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Nextracker Reports Q1 FY25 Financial Results

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Nextracker (NXT) reported strong Q1 FY25 financial results, with 50% year-over-year revenue growth to $720 million. The company reaffirmed its FY25 outlook, projecting revenue between $2.8 billion to $2.9 billion. Key highlights include:

- GAAP Net Income of $125 million, up from $64 million in Q1 FY24
- GAAP Diluted EPS of $0.84, compared to $0.43 in Q1 FY24
- Adjusted EBITDA of $175 million, with a 24.3% margin
- Acquisitions of Ojjo, Inc. and Solar Pile International's foundations business
- Expansion of manufacturing facilities and launch of new products

Nextracker maintains a strong balance sheet with over $1.4 billion in total liquidity and continues to see healthy demand for solar trackers in both U.S. and international markets.

Nextracker (NXT) ha riportato risultati finanziari solidi per il primo trimestre dell'anno fiscale 25, con una Crescita dei ricavi del 50% anno su anno raggiungendo i 720 milioni di dollari. L'azienda ha confermato le sue previsioni per l'anno fiscale 25, prevedendo ricavi tra 2,8 miliardi e 2,9 miliardi di dollari. I principali punti salienti includono:

- Utile netto GAAP di 125 milioni di dollari, in aumento rispetto ai 64 milioni di dollari del primo trimestre dell'anno fiscale 24
- Utile per azione diluito GAAP di 0,84 dollari, rispetto a 0,43 dollari nel primo trimestre dell'anno fiscale 24
- EBITDA rettificato di 175 milioni di dollari, con un margine del 24,3%
- Acquisizioni di Ojjo, Inc. e del business delle fondazioni di Solar Pile International
- Espansione delle strutture di produzione e lancio di nuovi prodotti

Nextracker mantiene un bilancio solido con oltre 1,4 miliardi di dollari in liquidità totale e continua a riscontrare una forte domanda per i tracker solari sia negli Stati Uniti che nei mercati internazionali.

Nextracker (NXT) reportó resultados financieros sólidos en el primer trimestre del año fiscal 25, con un crecimiento de ingresos del 50% en comparación con el año anterior, alcanzando los 720 millones de dólares. La compañía reafirmó su perspectiva para el año fiscal 25, proyectando ingresos entre 2.8 mil millones y 2.9 mil millones de dólares. Los aspectos más destacados incluyen:

- Ingreso neto GAAP de 125 millones de dólares, en comparación con 64 millones de dólares en el primer trimestre del año fiscal 24
- EPS diluido GAAP de 0.84 dólares, en comparación con 0.43 dólares en el primer trimestre del año fiscal 24
- EBITDA ajustado de 175 millones de dólares, con un margen del 24.3%
- Adquisiciones de Ojjo, Inc. y el negocio de cimentaciones de Solar Pile International
- Expansión de las instalaciones de fabricación y lanzamiento de nuevos productos

Nextracker mantiene un balance sólido con más de 1.4 mil millones de dólares en liquidez total y continúa viendo una demanda saludable para los rastreadores solares tanto en los mercados de EE. UU. como internacionales.

Nextracker (NXT)는 2025 회계연도 첫 분기에 전년 대비 50%의 매출 성장으로 7억 2천만 달러의 강력한 재무 결과를 보고했습니다. 이 회사는 2025 회계연도에 대한 전망을 재확인하며 28억 달러에서 29억 달러 사이의 매출을 예상하고 있습니다. 주요 하이라이트는 다음과 같습니다:

- GAAP 기준 순이익 1억 2,500만 달러, 2024 회계연도 첫 분기의 6,400만 달러에서 증가
- GAAP 기준 희석 주당 순이익(EPS) 0.84달러, 2024 회계연도 첫 분기의 0.43달러와 비교
- 조정된 EBITDA 1억 7,500만 달러, 마진 24.3%
- Ojjo, Inc. 및 Solar Pile International의 기초 비즈니스 인수
- 제조 시설 확장 및 신제품 출시

Nextracker는 14억 달러 이상의 총 유동성을 보유한 강력한 재무 상황을 유지하고 있으며, 미국 및 해외 시장에서 태양광 트래커에 대한 건전한 수요를 지속적으로 보고하고 있습니다.

