SolarEdge has strategically aligned itself with the new reality shaped by President Donald Trump’s “America First” agenda. Speaking on Thursday’s earnings call, following the release of its quarterly results, Company’s CEO Shuki Nir stressed that SolarEdge intends to anchor most of its production in the U.S., positioning the country as its primary manufacturing hub.

Nir pointed to the recently enacted federal tax law, known as the Big Beautiful Bill, as a key factor in the decision. The legislation grants a dedicated tax benefit for advanced manufacturing, locked in for the next seven years. “The law validates our multiyear strategy of bringing manufacturing to U.S. soil by preserving the tax benefit for the next seven years,” Nir said. “We intend to produce in the U.S. and distribute U.S.-made products both domestically and globally for many years to come.”

SolarEdge already operates manufacturing sites across several states: residential inverters in Texas, commercial inverters and power optimizers in Florida, and battery production in Utah. “We plan to ramp up production toward the end of the year to support exports,” Nir noted, without addressing whether the company will scale back output in Europe, Asia, or Israel.

While expanding its U.S. footprint, the company is also seeing signs of recovery in Europe. “Our pricing and promotional campaigns have shown early signs of success,” said Nir. “Most of our partners reached normal inventory levels toward the end of the second quarter, and we saw initial profits in Europe.” Still, he acknowledged that the company’s market share on the continent remains below historical levels, leaving room for growth.

On tariffs, SolarEdge expects the impact on profitability in the second half of the year to be milder than initially forecast—around 2%, compared to an earlier estimate of 4% to 6%. “We believe we can fully offset this impact in 2026, after pricing adjustments,” Nir said.

Strong Second Quarter Performance

SolarEdge reported a particularly strong second quarter for 2025, with broad improvement across nearly all operational and financial metrics. Revenue reached $289.4 million, up 32% from the previous quarter—marking the second consecutive period of both sequential and year-over-year growth, a sign of stabilization after a prolonged downturn.

Margins also improved. GAAP gross margin rose to 11.1% from 8% in Q1, while non-GAAP gross margin climbed to 13.1% from 7.8%. The company attributed the gains to higher sales volumes and operational efficiencies, though new U.S. tariffs still trimmed about one percentage point from profitability. Cash flow strengthened as well: net cash, after debt, stood at roughly $132 million—an increase of $19 million from year-end 2024—driven by prudent management, reduced inventory levels, and stronger operating cash flow.

For the third quarter, SolarEdge projects revenue between $315 million and $355 million. Non-GAAP gross margin is expected to reach 15% to 19%, including an estimated two-percentage-point drag from tariffs.

Nir expressed confidence in the company’s trajectory. “This was our second consecutive quarter of year-over-year and sequential revenue growth, along with margin expansion,” he said. “We are staying laser-focused on elevating our execution and advancing our strategic priorities, positioning SolarEdge for the opportunities we see ahead.”

With rising revenue, improving margins, stronger cash reserves, and a positive outlook for the next quarter, the company is signaling a return to growth momentum.