PVTIME – US microinverter manufacturer Enphase Energy increased investment in domestic manufacturing during the third quarter of 2025, driving growth in revenue, margins and earnings. The company reported quarterly revenue of 410.4 million US dollars, its highest level in two years. This was up from 363 million US dollars in Q2 2025 and 380 million US dollars in Q3 2024.
Net income reached 66.6 million US dollars, almost double the 37 million US dollars recorded in Q2, while the company’s Q3 margin was 47.8%. Enphase’s basic earnings per share also increased significantly, rising from 0.28 US dollars in Q2 to 0.51 US dollars in Q3. Between July and September, the firm shipped approximately 1.77 million microinverters, corresponding to a capacity of 784.6MW_(DC) and a record 195MWh of batteries. Of these, over 1.5 million microinverters and 67.5MWh of batteries were produced in the US at Enphase’s manufacturing facilities in Texas and South Carolina. The company had previously announced plans to ship 1.1 million US-made microinverters in Q3 2025. During the quarter, the factories produced IQ8HC microinverters, IQ8P-3P commercial microinverters, IQ Battery 5Ps and IQ Battery 10Cs. These products qualify for the Section 45X advanced manufacturing tax credit under the Inflation Reduction Act (IRA) and meet domestic content requirements.
However, Donald Trump’s introduction of ‘reciprocal’ global tariffs on goods imported into the US led to a 4.9% decline in Enphase’s Q3 margins. This impact was greater than that seen in Q2, but was in line with the company’s forecast for the quarter. Enphase’s battery business, which relies on Chinese battery cells, was the sector most affected by the tariffs, although its microinverter supply chain has been diversified.
In the previous quarter, Enphase chief executive Badri Kothandaraman stated that the company was on track to adopt non-Chinese battery cells by the end of the year. However, the Q3 earnings report made no mention of China or battery cell procurement.
Enphase is one of several inverter manufacturers that have faced challenging market conditions over the past year. As early as November 2023, the company announced that it would cut 500 jobs and abandon plans to sign a manufacturing contract in Mexico. Its financial performance in 2024 reflected these challenging market conditions.
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