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NEXTracker, Inc. Class A (NXT)
NASDAQ:NXT
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NEXTracker, Inc. Class A
(NASDAQ:NXT)
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Rating:78Outperform
Price Target:
$73.00
▼(-0.10% Downside)
NEXTracker, Inc. receives a strong overall score driven by its robust financial performance and positive earnings call sentiment. The technical analysis supports a bullish outlook, while the valuation remains reasonable. Despite some challenges, the company's strategic initiatives and market leadership position it well for future growth.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand for NEXTracker's products, enhancing its market position and supporting future expansion.
Market Leadership
Sustained market leadership reflects competitive advantages and brand strength, positioning NEXTracker for continued success in the solar industry.
Technological Innovations
Innovative products like NX Horizon and TrueCapture enhance energy efficiency, driving customer adoption and long-term growth potential.
Negative Factors
Decreased Cash Flow
Reduced cash flow due to growth investments may limit short-term financial flexibility, impacting the ability to fund new initiatives.
Regulatory Uncertainties
Regulatory uncertainties can affect project timelines and financial outcomes, posing risks to NEXTracker's operational stability.
Supply Chain Challenges
Supply chain issues may disrupt production and delivery schedules, potentially impacting revenue and customer satisfaction.
NEXTracker, Inc. Class A (NXT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.77B
Dividend YieldN/A
Average Volume (3M)2.35M
Price to Earnings (P/E)20.0
Beta (1Y)1.43
Revenue Growth13.26%
EPS Growth3.08%
CountryUS
Employees1,300
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)1.16
Shares Outstanding147,963,970
10 Day Avg. Volume2,123,136
30 Day Avg. Volume2,348,848
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.75
Enterprise Value/Revenue2.60
Enterprise Value/Gross Profit7.68
Enterprise Value/Ebitda11.75
Forecast
1Y Price Target
$72.00Price Target Upside-1.46% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering18
NEXTracker, Inc. Class A 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 developers and operators. The company's revenue model is structured around direct sales of its products, which include both hardware and software components necessary for the installation and operation of solar tracking systems. Key revenue streams include one-time sales from the sale of trackers, ongoing service and maintenance contracts, and potentially recurring revenue from software solutions that monitor and optimize solar energy production. Additionally, NEXTracker benefits from strategic partnerships with key players in the renewable energy sector, which can enhance its market reach and facilitate larger project deployments, contributing to its overall earnings.
NEXTracker, Inc. Class A Earnings Call Summary
Earnings Call Date:Jul 29, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant revenue and EBITDA growth, record backlog, and strategic acquisitions in robotics and AI, underscoring strong market leadership and technological innovation. However, challenges such as decreased cash flow, regulatory uncertainties, and supply chain issues were noted. Despite these concerns, the positive aspects significantly outweighed the negatives, indicating strong overall performance and optimism about future prospects.Q1-2026 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Q1 revenue grew 20% year-over-year to $864 million, and adjusted EBITDA increased 23% to $215 million, with an adjusted EBITDA margin of 25%, an increase of approximately 100 basis points compared to the previous year.
Record Backlog
Backlog hit a new record of over $4.75 billion, reflecting healthy global demand and a strong competitive position.
Strategic Acquisitions
Announced three strategic acquisitions in robotics and AI to enhance customer value and optimize project performance.
Market Leadership
Nextracker is the #1 tracker provider worldwide for the tenth consecutive year, increasing market share to 26% during 2024.
Technological Innovations
Strong demand for NX Horizon tracker systems and TrueCapture technology; Hail Pro system and expanded XTR tracker series sales up 43% and 22% quarter-over-quarter, respectively.
Negative Updates
Decreased Cash Flow
Adjusted free cash flow during the quarter was $70 million, down from the same period last year due to growth investments in capital expenditures and working capital.
Policy and Regulatory Uncertainties
Uncertainties surrounding U.S. policy environment, including potential updates to safe harbor provisions and other regulatory actions that could impact project timing and financial results.
Supply Chain Challenges
Need for continuous adaptation to evolving U.S. supply chain conditions and potential impact of Section 232 tariff specifications.
