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Yahoo
04-06-2025
- Business
- Yahoo
NXT Q1 Earnings Call: Missed Revenue Expectations, Expanding Product Portfolio, and Margin Outlook
Solar tracker company Nextracker (NASDAQ:NXT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 25.5% year on year to $924.3 million. Its non-GAAP EPS of $1.29 per share was 32% above analysts' consensus estimates. Is now the time to buy NXT? Find out in our full research report (it's free). Revenue: $924.3 million (25.5% year-on-year growth) Adjusted EPS: $1.29 vs analyst estimates of $0.98 (32% beat) Adjusted Operating Income: $162.8 million vs analyst estimates of $175 million (17.6% margin, 7% miss) Adjusted EPS guidance for the upcoming financial year 2026 is $3.84 at the midpoint, missing analyst estimates by 1.5% EBITDA guidance for the upcoming financial year 2026 is $737.5 million at the midpoint, below analyst estimates of $762.6 million Adjusted EBITDA Margin: 18.1% Backlog: $4.92 billion at quarter end, up 23% year on year Market Capitalization: $8.48 billion Nextracker's first quarter results were shaped by continued demand for utility-scale solar trackers and expanded international activity, which management said drove a sequential increase in backlog and bookings. CEO Dan Shugar emphasized the company's efforts to strengthen its market leadership, highlighting recent wins in regions such as Europe, Latin America, and Australia. President Howard Wenger pointed to the successful uptake of new products like the Hail Pro series and strong customer demand for fully domestic content in the U.S., supported by a flexible supply chain. Management also noted stable pricing and project execution, with the backlog providing enhanced visibility into near-term revenue streams. Looking ahead, Nextracker's guidance reflects increased investment in research and development, expansion into adjacent technologies, and ongoing policy uncertainty in the U.S. solar market. CEO Dan Shugar described a strategic move toward becoming a broader solar technology platform provider, with recent acquisitions such as Bentek Corporation expected to contribute to future growth. CFO Chuck Boynton cautioned that higher operating expenses and capital expenditures would impact margins, stating, 'We're leaning in on growth and investing in OpEx and CapEx to drive multi-year expansion.' Management acknowledged risks related to evolving U.S. policy, tariffs, and global project mix but pointed to a strong contracted backlog as a buffer for the coming year. Management attributed Q1 performance to a combination of robust international sales, the steady ramp of new product offerings, and the expansion of its order backlog. The quarter also saw the company continue its shift towards a comprehensive solar technology platform. International expansion momentum: Management highlighted that contracts were signed in 17 different countries during the quarter, including growth in less-discussed markets such as Saudi Arabia, Greece, Peru, Chile, and Bulgaria. Europe, especially Spain, saw record deliveries, attributed to the success of the XTR terrain-following tracker tailored for regional conditions. Domestic content demand: In the U.S., Nextracker observed rising demand for tracker systems with 100% domestic content, a trend tied to policy incentives and customer requirements. The company's flexible supply chain, with 90 manufacturing sites across 19 countries, allowed it to meet these needs and secure long-term customer relationships. New product adoption: The Hail Pro series and TrueCapture yield management platform gained strong traction, with over nine gigawatts of Hail Pro trackers sold and significant sales of the XTR series. These products address insurance and system performance requirements, which management claims are increasingly important for customers. Order backlog growth: The order backlog increased sequentially, with management reporting 'record bookings and backlog' and continued book-to-bill ratios above one. This backlog, encompassing both domestic and international projects, was described as providing visibility and reducing revenue uncertainty. Strategic acquisitions: The acquisition of Bentek Corporation and two specialty foundation companies marked a shift toward a solar power technology platform. Management stated that integrating tracker and electrical balance-of-system (eBOS) offerings would simplify procurement for customers and create new revenue streams beyond the traditional tracker business. Nextracker's outlook is shaped by ongoing investments in product development, expansion into new business lines, and uncertainties related to policy and market conditions. Platform expansion strategy: Management is prioritizing investment in adjacent technologies, such as electrical balance-of-system solutions, with the expectation that these new offerings will drive a significant portion of future revenue. CEO Dan Shugar stated that in five years, one-third of revenue could come from non-tracker sources. Margin headwinds from investment: CFO Chuck Boynton outlined that higher operating and capital expenditures—particularly to scale recent acquisitions and develop new products—will weigh on EBITDA margins in the near term. The company expects structural gross margins to remain in the low-30% range, but operating margins will be influenced by both investments and geographic revenue mix. Policy and market risks: Management identified evolving U.S. policy, including tax credit provisions and tariffs, as risk factors for future results. They noted that much of the coming year's business is already contracted, which limits near-term downside but leaves future periods exposed to potential regulatory shifts. In the coming quarters, the StockStory team will monitor (1) the pace of integration and revenue contribution from recent acquisitions such as Bentek, (2) signs of sustained demand for new product offerings like TrueCapture and Hail Pro, and (3) regulatory developments affecting domestic content requirements and tax credit incentives in the U.S. The durability of margins amid international expansion and investment will also be closely tracked. Nextracker currently trades at a forward P/E ratio of 14.9×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
