Nextpower's quarterly revenue increased 23% YoY, while its gross margin declined
Energy storage and other complementary businesses accounted for 22% of quarterly revenue
The company completed its €230 million Zimmermann acquisition, expanding its portfolio and geographic reach
US-based solar tracker manufacturer Nextpower has raised its financial outlook for fiscal year 2027 after reporting record quarterly revenue and bookings for Q2, as it expands beyond its core solar tracker operations.
For Q2 FY2027 (ended October 2, 2026), Nextpower reported a ‘record’ revenue of $1.11 billion, up 23% from $905 million in the same quarter last year. Revenue also increased from $935 million in the first quarter of FY2027 (see Nextpower’s Q1 FY Revenue Raises 8%; Raises FY2027 Outlook).
The US accounted for nearly 82% of quarterly revenue, with the remaining 18% coming from the rest of the world.
The company’s net income for Q2 rose to $165 million from $147 million a year earlier. However, its GAAP gross margin declined to 31.1% from 32.4% in Q2 FY2026 and 35.9% in the previous quarter. Adjusted EBITDA increased to $250 million from $224 million a year earlier, while the adjusted EBITDA margin was 22.5%, compared with 24.7% in the year-ago quarter.
Nextpower attributed the quarter's performance to continued demand for its solar tracker products and increasing orders for its broader product portfolio.
Energy storage and other complementary offerings accounted for approximately 22% of Nextpower's Q2 revenue, according to CEO and Founder Dan Shugar.
The company also recorded electrical balance of system (eBOS) bookings of more than $100 million, which management calls a quarterly record, while foundations bookings reached a quarterly record.
During the quarter, Nextpower secured a 1.1 GW inverter framework agreement covering five projects and shipped its first NX Power Conversion systems to customers.
The company said its quarterly bookings reached a record, taking its backlog above $6 billion. It also reported progress in its product portfolio. Its NX PowerMerge technology received a US patent and is now in commercial deployment at scale, with more than 2 GW in backlog.
Nextpower has now completed its acquisition of Germany-based PV-Steel Group's Zimmermann business for approximately €230 million. The company had announced the deal in June 2026, expecting it to cost up to €330 million in cash and stock (see Nextpower To Acquire Zimmermann In Up To €330M Deal).
The acquisition adds fixed-tilt and structural solar solutions to Nextpower's portfolio and provides access to an established European customer base. It also expands the company's presence into 15 additional countries, bringing its total market reach to 68 countries.
Following its second-quarter performance, Nextpower has raised its full-year FY2027 revenue outlook to between $4.2 billion and $4.45 billion, from its earlier forecast of $4.1 billion to $4.4 billion.
It now expects GAAP net income of $559 million to $598 million, compared with its previous estimate of $540 million to $573 million. The adjusted EBITDA forecast has also increased to $890 million to $940 million from $870 million to $930 million.
Nextpower expects Q3 FY2027 revenue to grow approximately 10% YoY, while adjusted EBITDA margin will be roughly 1 to 2 percentage points below the Q4 FY2027 level.
Roth analysts believe that while strong bookings and demand support Nextpower’s growth outlook, higher diesel, steel, freight, and logistics costs are expected to pressure its margins in the coming quarters.