SolarEdge, an Israel-based solar inverter manufacturer, has posted a net income of $119.5 million during the second quarter (Q2) in 2023, a year-over-year (YoY) growth of 692% from $15.1 million.

The company recorded revenue of $991.3 million, a 36% YoY increase from $727.8 million.

The company reported that revenues from its solar business reached a record high of $947 million, while revenues from its non-solar businesses amounted to $44 million, an increase from $35.2 million last quarter which was a result of higher storage division revenues.

The company’s solar business revenue demonstrated robust growth, with a 4% increase quarter over quarter (QoQ) and an impressive 38% increase YoY. This growth was primarily driven by record revenues in Europe, resulting from strong European adoptions of the company’s products.

SolarEdge noted that its commercial segment has shown remarkable growth over several quarters, with shipments increasing from 1.5 GW in Q4 2022 to 2.1 GW in Q1 of the current year and reaching 2.6 GW in the latest quarter.

The growth is due to component shortages, high energy prices, and rapid expansion to one affected by higher interest rates and excess inventory.

The company achieved a record operating income of $150.4 million, representing a surge of 318% from the $36 million reported in the same quarter last year.

1H 2023

For the first half (1H) of 2023, the company posted a net income of $257.89 million, a YoY increase of 435% compared to $48.21 million achieved during 1H of 2022.

SolarEdge recorded a revenue of $1.94 billion, a YoY increase of 40% due to increased sales, especially from the growing demand from the European clientele.

As of June 30, 2023, the company’s total cash, cash equivalents, bank deposits, restricted bank deposits, and marketable securities amounted to $853.5 million after deducting debt.

“We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments. While the U.S. residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector,” said Zvi Lando, Chief Executive Officer of SolarEdge.

SolarEdge posted a net income of $138.4 million during Q1, a spike of 318% YoY.

Mercom recently reported on how solar inverter manufacturers are managing the supply-demand challenge in the face of the semiconductor chip shortage globally.