Nextracker (NXT) a annoncé des résultats financiers solides pour le premier trimestre de l'exercice fiscal 25, avec une croissance des revenus de 50 % par rapport à l'année précédente pour atteindre 720 millions de dollars. L'entreprise a réaffirmé ses prévisions pour l'exercice fiscal 25, projetant des revenus compris entre 2,8 milliards et 2,9 milliards de dollars. Les faits marquants incluent :

- Revenu net GAAP de 125 millions de dollars, en hausse par rapport à 64 millions de dollars au premier trimestre de l'exercice fiscal 24
- BPA dilué GAAP de 0,84 dollar, comparé à 0,43 dollar au premier trimestre de l'exercice fiscal 24
- EBITDA ajusté de 175 millions de dollars, avec une marge de 24,3 %
- Acquisitions d'Ojjo, Inc. et de l'entreprise de fondations de Solar Pile International
- Expansion des installations de fabrication et lancement de nouveaux produits

Nextracker maintient un bilan solide avec plus de 1,4 milliard de dollars de liquidité totale et continue de constater une demande saine pour les suiveurs solaires à la fois sur les marchés américains et internationaux.

Nextracker (NXT) hat im ersten Quartal des Geschäftsjahres 25 starke Finanz Ergebnisse berichtet, mit einem Umsatzwachstum von 50% im Jahresvergleich auf 720 Millionen Dollar. Das Unternehmen hat seine Prognose für das Geschäftsjahr 25 bekräftigt und erwartet einen Umsatz zwischen 2,8 Milliarden und 2,9 Milliarden Dollar. Zu den wichtigsten Highlights gehören:

- GAAP-Nettoeinkommen von 125 Millionen Dollar, ein Anstieg von 64 Millionen Dollar im ersten Quartal des Geschäftsjahres 24
- GAAP verwässerter Gewinn je Aktie (EPS) von 0,84 Dollar, im Vergleich zu 0,43 Dollar im ersten Quartal des Geschäftsjahres 24
- Angepasste EBITDA von 175 Millionen Dollar mit einer Marge von 24,3%
- Akquisitionen von Ojjo, Inc. und dem Fundamentgeschäft von Solar Pile International
- Ausbau der Produktionsstätten und Einführung neuer Produkte

Nextracker hält eine starke Bilanz mit über 1,4 Milliarden Dollar an totaler Liquidität und sieht weiterhin eine gesunde Nachfrage nach Solartrackern sowohl auf dem US-amerikanischen als auch auf den internationalen Märkten.

Positive
  • 50% year-over-year revenue growth to $720 million in Q1 FY25
  • GAAP Net Income increased to $125 million from $64 million in Q1 FY24
  • Adjusted EBITDA margin improved to 24.3% from 17.4% in Q1 FY24
  • Reaffirmed FY25 outlook with projected revenue of $2.8-$2.9 billion
  • Expanded manufacturing capacity with new facilities and partnerships
  • Acquired Ojjo, Inc. and Solar Pile International's foundations business to enhance product offerings
  • Increased total liquidity to over $1.4 billion
  • Launched new products: NX Horizon Low Carbon Tracker and Agrivoltaics
Negative
  • Slight sequential revenue decrease from $737 million in Q4 FY24 to $720 million in Q1 FY25
  • GAAP Net Income and EPS decreased sequentially due to one-time 45X credit adjustment in Q4 FY24

Insights

Nextracker's Q1 FY25 results demonstrate robust financial performance, with revenue growing 50% year-over-year to $720 million. The company's profitability metrics show significant improvement, with GAAP gross margin expanding to 33.0% from 23.7% in Q1 FY24. GAAP net income nearly doubled to $125 million, resulting in a healthy net income margin of 17.3%.

The company's adjusted metrics, which include IRA 45X advanced manufacturing tax credit vendor rebates, paint an even more positive picture. Adjusted gross margin improved to 33.5%, while adjusted EBITDA margin reached an impressive 24.3%. These figures suggest strong operational efficiency and cost management.

