For Q2/FY2024, the 3-month period ending on September 30, 2023, US-based solar tracker supplier Nextracker has reported 'record' revenues of $573 million with a 23% annual improvement. Buoyed, the management has now raised its FY 2024 guidance as it gets ready to separate from Flex Ltd.
Flex plans to offload all its remaining interests in Nextracker, expected to be completed by March 31, 2024. Nextracker Founder and CEO Dan Shugar said the company is now 'energized' to start its 'next chapter.'
Notably, Flex has been invested in Nextracker since 2015 and currently owns close to 51.47% stake in it. Before that, it served as a contract manufacturer for the tracker company's proprietary electronics.
Shugar stated, "With Nextracker expecting to achieve annual revenue of over $2.3 billion this fiscal year, operating as a fully independent company, will allow us to make additional strategic investments, continue expanding our talented team, and pursue the market opportunities ahead."
Meanwhile, Shugar attributed the increase in the company's revenues for the quarter to broad-based growth in most markets. The US accounted for 67% of the same, followed by 33% contributed by its business in the rest of the world. In India, it recently achieved 10 GW of annual domestic manufacturing capacity (see Day I Highlights From Renewable Energy India Expo 2023).
Adjusted EBITDA was reported to have improved 164% YoY to $110 million, which it said was mainly due to strong execution of the strategic supply chain, repositioning capacity expansion and continued focus on pricing discipline.
In terms of backlog, Nextracker's total backlog was reported as 'significantly over $3 billion,' which is what the company declared in Q1/2024 as well.
Shugar said, "We closed our third consecutive quarter of growth year-over-year, as a public company, and it was our sixth consecutive quarter of margin expansion on a sequential basis."
Guidance
For FY 2024 (period ending March 31, 2024), Nextracker has raised the mid-point of its previously guided revenue range to $2.3 billion to $2.4 billion, while adjusted EBITDA has been increased to $390 million to $440 million. Previously, it was forecasting between $2.2 billion and $2.4 billion of revenues, and within $290 million to $340 million of adjusted EBITDA (see Nextracker's Backlog Grows To Over $3 Billion).
It now expects GAAP net income of $237 million and $266 million, up from the previous range of $176 million and $205 million.