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Enphase Energy forecasts fourth-quarter revenue below estimates, signals tariff hit
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Enphase Energy forecasts fourth-quarter revenue below estimates, signals tariff hit
Oct 28, 2025 3:51 PM

(Reuters) -Enphase Energy ( ENPH ) forecast fourth-quarter revenue below Wall Street estimates on Tuesday, and said U.S. President Donald Trump's tariffs had a negative impact on its margins, sending the solar inverter maker's shares down over 8% after hours.

The company said the tariffs hit its third-quarter margins by 4.9% points and they are also expected to hurt the current quarter.

Enphase on a post-earning call said it expects limited exposure to the recent China-related tariffs as the company's supply chain transitions away from China.

Enphase currently pays over 40% tariffs for the cell packs coming from China, it added.

U.S. trade officials in April finalized steep tariffs on most solar cells imported from Southeast Asia, after American manufacturers complained that companies from the region were flooding the market with unfairly cheap goods.

Renewable energy companies such as Enphase Energy ( ENPH ) are also facing uncertainty following the passage of Trump's One Big Beautiful Bill Act (OBBA), which accelerates the phase-out of clean energy tax credits.

Enphase Energy ( ENPH ) now expects fourth-quarter revenue between $310 million and $350 million, with the midpoint coming in below analysts' expectations of $382.96 million, according to data compiled by LSEG.

The company also forecast fourth-quarter gross margin of between 42% and 45%, including about 5% points of tariff impact.

However, the company beat third-quarter estimates as revenue from the U.S. increased 29%, compared to the second quarter.

It posted an adjusted profit of 90 cents per share for the quarter ended September 30, compared with estimates of 65 cents.

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