Nextpower Inc. Reports Strong Q4 FY26 Earnings with Record Backlog
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy NXT?
Source: seekingalpha
- Strong Financial Performance: Nextpower Inc. reported Q4 FY26 revenue of $881 million, reflecting a 20% year-over-year increase, with adjusted EBITDA of $202 million and a 23% margin, showcasing robust profitability and growth potential in the market.
- Record Orders and Backlog: The company exited FY26 with a record backlog exceeding $5.25 billion, marking one of the highest booking quarters in its history, indicating strong customer demand and confidence in quality products.
- Strategic Investment Plans: Nextpower plans to invest approximately $130 million in FY27 to accelerate its Power Conversion business, including $50 million in incremental costs and OpEx, which is expected to enhance the company's competitive edge in the market.
- Optimistic Future Outlook: The company anticipates FY27 revenue in the range of $3.8 billion to $4.1 billion, with adjusted EBITDA between $825 million and $900 million, reflecting confidence in over 40% growth in its non-tracker business, further solidifying its market position.
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Analyst Views on NXT
Wall Street analysts forecast NXT stock price to fall
20 Analyst Rating
15 Buy
5 Hold
0 Sell
Strong Buy
Current: 136.370
Low
76.00
Averages
105.33
High
125.00
Current: 136.370
Low
76.00
Averages
105.33
High
125.00
About NXT
Nextpower Inc., formerly Nextracker Inc., designs, engineers, and delivers an advanced energy technology platform for solar power plants. Its integrated solutions are designed to streamline project execution, increase energy yield and long-term reliability. The Company's products and services include trackers, foundations, eBOS, software, controls, and module mounting. Its services include design, deploy, and operate. Its design services include site evaluations, design and engineering, and training programs. Its deploying services include efficient commissioning, fully equipped, and fast-tracked scheduling. Its operating services engaged in the monitor, manage, and mitigating risk with tools and tech.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nextpower Reports Strong Earnings and Acquires Apex Power
- Earnings Beat: Nextpower achieved new revenue and earnings records for fiscal 2026, despite a nearly 5% decline in fourth-quarter revenue to $881 million and a 16% drop in non-GAAP net income to $162 million, demonstrating strong profitability in a challenging solar market.
- Guidance Increase: The company raised its fiscal 2027 revenue guidance to $3.8 billion to $4.1 billion from $3.6 billion to $3.8 billion, while maintaining its adjusted net income forecast at $4.21 to $4.59 per share, reflecting confidence in future growth prospects.
- Acquisition Strategy: Nextpower announced the acquisition of Apex Power for up to $80.5 million, with $46 million paid at closing and an additional $34.5 million in earn-outs, all in cash, which will significantly bolster its power conversion business.
- Strong Market Performance: Following the earnings report and acquisition news, Nextpower's stock surged over 9% on Wednesday, reaching a current price of $11.19 and a market cap of $19 billion, indicating investor optimism about the company's future trajectory.
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- Strong Market Demand: Shugar emphasized that a “flight to quality” among its customer base has bolstered bookings, particularly in Europe, Australia, and India, indicating sustained global demand for high-quality products and further solidifying the company's market position.
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- Earnings Beat: Nextpower achieved new revenue and earnings records for fiscal 2026, despite a nearly 5% decline in fourth-quarter revenue to $881 million and a 16% drop in non-GAAP net income to $162 million, demonstrating strong profitability in a challenging solar market.
- Guidance Increase: The company raised its fiscal 2027 revenue guidance to $3.8 billion to $4.1 billion from $3.6 billion to $3.8 billion, while maintaining its adjusted net income forecast at $4.21 to $4.59 per share, reflecting confidence in future growth prospects.
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- Earnings Beat: Nextracker reported a 20% revenue growth for fiscal year 2026, with CEO Daniel Shugar highlighting strong financial performance supported by a record backlog exceeding $5.25 billion, and adjusted EPS guidance between $4.21 and $4.59, indicating significant profitability improvements.
- Upgraded Revenue Guidance: The company anticipates over 40% growth in its non-tracker business for fiscal 2027, projecting non-tracker revenue to constitute approximately 15% of total revenue, reflecting Nextracker's proactive expansion of its product portfolio to meet market demands and enhance long-term growth potential.
- Strong Market Demand: Shugar emphasized that a “flight to quality” among its customer base has bolstered bookings, particularly in Europe, Australia, and India, indicating sustained global demand for high-quality products and further solidifying the company's market position.
- Optimistic Future Outlook: Management noted expectations for tracker business growth to match or exceed industry rates, with more detailed targets to be shared at a future Capital Markets Day, demonstrating confidence in future growth opportunities and strategic planning.
See More
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- Record Backlog: The company reported a record backlog exceeding $5.25 billion, driven by strong demand for its solar products, prompting an increase in FY 2027 revenue guidance from $3.6 billion-$3.8 billion to $3.8 billion-$4.1 billion, aligning with market consensus.
- Strategic Acquisition: Nextpower agreed to acquire the power conversion assets of Spain's Zigor Corp. and its U.S. subsidiary Apex Power for $80.5 million, enhancing its bundled solutions for utility-scale solar customers and creating potential synergies for future growth.
- Growth Investment Outlook: CEO Dan Shugar indicated that while near-term profitability may be modestly impacted, the company is intentionally investing in data center applications to support future growth, with expectations for accelerated growth beginning next year.
See More
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