Looking back on renewable energy stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Fluence Energy (NASDAQ: FLNC) 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 16 renewable energy stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 2.1% above.
Thankfully, share prices of the companies have been resilient as they are up 6.2% on average since the latest earnings results.
Fluence Energy (NASDAQ: FLNC)
Pioneering the use of lithium-ion batteries for grid storage, Fluence (NASDAQ: FLNC) helps store renewable energy sources with battery systems.
Fluence Energy reported revenues of $431.6 million, down 30.7% year on year. This print exceeded analysts’ expectations by 29.8%. Despite the top-line beat, it was still a slower quarter for the company with full-year revenue guidance missing analysts’ expectations.
"The evolving trade and tariff landscape has created significant uncertainty in the U.S. market, which has led us to agree with our customers during the second quarter to pause certain contracts both under execution and those we expected to sign until we have better visibility. As a result, our order intake for the quarter was below initial expectations, reflecting this dynamic. Over time, we expect our domestically sourced solutions to benefit from higher tariff levels," said Julian Nebreda, Fluence's Chief Executive Officer.
Fluence Energy achieved the biggest analyst estimates beat but had the weakest full-year guidance update of the whole group. The stock is up 11.9% since reporting and currently trades at $5.03.
Is now the time to buy Fluence Energy? Access our full analysis of the earnings results here, it’s free.
Best Q1: 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 $942.1 million, up 5.9% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 11.5% since reporting. It currently trades at $126.21.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $20.75 million, down 44.8% year on year, falling short of analysts’ expectations by 24.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Blink Charging delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 19.2% since the results and currently trades at $0.70.
Read our full analysis of Blink Charging’s results here.
Nextracker (NASDAQ: NXT)
With its technology playing a key role in the massive 1.2 gigawatt Noor Abu Dabhi solar farm project, Nextracker (NASDAQ: NXT) is a provider of solar tracker systems that help solar panels follow the sun.
Nextracker reported revenues of $924.3 million, up 25.5% year on year. This result beat analysts’ expectations by 11.3%. Zooming out, it was a slower quarter as it logged a significant miss of analysts’ adjusted operating income estimates.
Nextracker delivered the highest full-year guidance raise among its peers. The stock is up 3.4% since reporting and currently trades at $57.
Read our full, actionable report on Nextracker here, it’s free.
Array (NASDAQ: ARRY)
Going public in October 2020, Array (NASDAQ: ARRY) is a global manufacturer of ground-mounting tracking systems for utility and distributed generation solar energy projects.
Array reported revenues of $302.4 million, up 97.1% year on year. This print surpassed analysts’ expectations by 14.3%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ sales volume estimates and a solid beat of analysts’ EPS estimates.
Array pulled off the fastest revenue growth among its peers. The stock is up 39.6% since reporting and currently trades at $6.87.
Read our full, actionable report on Array 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 Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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