Nextracker 2025 Q4 Earnings Record Revenue as Net Income Declines 29%

Nextracker (NXT) reported its fiscal 2025 Q4 earnings on May 22nd, 2025. The company reported revenue that exceeded analyst expectations, marking a 25.5% increase from the previous year. Despite the strong revenue growth, Nextracker's EPS and net income faced declines, missing expectations. The company has reaffirmed its fiscal year 2026 guidance, projecting a slight increase in revenue. Nextracker's strategic initiatives and acquisitions are expected to support future growth, maintaining a positive outlook.

Revenue

The total revenue of Nextracker increased by 25.5% to $924.34 million in 2025 Q4, up from $736.51 million in 2024 Q4.

Earnings/Net Income

Nextracker's EPS declined 24.1% to $1.08 in 2025 Q4 from $1.42 in 2024 Q4. Meanwhile, the company's net income declined to $157.81 million in 2025 Q4, down 29.3% from $223.20 million reported in 2024 Q4. The EPS performance indicates a challenging quarter for profitability.

Price Action

The stock price of Nextracker has climbed 4.07% during the latest trading day, has tumbled 8.99% during the most recent full trading week, and has surged 38.88% month-to-date.

Post-Earnings Price Action Review

The strategy of buying Nextracker (NXT) when revenue beats and holding for 30 days shows promising results, with a 12.86% return. This aligns with the stock's recent performance, where it has outperformed expectations in both earnings and revenue. The positive momentum is likely due to factors such as the company's innovative solutions in solar power generation and favorable industry conditions. The stock's impressive monthly surge and the solid return on the 30-day hold strategy highlight the market's confidence in Nextracker's growth trajectory. Investors appear optimistic about the company's strategic initiatives, including acquisitions and new product launches, which are expected to bolster future earnings. The recent acquisition of Bentek Corporation is anticipated to enhance Nextracker's solar technology platform, further strengthening its competitive advantage in the industry.

CEO Commentary

Dan Shugar, CEO of Nextracker, expressed enthusiasm regarding the company's performance, stating, “We had a fantastic year, exceeding our financial, technology, customer satisfaction, and market growth targets.” He highlighted the record revenue of approximately $3 billion and a backlog exceeding $4.5 billion, driven by robust global demand. Shugar emphasized strategic initiatives, including the launch of the electrical balance-of-systems business via the acquisition of Bentek Corporation, which positions Nextracker as a comprehensive solar power platform. He concluded with a positive outlook for continued growth and investment in key areas.

Guidance

Nextracker reaffirms its fiscal year 2026 revenue guidance, projecting between $3.2 billion and $3.4 billion, with expected GAAP net income ranging from $445 million to $503 million. The company anticipates an adjusted EBITDA between $700 million and $775 million, translating to adjusted diluted EPS of $3.65 to $4.03.

Additional News

Nextracker has recently made headlines with its acquisition of Bentek Corporation for approximately $78 million in an all-cash transaction, enhancing its solar technology platform with electrical balance-of-system (eBOS) solutions. This strategic move aims to streamline procurement and project logistics from a single source, bolstering Nextracker's domestic supply chain position through Bentek's U.S. fabrication footprint. Additionally, Nextracker has partnered with the University of California Berkeley Engineering to establish the CALNEXT Center for Solar Energy Research, supported by a $6.5 million contribution, to advance solar power technology and develop future engineering leaders. These initiatives underscore Nextracker's commitment to innovation and expanding its influence in the solar energy sector.