Bloom Energy, CHAR Technologies, SolarEdge – The future is here

SolarEdge – Margins rise, cash flow returns

After difficult quarters, SolarEdge is showing signs of life again. The provider of smart energy technology exceeded expectations in the fourth quarter, particularly in terms of margin development.

The adjusted loss per share was USD 0.14, significantly better than the expected USD 0.26. Revenue reached USD 335.4 million, exceeding the consensus estimate of USD 331.28 million. Compared to the previous year, this represents an increase of 70% and is already the fourth consecutive quarter of year-over-year revenue growth.

SolarEdge develops and sells power-optimized inverter systems for photovoltaic systems. At its core is a combination of inverters, power optimizers, and battery storage systems that maximize the energy yield of individual modules and enable digital monitoring. The offering is complemented by energy management and storage solutions for residential and commercial applications.

In the reporting quarter, approximately 98,800 inverters, 2.87 million power optimizers, and 280 MWh of battery storage were sold.

The non-GAAP gross margin improved significantly from 18.8% to 23.3%. Free cash flow rose to USD 43.3 million from USD 22.8 million in the previous quarter. Cash and cash equivalents, adjusted for debt, increased to USD 244.2 million.

CEO Shuki Nir emphasized that in 2025, the company regained discipline, built margins, and generated strong free cash flow. In 2026, the company aims to drive profitable growth and gain market share with its new Nexis platform.

For the first quarter of 2026, SolarEdge expects revenues between USD 290 million and USD 320 million with a gross margin of 20% to 24%. The stock reacted to the release of the figures with a gain of over 6% to USD 43.50.

CHAR Technologies – On the verge of a breakthrough

For CHAR Technologies, 2026 is likely to mark an operational breakthrough. Commercial production will begin with the launch of the Thorold Renewable Energy Facility in Ontario. The plant is expected to produce an annual capacity of 5,000 tons of biochar in the first quarter. This can be used directly as a climate-neutral substitute for metallurgical coal in steel production. In addition, steel giant ArcelorMittal has been secured as a customer. This will enable CHAR to generate recurring revenues from its own production for the first time.

The technological basis is proprietary high-temperature pyrolysis (HTP). It converts waste wood and organic waste into renewable gas, such as RNG or green hydrogen, as well as solid biochar. In addition to selling its own production, the company is consistently focusing on a licensing model.

An important step is the license agreement with GazoTech SAS for France and selected European markets. CHAR provides expertise, process design, and technology transfer. Revenue is generated through one-time license fees for equipment delivery and ongoing royalties linked to biocarbon production, without having to tie up its own project capital. Several projects in France are already in development.

At the same time, PFAS destruction is emerging as a second pillar of the business. A plant for the thermal treatment of contaminated sewage sludge has been successfully tested in Baltimore. The technology operates at temperatures that permanently break down long-lived "forever chemicals" while generating energy and low-carbon solids.

Growth is being financed through partnerships. The BMI Group invested CAD 8 million in Thorold and promised a further CAD 10 million for a larger project in Espanola, which is expected to achieve five times the capacity.

CHAR combines its own production with scalable licensing models and addresses two future markets with the decarbonization of industry and environmental technology.

Bloom Energy – Beneficiary of the AI power boom

The energy hunger of AI data centers is growing rapidly, and Bloom Energy is strategically well-positioned here. The company supplies scalable, chemical-based fuel cell systems that generate electricity on site, making data centers and industrial plants independent of the traditional grid. The technology is considered low-emission in the field of carbon-based energy and can be used immediately.

Bloom develops and sells modular solid oxide fuel cells, "Energy Servers", supplemented by service and maintenance contracts. Customers benefit from a predictable energy supply directly on site. As the installed base grows, higher-margin service revenues increase - an important lever for profitability.

In the fourth quarter of 2025, revenue rose 35.9% to USD 777.7 million, exceeding expectations by around USD 132.4 million. Products and services grew by more than 33%. Adjusted earnings of USD 0.45 per share significantly exceeded forecasts.

The order backlog climbed 150% year-over-year. For 2026, Bloom is targeting revenue of USD 3.1 billion, around USD 500 million above previous market expectations.

Despite the outstanding figures, caution is advised. Short interest is over 10%. In addition, Bloom Energy is clearly too expensive after the sharp rise and a price-to-earnings ratio of 153 for 2026.

SolarEdge is working its way back operationally. The key question remains whether stabilized margins will lead to sustainable growth. Bloom Energy is benefiting from the significant demand for energy driven by the AI boom, but is currently valued extremely ambitiously. 2026 is set to be the year of transformation for CHAR Technologies, from developer to producer.