As Russia is soaring power prices, solar company Enphase Energy is 'tripling down' on Europe

April 28, 2022: -Enphase Energy sets its sights on Europe as Russia’s invasion of Ukraine sends power prices to record highs, which gives homeowners a “strong desire” for energy independence.

On Monday, CEO Badri Kothandaraman said that the company is “tripling down on Europe in terms of spending.” The comments followed the company’s first-quarter earnings, beating analyst expectations on the top and bottom lines.

Enphase makes microinverters and backup energy storage for solar systems, reported record revenue, with sales increasing 46% every year. Enphase gave optimistic guidance for the current period, saying it expects to earn amid $490 million and $520 million. That’s ahead of the $475 million analysts surveyed by Refinitiv hope. On Tuesday, Shares were 6% increased during extended trading.

“We expect our momentum in Europe to continue with over 40% sequential revenue growth expected in Q2 versus Q1,” Kothandaraman said on the earnings call of the company. “We are continuing to expand the team and are very excited about our growth in the region.”

The company has operations in Germany, France, Belgium, and the Netherlands. Recent markets in Europe include Italy, Spain, and Portugal.

Enphase has traditionally focused on the U.S., and in the first quarter, the region accounted for 84% of the company’s revenue.

During the first quarter, the company’s gross margin stood at 40.1%, up from 39.6% in the prior quarter. Enphase raised prices in 2022, after hiking prices last fall, to combat rising raw material costs.

Policy uncertainty has hurt the market performance of Enphase and other solar companies.