Costs drag down SolarEdge's Q2 profit while revenues peak

SolarEdge headquarters. Source: SolarEdge Technologies

August 3 (Renewables Now) - Israel-based inverter supplier SolarEdge Technologies Inc (NASDAQ:SEDG) saw its second-quarter GAAP net profit shrink by 67% in annual terms even as it posted record-high revenues, boosted by strong demand in the solar photovoltaic (PV) segment.

The company registered a bottom line of USD 15.1 million (EUR 14.8m), which declined both sequentially and in annual terms due to a rise in costs, its financial report showed on Tuesday. Thanks to growing sales in Europe and the US, SolarEdge enjoyed a 59% year-on-year jump in revenues at its solar segment, which was responsible for the bulk of its total revenues in the reporting period, totalling USD 727.8 million.

Chief executive officer Zvi Lando pointed out that the company is still struggling with supply chain challenges.

More details about SolarEdge’s financial performance are given in the table.

Amounts in USD Q2 2022 Q2 2021
Revenues 727.8m 480.1m
-- from solar segment 687.6m 431.5m
GAAP gross margin (%) 25.1 32.5
Non-GAAP gross margin (%) 26.7 33.9
GAAP operating income 36 55.6
Non-GAAP operating income 84.7 81.3
GAAP net income 15.1 45.1
Non-GAAP net income 56.7 72.5

Solar inverter shipments in April-June amounted to 2.5 GW.

As of June, SolarEdge had USD 973.3 million in cash, cash equivalents, bank deposits, restricted bank deposits and marketable securities, net of debt, as compared to USD 979 million at the end of March.

Looking ahead, the Israeli firm expects to book revenues of between USD 810 million and USD 840 million in the third quarter of 2022, with revenues from the solar segment seen at USD 765 million-795 million. The gross margin from the solar segment is forecast to be within the 27%-30% range.

(USD 1.0 = EUR 0.977)

Join Renewables Now's free daily newsletter now!

More stories to explore
Share this story
About the author
Browse all articles from Veselina Petrova

Veselina Petrova is one of Renewables Now's most experienced green energy writers. For several years she has been keeping track of game-changing events both large and small projects and across the globe.

More articles by the author
5 / 5 free articles left this month
Get 5 more for free Sign up for Basic subscription
Get full access Sign up for Premium subscription