SolarEdge Expands Global Reach with US-Made Residential Products

SolarEdge Technologies is embarking on a significant strategic expansion, initiating its first international shipments of residential solar solutions manufactured in the United States. This move represents a calculated effort to leverage domestic production for global market penetration, beginning with Australia. The company has outlined plans to extend these exports to additional international markets within the fourth quarter of 2025, with intentions to subsequently include its commercial and industrial (C&I) solar product lines.

This expansion is underpinned by a dual-benefit strategy. Manufacturing from its facilities in Florida, Texas, and Utah not only provides a platform for supplying worldwide demand but also ensures that its US-based customers remain eligible for valuable clean energy tax incentives, many of which are contingent on the use of domestically produced technology.

Financial Performance Outpaces Expectations

The company’s recent financial results underscore a period of robust recovery. For Q2 2025, SolarEdge reported revenue of $289.43 million, notably surpassing analyst forecasts of $273.63 million. A key indicator of improving operational health, its non-GAAP gross margin expanded significantly to 13.1%, a substantial increase from the 7.8% recorded in the previous period.

Looking ahead, management has provided optimistic guidance for the third quarter. The company anticipates revenue to land between $315 million and $355 million, alongside a projected non-GAAP gross margin in the range of 15% to 19%. In a particularly encouraging sign for its financial stability, leadership has forecast positive free cash flow for the full 2025 fiscal year.

Should investors sell immediately? Or is it worth buying SolarEdge?

Analyst Sentiment Lags Behind Stock Rally

Despite these strong operational and financial indicators, a notable cautiousness persists among market analysts. SolarEdge shares have demonstrated remarkable strength, more than doubling in value since the start of the year. However, the majority of the 44 Wall Street analysts covering the stock maintain a “Hold” rating. The median price target among them stands at $22.00, which sits considerably below the stock’s current trading level.

Recent adjustments, however, suggest a potential, albeit guarded, shift in perspective. Goldman Sachs raised its price target from $27.00 to $31.00, while UBS increased its target from $20.00 to $30.00. Crucially, both firms retained their neutral ratings on the equity.

The central question for investors is whether SolarEdge’s strategic global push with its US-made products can generate sufficient momentum to power the stock past skeptical analyst forecasts and continue its impressive ascent.