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Enphase Surpasses Q4 Revenue Estimates Amid Strong U.S. Demand

Enphase Energy reported Rs38.271 crore in revenue for Q4 2024, exceeding analyst expectations by Rs5.21 crores and marking a 26.5% year-over-year (YoY) increase. The U.S. market drove growth, with a 6% sequential rise in revenue due to higher microinverter sales, while European revenue declined by 25% due to weakening demand. The company's earnings per share (EPS) stood at Rs82.52, surpassing expectations by $0.19, and net income surged 71% YoY to 11049.16 INR.

Microinverter sales in the U.S. rose by 11%, benefiting from increased domestic content, while battery sales declined by 8% due to reduced restocking by distribution channels. Enphase shipped 152.4 MWh of IQ Batteries in Q4, down 13.4% from the previous quarter. The company also shipped Rs16.9 lakh microinverters from its U.S. contract manufacturing facilities, leveraging the Inflation Reduction Act’s (IRA) 45X production tax credits.

Despite a strong Q4, full-year 2024 revenue fell to Rs130 crores, a 72% drop from Rs200 crores in 2023, while net income declined 48% YoY to Rs32.104 crore. However, Enphase maintained profitability, continued investing in product innovation, and expanded domestic manufacturing.

During an earnings call, Enphase addressed concerns about the ongoing anti-dumping duty (ADD) and countervailing duty (CVD) investigations into Chinese anode materials, stating that the company is closely monitoring regulatory developments. Enphase emphasized its strategy of geographic diversification to mitigate risks, with manufacturing facilities in the U.S., China, and India.

For Q1 2025, Enphase projects revenue between Rs2,822 crore and Rs3.8 crores, with IQ Battery shipments expected between 150 and 170 MWh. The company anticipates non-GAAP gross margins of 48%-51% with IRA benefits and 38%-41% without them. Operating expenses are projected between Rs8.1 crores and Rs8.5 crores, excluding stock-based compensation and other adjustments. Enphase is also expanding its international battery offerings, introducing a third-generation battery optimized for grid-tied applications.

Looking ahead, the company continues to diversify its supply chain to navigate tariff concerns and regulatory uncertainties, while capitalizing on strong demand in the U.S. solar market.