Nextpower (NASDAQ:NXT) Posts Earnings Results

Nextpower (NASDAQ:NXT) announced its quarterly earnings results on Thursday. The company reported $1.20 earnings per share for the quarter, beating analysts’ consensus estimates of $1.05 by $0.15, FiscalAI reports. The business had revenue of $935.17 million during the quarter, compared to analysts’ expectations of $935.39 million. Nextpower had a net margin of 16.46% and a return on equity of 28.18%.

Here are the key takeaways from Nextpower’s conference call:

• Record Q1 performance: Revenue rose 8% year over year to $935 million, adjusted EBITDA reached $233 million, and backlog exceeded $5.5 billion, with more than $300 million of additional backlog from the newly acquired energy storage business.
• Nextpower raised its fiscal 2027 outlook to $4.1–$4.4 billion in revenue, $870–$930 million in adjusted EBITDA, and $4.42–$4.73 in adjusted diluted EPS. Management cited strong demand, bookings, backlog quality, and execution, while excluding any contribution from the pending Zimmermann acquisition.
• The company is expanding beyond trackers through eBOS, foundations, TrueCapture, inverters, and energy storage. eBOS is on track to generate more than $100 million of revenue this year, foundations revenue grew 50% year over year, and the UL-certified Apex inverter is expected to begin deliveries in early 2027 with more than 10 GW of U.S. capacity planned by next summer.
• Nextpower Energy Storage launched following the Prevalon acquisition, adding approximately 6 GWh of turnkey project experience and exposure to utilities, standalone storage developers, hyperscalers, and data centers. Management said storage demand is growing rapidly and highlighted Prevalon’s fast-response power stabilization systems for data centers.
• Near-term margins may be pressured as Nextpower invests in engineering, manufacturing, sales, and service capabilities for new products and integrates acquisitions. Although Q1 adjusted gross margin was 37%, it benefited from IEEPA tariff recoveries and favorable mix, while higher logistics costs were a headwind; management continues to target long-term gross margins in the low 30s and operating margins in the low 20s.

Nextpower Stock Performance

Shares of NXT traded up $4.23 during mid-day trading on Thursday, hitting $96.90. 3,855,816 shares of the company’s stock were exchanged, compared to its average volume of 2,716,663. The stock’s 50-day moving average is $118.31 and its 200-day moving average is $116.47. Nextpower has a fifty-two week low of $52.61 and a fifty-two week high of $163.13. The company has a market cap of $14.56 billion, a price-to-earnings ratio of 25.30, a P/E/G ratio of 1.85 and a beta of 1.86.

Key Stories Impacting Nextpower

Here are the key news stories impacting Nextpower this week:

• Positive Sentiment: Q1 FY2027 earnings exceeded expectations: Nextpower reported adjusted EPS of $1.20, above the $1.05 consensus estimate. Revenue reached $935.2 million, essentially matching expectations and rising 8.2% year over year. GAAP diluted EPS was $1.07, compared with $1.04 a year earlier. Nextpower quarterly earnings report
• Positive Sentiment: Profitability and cash generation improved: Gross profit increased 19.2% to $335.9 million, lifting gross margin to 35.9% from 32.6% a year earlier. Operating cash flow climbed 48.9% to $121.1 million, while cash and equivalents reached approximately $1.2 billion. Nextpower Q1 fiscal year 2027 financial results
• Positive Sentiment: Power-conversion acquisition completed: Nextpower finalized its purchase of power-conversion assets from Zigor Corporation and Apex Power, expanding its platform with certified central inverters for U.S. utility-scale solar and energy-storage projects. The deal could accelerate the company’s U.S. manufacturing ramp. Nextpower acquisition announcement
• Neutral Sentiment: Analyst sentiment remains favorable: Roth Capital reiterated its Buy rating, and 16 analysts have issued price targets during the past six months with a median target of $150.22. However, analyst targets are not guarantees and reflect expectations rather than new company guidance. Roth Capital rating on Nextpower
• Negative Sentiment: Insider selling is a risk signal: Company insiders reported 24 open-market sales and no purchases over the past six months, including sales by the CEO, president, COO and CFO. Institutional activity was mixed, with 327 investors adding shares and 275 reducing positions. Nextpower earnings and trading activity

Insider Transactions at Nextpower

In other Nextpower news, CFO Charles D. Boynton sold 4,500 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $151.79, for a total transaction of $683,055.00. Following the sale, the chief financial officer directly owned 358,500 shares in the company, valued at $54,416,715. This represents a 1.24% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Daniel S. Shugar sold 26,077 shares of the firm’s stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $134.72, for a total transaction of $3,513,093.44. Following the completion of the transaction, the chief executive officer directly owned 931,419 shares of the company’s stock, valued at $125,480,767.68. This represents a 2.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 168,574 shares of company stock valued at $22,559,770. 0.84% of the stock is owned by corporate insiders.

Institutional Trading of Nextpower

Large investors have recently modified their holdings of the stock. Smartleaf Asset Management LLC boosted its holdings in Nextpower by 107.6% in the fourth quarter. Smartleaf Asset Management LLC now owns 299 shares of the company’s stock valued at $26,000 after purchasing an additional 155 shares during the period. First Citizens Bank & Trust Co. grew its stake in Nextpower by 2.1% during the 4th quarter. First Citizens Bank & Trust Co. now owns 8,992 shares of the company’s stock worth $783,000 after purchasing an additional 184 shares in the last quarter. Redwood Investment Management LLC increased its holdings in Nextpower by 4.1% during the 2nd quarter. Redwood Investment Management LLC now owns 5,177 shares of the company’s stock worth $281,000 after purchasing an additional 204 shares during the period. UMB Bank n.a. increased its holdings in Nextpower by 16.2% during the 4th quarter. UMB Bank n.a. now owns 1,783 shares of the company’s stock worth $155,000 after purchasing an additional 249 shares during the period. Finally, CIBC Private Wealth Group LLC increased its holdings in Nextpower by 39.5% during the 4th quarter. CIBC Private Wealth Group LLC now owns 925 shares of the company’s stock worth $81,000 after purchasing an additional 262 shares during the period. Hedge funds and other institutional investors own 67.41% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on NXT shares. Guggenheim raised shares of Nextpower from a “neutral” rating to a “buy” rating and set a $125.00 price objective for the company in a research report on Wednesday, July 15th. Mizuho boosted their target price on Nextpower from $130.00 to $142.00 and gave the company a “neutral” rating in a research report on Monday, June 8th. Northland Securities upped their price target on Nextpower from $148.00 to $162.00 and gave the stock an “outperform” rating in a research note on Friday, May 29th. Glj Research raised their price target on Nextpower from $147.00 to $149.44 and gave the stock a “buy” rating in a research report on Wednesday, June 3rd. Finally, Robert W. Baird lifted their price objective on Nextpower from $133.00 to $156.00 and gave the company an “outperform” rating in a research note on Wednesday, May 13th. Two research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $151.42.

About Nextpower

Nextpower, formerly known as Nextracker, is traded on NASDAQ under the symbol NXT and is a leading provider of advanced solar tracking solutions for utility-scale and distributed energy projects. The company specializes in the design, engineering and manufacturing of single-axis tracker systems that optimize the capture of solar energy by following the sun’s trajectory throughout the day. Nextpower’s core hardware offerings aim to enhance energy yield, reduce balance-of-system costs and simplify installation and maintenance for downstream solar developers and operators.

In addition to its tracker hardware, Nextpower provides a suite of digital software and analytics tools to maximize asset performance.