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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

Oct 28 (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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