SEDG expands US manufacturing and boosts solar shipments, but tariff risks and global trade tensions could cloud its growth outlook.
SolarEdge Technologies SEDG has been taking significant steps to expand its manufacturing capacity in the United States. The company continues to benefit from its optimized inverter solutions to address a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations.
However, this Zacks Rank #3 (Hold) company faces risks related to higher U.S. tariffs and potential trade escalations.
SolarEdge Technologies’ optimized inverter solutions address a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. Thanks to the growing solar demand in recent times, as of Dec. 31, 2025, the company shipped approximately 98.8 thousand inverters, 2.87 million optimizers and 280 MWh of batteries for PV applications. Such a solid shipment count should boost the company’s future revenue growth.
Realizing the solid growth potential offered by the expanding European renewable market, SolarEdge has been taking major initiatives to enhance its business reach in this region lately. Evidently, 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 discontinued manufacturing in China, Mexico and Hungary. The company is also optimizing its U.S. manufacturing footprint, which now includes residential inverters in Texas, optimizers and commercial inverters in Florida, and batteries in Utah.
The recently imposed higher tariffs by the U.S. government on the import of goods from foreign nations have created a significant uncertainty for global trade and companies operating worldwide, with SEDG being no exception. Although SEDG currently manufactures the vast bulk of its products in the United States, a minor portion is still manufactured in its Israel-based Sella 1 facility.
Certain critical subcomponents for SolarEdge Technologies’ products are still sourced from outside the United States. Therefore, if these heightened tariffs remain or there’s any escalation in trade tensions in the near term — resulting in trade restrictions or other retaliatory measures on SEDG’s products or components or subcomponents originating from countries outside the United States — it could be detrimental to the company’s growth.
In the past three months, shares of the company have risen 64.3% against the industry’s 6.4% decline.
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Some better-ranked stocks from the same sector are Nextracker Inc. NXT, Nano Nuclear Energy Inc. NNE and Sasol SSL, each carrying a Zacks Rank #2 (Buy) at present. 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 that recorded in 2025. The Zacks Consensus Estimate for NXT’s fiscal 2026 sales implies a year-over-year growth of 18.5%.
The Zacks Consensus Estimate for NNE’s fiscal 2026 EPS implies a decrease of 32.1% from that recorded in 2025. The company delivered a negative average earnings surprise of 71.7% in the last 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 decrease of 15.5% from that recorded in 2025.
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