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1. Company Snapshot

1.a. Company Description

Nextracker Inc., an energy solutions company, provides solar tracker solutions for PV projects.The company offers solar trackers, such as Bifacial PV modules for large-scale solar; NX Horizon for solar power plants; NX Gemini two-in-portrait solar tracker that optimizes lifetime value and performance of power plants for project developers and asset owners; and NX Horizon — XTR, an all-terrain solar tracker.It also provides TrueCapture, an intelligent and self-adjusting tracker control system for PV power plants; and NX Navigator, an operational control and risk mitigation software.


The company was incorporated in 2013 and is based in Fremont, California.Nextracker Inc.operates as a subsidiary of Flex Ltd.

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1.b. Last Insights on NXT

Nextracker's recent performance was driven by strong Q2 earnings, beating estimates with $1.19 per share, and a record backlog of $5 billion in projects. The company's rebranding to Nextpower reflects its evolution into a global supplier of integrated energy technology solutions. Analyst upgrades from Bank of America and Citigroup, with price targets raised to $102 and $114, respectively, also contributed to positive momentum. Additionally, the company's shift towards a broader structural, electrical, and digital platform is seen as a new era of higher-quality growth.

1.c. Company Highlights

2. Nextracker Shines with 42% Revenue Growth and Raised FY '26 Outlook

Nextracker's Q2 FY '26 financial performance was impressive, with revenue surging 42% year-over-year to $905 million and adjusted EBITDA increasing 29% to $224 million. The company's record first half revenue was $1.77 billion, up 31% year-over-year. Adjusted diluted EPS came in at $1.19, beating estimates of $0.99. The strong top-line growth and profitability underscore the company's expanding technology platform and increasing demand for its products and services.

Publication Date: Oct -27

📋 Highlights
  • Revenue Growth:: Q2 revenue surged 42% YoY to $905 million, with first-half revenue hitting $1.77 billion (+31% YoY).
  • Adjusted EBITDA Increase:: Adjusted EBITDA rose 29% to $224 million in Q2, with first-half total reaching $448 million.
  • Backlog Expansion:: Global backlog exceeds $5 billion, driven by strong demand in Europe and international partnerships like the Saudi Arabia joint venture.
  • Cash Flow & Balance Sheet Strength:: Adjusted free cash flow reached $171 million in Q2 ($241 million YTD), with $845 million in cash and $1.8 billion in liquidity.
  • Product Innovation:: Launched NX PowerMerge and secured a $75 million multiyear agreement for advanced module frames with a U.S. solar panel manufacturer.

Operational Highlights and Backlog

Nextracker's President, Howard Wenger, noted that the company's backlog has grown to over $5 billion, driven by strong global demand for its products and services. The company has seen record sales in Europe and is expanding its market presence and partnerships internationally, including a joint venture in the Middle East and North Africa. As Wenger stated, "We're pleased with our global bookings status, now over $5 billion in backlog. Our customers are open to spending more with us due to our expanded technology platform."

Cash Flow and Balance Sheet

CFO Charles Boynton reported that the company's adjusted free cash flow was $171 million for the quarter and $241 million year-to-date. Nextracker has a strong balance sheet, with $845 million in cash, no debt, and total liquidity of nearly $1.8 billion. This solid financial position provides the company with the flexibility to invest in its growth initiatives and return value to shareholders.

Valuation and Outlook

With the company's raised FY '26 outlook, expecting revenue between $3.275 billion and $3.475 billion, adjusted EBITDA between $775 million and $815 million, and adjusted diluted EPS in the range of $4.04 to $4.25 per share, the stock's valuation metrics appear reasonable. The current P/E Ratio of 25.25 and EV/EBITDA of 18.5 suggest that the market has priced in a significant growth premium. Analysts estimate next year's revenue growth at 19.9%, which is slightly lower than the current year's expected growth rate. The company's strong ROIC of 22.12% and ROE of 33.75% indicate a high level of profitability.

