Enphase Energy Net Income up 68% to $172 M; Shares Climb 35%
Enphase Energy reported full-year revenue of $1.47 billion, a 10.5% increase, and net income rose 68% to $172 million, sending shares up 35%. For Q1 it forecasts $270 million–$300 million revenue (down 16%–24% year/year), 100–120 MWh IQ Batteries shipments and 40%–43% gross margin.
1. Record Full-Year Results
Enphase Energy closed the year with revenue of $1.47 billion, up 10.5% from $1.33 billion, and net income climbed 68% to $172 million from $102.6 million. Strong solar microinverter sales and cost efficiencies drove the substantial profit gain and boosted investor confidence.
2. Soft Fourth-Quarter Performance
In Q4 net income fell 37.7% to $38.7 million from $62.2 million year-on-year, while revenues declined 10.4% to $343 million from $382.7 million. Seasonal project timing and tariff impacts contributed to the quarterly revenue and profit pullback.
3. Q1 Guidance Signals Decline
The company expects Q1 revenue of $270 million–$300 million, down 16%–24% from $356.1 million a year earlier, including shipments of 100–120 MWh of IQ Batteries. Gross margin is projected at 40%–43%, reflecting about five percentage points of reciprocal tariff headwinds.
4. Analyst Upgrades Provide Support
Following the results, RBC Capital raised its rating to outperform with a $54 price target, and Wells Fargo upgraded to outperform with a $50 target. The upgrades underline confidence in mid-cycle profitability and long-term solar market growth.