Nextracker's balance sheet appears solid, with the company expanding its revolver facility to $1 billion and reporting total liquidity over $1.4 billion. This financial flexibility positions the company well for future growth and potential market uncertainties.

The reaffirmed FY25 outlook, projecting revenue between $2.8 billion and $2.9 billion, indicates management's confidence in sustained growth. However, investors should note the slight downward revision in GAAP net income and EPS guidance due to acquisition-related amortization.

Overall, Nextracker's financial performance and outlook appear strong, but investors should monitor the integration of recent acquisitions and their impact on future profitability.

Nextracker's Q1 FY25 results and strategic moves reflect a company capitalizing on favorable market conditions in the solar industry. The 50% year-over-year revenue growth indicates robust demand for solar trackers in both U.S. and international markets, suggesting a positive industry outlook.

The company's product launches, including the NX Horizon Low Carbon Tracker and Agrivoltaics solutions, demonstrate Nextracker's commitment to innovation and addressing evolving market needs. These new offerings could potentially expand the company's addressable market and maintain its competitive edge.

Nextracker's expansion of manufacturing capabilities, including the JM Steel facility in Pittsburgh and a second Nevada factory, aligns with the trend towards localized production. This strategy could help the company benefit from IRA incentives and mitigate supply chain risks.

The acquisitions of Ojjo and Solar Pile International's foundations business for a combined $168 million indicate Nextracker's move to vertically integrate and expand its product portfolio. This could potentially increase the company's market share and improve margins by capturing more value in the solar project value chain.

The company's expectation of 100% U.S. domestic content capability by early CY25 positions it favorably to capitalize on the growing emphasis on local manufacturing and could provide a competitive advantage in the U.S. market.

While the outlook appears positive, investors should monitor potential challenges such as industry competition, policy changes affecting solar incentives and the successful integration of recent acquisitions.

50% Revenue Growth YoY; Reaffirms FY25 Outlook

Adds Solar Foundation Offerings with Ojjo and Solar Pile International Acquisitions

FREMONT, Calif.--(BUSINESS WIRE)-- Nextracker (Nasdaq: NXT), a global market leader of intelligent solar tracker and software solutions, today announced financial results for the first quarter of fiscal year 2025, ended June 28, 2024.

Financial Summary

(In millions, except per share)

 

Q1 FY25*

Q4 FY24*

Q1 FY24*

Revenue

$720

$737

$480

GAAP Gross Profit

$237

$340

$114

GAAP Gross Margin

33.0%

46.2%

23.7%

GAAP Net Income

$125

$223

$64

GAAP Net Income Margin

17.3%

30.3%

13.3%

GAAP Diluted EPS

$0.84

$1.51

$0.43

 

 

 

 

Adjusted Gross Profit

$241

$222

$116

Adjusted Gross Margin

33.5%

30.2%

24.1%

Adjusted EBITDA

$175

$160

$84

Adjusted EBITDA Margin

24.3%

21.7%

17.4%

Adjusted Net Income

$139

$142

$71

Adjusted Diluted EPS

$0.93

$0.96

$0.48

*Q1 FY25 GAAP and adjusted results include approximately $47 million of IRA 45X advanced manufacturing tax credit vendor rebates (45X credits). Q4 FY24 GAAP results include a cumulative adjustment to recognize 45X credits of $121 million earned on eligible deliveries from January 1, 2023, through March 31, 2024. Q1 FY24 results do not include 45X credits.

 

Please refer to Nextracker’s most recent Annual Report on Form 10-K for more information on 45X credits and schedules IV and V attached to this press release for a reconciliation of non-GAAP to GAAP financial measures, and additional information can be found on the Investor Relations section of our website.