Company Guidance
During Nextracker's First Quarter Fiscal Year 2026 Earnings Call, CEO Dan Shugar highlighted the company's strong financial performance, with Q1 revenue increasing by 20% year-over-year to $864 million and adjusted EBITDA rising by 23% to $215 million. The company's backlog reached a record $4.75 billion, demonstrating robust global demand. Additionally, Nextracker's adjusted EBITDA margin improved by approximately 100 basis points, reaching 25%, and the adjusted gross margin was reported at 33%. CFO Chuck Boynton shared that the company generated $70 million in adjusted free cash flow and maintained a strong balance sheet with $743 million in cash and no debt. Looking ahead, Nextracker projects full-year fiscal 2026 revenue between $3.2 billion and $3.45 billion, with adjusted EBITDA ranging from $750 million to $810 million. Furthermore, strategic acquisitions in robotics and AI aim to enhance operational capabilities and customer value, aligning with the International Energy Agency's prediction that solar will become the largest source of global electricity supply within the next decade.NEXTracker, Inc. Class A Financial Statement Overview
Summary
NEXTracker, Inc. demonstrates strong financial performance with robust revenue growth, solid profitability, and a stable balance sheet. The company shows efficient cash flow generation, supporting its operations and strategic initiatives.Income Statement
NEXTracker, Inc. has demonstrated strong revenue growth with a 6.78% increase in the most recent year, supported by a robust gross profit margin of 34.09%. The net profit margin has improved to 17.21%, indicating enhanced profitability. The EBIT and EBITDA margins are healthy at 22.34% and 22.79%, respectively, reflecting efficient operational management. Overall, the company shows a positive growth trajectory and solid profitability.85
Very Positive
Balance Sheet
The balance sheet is strong with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial stability. The return on equity is impressive at 31.27%, showcasing effective use of equity to generate profits. The equity ratio stands at 50.98%, reflecting a solid equity base relative to total assets. The company maintains a stable financial position with low risk.78
Positive
Cash Flow
Cash flow analysis reveals a significant 23.56% growth in free cash flow, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is 0.63, indicating adequate cash flow relative to earnings. The free cash flow to net income ratio is high at 0.95, suggesting efficient conversion of earnings into cash. Overall, the cash flow position is robust, supporting ongoing operations and potential investments.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.10B | 2.96B | 2.50B | 1.90B | 1.46B | 1.20B |
| Gross Profit | 1.05B | 1.01B | 691.64M | 286.97M | 147.03M | 231.98M |
| EBITDA | 687.98M | 652.52M | 591.48M | 174.55M | 90.00M | 175.34M |
| Net Income | 544.65M | 509.17M | 306.24M | 118.89M | 50.91M | 124.35M |
Balance Sheet | ||||||
| Total Assets | 3.39B | 3.19B | 2.52B | 1.42B | 1.02B | 880.97M |
| Cash, Cash Equivalents and Short-Term Investments | 743.40M | 766.10M | 474.05M | 130.01M | 38.37M | 217.99M |
| Total Debt | 0.00 | 34.10M | 147.72M | 147.15M | 4.50M | 4.50M |
| Total Liabilities | 1.58B | 1.56B | 1.53B | 934.82M | 1.02B | 424.92M |
| Stockholders Equity | 1.81B | 1.63B | 961.01M | -3.08B | -3.04M | 456.05M |
Cash Flow | ||||||
| Free Cash Flow | 573.98M | 621.87M | 422.31M | 104.49M | -153.03M | 91.31M |
| Operating Cash Flow | 616.27M | 655.79M | 428.97M | 107.67M | -147.11M | 94.27M |
| Investing Cash Flow | -171.11M | -186.10M | -6.66M | -3.16M | -5.75M | -2.96M |
| Financing Cash Flow | -173.64M | -177.65M | -78.27M | -3.57M | -8.66M | 96.33M |
NEXTracker, Inc. Class A Technical Analysis
Positive
73.07
Price Trends
64.50
Positive
61.07
Positive
51.65
Positive
Market Momentum
2.32
Negative
62.00
Neutral
83.69
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NXT, the sentiment is Positive. The current price of 73.07 is above the 20-day moving average (MA) of 69.18, above the 50-day MA of 64.50, and above the 200-day MA of 51.65, indicating a bullish trend. The MACD of 2.32 indicates Negative momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 83.69 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NXT.
NEXTracker, Inc. Class A Risk Analysis
NEXTracker, Inc. Class A disclosed 55 risk factors in its most recent earnings report. NEXTracker, Inc. Class A 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
NEXTracker, Inc. Class A Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $10.77B | 20.03 | 37.20% | ― | 13.26% | 3.08% | |
75 Outperform | 4.77B | 28.75 | 19.84% | ― | 4.39% | 37.70% | |
67 Neutral | 1.28B | 60.65 | 4.26% | ― | -11.95% | -7.87% | |
64 Neutral | 1.26B | -4.72 | -57.01% | ― | 6.36% | -1683.09% | |
51 Neutral | 2.34B | -1.32 | -334.37% | ― | -36.07% | -233.14% | |
50 Neutral | 867.29M | -125.36 | 1.28% | ― | -9.11% | -118.62% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
NXT
NEXTracker, Inc. Class A
73.07
35.59
94.96%
CSIQ
Canadian Solar
12.95
-3.81
-22.73%
ENPH
Enphase Energy
36.50
-76.52
-67.70%
SEDG
SolarEdge Technologies
39.45
16.54
72.20%
ARRY
Array Technologies
8.26
1.66
25.15%
SHLS
Shoals Technologies Group
7.66
2.05
36.54%
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.