As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the renewable energy industry, including Generac (NYSE: GNRC) 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 18 renewable energy stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 5.2% while next quarter’s revenue guidance was 1.1% above.
Luckily, renewable energy stocks have performed well with share prices up 18.3% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.3%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“First quarter results exceeded our expectations as a result of continued strong growth in residential product sales,” said Aaron Jagdfeld, President and Chief Executive Officer.
Interestingly, the stock is up 26.3% since reporting and currently trades at $142.98.
Is now the time to buy Generac? Access our full analysis of the earnings results here, it’s free.
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 $66.66 million, up 58.6% year on year, outperforming analysts’ expectations by 10.6%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
The market seems happy with the results as the stock is up 49.6% since reporting. It currently trades at $36.25.
Is now the time to buy American Superconductor? 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. Interestingly, the stock is up 10.1% since the results and currently trades at $0.95.
Read our full analysis of Blink Charging’s results here.
Sunrun (NASDAQ: RUN)
Helping homeowners use solar energy to power their homes, Sunrun (NASDAQ: RUN) provides residential solar electricity, specializing in panel installation and leasing services.
Sunrun reported revenues of $504.3 million, up 10.1% year on year. This number surpassed analysts’ expectations by 4%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ customer base estimates and an impressive beat of analysts’ EPS estimates.
The company added 25,428 customers to reach a total of 1.07 million. The stock is up 10.8% since reporting and currently trades at $8.18.
Read our full, actionable report on Sunrun here, it’s free.
EVgo (NASDAQ: EVGO)
Created through a settlement between NRG Energy and the California Public Utilities Commission, EVgo (NASDAQ: EVGO) is a provider of electric vehicle charging solutions, operating fast charging stations across the United States.
EVgo reported revenues of $75.29 million, up 36.5% year on year. This result beat analysts’ expectations by 1.4%. It was a stunning quarter as it also logged a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 32.6% since reporting and currently trades at $3.66.
Read our full, actionable report on EVgo here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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