Business Highlights

  • Launched NX Horizon Low Carbon Tracker in April 2024 and unveiled Agrivoltaics in July 2024
  • Expanded JM Steel’s Pittsburgh facility with Nextracker-dedicated manufacturing in April 2024
  • Opened a second Nevada factory by Unimacts with Nextracker-dedicated manufacturing in June 2024
  • Acquired Ojjo, Inc. on June 20, 2024 for approximately $120 million
  • Acquired Solar Pile International’s foundations business on July 31, 2024 for approximately $48 million
  • Amended credit agreement and expanded revolver facility from $500 million to $1 billion on June 21, 2024
  • Currently expect 100% U.S. domestic content capability with an early CY25 planned ship date

“Our fiscal year is off to an excellent start with another quarter of strong execution, where healthy demand dynamics continued for solar trackers in both the U.S. and international markets,” said Dan Shugar, founder and CEO of Nextracker. “We also unveiled new product solutions, expanded several of our partner manufacturing facilities, and added foundations solutions with the acquisitions of Ojjo and Solar Pile International’s foundations business.”

“Our exceptional Q1 results led to our sixth consecutive quarter of year-over-year double-digit revenue growth,” said Chuck Boynton, CFO of Nextracker. “We continued to bolster our strong balance sheet with healthy operating cash flows, limited debt, and an expanded total liquidity of over $1.4 billion.”

FY2025 Annual Outlook

Nextracker reaffirmed its full-year fiscal year 2025 outlook:

 

FY25 Outlook

Revenue

$2.8 billion to $2.9 billion

GAAP Net Income

$363 million to $393 million

GAAP Diluted EPS

$2.37 to $2.57

Adjusted EBITDA

$600 million to $650 million

Adjusted Diluted EPS

$2.89 to $3.09

GAAP net income range of $363 million to $393 million is updated from previous range of $369 million to $399 million to include estimated impact of incremental net intangible asset amortization resulting from acquisitions. GAAP diluted EPS range of $2.37 to $2.57 is updated from previous $2.41 to $2.61 to include the estimated impact of incremental net intangible asset amortization resulting from acquisitions.

Adjusted EBITDA and adjusted diluted EPS exclude approximately $103 million and $0.52, respectively, for stock-based compensation and net intangible amortization.

Q1 FY2025 Earnings Call

August 1, 2024
2:00 p.m. PT / 5:00 p.m. ET
Live webcast available on investors.nextracker.com

We encourage you to review our Q1 FY25 Shareholder Letter, which, along with this press release, is available on the Nextracker Investor Relations website and includes important information for Nextracker shareholders that supplements and expands on the information in this press release.

The webcast replay will be available on the Nextracker Investor Relations website following the conclusion of the event.

About Nextracker

Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky and optimize plant performance. With power plants operating in forty countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption, the expected benefits of the Ojjo and Solar Pile International acquisitions, our domestic content capabilities, and Nextracker’s outlook for fiscal 2025 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker’s management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Nextracker’s most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements.

Use of Adjusted Financial Information

An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com.

Channels for Disclosure of Information

Nextracker intends to announce material information to the public through the Nextracker Investor Relations website investors.nextracker.com, SEC filings, press releases, public conference calls, and public webcasts. Nextracker uses these channels to communicate with its investors, customers, and the public about the company, its offerings, and other issues. As such, Nextracker encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.

Schedule I

Nextracker Inc.
Unaudited condensed consolidated statements of operations and comprehensive income
(In thousands, except share and per share data)

 

 

Three-month periods ended

 

June 28, 2024

 

March 31, 2024

 

June 30, 2023

Revenue

$

719,921

 

$

736,515

 

 

$

479,543

 

Cost of sales

 

482,481

 

 

396,045

 

 

 

365,799

 

Gross profit

 

237,440

 

 

340,470

 

 

 

113,744

 

Selling, general and administrative expenses

 

60,827

 

 

56,706

 

 

 

32,437

 

Research and development

 

16,519

 

 

13,090

 

 

 

7,427

 

Operating income

 

160,094

 

 

270,674

 

 

 

73,880

 

Interest expense

 

3,280

 

 

3,845

 

 

 

3,102

 

Other expense (income), net

 

4,868

 

 

(16,235

)

 

 

(1,968

)

Income before income taxes

 

151,946

 

 

283,064

 

 

 

72,746

 

Provision for income taxes

 

27,152

 

 

59,864

 

 

 

9,101

 

Net income and comprehensive income

 

124,794

 

 

223,200

 

 

 

63,645

 

Less: Net income attributable to non-controlling interests and redeemable non-controlling interests

 

3,094

 

 

18,037

 

 

 

43,216

 

Net income attributable to Nextracker Inc.

