operations.

“They are far from the level that they used to be in the past, but they are decreasing, and this is something that we continue to see.”

When asked by analysts about SolarEdge’s Q3 guidance, Faier said the company expected to ship the same number of products as it had in Q2, while it expects revenues in the range of US$810 million to US$840 million.

At the start of the week, power optimiser provider Ampt filed two lawsuits against SolarEdge in the US alleging patent infringement on power optimiser technology.

SolarEdge has dismissed the claim, referencing a previously ruling in its favour and accusing Ampt of “shopping around its claims to other courts”.

“SolarEdge anticipates a vigorous defense of these new cases,” it added.   

Analyst commentary taken from The Motley Fool

29 November 2022
PV ModuleTech EMEA in Madrid on 29-30 November 2022 will address the factors underpinning the changing PV module landscape, gathering together all the key stakeholders across the value-chain from module production to field testing. Join us for presentations from the leading players in the sector, clearly identifying the opportunities and challenges set to impact module supply to Europe and the Middle-East over the next few years.

Read Next

August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
August 11, 2022
US solar tracker supplier Array Technologies has bounced back from a difficult 2021 by posting strong Q2 2022 financial results mainly due to its acquisition of STI Norland, while upcoming tailwinds could buoy its performance further still moving through the year.
August 10, 2022
US solar tracker manufacturer FTC Solar has cut its net losses compared with last quarter and Q2 2021 but has seen its revenue collapse, blaming a hostile solar environment in the US that has seen project delays and cancellations, which it said it now hoped was coming to an end.
August 9, 2022
The passing of the Inflation Reduction Act (IRA) could bolster opportunities for Clearway Energies, according to Roth Capital Partners.
August 8, 2022
A introduction to Yingli Solar’s new YLM 3.0 Pro 415W module for both residential installations and commercial projects
August 8, 2022
Energy technology company AES Corporation is still on track to reach its target of 4.5-5.5GW in long-term renewables and energy storage contracts in 2022, having already signed 1,618MW in the year to date, according the firm’s Q2 financial report.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event