"Last quarter, Nextpower delivered revenue of $909 million, up 34% year over year, with adjusted EPS of $1.10, beating the $0.94 consensus. Backlog crossed $5 billion, with record European bookings and a strong U.S. order book. Management raised FY26 guidance to revenue of $3.425 billion to $3.5 billion and adjusted EPS of $4.26 to $4.36. They also stood up the Nextpower Arabia JV with an initial 2.25 gigawatts order, authorized a $500 million buyback, and acquired Fracsun."
"I'll be watching three things tonight. First, margins. GAAP gross margin compressed from 35.5% to 31.7% year over year in Q3, with tariff impact rising to $44 million from $33 million a quarter earlier. CFO Chuck Boynton called tariff pressure "manageable and largely consistent with our prior expectations," and FY26 gross margin is still guided to the low 30s. Any further slippage will get scrutiny."
"Second, backlog conversion. With over $5 billion in backlog and U.S. revenue up 63% year over year last quarter, the pace at which orders translate to revenue is the real growth signal. You should also watch the non-tracker mix (eBOS, foundations, TrueCapture), where software margins run "quite a bit higher" than the corporate average."
"Third, the policy and FY27 commentary. Guidance still assumes the "current U.S. policy environment remains intact," and IRA 45X credits ran around $53 million in Q3. Any update on the FY27 framework first sketched at"
Nextpower is set to release fiscal Q4 results on May 12, following its first full year under the Nextpower brand. The company reported last quarter revenue of $909 million, up 34% year over year, and adjusted EPS of $1.10, above consensus. Backlog exceeded $5 billion, supported by record European bookings and strong U.S. orders. Management raised FY26 guidance to $3.425 billion to $3.5 billion in revenue and adjusted EPS of $4.26 to $4.36. The company also launched the Nextpower Arabia JV with an initial 2.25 gigawatts order, authorized a $500 million buyback, and acquired Fracsun. Key watch items include gross margin compression from tariff impacts, backlog-to-revenue conversion, and FY27 policy assumptions tied to current U.S. policy and IRA credits.
#earnings #solar-tracking #backlog-and-guidance #gross-margin-and-tariffs #us-policy-and-ira-credits
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