SolarEdge Technologies Expands US Footprint to Power Future Growth
SolarEdge Technologies SEDG has taken significant steps to expand its manufacturing capacity in the United States. The company continues to benefit from its inverter solutions optimized to meet a wide range of solar market segments, from residential to commercial and small-scale solar installations.
However, this Zacks Rank #3 (Hold) company faces risks from rising U.S. tariffs and possible trade escalation.
Factors acting in favor of SEDG
SolarEdge Technologies’ optimized inverter solutions serve a wide range of solar market segments, from residential to commercial and small-scale solar installations. Thanks to the increasing solar demand in recent times, as of December 31, 2025, the company has shipped approximately 98.8 thousand inverters, 2.87 million optimizers and 280 MWh of batteries for photovoltaic applications. Such strong shipment numbers should drive the company’s future revenue growth.
Recognizing the strong growth potential offered by the expanding European renewable energy market, SolarEdge has recently taken major initiatives to increase its commercial reach in this region. Obviously, in the fourth quarter of 2025, the company rolled out its SolarEdge Nexus Pro platform and the Single SKU concept.
As part of the company’s efforts to streamline and centralize its manufacturing in the United States, SolarEdge Technologies has halted production in China, Mexico and Hungary. The company is also optimizing its U.S. industrial footprint, which now includes residential inverters in Texas, commercial optimizers and inverters in Florida, and batteries in Utah.
Challenges faced by SEDG
Higher tariffs recently imposed by the U.S. government on the importation of goods from foreign countries have created significant uncertainty for global trade and businesses operating around the world, with SEDG being no exception. Although SEDG currently manufactures the vast majority of its products in the United States, a small portion is still manufactured at its Sella 1 factory based in Israel.
Certain critical subcomponents of SolarEdge Technologies’ products still originate outside the United States. Therefore, if these increased tariffs persist or there is an escalation in trade tensions in the near term – leading to trade restrictions or other retaliatory measures on SEDG’s products or components or sub-components originating in countries outside the United States – it could be detrimental to the company’s growth.
SEDG stock price performance
Over the past three months, the company’s shares are up 64.3%, compared to the industry’s decline of 6.4%.
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Actions to consider
Some better-ranked stocks in the same sector are Nextracker Inc. NXT, Nano Nuclear Energy Inc. NNE and Sasol SSL, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for NXT’s fiscal 2026 EPS implies an increase of 2.8% from 2025. The Zacks Consensus Estimate for NXT’s fiscal 2026 sales implies year-over-year growth of 18.5%.
The Zacks Consensus Estimate for NNE’s fiscal 2026 EPS implies a 32.1% decrease from that reported in 2025. The company has reported an average earnings surprise of negative 71.7% over the past four quarters.
Sasol’s long-term (three to five years) earnings growth rate is 7.1%. The Zacks Consensus Estimate for SSL’s fiscal 2026 EPS implies a 15.5% decrease from 2025 earnings.
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