Nextpower Lifts Fiscal 2027 Outlook After Record $1.109 Billion Quarter, Backlog Above $6 Billion
The solar tracker maker raised its full-year revenue and earnings ranges as bookings hit a quarterly record, though gross margin slipped to 31.1%.
Nextpower, which makes solar tracking systems that tilt panels to follow the sun, posted record second-quarter revenue of $1.109 billion and raised its fiscal 2027 outlook, the company said Wednesday. Backlog now tops $6 billion, but gross margin fell from the prior quarter.
Sales up, margins down
Revenue for the quarter ended October 2 compared with $935 million in the first quarter and $905 million a year earlier. Net income was $165 million, or $1.08 per diluted share, against $0.97 a year ago. Adjusted earnings were $1.31 per share, versus $1.19 a year earlier.
GAAP gross margin slipped to 31.1% from 35.9% in the prior quarter and 32.4% a year earlier. Adjusted EBITDA margin fell to 22.5% from 24.9% last quarter and 24.7% a year earlier, even as adjusted EBITDA rose to $250 million.
The company said results included about $99 million of IRA 45X advanced manufacturing tax credit vendor rebates and tariffs, net.
Guidance moves higher
Nextpower now expects fiscal 2027 revenue of $4.2 billion to $4.45 billion, up from $4.1 billion to $4.4 billion. Adjusted diluted EPS is guided to $4.61 to $4.87, from $4.42 to $4.73, and adjusted EBITDA to $890 million to $940 million, from $870 million to $930 million.
The updated outlook assumes third-quarter revenue growth of about 10% from a year earlier.
CEO and founder Dan Shugar said energy storage and other complementary offerings made up about 22% of second-quarter revenue. Record bookings of eBOS, the electrical components that carry power from panels, topped $100 million, and the company signed a 1.1-gigawatt inverter agreement across five projects.
Acquisition, board seats and cash
Nextpower completed its purchase of Zimmermann PV-Steel Group for about €230 million, with no stock or earnout. The deal adds fixed-tilt and structural products and 15 countries, for a total of 68.
The board grew from ten to twelve seats with the appointments of Sarah Slusser, who ran Cypress Creek Renewables from June 2019 through March 2026, and Michael Alvarez, a Longroad Energy co-founder, according to an 8-K.
The company ended the period with over $1 billion in cash and no debt. CFO Chuck Boynton said it returned about $162 million to shareholders through buybacks; the cash flow statement shows that figure for the six months ended October 2.
Nextpower holds its Capital Markets Day in Las Vegas on November 16, where it will detail its long-term strategy and financial framework.
Sources
- 8-K Filing — Nextpower Inc. (NXT) — SEC EDGAR
- Exhibit ex991_q227.htm — Nextpower Inc. 8-K exhibit — SEC EDGAR
- Nextpower: Fiscal Q2 Earnings Snapshot | wusa9.com — Associated Press