Growth Strategy and M&A

Nextracker's strategy is to build a cohesive platform by harmonizing its new products and services with its industry-leading NX Horizon-XTR system. The company has made several acquisitions and has a holistic approach to new products and services, with an increased internal R&D budget to $100 million. As Dan Shugar noted, "We're playing the long game, investing heavily in R&D, marketing, and sales to ensure success." The upcoming Capital Markets Day on November 12 will provide further insight into the company's growth strategy and portfolio.

3. NewsRoom

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NXT Energy Solutions Completes Data Acquisition for SFD Survey

Dec -04

Source: accessnewswire.com

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Groupe la Francaise Sells 38,231 Shares of Nextpower Inc. $NXT

Dec -04

Source: defenseworld.net

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Nextpower Opens Southeast Operations Hub and Doubles Manufacturing Capacity in Tennessee with Partner MSS Steel Tubes USA

Dec -03

Source: businesswire.com

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Is Nextpower Stock a Buy Now?

Dec -03

Source: fool.com

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The Coming Energy Shock: How AI Data Centers will Reshape Power Needs

Dec -01

Source: zacks.com

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American Century Companies Inc. Has $29.77 Million Stock Holdings in Nextpower Inc. $NXT

Dec -01

Source: defenseworld.net

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Reviewing Shoals Technologies Group (NASDAQ:SHLS) & Nextpower (NASDAQ:NXT)

Dec -01

Source: defenseworld.net

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Touchstone Small Company Fund Q3 2025 Performance Review

Nov -27

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (15.80%)

6. Segments

Scientific & Technical Instruments

Expected Growth: 18.0%

The solar energy industry is expected to experience significant growth, driven by declining costs and increasing demand for renewable energy. As a leading provider of solar trackers, the Scientific & Technical Instruments segment is poised to benefit from this trend. The expected growth rate is higher than the global average, reflecting the segment's strong market position and the growing demand for solar energy solutions. The increasing adoption of solar energy globally will drive the growth of this segment.

7. Detailed Products

NX Horizon

A smart solar tracker that optimizes energy production and reduces costs.

NX Gemini

A bifacial solar tracker that captures energy from both sides of the panel.

NX Gemini XL

A larger version of the NX Gemini, designed for larger solar panels.

NX Fusion

A software platform that integrates with Nextracker's hardware to optimize energy production and reduce costs.

NX Navigator

A data analytics platform that provides real-time monitoring and insights for solar farms.

8. Nextracker Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nextracker Inc. faces moderate threat from substitutes, as there are alternative solar tracking systems available in the market, but they are not as efficient and cost-effective as Nextracker's systems.

Bargaining Power Of Customers

Nextracker Inc. has a diverse customer base, and no single customer has significant bargaining power, reducing the threat of customer bargaining power.

Bargaining Power Of Suppliers

Nextracker Inc. relies on a few key suppliers for critical components, giving them some bargaining power, but the company's large scale of operations and diversified supply chain mitigate this threat.

Threat Of New Entrants

The solar tracking system industry has high barriers to entry, including significant capital requirements and technological expertise, making it difficult for new entrants to compete with Nextracker Inc.

Intensity Of Rivalry

The solar tracking system industry is highly competitive, with several established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 12.67%
Debt Cost 11.76%
Equity Weight 87.33%
Equity Cost 13.76%
WACC 13.51%
Leverage 14.51%

11. Quality Control: Nextracker Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Nextracker

A-Score: 4.4/10

Value: 2.2

Growth: 5.6

Quality: 7.4

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Weatherford

A-Score: 4.4/10

Value: 6.1

Growth: 7.4

Quality: 5.9

Yield: 1.0

Momentum: 2.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Cactus

A-Score: 4.4/10

Value: 5.4

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
CNX Resources

A-Score: 4.4/10

Value: 6.8

Growth: 3.1

Quality: 5.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Sunrun

A-Score: 3.4/10

Value: 8.0

Growth: 2.6

Quality: 2.9

Yield: 0.0

Momentum: 6.5

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Enphase Energy

A-Score: 3.0/10

Value: 3.7

Growth: 5.8

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

90.5$

Current Price

90.5$

Potential

-0.00%

Expected Cash-Flows