$

121,700

 

$

205,163

 

 

$

20,429

 

 

 

 

 

 

 

Earnings per share attributable to the stockholders of Nextracker Inc.

 

 

 

 

 

Basic

$

0.86

 

$

1.48

 

 

$

0.44

 

Diluted

$

0.84

 

$

1.51

 

 

$

0.43

 

Weighted-average shares used in computing per share amounts:

 

 

 

 

 

Basic

 

142,102,503

 

 

138,389,259

 

 

 

46,411,859

 

Diluted

 

149,233,237

 

 

148,144,066

 

 

 

146,868,852

 

Schedule II

Nextracker Inc.
Unaudited condensed consolidated balance sheets
(In thousands)

 

 

As of June 28,
2024

 

As of March 31,
2024

ASSETS

Current assets:

 

 

 

Cash and cash equivalents

$

471,879

 

$

474,054

Accounts receivable, net of allowance of $4,020 and $3,872, respectively

 

401,937

 

 

382,687

Contract assets

 

361,939

 

 

397,123

Inventories

 

166,023

 

 

201,736

Other current assets

 

295,633

 

 

312,635

Total current assets

 

1,697,411

 

 

1,768,235

Property and equipment, net

 

35,261

 

 

9,236

Goodwill

 

328,381

 

 

265,153

Other intangible assets, net

 

46,458

 

 

1,546

Deferred tax assets and other assets

 

519,418

 

 

474,612

Total assets

$

2,626,929

 

$

2,518,782

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

 

 

 

Accounts payable

$

387,401

 

$

456,639

Accrued expenses

 

69,028

 

 

82,410

Deferred revenue

 

218,565

 

 

225,539

Current portion of long-term debt

 

4,688

 

 

3,750

Other current liabilities

 

123,275

 

 

123,148

Total current liabilities

 

802,957

 

 

891,486

Long-term debt, net of current portion

 

142,235

 

 

143,967

Tax receivable agreement liability and other liabilities

 

545,106

 

 

491,301

Total liabilities

 

1,490,298

 

 

1,526,754

Total stockholders' equity

 

1,136,631

 

 

992,028

Total liabilities and stockholders' equity

$

2,626,929

 

$

2,518,782

Schedule III

Nextracker Inc.
Unaudited condensed consolidated statements of cash flows
(In thousands)

 

Three-month periods ended

 

June 28, 2024

 

March 31, 2024

 

June 30, 2023

Cash flows from operating activities:

 

 

 

 

 

Net income

$

124,794

 

 

$

223,200

 

 

$

63,645

 

Depreciation and amortization

 

941

 

 

 

1,225

 

 

 

1,046

 

Changes in working capital and other, net

 

(4,889

)

 

 

(112,933

)

 

 

161,076

 

Net cash provided by operating activities

 

120,846

 

 

 

111,492

 

 

 

225,767

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(2,890

)

 

 

(2,310

)

 

 

(694

)

Payment of business acquisition, net of cash acquired

 

(110,165

)

 

 

 

 

 

 

Purchase of intangible assets

 

 

 

 

(500

)

 

 

 

Net cash used in investing activities

 

(113,055

)

 

 

(2,810

)

 

 

(694

)

Cash flows from financing activities:

 

 

 

 

 

Repayment of bank borrowings

 

(937

)

 

 

 

 

 

 

Payment of revolver issuance cost

 

(3,715

)

 

 

 

 

 

 

Distribution to non-controlling interest holders

 

(5,314

)

 

 

(2,516

)

 

 

 

Other financing activities

 

 

 

 

70

 

 

 

 

Net cash used in financing activities

 

(9,966

)

 

 

(2,446

)

 

 

 

Net (decrease) increase in cash and cash equivalents

 

