Nextracker Shares Surge After Strong Earnings Beat and Profit Outlook Raise

Nextracker (NXT:NASDAQ) shares surged over 25% in extended trading on Tuesday, following the company's announcement of a strong earnings beat and an upward revision of its fiscal 2025 profit outlook. The solar tracker and software solutions provider reported a top and bottom-line beat for its fiscal third quarter, with management increasing its full-year profitability outlook and reporting a record backlog.

The company's stock was up 15% to $45.39 in post-market trading on Tuesday, after closing at $39.44 on the Nasdaq. Shares have declined 12% in the past 12 months. Nextracker's strong performance can be attributed to several key factors, including a record backlog, expanded manufacturing and supply chain network, product innovation, and a raised profit outlook.



Nextracker ended the third quarter with a record backlog due to robust demand in all key regions for the company, with meaningful contributions from new products. The company expanded its manufacturing and supply chain network to over 70 manufacturing partners operating more than 90 facilities across 19 countries, totaling over 50 GW/year of capacity. This expansion enables local content with superior on-time delivery and customer satisfaction.



The company posted a fiscal third-quarter net profit attributable to shareholders of $115.3 million, or 79 cents a share, compared with $41.4 million, or 87 cents a share, for the same period a year earlier. Quarterly revenue fell 4.4% to $679.4 million but came in ahead of Wall Street expectations of $646 million, according to FactSet.

Nextracker raised its Fiscal Year 2025 net income expectations to $467 million to $497 million, up from previous expectations of $378 million to $408 million. The company now expects earnings for the year ending in March of $467 million to $497 million, or $3.11 to $3.31 a share, and adjusted earnings of $3.75 to $3.95 a share.



Nextracker's product innovation, such as the NX Horizon Hail Pro™ and NX Horizon XTR-1.5™, has driven its competitive advantage and market growth. These innovations address specific customer needs and market demands, enabling the company to differentiate itself from competitors and capture a larger share of the market. For instance, the NX Horizon Hail Pro™, with its 75-degree stow capability to mitigate against hail risk, has contributed to the company's record backlog of over $4 billion.

Nextracker's strong earnings performance and raised profit outlook have lifted shares of other solar companies, with Enphase Energy (ENPH) and First Solar (FSLR) also gaining in extended trading. The company's success reflects the growing demand for renewable energy and the increasing adoption of solar tracker systems in utility-scale and distributed generation solar projects worldwide.

In conclusion, Nextracker's strong earnings beat and raised profit outlook have driven a significant surge in the company's stock price. The company's record backlog, expanded manufacturing and supply chain network, product innovation, and robust financial performance position it well for continued growth and market leadership in the solar tracker industry. As the world transitions to renewable energy and with solar leading new power generation, Nextracker is poised to capitalize on this trend and maintain its market leadership.