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# Nextpower Guides Second-Half Gross Margin To High 20s, Down From Low 30s For The Year
- URL: https://www.bullished.co/nextpower-guides-second-half-gross-margin-to-high-20s-down-from-low-30s-for-the-year-504bcdb8/
- Published: 2026-10-28T22:17:27.000Z
- Updated: 2026-10-28T22:17:27.000Z
- Description: The solar tracker maker raised its fiscal 2027 revenue outlook to $4.2 billion to $4.45 billion while flagging diesel and trucking costs.
- Author: Matteo Parrino
- Tags: Earnings, NXT, Industry: Technology

[Nextpower](https://www.bullished.co/tag/nxt/), which makes solar tracking systems that tilt panels to follow the sun, told investors on its [second-quarter earnings call](https://wtop.com/national/2026/10/nextpower-fiscal-q2-earnings-snapshot/?ref=bullished.co) Wednesday that second-half adjusted gross margin should land in the high 20s, against the low 30s it still expects for the full fiscal year. CFO Chuck Boynton paired that with a higher fiscal 2027 outlook: revenue of $4.2 billion to $4.45 billion.

## Margins step down in the back half

Boynton said adjusted EBITDA margin should be in the high teens in the second half, versus the low 20s for the full year. Second-quarter adjusted EBITDA margin was 23%.

Asked about the drivers, Boynton pointed mainly to investments for the future, a mix of new products and acquired businesses, and said structural margins are intact. Freight is a separate pressure. He said the company expects logistics and freight costs to eventually return to a more normal baseline, but likely beyond fiscal 2027.

The raised outlook also includes adjusted EBITDA of [$890 million to $940 million](https://seekingalpha.com/news/4659537-nextracker-non-gaap-eps-of-1%5F31-beats-by-0%5F21-revenue-of-1%5F10b-beats-by-40m?ref=bullished.co) and adjusted diluted earnings per share of $4.61 to $4.87\. Free cash flow is now expected at over $500 million, up from $450 million.

## Diesel and a driver squeeze

CEO and founder Dan Shugar said diesel is up roughly 80% year to date "as a result of the Gulf War." He also cited reports of over 15,000 truckers disqualified from driving in the United States over English-language requirements.

The combination typically has a relatively minor effect on overall system cost, Shugar said, but "In this case, with that combined impact, it was pretty significant." Domestic manufacturing of finished goods closer to project sites has cut logistics spend per unit, he said.

A Baird analyst asked whether fuel costs could be passed through like steel. Shugar said no readily available logistics commodity indices exist and the company is "taking a look at that." Boynton said freight costs are built into project quotes and that steel has structured cost-sharing in its contracts.

## Record quarter, new product lines

Second-quarter [revenue topped $1.1 billion](https://seekingalpha.com/news/4659537-nextracker-non-gaap-eps-of-1%5F31-beats-by-0%5F21-revenue-of-1%5F10b-beats-by-40m?ref=bullished.co), up 23% from a year earlier, and adjusted EBITDA was about $250 million, up 12%. Backlog rose above $6 billion. The company ended the quarter with over $1 billion in cash and no debt.

Non-tracker products were about 22% of revenue. Energy storage added roughly $100 million of revenue and more than $20 million of adjusted EBITDA, mostly from one hyperscaler data center customer. Nextpower also signed a 1.1 gigawatt inverter framework agreement and closed the Zimmermann PV Steel Group deal for 230 million euros, all cash and lower than first announced. Boynton expects about $100 million of revenue and $10 million of adjusted EBITDA from it this fiscal year.

Over the next 12 months, Boynton said, the company expects to spend about $40 million on capital spending for a US power conversion plant.

Management said it will address fiscal 2028 margins at its Capital Markets Day in Las Vegas on November 16.

### Sources

- [Nextpower: Fiscal Q2 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/nextpower-fiscal-q2-earnings-snapshot/?ref=bullished.co) — wtop.com
- [Nextracker Non-GAAP EPS of $1.31 beats by $0.21, revenue of $1.10B beats by $40M (NXT:NASDAQ) | Seeking Alpha](https://seekingalpha.com/news/4659537-nextracker-non-gaap-eps-of-1%5F31-beats-by-0%5F21-revenue-of-1%5F10b-beats-by-40m?ref=bullished.co) — seekingalpha.com
- [Nextpower (NXT) Stock May Trade At A Discount On Growth Coverage](https://sg.finance.yahoo.com/news/nextpower-nxt-stock-may-trade-002402863.html?ref=bullished.co) — Yahoo Finance

### More on Nextpower

- [Nextpower Lifts Fiscal 2027 Outlook After Record $1.109 Billion Quarter, Backlog Above $6 Billion](https://www.bullished.co/nextpower-lifts-fiscal-2027-outlook-after-record-1-109-billion-quarter-backlog-above-6-69b234eb/)

[All Nextpower (NXT) coverage →](https://www.bullished.co/tag/nxt/)