Phil Shen

Phil Shen asked about Enphase Energy's revenue cadence for the year, specifically the Q2 outlook and potential margin expansion, and later inquired about the company's strategy for the data center market and 800-volt architecture.

Answer

Badri Kothandaraman, President and CEO, projected Q2 revenue to be up, driven by tailwinds like rising utility rates, new financing options (prepaid leases), and easing interest rates. He also highlighted Enphase's strategic levers, including accelerating IQ Battery 10C adoption, scaling IQ9 commercial microinverters, unlocking battery retrofits in Europe, launching the IQ EV Charger 2, and introducing the 5th-generation battery and IQ9 residential microinverters. Regarding the data center market, Mr. Kothandaraman acknowledged the industry trend towards 800-volt DC and Enphase's expertise in front-end power conversion but stated it's too early to discuss specific products or timelines.

Phil Shen inquired about Enphase Energy's revenue cadence for the year, specifically asking for color on Q2 expectations, including whether revenue would be up, flat, or down, and if margin expansion is anticipated.

Answer

Badri Kothandaraman (President and CEO, Enphase Energy) stated that Q2 revenue is expected to be up, particularly core revenue, with healthy safe harbor activity. He highlighted tailwinds such as rising utility rates, new prepaid lease financing options, and easing interest rates. Kothandaraman also detailed five strategic levers Enphase is actively pursuing: accelerating IQ Battery 10C growth, scaling IQ9 GaN microinverters for commercial markets, unlocking battery retrofits in the Netherlands and France, ramping IQ EV Charger 2 and preparing for bidirectional EV charging, and launching the 5th-generation residential battery and IQ9 microinverters to lower system costs and strengthen solar economics. In a follow-up, Kothandaraman also asked about the data center market and 800-volt architecture, to which he responded that Enphase is evaluating next-generation power conversion architectures but is not ready to discuss specific products or timelines.

Phil Shen inquired about the expected organic growth trajectory for Quanta Services in 2026, specifically for electric infrastructure and UI, and the margin profile of the expanded Total Solutions platform compared to current electric power margins, including if the NiSource deal is margin accretive.

Answer

President and CEO Duke Austin confirmed that the NiSource deal is in line with or accretive to current margins. Regarding guidance, he stated that 2025 is on track and provided a long-term outlook of 10-15% adjusted EPS growth, with 20% previously achieved, indicating that 2026 guidance would fall within that range.

Phil Shen inquired about the organic growth trajectory for 2026, specifically for electric infrastructure and UI, and the margin profile of the expanded Total Solutions power generation platform compared to current electric power margins.

Answer

President and CEO Duke Austin stated that the NiSource deal is margin accretive or in line with current rates. For 2026 guidance, he referred to the company's long-term outlook of 10-15% adjusted EPS growth, implying consistent performance.

An analyst, identified as Phil Shen, asked what opportunities Quanta is conceptualizing to deepen its exposure to the AI data center trend beyond the Cupertino acquisition and what key problems its data center customers face that Quanta can solve.

Answer

President & CEO Earl Austin explained that Quanta's strategy is to act as a solutions provider at the intersection of data center owners and utilities. He emphasized that Quanta is in the middle of discussions to help both parties collaborate and accelerate the build-out of all necessary infrastructure. The approach leverages Quanta's full suite of craft-skilled labor and engineering services to solve complex, large-scale infrastructure challenges for these clients.

Phil Shen inquired about Daqo New Energy's gross margin trajectory for Q3, Q4, and 2026, and the company's strategy to address polysilicon overcapacity through industry and government initiatives.

Answer

CFO Ming Yang confirmed positive gross margins for Q3 and Q4 2025, attributing it to increased selling prices, reduced unit costs, and inventory write-downs. Deputy CEO Anita Zhu discussed balancing supply with demand through lower utilization rates and highlighted ongoing anti-involution initiatives and new energy consumption standards as positive catalysts for industry consolidation.

Phil Shen of ROTH Capital asked for the potential timing and scope of China's solar supply-side reform, a quarterly polysilicon pricing forecast for 2025, and the possibility of an upside surprise in China's domestic demand.

Answer

CFO Ming Yang suggested a supply-side policy for the entire solar industry could be announced around the early March government meetings. Deputy CEO Anita Zhu forecasted N-type poly prices in the higher end of the RMB 40-45/kg range in H1 2025, potentially moving to the lower end in H2. She projected stable China demand of 250-300 GW for 2025, with growth limited by grid constraints and policy uncertainty.