Education
About Us
Working with TipRanks
Follow Us
Nextpower Inc (NXT)
NASDAQ:NXT
Top Page
Nextpower Inc
(NASDAQ:NXT)
Select Model
Select Model
Rating:78Outperform
Price Target:
$110.00
▲(23.29% Upside)
NEXTracker, Inc. Class A receives a strong overall score due to its robust financial performance and positive earnings call, which highlight significant revenue growth and strategic international expansion. The technical analysis supports a bullish trend, although valuation metrics suggest moderate pricing. Tariff-related challenges are noted but do not overshadow the company's strong market position and growth potential.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates strong demand for NEXTracker's products and services, supporting long-term business expansion.
International Expansion
This expansion into the Middle East and North Africa strengthens NEXTracker's global footprint, enhancing its competitive position in emerging markets.
Corporate Rebranding
The rebranding reflects a strategic shift towards integrated energy solutions, potentially broadening revenue streams and market opportunities.
Negative Factors
Tariff-Related Challenges
Tariff challenges can impact profitability, posing a risk to margins and operational costs in the long term.
Section 232 Tariffs Impact
Continued tariff impacts may hinder margin sustainability, affecting financial performance and competitiveness in international markets.
Free Cash Flow Decline
A decline in free cash flow growth could limit the company's ability to reinvest in growth initiatives and manage financial obligations effectively.
Nextpower Inc (NXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.24B
Dividend YieldN/A
Average Volume (3M)1.51M
Price to Earnings (P/E)23.2
Beta (1Y)1.31
Revenue Growth20.37%
EPS Growth3.46%
CountryUS
Employees1,300
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)1.19
Shares Outstanding148,386,780
10 Day Avg. Volume993,656
30 Day Avg. Volume1,508,085
Financial Highlights & Ratios
PEG Ratio-1.12
Price to Book (P/B)3.72
Price to Sales (P/S)2.04
P/FCF Ratio9.73
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue2.96
Enterprise Value/Gross Profit8.89
Enterprise Value/Ebitda13.47
Forecast
1Y Price Target
$105.33Price Target Upside18.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)4.24
Revenue Forecast (FY)$3.44B
Nextpower Inc Business Overview & Revenue Model
Company DescriptionNextracker 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.
How the Company Makes MoneyNEXTracker generates revenue primarily through the sale and leasing of its solar tracking systems to utility-scale solar project developers and operators. The company earns money from several key revenue streams, including the direct sale of solar trackers, installation services, and ongoing maintenance and support contracts. Additionally, NEXTracker benefits from strategic partnerships with major solar developers and energy companies, which can lead to bulk orders and long-term contracts. The company also explores opportunities in software solutions that enhance the efficiency of solar operations, contributing further to its revenue. Overall, its strong market position and commitment to technological advancements in solar energy play a critical role in driving its earnings.
Nextpower Inc Earnings Call Summary
Earnings Call Date:Oct 23, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jan 27, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, international expansion, and innovative product launches, contributing to a positive outlook. Despite facing challenges from tariffs, the company's financial health and market demand remain robust.Q2-2026 Updates
Positive Updates
Revenue Growth and Profitability
In Q2, revenue grew 42% year-over-year to $905 million, and adjusted EBITDA increased 29% to $224 million. For the first half of fiscal 2026, revenue was up 31% year-over-year to $1.77 billion, a record first half for the company.
Expansion in International Markets
Nextracker announced the formation of Nextracker Arabia, a joint venture with Abunayyan Holding, expanding their manufacturing footprint and commercial presence across the Middle East and North Africa.
Innovative Product Launches
Launched NX PowerMerge in September and achieved record eBOS bookings in Q2. The company also announced a multiyear agreement with a leading U.S. solar panel manufacturer for their advanced module frame technology, valued at over $75 million.
Strong Financial Position
Closed the quarter with $845 million in cash, no debt and total liquidity of nearly $1.8 billion, including a $1 billion unsecured revolving credit facility with investment-grade terms.
Positive Market Dynamics
Strong global demand for products and services, with a growing backlog exceeding $5 billion. Record quarterly bookings for TrueCapture and Navigator control system.
Negative Updates
Tariff-Related Challenges
Experienced tariff-related headwinds of approximately 300 bps in Q2, up 200 bps over Q1, affecting profitability.
Section 232 Tariffs Impact
Expect modest margin impact in the second half due to Section 232 tariffs and a higher percentage of international projects.
