As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the renewable energy industry, including American Superconductor (NASDAQ: AMSC) and its peers.
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 15 renewable energy stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 7.7% while next quarter’s revenue guidance was in line.
Luckily, renewable energy stocks have performed well with share prices up 18.1% on average since the latest earnings results.
American Superconductor (NASDAQ: AMSC)
Founded in 1987, American Superconductor (NASDAQ: AMSC) has shifted from superconductor research to developing power systems, adapting to changing energy grid needs and naval technology requirements.
American Superconductor reported revenues of $72.36 million, up 79.6% year on year. This print exceeded analysts’ expectations by 11.4%. Overall, it was a stunning quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
"We’ve kicked off fiscal 2025 with accelerated growth, delivering a standout first quarter marked by significant progress and exceptional execution that surpassed our expectations," said Daniel P. McGahn, Chairman, President and CEO, AMSC.
American Superconductor pulled off the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 18.3% since reporting and currently trades at $51.95.
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 an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 22.3% since reporting. It currently trades at $185.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Plug Power (NASDAQ: PLUG)
Powering forklifts for Walmart’s distribution centers, Plug Power (NASDAQ: PLUG) provides hydrogen fuel cells used to power electric motors.
Plug Power reported revenues of $174 million, up 21.4% year on year, exceeding analysts’ expectations by 10.4%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 2.2% since the results and currently trades at $1.63.
Read our full analysis of Plug Power’s results here.
Bloom Energy (NYSE: BE)
Working in stealth mode for eight years, Bloom Energy (NYSE: BE) designs, manufactures, and markets solid oxide fuel cell systems for on-site power generation.
Bloom Energy reported revenues of $401.2 million, up 19.5% year on year. This print topped analysts’ expectations by 6.5%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 34.9% since reporting and currently trades at $50.43.
Read our full, actionable report on Bloom Energy here, it’s free.
First Solar (NASDAQ: FSLR)
Headquartered in Arizona, First Solar (NASDAQ: FSLR) specializes in manufacturing solar panels and providing photovoltaic solar energy solutions.
First Solar reported revenues of $1.10 billion, up 8.6% year on year. This number beat analysts’ expectations by 4.9%. It was a strong quarter as it also logged full-year revenue guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 9.7% since reporting and currently trades at $192.32.
Read our full, actionable report on First Solar 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.
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