Nextpower (NASDAQ:NXT) Issues Quarterly Earnings Results

Nextpower (NASDAQ:NXT) released its earnings results on Wednesday. The company reported $1.31 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.10 by $0.21, FiscalAI reports. The company had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Nextpower had a return on equity of 26.13% and a net margin of 15.98%.

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

• Record Q2 performance: Revenue exceeded $1.1 billion, adjusted EBITDA reached approximately $250 million, and adjusted free cash flow was about $135 million. Bookings exceeded $1 billion, lifting backlog above $6 billion.
• Management raised fiscal 2027 guidance to $4.2–$4.45 billion of revenue, $890–$940 million of adjusted EBITDA, $4.61–$4.87 of adjusted EPS, and more than $500 million of free cash flow. The company expects a potentially record Q4, although revenue is expected to decline sequentially in Q3.
• Non-tracker businesses are gaining traction, contributing 22% of Q2 revenue; energy storage generated approximately $100 million of revenue and more than $20 million of EBITDA, while eBOS bookings exceeded $100 million. Management also highlighted strong demand for storage solutions serving AI data centers and a 1.1-gigawatt inverter framework agreement.
• The completed Zimmermann acquisition expands Nextpower’s European presence to 68 countries and adds fixed-tilt, agrivoltaic, and wire-management products. Management expects the deal to be immediately accretive and sees cross-selling opportunities across trackers, Foundation, eBOS, power conversion, and storage.
• Second-half margins are expected to weaken, with adjusted gross margin in the high 20s and adjusted EBITDA margin in the high teens, due to higher diesel, steel, freight, and logistics costs and investments to ramp new product lines. The company expects these cost pressures to remain elevated through fiscal 2027, while Zimmermann’s expected contribution was reduced to about $100 million of revenue and $10 million of adjusted EBITDA for the remainder of the year.

Nextpower Price Performance

NXT opened at $79.83 on Friday. Nextpower has a 1-year low of $75.40 and a 1-year high of $163.13. The stock has a market cap of $12.11 billion, a P/E ratio of 20.11, a P/E/G ratio of 1.98 and a beta of 1.94. The stock’s 50 day simple moving average is $82.58 and its 200 day simple moving average is $106.76.

Insider Activity

In other Nextpower news, Director Julia Blunden sold 3,723 shares of the company’s stock in a transaction on Friday, August 21st. The stock was sold at an average price of $88.08, for a total value of $327,921.84. Following the sale, the director owned 6,434 shares of the company’s stock, valued at approximately $566,706.72. This represents a 36.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Brandi Thomas sold 7,415 shares of the firm’s stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $91.25, for a total value of $676,618.75. Following the completion of the transaction, the director owned 7,914 shares of the company’s stock, valued at approximately $722,152.50. This represents a 48.37% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 100,431 shares of company stock valued at $10,039,748 in the last 90 days. Insiders own 0.84% of the company’s stock.

More Nextpower News

Here are the key news stories impacting Nextpower this week:

• Positive Sentiment: Earnings and revenue beat estimates: Nextpower reported adjusted earnings of $1.31 per share versus the $1.10 consensus estimate, while revenue reached $1.11 billion compared with expectations of $1.06 billion. Earnings also increased from $1.19 per share a year earlier. Nextpower Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Growth outlook remains constructive: Coverage highlighted six consecutive earnings beats, a roughly $6 billion backlog and an improved outlook. Reports also cited strong quarterly sales growth and company guidance for the next quarter, supporting expectations for continued demand. Nextpower Q2 2027 Earnings
• Positive Sentiment: Share repurchase authorized: Nextpower approved a $500 million buyback, potentially supporting earnings per share and signaling confidence in the company’s financial position. Reports indicated cash reserves of approximately $953 million. Nextpower Stock and Buyback Report
• Positive Sentiment: Analysts remain bullish: JPMorgan, Susquehanna and Needham reduced their price targets modestly but maintained “overweight,” “positive” and “buy” ratings, respectively. Their revised targets still imply substantial upside from the current trading level.
• Neutral Sentiment: Target reductions temper the reaction: JPMorgan lowered its target to $134 from $136, Susquehanna to $145 from $150 and Needham to $143 from $149. The cuts suggest some valuation or execution caution, but the unchanged bullish ratings remain supportive.
• Negative Sentiment: Margin pressure is a risk: Reports noted that margins declined despite stronger revenue and earnings. Investors may therefore focus on whether backlog conversion and sales growth can offset pressure on profitability.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the company. Robert W. Baird decreased their price target on Nextpower from $156.00 to $116.00 and set an “outperform” rating on the stock in a research note on Tuesday, September 22nd. BMO Capital Markets cut their price objective on Nextpower from $132.00 to $114.00 and set an “outperform” rating for the company in a research report on Wednesday, October 21st. Northland Securities set a $138.00 price objective on Nextpower in a research report on Thursday. UBS Group reissued a “buy” rating and issued a $160.00 target price on shares of Nextpower in a report on Monday, August 3rd. Finally, JPMorgan Chase & Co. decreased their target price on shares of Nextpower from $136.00 to $134.00 and set an “overweight” rating on the stock in a research report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, twenty-three have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Nextpower currently has an average rating of “Moderate Buy” and an average target price of $137.00.

About Nextpower

Nextracker Inc is a renewable energy technology company that designs, manufactures and supplies intelligent solar-tracking systems for utility-scale and large commercial solar power projects. Its systems adjust the position of solar panels throughout the day to help photovoltaic modules capture more sunlight and improve energy production.

The company’s product portfolio includes single-axis solar trackers, structural components, foundations and related hardware, as well as software and controls designed to optimize tracker performance.