Nextpower Inc. (NXT) Earnings & Analysis

Latest quarter

Nextpower reported Q2 FY2027 revenue of $1.1 billion, beating the consensus by 5.02%, even though both figures round to $1.1 billion. Adjusted earnings per share were $1.31, above the consensus of $1.10. On a diluted basis, earnings per share were $1.08, compared with $0.97 a year earlier.

Revenue rose 22.5% from $905.3 million a year earlier. In its filing, Nextpower attributed the increase to acquisitions, higher average selling prices and U.S. demand, partly offset by fewer gigawatts delivered, particularly outside the U.S. The filing said U.S. shipments increased while shipments to several international regions declined. Non-tracker products accounted for 22.0% of quarterly revenue, and the company reported a $6.0 billion quarter-end backlog.

Nextpower’s gross margin was 31.1%, compared with 32.4% a year earlier, while operating margin was 18.7%, compared with 20.0%. The filing cited higher freight and logistics costs, partly offset by manufacturing tax credits and lower tariffs. Free cash flow was $135.0 million, down from $171.4 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On Nextpower’s Q4 FY2026 call, CEO Daniel Shugar said customers were asking for products and services beyond trackers to simplify procurement, speed installation and improve plant performance. He said Nextpower was developing power conversion technology internally and had agreed to acquire product lines to accelerate its entry into that market.

CFO Charles Boynton said investment in the expansion would affect near-term profitability. He said the company expected elevated operating expenses as it invested in its platform, while gross margins would include elevated freight and logistics costs associated with disruptions in the Middle East.

Asked about tracker demand and international markets, Boynton said bookings and backlog were at high levels. President Howard Wenger said the U.S. had benefited from electricity demand and high energy costs, while the company also saw demand in Europe and a pipeline in the Middle East, despite some project delays.

An analyst asked how project timing affected results. Wenger said most customers worked to agreed delivery schedules, although some projects could move in either direction. He said Nextpower was not seeing an extraordinary number of projects accelerating or being pushed out, and customer tax-equity financing was not currently an industry bottleneck.

Asked about bundled orders, Wenger said customers had placed orders combining trackers with products including foundations, electrical components and robotic inspection. He said Nextpower could offer an integrated hardware and software system. On competition, Shugar said the company would not compromise quality, reliability or safety to win additional projects.

In response to questions about power conversion, Shugar said the acquisition would speed the company’s entry into the market and initially focus on the U.S. Boynton said the business would take time to scale before reaching its full margin profile. Asked about data-center demand, Wenger said it was a material part of the business and an increasing part of the U.S. market, but did not give a percentage.

Guidance

Nextpower raised its FY2027 revenue and adjusted EBITDA guidance. The company now expects adjusted EBITDA of $890.0 million to $940.0 million. It also raised its adjusted earnings-per-share outlook to a $4.74 midpoint, with a range of $4.61 to $4.87.

Nextpower expects adjusted gross and EBITDA margins to decline in the second half before stabilizing longer term.