15-05-2025
- Business
- Yahoo
Why Nextracker (NXT) Stock Is Up Today
Shares of solar tracker company Nextracker (NASDAQ:NXT) jumped 12.9% in the morning session after the company reported impressive first quarter 2025 (fiscal fourth quarter) results which blew past analysts' revenue, EPS, and EBITDA expectations. In addition, its full-year revenue guidance outperformed Wall Street's estimates. Sales grew 26% year-over-year, driven by booming demand for its Hail Pro and XTR solar trackers. On the other hand, its full-year EPS and EBITDA guidance fell short. Overall, this print was mixed but still had some key positives. Is now the time to buy Nextracker? Access our full analysis report here, it's free. Nextracker's shares are extremely volatile and have had 35 moves greater than 5% over the last year. But moves this big are rare even for Nextracker and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 23 days ago when the stock gained 5.4% as investor sentiment improved on renewed optimism that the US-China trade conflict might be nearing a resolution. According to reports, Treasury Secretary Scott Bessent reinforced this positive outlook by describing the trade war as "unsustainable," and emphasized that a potential agreement between the two economic powers "was possible." His comments signaled to markets that both sides might be motivated to seek common ground, raising expectations for reduced tariffs and more stability across markets. Nextracker is up 56.2% since the beginning of the year, and at $61.70 per share, has set a new 52-week high. Investors who bought $1,000 worth of Nextracker's shares at the IPO in February 2023 would now be looking at an investment worth $2,026. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
23-04-2025
- Business
- Business Wire
kWh Analytics and Nextracker Collaborate to Cut Municipal Solar Insurance Deductible by 50 Percent Through Innovative Hail Stow Technology
SAN FRANCISCO--(BUSINESS WIRE)--kWh Analytics, the market leader in Climate Insurance, today announced a successful collaboration with Nextracker, a global leader in advanced solar energy solutions, that resulted in a 50 percent reduction in severe convective storm deductible for a solar project in Arkansas. This partnership demonstrates how strategic technology implementation can significantly improve insurance terms while enhancing risk mitigation for renewable energy assets. This partnership demonstrates how strategic technology implementation can significantly improve insurance terms while enhancing risk mitigation for renewable energy assets. The collaboration was initiated when traditional carriers became unwilling to cover a municipal solar developer's hail risk, a growing challenge for solar assets in severe weather regions. kWh Analytics, recognizing that the project employed Nextracker's solar tracking systems, developed an innovative insurance structure with comprehensive hail limits with low deductibles contingent on the implementation of Nextracker NX Horizon Hail Pro™ automated stow technology. 'This collaboration with Nextracker exemplifies how data-driven underwriting can incentivize resilience measures and benefit all stakeholders,' said Jason Kaminsky, CEO of kWh Analytics. 'By quantifying the risk reduction from advanced technologies like automated hail stow, we're able to offer significantly improved insurance terms.' The NX Horizon™ tracker system features core technology that enables rapid stowing without relying on grid power. The Nextracker asset management team collaborated with the municipal utility to upgrade existing tracker systems to include Hail Pro control system hardware and firmware, unlocking automatic stow capability. These enhancements included integrating DTN hail forecasting service and Nextracker's tailored hail stow thresholds, which trigger automatic stowing based on hail size, proximity to the site, and likelihood of impact. 'As extreme weather events become more frequent, having the ability to actively mitigate hail risk is becoming essential for solar asset owners and insurers,' said Andrew Griffiths, vice president asset management, Nextracker. 'Our Hail Pro technology is delivering measurable value by keeping critical infrastructure operating in the field, and in this case, contributing to lower insurance deductibles. This collaboration proves that smarter tracker design and advanced software can strengthen asset resilience and improve project economics.' For the developer, the benefits extended beyond insurance savings to operational improvements and peace of mind. 'This is so much easier and lets us sleep better at night and focus on preserving utility services for our community members,' said the municipal utility operations manager. This collaboration exemplifies how partnerships across the renewable energy industry can deliver tangible benefits for all stakeholders. When technology providers, insurers, and asset owners work together, they create innovative solutions that can reduce risk, lower costs, and enhance project reliability. You can learn more about the insurance deductible benefits resulting from this collaboration in kWh Analytics' case study. ABOUT kWh Analytics kWh Analytics, a leading Climate Insurance provider, underwrites property insurance and revenue firming products for renewable energy assets. Our proprietary database of 300,000+ zero-carbon projects and $100B in loss data fuels advanced modeling and insights, enabling precise underwriting decisions. This data-driven approach incorporates resiliency measures in risk evaluation, promoting sustainable practices in the renewable energy sector. Trusted by 5 of the top 10 global (re)insurance carriers, we've insured over $40 billion in assets to date. Our tailored solutions further our mission of providing best-in-class Insurance for our Climate. Recognized by InsuranceERM Climate and Sustainability Awards, kWh Analytics continues to pioneer in the renewable energy insurance sector. Learn more at or LinkedIn
