Nextpower Inc. Q1 FY2026 earnings call

Key Points

• Strong Q1 financial results with revenue up 20% YOY to $864M and adjusted EBITDA up 23% to $215M.
• Backlog reached a record over $4.75B, reflecting healthy global demand.
• Recognized as the #1 tracker provider worldwide for the tenth consecutive year, with 26% market share in 2024.
• Announced strategic acquisitions in robotics, AI, and automation to expand the technology platform.
• Foundation products and eBOS solutions gaining momentum, with eBOS production expected to scale significantly.
• Q1 pricing stable, costs well-managed, and project timing stable with backlog providing visibility.

In the first quarter, Nextracker reported revenue of $864 million, a 20% year-over-year growth. Adjusted EBITDA was $215 million, up 23%. Backlog hit a new record of over $4.75 billion. Key product segments include the core NX Horizon tracker systems and TrueCapture technology. The Hail Pro system saw quarter-over-quarter sales growth of 43%, and the XTR tracker series grew 22%. Foundation products like NX Earth Truss have cumulative sales over 1 gigawatt, and eBOS solutions were launched during the quarter with optimistic scaling plans.

Fiscal 2026 Outlook

• Revenue expected in the range of $3.2 billion to $3.45 billion.
• Adjusted EBITDA projected to be between $750 million and $810 million.
• Adjusted diluted EPS expected to be in the range of $3.96 to $4.27 per share.
• Relatively balanced quarterly revenue anticipated for the remainder of the year, grounded in backlog strength, flight to quality in solar development, and global team capability.

Risks Discussed

• Uncertainty surrounding U.S. policy, including safe harbor provisions and potential updates to regulations.
• Impact of the Trump executive order expected in August 18 and its potential effect on projects touching federal land.
• Policy dynamics in the U.S. that could influence project timing, customer investment behavior, and financial results.

Q: Can you please discuss what conversations have looked like with developers post the OBBBA? Are they kind of in wait-and-see mode? And maybe you can also just expand on bookings momentum.

A: Howard Wenger responded that they are in close touch with owner developers, backlog is solid with no projects dropping out, and there's sequential growth in backlog for the 15th consecutive quarter with good demand signals globally.

Q: Maybe I'll touch on the new business here, the venture into AI and robotics. I know you'll probably offer more details at the Analyst Day. But just generally, are you planning to offer these solutions as a service with the recurring revenue stream? Or will this be primarily an equipment sale model?

A: Daniel Shugar said there's a range of solutions, with technologies like drones and robots already integrated into existing TrueCapture technology, and these solutions are either commercially available or in advanced productization stages.

Q: Just had 2. One, Howard, going back to the comment around backlog. You said it did grow quarter-on-quarter. I know you changed kind of the language semantics a bit. So I wanted to confirm that, that was the case. It did grow. And I guess that implies bookings were $900 million, maybe close to $1 billion again. And curious if anything in the quarter you saw pauses from customers due to policy uncertainty or vice versa, any pull forwards to try to get ahead of the bill passage?

A: Howard Wenger confirmed backlog grew quarter-on-quarter, pipeline is growing, and there are some pull-ins and pushouts in projects which is normal, with clarity on treasury guidance expected soon that could impact customer behavior.