Nextpower (NASDAQ:NXT) Releases Quarterly Earnings Results, Beats Expectations By $0.15 EPS

Nextpower (NASDAQ:NXT) released its earnings results on Thursday. The company reported $1.20 EPS for the quarter, topping analysts’ consensus estimates of $1.05 by $0.15, FiscalAI reports. Nextpower had a net margin of 16.46% and a return on equity of 28.18%. The business had revenue of $935.17 million during the quarter, compared to analysts’ expectations of $935.39 million.

Here are the key takeaways from Nextpower’s conference call:

• Record Q1 performance: Revenue rose 8% year over year to $935 million, adjusted EBITDA reached $233 million, and backlog exceeded $5.5 billion, with more than $300 million of additional backlog from the newly acquired energy storage business.
• Nextpower raised its fiscal 2027 outlook to $4.1–$4.4 billion in revenue, $870–$930 million in adjusted EBITDA, and $4.42–$4.73 in adjusted diluted EPS. Management cited strong demand, bookings, backlog quality, and execution, while excluding any contribution from the pending Zimmermann acquisition.
• The company is expanding beyond trackers through eBOS, foundations, TrueCapture, inverters, and energy storage. eBOS is on track to generate more than $100 million of revenue this year, foundations revenue grew 50% year over year, and the UL-certified Apex inverter is expected to begin deliveries in early 2027 with more than 10 GW of U.S. capacity planned by next summer.
• Nextpower Energy Storage launched following the Prevalon acquisition, adding approximately 6 GWh of turnkey project experience and exposure to utilities, standalone storage developers, hyperscalers, and data centers. Management said storage demand is growing rapidly and highlighted Prevalon’s fast-response power stabilization systems for data centers.
• Near-term margins may be pressured as Nextpower invests in engineering, manufacturing, sales, and service capabilities for new products and integrates acquisitions. Although Q1 adjusted gross margin was 37%, it benefited from IEEPA tariff recoveries and favorable mix, while higher logistics costs were a headwind; management continues to target long-term gross margins in the low 30s and operating margins in the low 20s.

Nextpower Trading Up 4.6%

NXT stock traded up $4.23 during trading on Thursday, reaching $96.90. 3,855,816 shares of the stock were exchanged, compared to its average volume of 2,716,663. The firm has a market capitalization of $14.56 billion, a price-to-earnings ratio of 25.30, a P/E/G ratio of 1.85 and a beta of 1.86. The business has a 50 day moving average price of $118.31 and a 200-day moving average price of $116.47. Nextpower has a 1 year low of $52.61 and a 1 year high of $163.13.

Nextpower News Summary

Here are the key news stories impacting Nextpower this week:

• Positive Sentiment: Q1 FY2027 earnings exceeded expectations: Nextpower reported adjusted EPS of $1.20, above the $1.05 consensus estimate. Revenue reached $935.2 million, essentially matching expectations and rising 8.2% year over year. GAAP diluted EPS was $1.07, compared with $1.04 a year earlier. Nextpower quarterly earnings report
• Positive Sentiment: Profitability and cash generation improved: Gross profit increased 19.2% to $335.9 million, lifting gross margin to 35.9% from 32.6% a year earlier. Operating cash flow climbed 48.9% to $121.1 million, while cash and equivalents reached approximately $1.2 billion. Nextpower Q1 fiscal year 2027 financial results
• Positive Sentiment: Power-conversion acquisition completed: Nextpower finalized its purchase of power-conversion assets from Zigor Corporation and Apex Power, expanding its platform with certified central inverters for U.S. utility-scale solar and energy-storage projects. The deal could accelerate the company’s U.S. manufacturing ramp. Nextpower acquisition announcement
• Neutral Sentiment: Analyst sentiment remains favorable: Roth Capital reiterated its Buy rating, and 16 analysts have issued price targets during the past six months with a median target of $150.22. However, analyst targets are not guarantees and reflect expectations rather than new company guidance. Roth Capital rating on Nextpower
• Negative Sentiment: Insider selling is a risk signal: Company insiders reported 24 open-market sales and no purchases over the past six months, including sales by the CEO, president, COO and CFO. Institutional activity was mixed, with 327 investors adding shares and 275 reducing positions. Nextpower earnings and trading activity

Analysts Set New Price Targets

Several equities research analysts recently issued reports on NXT shares. BMO Capital Markets lifted their price objective on Nextpower from $113.00 to $125.00 and gave the stock a “market perform” rating in a report on Wednesday, May 13th. Mizuho increased their target price on Nextpower from $130.00 to $142.00 and gave the company a “neutral” rating in a report on Monday, June 8th. Royal Bank Of Canada set a $179.00 target price on Nextpower in a research report on Tuesday, July 21st. Robert W. Baird boosted their price target on Nextpower from $133.00 to $156.00 and gave the stock an “outperform” rating in a research report on Wednesday, May 13th. Finally, Roth Capital reissued a “buy” rating and issued a $175.00 price objective on shares of Nextpower in a research note on Tuesday. Two investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $151.42.

Insiders Place Their Bets

In other news, CEO Daniel S. Shugar sold 26,077 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $134.72, for a total transaction of $3,513,093.44. Following the completion of the sale, the chief executive officer owned 931,419 shares in the company, valued at $125,480,767.68. This trade represents a 2.72% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Bruce Ledesma sold 3,248 shares of Nextpower stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $134.72, for a total transaction of $437,570.56. Following the sale, the insider directly owned 246,130 shares in the company, valued at approximately $33,158,633.60. The trade was a 1.30% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 168,574 shares of company stock worth $22,559,770. 0.84% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Nextpower

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Pacer Advisors Inc. grew its holdings in shares of Nextpower by 10.1% during the 4th quarter. Pacer Advisors Inc. now owns 21,717 shares of the company’s stock worth $1,892,000 after purchasing an additional 1,997 shares during the period. Compound Planning Inc. purchased a new stake in Nextpower in the 4th quarter valued at about $255,000. Invesco Ltd. lifted its position in Nextpower by 5.1% in the fourth quarter. Invesco Ltd. now owns 2,864,660 shares of the company’s stock valued at $249,541,000 after buying an additional 139,211 shares during the last quarter. Corient Private Wealth LLC lifted its position in Nextpower by 35.5% in the fourth quarter. Corient Private Wealth LLC now owns 14,692 shares of the company’s stock valued at $1,280,000 after buying an additional 3,852 shares during the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its stake in Nextpower by 7.9% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 14,601 shares of the company’s stock worth $1,272,000 after buying an additional 1,071 shares during the period. Hedge funds and other institutional investors own 67.41% of the company’s stock.

About Nextpower

Nextpower, formerly known as Nextracker, is traded on NASDAQ under the symbol NXT and is a leading provider of advanced solar tracking solutions for utility-scale and distributed energy projects. The company specializes in the design, engineering and manufacturing of single-axis tracker systems that optimize the capture of solar energy by following the sun’s trajectory throughout the day. Nextpower’s core hardware offerings aim to enhance energy yield, reduce balance-of-system costs and simplify installation and maintenance for downstream solar developers and operators.

In addition to its tracker hardware, Nextpower provides a suite of digital software and analytics tools to maximize asset performance.