Nextracker’s third quarter results were met with a significant positive reaction from the market, reflecting strong revenue and profitability that surpassed Wall Street’s expectations. Management attributed this performance to robust global demand for its solar tracking solutions, expansion of its technology platform, and growth in its backlog. CEO Dan Shugar pointed to “continued focus on innovation, long-term customer partnerships and execution” as key factors, with particular strength in U.S. and European markets and record bookings for new products such as advanced module frames and eBOS (electrical balance of system) solutions.
Is now the time to buy NXT? Find out in our full research report (it’s free for active Edge members).
Nextracker (NXT) Q3 CY2025 Highlights:
- Revenue: $905.3 million vs analyst estimates of $833.2 million (42.4% year-on-year growth, 8.6% beat)
- Adjusted EPS: $1.19 vs analyst estimates of $1.01 (17.4% beat)
- Adjusted EBITDA: $223.5 million vs analyst estimates of $196.1 million (24.7% margin, 14% beat)
- The company lifted its revenue guidance for the full year to $3.38 billion at the midpoint from $3.33 billion, a 1.5% increase
- Management slightly raised its full-year Adjusted EPS guidance to $4.15 at the midpoint
- EBITDA guidance for the full year is $795 million at the midpoint, below analyst estimates of $802.3 million
- Operating Margin: 20%, in line with the same quarter last year
- Backlog: $5.06 billion at quarter end, up 10% year on year
- Market Capitalization: $15.19 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Nextracker’s Q3 Earnings Call
- Mark W. Strouse (JPMorgan) asked about long-term industry growth after recent policy changes. CEO Dan Shugar emphasized strong solar fundamentals and the company’s ability to adapt as tax credits phase out.
- Brian Lee (Goldman Sachs) questioned the unusual cadence of project deliveries this year. Shugar explained that scheduling improvements and operational scale have smoothed out delivery patterns, with a larger Q4 expected.
- Philip Shen (ROTH) pressed on bookings momentum and the impact of tariffs on margins. President Howard Wenger highlighted continued backlog growth and product synergies, while Shugar described the company’s approach to mitigating tariff risks through domestic manufacturing.
- Praneeth Satish (Wells Fargo) explored whether the T1 Energy partnership is a template for future deals. Shugar responded that the need for advanced module frames is industry-wide and future partnerships are likely.
- Dimple Gosai (Bank of America) inquired about the Saudi Arabia joint venture’s scale and local content. Shugar and CFO Boynton described it as an asset-light, high-ROIC model expected to support long-term regional expansion.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) continued adoption of new platform products and their contribution to backlog growth, (2) the pace and profitability of international expansion—especially the performance of the Saudi Arabia joint venture—and (3) how well Nextracker manages tariff headwinds and maintains operating margins. Progress on integrating recent acquisitions and the success of upcoming project deliveries will also be key signposts for future performance.
Nextracker currently trades at $103, up from $90.40 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).
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