Latest news with #HowardWenger
Business Wire
10 hours ago
- Business
- Business Wire
Nextracker Selected for Landmark European Solar Power Project
FREMONT, Calif.--(BUSINESS WIRE)-- Nextracker (Nasdaq: NXT), a global leader in advanced solar energy solutions, today announced that its NX Horizon™ solar trackers will power one of Europe's largest solar projects, the 550 MW 'Oricheio PPC Ptolemaida' solar PV park in Western Macedonia. Owned by Greek PPC Renewables (PPCR), a wholly owned subsidiary of utility PPC Group, the project was constructed by engineering procurement and construction (EPC) company Terna SA by repurposing the land of a former coal mine with high-performance solar energy infrastructure to generate clean, lower-cost electricity. Now in its final stage of construction, Oricheio PPC Ptolemaida is the largest single solar power project in Greece and is estimated to provide nearly 1.8% of the country's electricity per year when fully operational. Large-scale solar projects play a key role in advancing Europe's drive to energy independence and net-zero carbon goals by 2050. This project represents a significant milestone, adding clean power generation capacity to the grid and bringing new economic development benefits to the region. According to Greece's revised National Energy and Climate Plan (NECP), the country aims to reach a target of 82% renewable energy in its electricity generation by 2030, a significant increase from the previous target of 66% set in 2019. 'The 550 MW Oricheio PPC Ptolemaida solar project is an important step to increase energy independence in Europe and derisk capacity shortages for the region,' said Howard Wenger, president, Nextracker. 'We are honored to partner with leaders like Terna SA and Greece's utility PPC who are operating at the highest European standards for executing large-scale utility solar projects. This landmark project reinforces our culture of serving our customers with world class technology, backed by our talented European team and a robust supply chain ecosystem.' Wood Mackenzie reported that Nextracker is now the European market share leader and global market leader with over 130 GW solar trackers shipped worldwide. With a growing team of experts serving customers throughout the continent, Nextracker has expanded its European operations. Building on the company's extensive global supply chain, the company strengthened strategic local manufacturing partnerships in Europe to ensure on-time delivery for large-scale utility and distributed-generation (DG) projects. About Nextracker Nextracker innovates and delivers the global, leading solar power technology platform with integrated tracker, electrical solutions, and yield optimization and control systems for utility-scale and distributed generation projects. Our advanced technology enables solar power plants to follow the sun's movement across the sky and optimize performance. With systems operating in more than 40 countries worldwide, Nextracker offers innovative solutions that accelerate solar power plant construction, increase energy output, and enhance long-term reliability. For more information, visit Nextracker. Follow us on LinkedIn, YouTube, Instagram, X and Facebook.
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
31-01-2025
- Business
- Yahoo
NEXTracker Inc (NXT) Q3 2025 Earnings Call Highlights: Record Backlog and Strong Financial ...
Q3 Revenue: $679 million, a 7% sequential improvement over Q2. Year-to-Date Revenue: $2 billion, reflecting a 15% growth year over year. Adjusted EBITDA: $186 million in Q3, an 11% increase year over year, with a margin of 27%. Adjusted Free Cash Flow: $135 million in Q3, more than doubling from $62 million in the same period last year. Total Cash: $694 million at the end of Q3. Total Debt: $145 million with no significant maturities until fiscal 2028. Total Liquidity: $1.6 billion at the end of Q3. Adjusted Gross Margins: 36%, roughly in line quarter over quarter. Backlog: Greater than $4.5 billion, a new record. Full Year Fiscal '25 Revenue Guidance: $2.8 billion to $2.9 billion. Full Year Fiscal '25 Adjusted EBITDA Guidance: $700 million to $740 million. Full Year Fiscal '25 Adjusted Diluted EPS Guidance: $3.75 to $3.95 per share. Warning! GuruFocus has detected 2 Warning Sign with NXT. Release Date: January 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. NEXTracker Inc (NASDAQ:NXT) reported a 15% year-over-year revenue growth, reaching approximately $2 billion year to date. The company's backlog hit a new record, significantly exceeding $4.5 billion, providing excellent visibility and confidence in future growth. NEXTracker Inc (NASDAQ:NXT) expanded its R&D facilities in the US, Brazil, and India, and partnered with UC Berkeley to advance solar technology. The company achieved a strong adjusted EBITDA of $186 million in Q3, marking an 11% increase year over year. NEXTracker Inc (NASDAQ:NXT) generated $135 million in adjusted free cash flow during Q3, more than doubling from the same period last year. The solar industry faces risks and uncertainties that may cause actual results to differ materially from expectations. Pricing and costs vary by region, customer, project size, and other factors, which can impact profitability. International markets are more competitive and sensitive to upfront costs, potentially affecting margins. The company faces potential risks from tariffs and changes in domestic content rules, which could impact supply chain dynamics. Project timing can be unstable, with some projects accelerating and others pushing out, affecting revenue recognition. Q: Can you provide more details on the backlog, which you mentioned is significantly above $4.5 billion? A: Howard Wenger, President, confirmed that the backlog has been increasing every quarter since going public. The book-to-bill ratio continues to be greater than 1, and the math supports that they exceeded $1 billion in bookings for the quarter. Q: How do you view potential risks in your supply chain, particularly regarding steel and tariffs? A: Daniel Shugar, CEO, stated that Nextracker has strong relationships with US steel mills and has set up manufacturing facilities near these mills. They are producing all US tubes with 100% US steel, which has a cleaner manufacturing mix. Internationally, they have built supply chains in India and other markets, allowing them to produce locally or export as needed. Q: Is the US market growing faster than expected, and do you see the 75-25 US to international mix holding into next year? A: Howard Wenger noted that the US demand is strong with record bookings this quarter. The mix is typically 60% to 70% US, and this is expected to hold, indicating growth both domestically and internationally. Q: Can you discuss the backlog conversion rate and any changes in pricing? A: Howard Wenger explained that 87% of the backlog is expected to be realized over the next eight quarters, with the majority in the next four quarters. Pricing is stable globally, and the company continues to invest in innovation to reduce costs and increase energy yield. Q: Have you seen any changes in quoting activity following the new domestic content rules? A: Daniel Shugar mentioned that the updated rules simplify achieving the bonus 10% ITC for customers and highlight Nextracker's strong US supply chain position. Howard Wenger added that more customers are requesting 100% domestic content, which may come with a modest price premium. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
