US-based solar tracker supplier Nextracker exited Q3/FY2024 with strong YoY growth in revenues and EBITDA, while growing its backlog to over $3 billion, calling it a record. Encouraged by the strong results, the company has once again raised its guidance for FY2024.
"Nextracker achieved a record third quarter, outperforming across revenue, profit and backlog, which reflects strong execution and spotlights our capability to meet customer requirements," said Nextracker Founder and CEO Dan Shugar.
While the management did not disclose by how much its backlog grew in the reporting quarter, Philip Shen of ROTH MKM had this observation from the management's call with analysts, "Ending backlog in FQ3'24 remains "significantly over $3bn", implying at least $710mn of FQ3 bookings, though body language from the earnings call suggests the bookings were closer to $1bn. Management highlighted its current book-to-bill ratio is greater than 1, and it continues to see robust demand and "VERY consistent" (management's emphasis/intonation) new bookings from its Tier 1 customers."
Nextracker also achieved the 10 GW milestone in India, Middle East, and Africa regions for projects in operation or under fulfillment.
Its revenues grew by 38% YoY to $710 million, and adjusted EBITDA rose 168% to $168 million. It was the US market that led its business representing 78% of the total revenues. Nextracker has been growing its local manufacturing capabilities in the US to help its customers align with the requirements under the Inflation Reduction Act (IRA).
For the full year 2024, the management expects the revenue mix to be approximately 2/3rd US and 1/3rd international. In the reporting quarter, it signed customer contracts from various other regions as India, Australia, Saudi Arabia and Spain, while adding newer markets such as South Africa, New Zealand and Sweden to the list.
This is the company's 4th consecutive quarter of growth since its Initial Public Offering (IPO), and the 1st financial reporting by Nextracker after its split from Flex (see Nextracker Shuffles Company Board Post Flex Split).
Nextracker now expects to report revenues between $2.425 billion and $2.475 billion, compared to $2.3 billion and $2.4 billion forecast previously, for FY2024 ending March 31, 2024. This is the company's 2nd upwards revision to its annual forecast (see US Tracker Supplier's Strong Financials In Q2/2024).
It has increased GAAP net income guidance to between $374 million and $429 million. This includes an estimated $50 million to $80 million of benefit from IRA 45X tax credit vendor rebates. Adjusted EBITDA is now expected to be in the range of $475 million and $500 million.