Nextracker (NXT, Financial) is in the spotlight today, having concluded FY24 with impressive financial outcomes. The company, a leading provider of solar tracker systems for large-scale solar projects, surpassed fourth-quarter expectations with a significant EPS beat and a 42.1% year-over-year revenue increase to $736.5 million. Despite FY25 EPS guidance slightly below expectations, the market views this as conservative, reflecting positive sentiment.
Nextracker has consistently outperformed over the past four quarters with double-digit EPS beats, distinguishing itself from other solar companies like ENPH and SEDG, which have faced challenges. Unlike its competitors that focus on residential solar solutions, Nextracker's products enhance the efficiency of solar power plants by enabling solar panels to track the sun's movement, optimizing energy output.
The company reported its highest year-over-year revenue growth since its IPO in February 2023 at 42%. With a significant 27% growth in the U.S. and an impressive 89% in other global markets, Nextracker's financial health looks robust. The adjusted EBITDA for the quarter soared by 120% year-over-year to $160 million, with margins expanding by nearly 800 basis points to 22%.
Nextracker's backlog reached a record high of over $4 billion at FY24's end, more than tripling in just two years. The expansion of its global supply chain and achieving record international bookings, including its largest European project, have been key to its scaling efforts. The company remains committed to delivering high-quality, reliable products at competitive prices, vital for long-term energy solutions.
As the solar industry continues to grow and reduce costs, Nextracker views this trend positively. Solar energy, which currently accounts for less than 5% of global electricity generation, is set to become the dominant form of new power generation, outpacing natural gas, nuclear, and coal, according to forecasts by the US EIA.
With a substantial backlog and continued strong performance, Nextracker's outlook for FY25 is promising, despite the cautious sentiment prior to the earnings report. The company's success in its first fiscal year as a public entity has been well-received, reflecting in today's positive market reaction.