(2,175

)

 

 

106,236

 

 

 

225,073

 

Cash and cash equivalents beginning of period

 

474,054

 

 

 

367,818

 

 

 

130,008

 

Cash and cash equivalents end of period

$

471,879

 

 

$

474,054

 

 

$

355,081

 

 

Three-month periods ended

Adjusted free cash flow

June 28, 2024

 

March 31, 2024

 

June 30, 2023

Net cash provided by operating activities

$

120,846

 

 

$

111,492

 

 

$

225,767

 

Purchases of property and equipment

 

(2,890

)

 

 

(2,310

)

 

 

(694

)

Other financing

 

 

 

 

3,750

 

 

 

 

Adjusted free cash flow

$

117,956

 

 

$

112,932

 

 

$

225,073

 

Schedule IV

Nextracker Inc.
Reconciliation of GAAP to Non-GAAP Financial measures
(In thousands, except percentages, shares and per share data)

 

 

Three-month periods ended

 

June 28, 2024

 

March 31, 2024

 

June 30, 2023

GAAP gross profit & margin

$

237,440

 

 

33.0

%

 

$

340,470

 

 

46.2

%

 

$

113,744

 

 

23.7

%

Stock-based compensation expense

 

3,780

 

 

 

 

 

3,096

 

 

 

 

 

1,926

 

 

 

Intangible amortization

 

88

 

 

 

 

 

87

 

 

 

 

 

63

 

 

 

Advanced manufacturing tax credit vendor rebate

 

 

 

 

 

 

(121,405

)

 

 

 

 

 

 

 

Adjusted gross profit & margin

$

241,308

 

 

33.5

%

 

$

222,248

 

 

30.2

%

 

$

115,733

 

 

24.1

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP operating income & margin

$

160,094

 

 

22.2

%

 

$

270,674

 

 

36.8

%

 

$

73,880

 

 

15.4

%

Stock-based compensation expense

 

21,901

 

 

 

 

 

16,889

 

 

 

 

 

8,460

 

 

 

Intangible amortization

 

88

 

 

 

 

 

87

 

 

 

 

 

63

 

 

 

Acquisition costs

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced manufacturing tax credit vendor rebate

 

 

 

 

 

 

(121,405

)

 

 

 

 

 

 

 

Adjusted operating income & margin

$

183,563

 

 

25.5

%

 

$

166,245

 

 

22.6

%

 

$

82,403

 

 

17.2

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income & margin

$

124,794

 

 

17.3

%

 

$

223,200

 

 

30.3

%

 

$

63,645

 

 

13.3

%

Stock-based compensation expense

 

21,901

 

 

 

 

 

16,889

 

 

 

 

 

8,460

 

 

 

Intangible amortization

 

88

 

 

 

 

 

87

 

 

 

 

 

63

 

 

 

Adjustment for taxes

 

(9,644

)

 

 

 

 

23,567

 

 

 

 

 

(1,225

)

 

 

Acquisition costs

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced manufacturing tax credit vendor rebate

 

 

 

 

 

 

(121,405

)

 

 

 

 

 

 

 

Adjusted net income & margin

$

138,619

 

 

19.3

%

 

$

142,338

 

 

19.3

%

 

$

70,943

 

 

14.8

%

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net income & margin

$

124,794

 

 

17.3

%

 

$

223,200

 

 

30.3

%

 

$

63,645

 

 

13.3

%

Interest, net

 

(1,292

)

 

 

 

 

988

 

 

 

 

 

1,420

 

 

 

Provision for income taxes

 

27,152

 

 

 

 

 

59,864

 

 

 

 

 

9,101

 

 

 

Depreciation expense

 

853

 

 

 

 

 

1,138

 

 

 

 

 

983

 

 

 

Intangible amortization

 

88

 

 

 

 

 

87

 

 

 

 

 

63

 

 

 

Stock-based compensation expense

 

21,901

 

 

 

 

 

16,889

 

 

 

 

 

8,460

 

 

 

Acquisition costs

 

1,480

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced manufacturing tax credit vendor rebate

 

 

 

 

 

 

