Nextracker's Q4 2025: Unraveling Contradictions in U.S. Market Growth, Margins, and Solar Policies

U.S. market growth and share, international market and margin strategy, future EBITDA margin guidance, Bentek acquisition and market position, and impact of U.S. solar policy on demand are the key contradictions discussed in Nextracker's latest 2025Q4 earnings call.



Acquisition Strategy and Diversification:
- Nextracker acquired Bentek Corporation, extending its offering to include electrical balance of system (eBOS) solutions.
- The acquisition is part of a strategic shift to diversify from a pure tracker company to a solar power technology platform supplier.
- The move aims to meet customer demands for comprehensive solutions and to enhance installation speed, system performance, and long-term reliability.

Market Leadership and Backlog Growth:
- Nextracker's backlog has significantly increased from $2.1 billion at its IPO to over $4.5 billion.
- The company has maintained its global market share leadership in solar trackers for nine consecutive years.
- This growth is attributed to a general flight to quality among solar developers, resulting in expanded market leadership in regions like the U.S., Europe, Latin America, and Australia.

Strong Financial Performance and Cash Flow:
- Nextracker reported a record $924 million in Q4 revenue, representing a 26% year-over-year increase, with a full-year revenue of over $3 billion.
- Adjusted EBITDA also reached a record $242 million, up 52% year-over-year, with an adjusted EBITDA margin of 26%.
- The company generated $227 million in adjusted free cash flow in Q4 and over $622 million for the full year.
- This performance is driven by strong execution and continued momentum in utility-scale solar deployment globally.

Innovation and Patent Growth:
- Nextracker achieved a record of 1,220 patents by the end of Q4, including 646 issued patents and 574 patents pending.
- The company has seen strong demand for new products like the Hail Pro series and the XTR terrain following trackers.
- This growth is driven by a strong focus on engineering excellence and solving real-world challenges, supported by significant investments in R&D.