The solar tracker provider delivered $679 million in gross profits in its fiscal yYear 2025 Q3 earnings report.
Nextracker, a manufacturer of utility-scale solar tracker mounts, reported its fiscal year 2025 Q3 earnings, beating Wall Street expectations amid market uncertainty industry wide. Share prices are up as much as 25% in the trading session following the earnings call.
The company post revenues of $679 million and net income of $117 million. It secured gross margins of 35.5%, continuing sequential quarterly improvements in gross margin. Nextracker also delivered net income margins of 17.3% and diluted earnings per share of $0.79.
Numerous headwinds have tampered expectations for utility-scale solar installations, prompting analysts to predict flat growth for the industry after over a decade of double-digit annual growth. The expected stagnation is attributed to political uncertainty, including the potential for scaled-down clean energy tax credits, increased antidumping and countervailing duties on imported solar panels, tariffs, and product detentions under the Uyghur Forced Labor Prevention Act.
There are some headwinds for U.S. utility-scale solar, including increased power demand for AI and datacenters and potential permitting reform that would speed the development of projects.
“We continue to believe NXT warrants a premium valuation and continue to see upside on a relative basis,” said Philip Shen, managing director, Roth Capital Partners, in an industry note.
The company achieved a record order backlog of greater than $4.5 billion. It expanded its manufacturing and supply chain network to over 70 manufacturing partners operating more than 90 facilities across 19 countries, totaling over 50 GW per year of manufacturing capacity. Nextracker also delivered its first 100% U.S. domestic content trackers this quarter.
“Our strong year-to-date financial performance, coupled with our growth in backlog enables us to raise our FY25 profit outlook,” said Chuck Boynton, chief financial officer, Nextracker. “The company is on incredibly solid financial footing with $418 million of operating cash flow year-to-date, ending the quarter with over $693 million in cash and equivalents.”
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.
“We’re very pleased with the company’s execution, delivering record revenue and profit year-to-date driven by strong demand,” said Dan Shugar, founder and chief executive officer, Nextracker. “In the quarter, we successfully deployed several of our newly launched products and features at scale, expanding our total addressable market.”
