The solar tracker and software provider’s share price increased 20% in the trading session following the earnings report.
Nextracker, one of the world’s largest providers of solar mounts, tracking, and software, announced the financial results for its fiscal third quarter ended December 31, 2023.
The company posted very strong results, with quarterly revenue reaching $710 million, but 38% year-over-year. It raised its guidance for fiscal year 2024 to between $2.425 billion and $2.475 billion, up from previous estimate of $2.3 billion to $2.4 billion. Following the strong revenue and guidance posting, the stock price is up over 20% in the subsequent trading day.
“Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog,” said chief executive officer Dan Shugar. “Underpinned by product differentiation that is gaining momentum in the marketplace, we are raising our annual guidance once again.”
For the quarter, the company posted GAAP net income $128 million, diluted earnings per share of $0.87, adjusted EBITDA $168 million, up 168% year-over-year. Adjusted net income reached $142 million, while adjusted diluted earnings per share was $0.96.
The company has achieved a record backlog of orders and is expanding its business beyond its primary market of the United States, which represents over 70% of its revenues. Nextracker achieved a 10 GW milestone in the Middle East, India and Africa for projects that are in operation or under fulfillment.
As of the report, the company has about $800 million in liquidity, with an operating cash flow of $317 million and adjusted free cash flow of $314 million year-to-date.
Increased guidance for 2024 includes a net income of $374 million to $429 million, raised considerably from the previous $237 million to $266 million. The revenue boost includes an estimated $50 million to $80 million of benefit from Inflation Reduction Act 45X tax credit vendor rebates. For 2024 Nextracker raised its guidance for diluted earnings per share to $2.53 to $2.90 (vs. previous $1.60 to $1.80).
“As the world transitions to renewable energy and with solar leading new power generation, we are well positioned as the global leader in trackers, and we’re just getting started,” said Shugar.
Business actions
This January, Nextracker completed its spin-off from Flex, becoming its own entity. Under the previously disclosed terms of the transactions, Flex shareholders received approximately 0.17 shares of Nextracker Class A common stock for every Flex ordinary share held as of the record date of December 29, 2023.
Founded in 2013, Nextracker was acquired in 2015 by Flex for $330 million, and it has become a leader in the U.S. solar tracker market with its integrated solar tracker and software solutions used in utility-scale and distributed generation solar power plants around the world. The company is known for its innovative technology as well as its dedication to made-in-America products.
In September 2023, the company announced it would open a new steel manufacturing plant in Las Vegas. The steel manufacturing facility will be owned and operated by Unimacts, a specialist in industrial manufacturing and supply chain solutions, and all steel components will be produced exclusively for Nextracker.
Also in September, the company announced three new next-generation solar tracker and software products. These include a hail-ready stowing mechanism, a terrain-following tracker and a new irradiance tracking system. Read about the product updates here.
