Key Highlights

  • Adjusted diluted EPS of USD 1.31 rose from USD 1.19 and exceeded the USD 1.10 consensus estimate.
  • Record revenue of USD 1.109 billion grew 23% year over year, while GAAP diluted EPS reached USD 1.08.
  • Backlog topped USD 6 billion on record bookings, and non-tracker products contributed about 22% of quarterly revenue.
  • Revenue guidance rose to USD 4.2 billion to USD 4.45 billion, and free cash flow guidance exceeds USD 500 million.

Nextpower Inc. (NASDAQ:NXT) reported fiscal second-quarter 2027 revenue of USD 1.109 billion, up 23% from USD 905.3 million a year earlier and above a consensus estimate of USD 1.06 billion. Adjusted diluted earnings per share were USD 1.31, compared with USD 1.19 a year earlier and a consensus estimate of USD 1.10. GAAP diluted earnings per share were USD 1.08, against USD 0.97, on net income of USD 165.5 million.

Adjusted EBITDA reached USD 250 million, up 12%, for a margin of 22.5% against 24.7% a year ago. Adjusted gross margin was 32.0% versus 33.1%. The quarter included about USD 99 million of IRA 45X advanced manufacturing tax credit vendor rebates and tariffs, net, compared with USD 67 million in the prior-year period.

Storage, Bookings and Acquisition Activity

Quarterly bookings set a record and exceeded USD 1 billion, lifting backlog above USD 6 billion. Non-tracker products made up roughly 22% of revenue. Energy storage, included for the first time, contributed about USD 100 million of revenue and more than USD 20 million of adjusted EBITDA. Electrical balance of system bookings exceeded USD 100 million, foundations booked a quarterly record, and the NX PowerMerge product has more than 2 GW in backlog. The company also signed a 1.1 GW inverter framework agreement across five projects. The United States accounted for about 82% of revenue.

After quarter end, the company closed the Zimmermann PV-Steel Group acquisition for about EUR 230 million in cash, adding 15 countries for a total of 68. Management lowered its contribution estimate for the acquired business to about USD 100 million of revenue and USD 10 million of adjusted EBITDA for the rest of the fiscal year. The company held over USD 1 billion in cash and no debt, generated USD 158 million of operating cash flow, and returned about USD 162 million through share repurchases.

Raised Outlook and Cost Pressures

Fiscal 2027 guidance now calls for revenue of USD 4.2 billion to USD 4.45 billion, up from USD 4.1 billion to USD 4.4 billion, adjusted EBITDA of USD 890 million to USD 940 million, and adjusted diluted EPS of USD 4.61 to USD 4.87. GAAP diluted EPS is guided to USD 3.62 to USD 3.87. Free cash flow guidance rose from USD 450 million to over USD 500 million.

Management said second-half revenue is weighted toward the fourth quarter on project timing, with third-quarter revenue below the record second quarter but about 10% above a year earlier. Second-half adjusted gross margin is projected in the high 20s and adjusted EBITDA margin in the high teens, after rising costs for diesel, steel and freight. For the full year, margins are guided to the low 30s and low 20s respectively. Building the power conversion line involves about USD 40 million of capital spending and a profit and loss impact near USD 50 million over the next 12 months.

Metrics to Track

Four items frame the next stretch. The company scheduled a Capital Markets Day in Las Vegas on November 16, where it plans to expand on its financial framework. Third-quarter revenue is guided to about 10% year-over-year growth, with adjusted EBITDA margin 1 to 2 percentage points below the fourth quarter. Backlog above USD 6 billion and quarterly bookings above USD 1 billion set the reference for order flow. Power conversion shipments are targeted by the end of next summer, with capacity above 10 GW by the end of calendar 2027.