Nextpower’s fourth quarter results were met with a positive market reaction, as management attributed the outperformance to robust U.S. demand, continued adoption of its tracker and bundled non-tracker solutions, and growing international momentum. CEO Daniel Shugar emphasized the company’s shift from a pure-play tracker supplier to an end-to-end solar technology platform, highlighting the strong reception of new hardware and software offerings. President Howard Wenger noted that U.S. bookings grew significantly, driven by domestic manufacturing advantages and customer preference for quality, while Europe and the Middle East also contributed to quarterly momentum.
Is now the time to buy NXT? Find out in our full research report (it’s free for active Edge members).
Nextpower (NXT) Q4 CY2025 Highlights:
- Revenue: $909.4 million vs analyst estimates of $813.8 million (33.9% year-on-year growth, 11.7% beat)
- Adjusted EPS: $1.10 vs analyst estimates of $0.94 (17.1% beat)
- Adjusted EBITDA: $213.6 million vs analyst estimates of $179.8 million (23.5% margin, 18.8% beat)
- The company lifted its revenue guidance for the full year to $3.46 billion at the midpoint from $3.38 billion, a 2.6% increase
- Management raised its full-year Adjusted EPS guidance to $4.31 at the midpoint, a 4% increase
- EBITDA guidance for the full year is $820 million at the midpoint, above analyst estimates of $811.2 million
- Operating Margin: 19.4%, down from 22.1% in the same quarter last year
- Backlog: $5.16 billion at quarter end, down 52.5% year on year
- Market Capitalization: $17.16 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 Nextpower’s Q4 Earnings Call
- Philip Shen (ROTH): asked about the strength of bookings and the mix of tracker versus non-tracker revenue; President Howard Wenger confirmed bookings were among the strongest in recent quarters, with non-tracker offerings growing in the U.S.
- Praneeth Satish (Wells Fargo): inquired about permitting delays on federal lands; CEO Daniel Shugar said most developers are managing through constraints, with several federal projects now moving forward.
- Dimple Gosai (Bank of America): questioned the attach rate and margin contribution for bundled products; Wenger noted attach rates are rising, especially for eBOS, and CFO Charles Boynton said margins are roughly at the corporate average, with software providing upside.
- Mark W. Strouse (JPMorgan): sought detail on the cadence and scale of future Middle East orders; Shugar emphasized the region’s ambitious renewable targets and ongoing strong demand for gigawatt-scale projects.
- Vikram Bagri (Citi): asked about margin expectations for non-tracker products and the importance of the new investment-grade credit rating; Boynton clarified non-tracker gross margins are in line with corporate averages, and the investment-grade rating is critical for large international customers.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) progress on expanding bundled product adoption and the rate of attach for software and non-tracker solutions, (2) execution and margin contribution from the new Nextpower Arabia joint venture as local manufacturing ramps up, and (3) the company’s ability to manage tariff-related pressures while maintaining profitability. Updates on power conversion product pilots and further international market entries will also be closely monitored.
Nextpower currently trades at $115.71, up from $105.91 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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