Company Guidance
During the Nextracker's Second Quarter Fiscal Year 2026 Earnings Call, the company reported robust financial performance with a 42% year-over-year revenue increase to $905 million and a 29% rise in adjusted EBITDA to $224 million. For the first half of fiscal 2026, revenue reached $1.77 billion, up 31% from the previous year, marking a record first half for the company. Nextracker also announced a multiyear agreement valued at over $75 million with a leading U.S. solar panel manufacturer for its advanced module frame technology. The company achieved record bookings in electrical balance of system (eBOS) products and foundations, and reported a growing backlog of over $5 billion. International expansion continued, notably with the formation of Nextracker Arabia, a joint venture with Abunayyan Holding, to bolster their presence in the Middle East and North Africa. The company raised its full-year FY '26 outlook, expecting revenue between $3.275 billion and $3.475 billion, adjusted EBITDA of $775 million to $815 million, and adjusted diluted EPS between $4.04 and $4.25. The guidance reflects confidence in sustained profitability and cash generation while scaling the platform globally.Nextpower Inc Financial Statement Overview
Summary
NEXTracker, Inc. Class A shows strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is solid with low leverage and high return on equity, although historical financial instability is noted. Cash flow metrics are generally positive, supporting the company's operational and strategic initiatives.Income Statement
NEXTracker, Inc. Class A demonstrates strong revenue growth with a TTM revenue increase of 4.88% and a consistent upward trajectory over the past few years. The company maintains healthy profitability margins, with a TTM gross profit margin of 33.24% and a net profit margin of 17.08%. EBIT and EBITDA margins are also robust at 21.27% and 21.94% respectively, indicating efficient operational management. The consistent improvement in these metrics reflects a solid financial performance in the solar industry.Balance Sheet
The balance sheet shows a strong equity position with a TTM return on equity of 33.75%, indicating effective use of shareholder funds. The debt-to-equity ratio is low at 0.01, suggesting minimal leverage and financial risk. The equity ratio stands at 53.31%, reflecting a stable capital structure. However, past negative equity and high leverage ratios in earlier years highlight potential historical financial instability.Cash Flow
The cash flow statement reveals a slight decline in free cash flow growth at -7.70% TTM, but the company maintains a strong free cash flow to net income ratio of 92.95%, indicating good cash conversion. The operating cash flow to net income ratio is 57.99%, showing adequate cash generation from operations. Despite recent declines, the overall cash flow position remains healthy, supporting ongoing operations and growth.| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.37B | 2.96B | 2.50B | 1.90B | 1.46B | 1.20B |
| Gross Profit | 1.12B | 1.01B | 691.64M | 286.97M | 147.03M | 231.98M |
| EBITDA | 740.20M | 652.52M | 591.48M | 174.55M | 90.00M | 175.34M |
| Net Income | 576.12M | 509.17M | 306.24M | 118.89M | 50.91M | 124.35M |
Balance Sheet | ||||||
| Total Assets | 3.67B | 3.19B | 2.52B | 1.42B | 1.02B | 880.97M |
| Cash, Cash Equivalents and Short-Term Investments | 845.34M | 766.10M | 474.05M | 130.01M | 29.07M | 217.99M |
| Total Debt | 0.00 | 0.00 | 147.72M | 150.55M | 4.50M | 0.00 |
| Total Liabilities | 1.68B | 1.56B | 1.53B | 934.82M | 516.16M | 424.92M |
| Stockholders Equity | 1.99B | 1.63B | 961.01M | -3.08B | 501.13M | 456.05M |
Cash Flow | ||||||
| Free Cash Flow | 603.62M | 621.87M | 422.31M | 104.49M | -153.03M | 91.31M |
| Operating Cash Flow | 649.37M | 655.79M | 428.97M | 107.67M | -147.11M | 94.27M |
| Investing Cash Flow | -169.04M | -186.10M | -6.66M | -3.16M | -5.75M | -2.96M |
| Financing Cash Flow | -196.87M | -177.65M | -78.27M | -3.57M | -8.66M | 96.33M |
Nextpower Inc Technical Analysis
Neutral
89.22
Price Trends
92.54
Negative
83.94
Positive
68.53
Positive
Market Momentum
-0.13
Negative
48.88
Neutral
41.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXT, the sentiment is Neutral. The current price of 89.22 is below the 20-day moving average (MA) of 89.44, below the 50-day MA of 92.54, and above the 200-day MA of 68.53, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 48.88 is Neutral, neither overbought nor oversold. The STOCH value of 41.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NXT.
Nextpower Inc Risk Analysis
Nextpower Inc disclosed 55 risk factors in its most recent earnings report. Nextpower Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Nextpower Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $13.24B | 23.18 | 35.44% | ― | 20.37% | 3.46% | |
67 Neutral | $1.44B | 43.39 | 5.86% | ― | 2.68% | 2.90% | |
64 Neutral | $4.64B | 24.52 | 20.31% | ― | 20.97% | 226.98% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | $1.35B | -14.52 | -7.75% | ― | 35.75% | 37.97% | |
49 Neutral | $1.81B | -3.13 | -78.09% | ― | -0.14% | 66.71% | |
45 Neutral | $1.30B | 81.10 | 0.56% | ― | -4.46% | 1645.26% |
* Technology Sector Average
NXT
Nextpower Inc
89.22
48.12
117.08%
CSIQ
Canadian Solar
19.39
7.18
58.80%
ENPH
Enphase Energy
35.43
-31.31
-46.91%
SEDG
SolarEdge Technologies
30.26
15.55
105.71%
ARRY
Array Technologies
8.85
2.42
37.64%
SHLS
Shoals Technologies Group
8.60
2.71
46.01%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.