(121,405

)

 

 

 

 

 

 

 

Other tax related income, net

 

 

 

 

 

 

(21,138

)

 

 

 

 

 

 

 

Adjusted EBITDA & margin

$

174,976

 

 

24.3

%

 

$

159,623

 

 

21.7

%

 

$

83,672

 

 

17.4

%

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

 

 

 

 

 

 

 

 

 

 

GAAP

$

0.84

 

 

 

 

$

1.51

 

 

 

 

$

0.43

 

 

 

Earnings per share attributable to Non-GAAP adjustments

$

0.09

 

 

 

 

$

(0.55

)

 

 

 

$

0.05

 

 

 

Adjusted

$

0.93

 

 

 

 

$

0.96

 

 

 

 

$

0.48

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares used in computing per share amounts

 

149,233,237

 

 

 

 

 

148,144,066

 

 

 

 

 

146,868,852

 

 

 

See the accompanying notes on Schedule V attached to this press release

Schedule V

Nextracker Inc.
Notes

To supplement Nextracker’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), adjusted gross profit, adjusted operating income, adjusted net income, adjusted diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
  • the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
  • a better understanding of how management plans and measures the Company’s underlying business; and
  • an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.

Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

The 45X Advanced Manufacturing Production Tax Credit (“45X Credit”) which was established as part of the Inflation Reduction Act (IRA), is a per-unit tax credit earned over time for each clean energy component domestically produced and sold by a manufacturer. The 45X Credit was eligible for domestic parts manufactured after January 1, 2023. The Company has executed agreements with certain suppliers to ramp up its U.S. manufacturing footprint. These suppliers produce 45X Credit eligible parts, including torque tubes, and structural fasteners, that will then be incorporated into a solar tracker. The Company has contractually agreed with these suppliers to share a portion of the credit related to Nextracker’s purchases. The Company accounts for these credits as a reduction of the purchase price of the parts acquired from the vendor and therefore a reduction of inventory until the part is sold, at which point the Company recognizes such credit as a reduction of cost of sales on the unaudited condensed consolidated statements of operations and comprehensive income. During the fourth quarter of fiscal 2024, the Company determined the amount of the 45X vendor rebates it expects to receive in accordance with the vendor contracts and recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects starting on January 1, 2023 through March 31, 2024. The Company believes that the assessment of its operations excluding the benefit from the vendor credits provides a more consistent comparison of its performance given the cumulative nature of the amount recorded in the fiscal fourth quarter. Beginning in the first quarter of fiscal year 2025, these 45X credit vendor rebates are not excluded from our non-GAAP financial measures.

Acquisition costs consist primarily of nonrecurring transaction costs for business acquisition.

Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable.

Investors, Financial Media & Press

Mary Lai

VP, IR & Financial Communications

Investor@nextracker.com

Media & Press

Kristan Kirsh

SVP, Global Marketing

Media@nextracker.com

Source: Nextracker

FAQ

What was Nextracker's (NXT) revenue growth in Q1 FY25?

Nextracker reported a 50% year-over-year revenue growth in Q1 FY25, with revenue reaching $720 million compared to $480 million in Q1 FY24.

How much did Nextracker (NXT) spend on acquisitions in Q1 FY25?

Nextracker acquired Ojjo, Inc. for approximately $120 million on June 20, 2024, and Solar Pile International's foundations business for about $48 million on July 31, 2024.

What is Nextracker's (NXT) revenue outlook for FY25?

Nextracker reaffirmed its FY25 outlook, projecting revenue between $2.8 billion to $2.9 billion for the full fiscal year 2025.

How did Nextracker's (NXT) GAAP Net Income change in Q1 FY25 compared to Q1 FY24?

Nextracker's GAAP Net Income increased to $125 million in Q1 FY25, up from $64 million in Q1 FY24, representing significant year-over-year growth.

What new products did Nextracker (NXT) launch in Q1 FY25?

Nextracker launched the NX Horizon Low Carbon Tracker in April 2024 and unveiled Agrivoltaics in July 2024, expanding its product portfolio.

Nextracker Inc.

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