Aflac First Quarter 2026 Results: Sales Highlights and Strategic Outlook

Enphase Energy: Q1 2026 demand and backlog signals (what the excerpts show)

1) Demand signal: sell-through and channel correction indicate weaker underlying end-demand at Q1 start

• Enphase explicitly states it exited Q1 2026 “with channel inventory above normal levels for both microinverters and batteries.” ¹
• Management also quantifies the end-demand mismatch: “Since we exited the channel with a high inventory in Q1, we are under shipping approximately $25 million compared to the real demand.” ²
• For the near-term demand pulse, Enphase expects “modest underlying sell-through growth in Q2 as compared to Q1,” but also says that both Q1 sell-through results and Q2 sell-through expectations are “roughly 10% to 15% below our prior view,” attributing the weaker start to “unfavorable weather conditions and TPO financing challenges.” ²

Interpretation: Q1 shows an inventory/backlog build at the channel level (products already shipped/positioned), while underlying sell-through was weaker than prior expectations. The $25 million “under shipping” plan is a direct demand signal correction mechanism, not a sign of accelerating end-market pull in Q1. ¹²

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2) Backlog signal: backlog visibility exists via bookings and safe-harbor / long-installment orders

Enphase provides several indicators of backlog-like demand support:

A. Bookings vs guidance midpoint (a direct backlog/visibility metric)

• Enphase says: “At this point, we are approximately 85% booked to the midpoint of our guidance.” ²

Interpretation: This indicates a substantial portion of near-term expected demand is already “booked,” which functions like backlog/committed demand visibility, though it is relative to guidance (not a separately disclosed backlog number). ²

B. Safe harbor orders (install beyond one year)

• In Q1, Enphase reports revenue that is explicitly labeled safe-harbor: “Q1 revenue included $34.5 million of safe harbor revenue.” ³⁴
• Management defines safe harbor revenue as “sales made to customers who plan to install their inventory over more than a year.” ⁵

Interpretation: Safe-harbor sales represent a form of delayed-end-demand commitment that can be used as a backlog signal. The fact that Q1 included $34.5M safe-harbor revenue supports meaningful visibility beyond spot/instant installation demand. ⁵

C. Customer/contracted product volume under safe-harbor arrangements (explicit “executed agreements”)

• Enphase also discloses executed agreements year-to-date for “approximately $843.6 million of product,” split between “$89.6 million under the ITC 5% safe harbor method and $754 million under the physical work test method.” ²
• It adds that this is “in addition to the 67.7 million physical work test orders secured in Q4.” ²

Interpretation: While not labeled “backlog,” these are concrete, executed commitments tied to safe-harbor tax/timing mechanics—an operational backlog-like support for future installs. ²

D. Near-term safe-harbor demand expectation (order timing)

• Enphase expects “near-term safe harbor demand from customers placing orders between now and early July.” ⁶

Interpretation: This is a forward-looking backlog signal for the first half to early third quarter time window, consistent with tax/timing-driven ordering behavior. ⁶

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3) Product-level demand signals in Q1 (microinverters vs batteries)

Microinverters: shipping/market reception are cited, but channel inventory was still high

• Q1 operating results show Enphase shipped “1.41 million microinverters” (and a more detailed figure: “approximately 627.6 megawatts DC of micro inverters” / “shipped 1.39 million microinverters” from manufacturing facilities). ³⁵
• Management notes “U.S. commercial microinverter sales more than doubled in Q1 as compared to Q4, driven by positive market reception for IQ9 microinverters.” ⁶
• However, despite this positive commercial reception, Enphase still reports “channel inventory above normal levels for both microinverters and batteries” at quarter exit. ³

Interpretation: Demand for IQ9 in U.S. commercial appears to be strengthening, but overall channel inventory suggests shipments outpaced immediate sell-through, implying backlog wasn’t the gating issue—end-demand conversion (or financing/weather timing) was. ³⁶

Batteries: Q1 sell-through weakness + channel inventory, but safe-harbor and prepaid leases provide an activation pipeline

• Q1 shipped batteries totaling “103-megawatt hours of batteries” / “103.1 megawatt hours of IQ batteries” while simultaneously exiting with “channel inventory above normal levels for both microinverters and batteries.” ³⁵
• The demand correction message (“under shipping approximately $25 million compared to the real demand”) implies battery shipments also contributed to the inventory overhang. ²

Backlog/activation support for batteries includes:

• Prepaid lease momentum: management describes a prepaid lease pilot with expanded installer participation—“expanded from 40 installers… to more than 200 installers to date,” with “approximately 200 net originations per week,” and “battery attached… is approximately 84%.” ⁷
• Europe demand recovery signals for batteries: in April, “battery activations… increased by approximately 75% compared to the monthly run rate in Q1” (Netherlands) and “in France… increased approximately 20%” with further growth in Germany (“approximately 27%”). ⁸

Interpretation: Battery “backlog” signals are stronger on commitments (safe harbor / executed agreements) and financing-driven originations, while Q1 sell-through still looks soft enough to force a shipping reduction versus real demand. The April activation “green shoots” are a forward demand signal emerging after Q1, not a Q1 backlog guarantee. ²⁷⁸

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4) Overall conclusion: Q1 2026 shows soft underlying demand but meaningful committed/visibility demand; backlog signals are largely tax/financing-driven rather than immediate end-market pull

Current demand signals (end-market):

• Underlying sell-through grew only modestly and was below prior expectations by “roughly 10% to 15%,” due to “unfavorable weather conditions and TPO financing challenges.” ²
• Enphase exited Q1 with “channel inventory above normal levels,” which directly signals that shipments were ahead of near-term pull-through. ³

Backlog/visibility signals (committed demand):

• Enphase states it is “approximately 85% booked to the midpoint of our guidance.” ²
• Q1 safe-harbor revenue of $34.5M provides a measurable long-install timeline revenue component. ³⁵
• Enphase discloses executed agreements for $843.6M of product under safe-harbor methods (ITC 5% and physical work test). ²
• Management expects additional safe-harbor orders “between now and early July.” ⁶

Netting those together: Enphase’s Q1 backlog signals are real and quantifiable (bookings + safe-harbor commitments), but the immediate demand environment required a channel inventory correction and implies end-market conversion lagged early in 2026. ²³

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