SolarEdge posts income record but fast development story draws to a close

Feb 17, 2021 04:57 PM ET
  • Significant PV inverter supplier SolarEdge Technologies reported year-on-year revenue development of just 2.4% in 2020, compared to growth rates of over 50% per annum in recent years.
SolarEdge posts income record but fast development story draws to a close

SolarEdge reported record 2020 profits of US$ 1.46 billion, up from US$ 1.42 billion in the previous year, equivalent to a 2.4% rise sequentially. By means of contrast, revenue expanded by 52.1% in the previous coverage period.

The year began well for SolarEdge, reporting Q1 2020 earnings of US$ 431.2 million, up 58.6% year-on-year and also up 3.1%, quarter-on-quarter, establishing a new record for the business. Nonetheless, sales development was already clearly slowing.

In the second quarter, SolarEdge was largely impacted by COVID-19 spreading to its key markets of the US as well as Europe, especially the influence was seen in its residential markets as nations secured down.

The business reported Q2 2020 revenue of US$ 331.9 million, which was near the top end of assistance however down some 23% on the record quarterly income seen in Q1 2020. Income only bordered up 2% year-on-year.

Although the influence of COVID-19 mellowed out in the 3rd quarter of 2020, income development continued to be slow-moving. SolarEdge reported overall profits of US$ 338.1 million, once more up just 2% from the prior quarter as well as was consequently down 18% on the business's revenue in the 3rd quarter of 2019.

SolarEdge reported 4th quarter 2020 profits of US$ 358.1 million, up 6% from the previous quarter but still down 14% from the prior year duration.

" Our fourth quarter results are reflective of stamina in the U.S. residential market and also record revenues from beyond Europe as well as the U.S., led by Australia," claimed Zvi Lando, Chief Executive Officer of SolarEdge.

Nevertheless, regional shipments to the US had come to a head in the initial quarter of 2020 at a record 926MW. US shipments in succeeding quarters went down considerably. During the COVID-19 impacted Q2, shipments were 403MW, adhered to by a minor healing to 490MW in Q3. In Q4 2020, United States shipments slowed to 457MW.

General US shipments in 2020 were 2,276 MW, up somewhat from 2,260 MW in the previous year.

Shipments to Europe as well as Rest-of-World (ROW) increased reasonably highly, year-on-year. General deliveries to Europe reached 2,690 MW in 2020, up from 2,513 MW in 2019. ROW shipments were 1,139 MW in 2020, up from 845MW in 2019.

SolarEdge reported GAAP earnings for 2020 of US$ 140.3 million, a 4.2% reduction compared to US$ 146.6 million in the previous year. GAAP gross margin was 31.6% compared to 33.6% in the prior year.

Nonetheless, SolarEdge kept in mind in its Q4 revenues phone call that its recurring manufacturing impact diversification far from China had caused 60% of deliveries to the US in Q4 originated from outside China, and therefore devoid of import tariffs. This is expected to reach 85% in Q1 2021.


SolarEdge said that it expected initial quarter 2021 income to be in the range of US$ 385 million to US$ 405 million. Earnings from the sale of solar items was anticipated to be within the variety of US$ 360 million as well as US$ 375 million.

"Regardless of the worldwide pandemic, we wrapped up the year with small development in revenues, healthy and balanced money generation as well as are well positioned for 2021 as well as past, having actually spent dramatically in development of new items to be launched this year in addition to development of our non-solar companies, with readiness to supply full powertrain packages for the e-Mobility field in Europe," included Lando.