Nextracker’s first quarter results received a significant positive response from the market, with management attributing the outperformance to robust demand for its solar tracker solutions and sustained backlog growth. CEO Dan Shugar credited the company’s ongoing market share gains in the U.S., Europe, Latin America, and Australia to Nextracker’s technology leadership, flexible supply chain, and the ability to deliver on large-scale projects. President Howard Wenger highlighted that customers increasingly value Nextracker’s operational reliability, rapid installation times, and product innovations such as the Hail Pro series and TrueCapture platform.
Is now the time to buy NXT? Find out in our full research report (it’s free).
Nextracker (NXT) Q1 CY2025 Highlights:
- Revenue: $924.3 million vs analyst estimates of $831.5 million (25.5% year-on-year growth, 11.2% beat)
- Adjusted EPS: $1.29 vs analyst estimates of $0.98 (32% beat)
- Adjusted EBITDA: $242.5 million vs analyst estimates of $196.2 million (26.2% margin, 23.6% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $3.84 at the midpoint, missing analyst estimates by 1.5%
- EBITDA guidance for the upcoming financial year 2026 is $737.5 million at the midpoint, below analyst estimates of $762.6 million
- Operating Margin: 21.1%, down from 36.8% in the same quarter last year
- Backlog: $4.92 billion at quarter end, up 23% year on year
- Market Capitalization: $9.26 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Nextracker’s Q1 Earnings Call
- Mark Strouse (JPMorgan) asked about the impact of proposed U.S. tax policy changes on project timing and supply chain requirements. CEO Dan Shugar said the company is actively engaging policymakers and expects minimal near-term impact, while monitoring longer-term effects.
- Ben Kallo (Baird) requested insight into international backlog growth and margin trends. President Howard Wenger explained that international business continues to expand, though margins are generally lower than in the U.S.
- Philip Shen (ROTH Capital Partners) questioned the quantifiable impact of new U.S. policy provisions on industry volumes and Nextracker’s bookings outlook. Shugar and Wenger emphasized strong sequential backlog growth and secure pipelines among key U.S. customers.
- Brian Lee (Goldman Sachs) probed the revenue and margin contribution from new platform offerings like foundations and eBOS. Management responded that more detail will be provided at the upcoming Analyst Day, but current guidance reflects early-stage investment in these areas.
- Dimple Gosai (Bank of America) asked about the durability of structural gross margins given the changing product mix and policy incentives. CFO Chuck Boynton highlighted that most of next year’s business is already contracted, supporting margin stability despite operational investments.
Catalysts in Upcoming Quarters
In coming quarters, the StockStory team will monitor (1) the pace of revenue contribution from newly acquired businesses and expanded product lines, (2) the durability of gross margins as Nextracker integrates eBOS and foundations offerings, and (3) U.S. policy developments affecting solar incentives, domestic content requirements, and tariffs. Progress on international expansion and execution of the broader technology platform strategy will also be closely watched.
Nextracker currently trades at $63.67, up from $55.13 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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