Nextpower (NASDAQ:NXT) reported strong fiscal third-quarter 2026 results, citing revenue growth, expanding backlog, and continued progress in broadening its solar technology platform beyond trackers. Management also raised its full-year outlook and announced a new share repurchase authorization, while discussing the early ramp of its Middle East joint venture and its plans to enter power conversion.
Quarterly results and raised fiscal 2026 outlook
CEO and founder Dan Shugar said the quarter was marked by “solid operational discipline and execution,” increased backlog, and a continuing focus on customers and innovation. The call also represented the company’s first quarterly earnings report under its new Nextpower brand, following a strategic evolution from a “pure-play tracking systems supplier to an end-to-end solar technology platform.”
Based on performance through the first three quarters and the strength of backlog and demand, management increased its fiscal 2026 outlook. Nextpower now expects:
- Revenue of $3.425 billion to $3.5 billion
- Adjusted EBITDA of $810 million to $830 million
- Adjusted diluted EPS of $4.26 to $4.36
Boynton added that the company continues to expect gross margins in the “low 30s” and operating margins in the “low 20s.” He said the outlook assumes the current U.S. policy environment remains intact and that permitting processes and timelines remain consistent with historical levels.
Cash flow, balance sheet, and share repurchase authorization
Nextpower generated $123 million of operating cash flow in the quarter and $391 million year-to-date. Capital expenditures were described as modest, resulting in adjusted free cash flow of $119 million in Q3 and $360 million year-to-date.
Boynton said the company ended the quarter with $953 million in cash and cash equivalents and no debt. Shugar also highlighted that Nextpower became “the first pure-play solar product company to achieve a formal investment-grade rating,” which he said reinforces confidence the company can support projects for decades through financing, warranties, service, and asset performance.
In capital allocation, Boynton reiterated three priorities: organic investment, disciplined M&A, and return of capital. The company announced that its board authorized a share repurchase program of up to $500 million over three years. In the Q&A, Boynton said the repurchase would be a “structured program,” but the company plans to proceed “slow and cautious out of the gates” given it is new to repurchasing shares.
Demand trends, backlog, and expanding “bundled” offerings
President Howard Wenger said customer bookings remained strong and drove further backlog growth, while the company continued to release new hardware and software. While management referenced a record backlog and later acknowledged that backlog was greater than $5 billion in a question, executives did not provide a specific bookings or book-to-bill figure for the quarter.
Wenger said U.S. bookings were up and U.S. revenue increased 63% year-over-year, which he attributed to a “flight to quality,” plus rising demand for domestically manufactured systems. He added that developers generally continue to move projects forward through final permitting and financing across multiple years of completion, providing extended visibility, and that several customer projects on federal lands that had been on hold have begun to move forward.
Nextpower also discussed continued traction for its bundled approach that combines trackers with additional products and services. Wenger cited a 552-megawatt booking that included the NX Horizon HailPro Tracker, U.S.-manufactured eBOS, the NX Earth Truss Foundation system, and the TrueCapture control system. Executives said non-tracker offerings are rolling out first in the United States, including foundations, eBOS, robotic inspection, and software and services, which has begun to affect the revenue mix. The company did not disclose specific attach rates for these products.
On performance of its core tracker technology, Wenger said that during calendar year 2025, Nextpower systems executed 2,170 hail stows worldwide and customers reported a less than 0.007% module breakage rate.
Tariffs, permitting, and regional demand commentary
Boynton said tariffs continued to pressure margins, with a $44 million tariff impact in the quarter, up from $33 million in the prior quarter. He attributed the increase to the fact that Q2 included only a partial period impact because new tariffs took effect August 15. He said tariff-related margin pressure is expected to remain manageable and largely consistent with prior expectations, citing an increasingly localized supply chain and pricing discipline.
Management highlighted its U.S. manufacturing footprint, noting it works with more than 25 U.S. partner manufacturing facilities and was the first to deliver 100% domestic content trackers under U.S. Treasury guidelines. Wenger said the company is seeing increased customer adoption of these solutions to mitigate tariff exposure.
Internationally, Wenger said Europe posted record quarterly bookings and Nextpower expanded into two new countries. Shugar and Wenger also discussed demand in the Middle East, with Shugar describing strong regional solar activity and ambitious procurement programs.
Nextpower Arabia JV and power conversion roadmap
Shugar said the company recently completed the formation of Nextpower Arabia, a joint venture with Abunayyan Holding, and that the JV will supply 2.25 gigawatts of advanced tracking systems to one of the world’s largest utility-scale solar projects. Shugar said the JV is focused on building local operations, manufacturing capability, and partnerships to support Saudi Arabia’s energy ambitions, including a foundation to locally manufacture and support up to 12 gigawatts of solar capacity annually over time.
On timing, Shugar said the JV closed a few weeks ago, is operational, and that the company is already delivering materially on the 2.25 GW project in the current quarter. He referenced an existing factory in Riyadh and a new factory under construction in Jeddah.
Boynton said the JV is structured as roughly 50/50 and will not be consolidated, aligning with Nextpower’s “capital-light model.” He said the company expects to generate revenue through technology sales into the JV, royalties, and its share of JV profits, and indicated more color would be provided later as the company discusses its outlook.
Separately, management reiterated plans to extend the platform into power conversion solutions, with Wenger stating customer pilots are planned for calendar year 2026. Shugar said the company is pursuing the category due to opportunities for higher efficiency, reliability, availability, and service, and noted the company has operating “alpha units,” with initial “beta projects” planned before scaling the business.
About Nextpower (NASDAQ:NXT)
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.
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