Q2 Earnings Highlights: Shoals (NASDAQ:SHLS) Vs The Rest Of The Renewable Energy Stocks

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how renewable energy stocks fared in Q2, starting with Shoals (NASDAQ:SHLS).

Renewable energy companies are buoyed by the secular trend of green energy that is upending traditional power generation. Those who innovate and evolve with this dynamic market can win share while those who continue to rely on legacy technologies can see diminishing demand, which includes headwinds from increasing regulation against “dirty” energy. Additionally, these companies are at the whim of economic cycles, as interest rates can impact the willingness to invest in renewable energy projects.

The 17 renewable energy stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 6.6% while next quarter’s revenue guidance was in line.

Luckily, renewable energy stocks have performed well with share prices up 38.8% on average since the latest earnings results.

Shoals (NASDAQ:SHLS)

Started in Huntsville, Alabama, Shoals (NASDAQ:SHLS) designs and manufactures products that make solar energy systems work more efficiently.

Shoals reported revenues of $110.8 million, up 11.7% year on year. This print exceeded analysts’ expectations by 6.3%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and full-year revenue guidance exceeding analysts’ expectations.

“The year is shaping up to be very strong. We delivered revenue above the high end of our guided range, and ended the period with record backlog and awarded orders of $671.3 million. Our strategy of accelerating growth within our core domestic utility scale markets is yielding results. We continue to be very encouraged by the traction we are seeing within our four growth initiatives, which are providing exposure to new markets, customers, and applications for Shoals,” said Brandon Moss, CEO of Shoals.

Interestingly, the stock is up 47.3% since reporting and currently trades at $7.90.

Is now the time to buy Shoals? Access our full analysis of the earnings results here, it’s free.

Best Q2: Generac (NYSE:GNRC)

With its name deriving from a combination of “generating” and “AC”, Generac (NYSE:GNRC) offers generators and other power products for residential, industrial, and commercial use.

Generac reported revenues of $1.06 billion, up 6.3% year on year, outperforming analysts’ expectations by 3.4%. The business had an incredible quarter with a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 10.9% since reporting. It currently trades at $167.74.

Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Blink Charging (NASDAQ:BLNK)

One of the first EV charging companies to go public, Blink Charging (NASDAQ:BLNK) is a manufacturer, owner, operator, and provider of electric vehicle charging equipment and networked EV charging services.

Blink Charging reported revenues of $28.67 million, down 13.8% year on year, exceeding analysts’ expectations by 35.2%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Blink Charging delivered the biggest analyst estimates beat but had the slowest revenue growth in the group. Interestingly, the stock is up 55.3% since the results and currently trades at $1.60.

Read our full analysis of Blink Charging’s results here.

FuelCell Energy (NASDAQ:FCEL)

Founded in 1969, FuelCell Energy (NASDAQ: FCEL) is a leading manufacturer and developer of carbonate fuel cell technology for stationary power generation.

FuelCell Energy reported revenues of $46.74 million, up 97.3% year on year. This number came in 5.7% below analysts' expectations. Overall, it was a slower quarter as it also produced a significant miss of analysts’ adjusted operating income estimates.

FuelCell Energy pulled off the fastest revenue growth among its peers. The stock is up 107% since reporting and currently trades at $8.73.

Read our full, actionable report on FuelCell Energy here, it’s free.

SolarEdge (NASDAQ:SEDG)

Established in 2006, SolarEdge (NASDAQ: SEDG) creates advanced systems to improve the efficiency of solar panels.

SolarEdge reported revenues of $289.4 million, up 9.1% year on year. This result topped analysts’ expectations by 5.3%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter slightly topping analysts’ expectations.

The stock is up 44.3% since reporting and currently trades at $37.25.

Read our full, actionable report on SolarEdge here, it’s free.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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