Nextracker says its total backlog increased to $4.5 billion by the end of Q2 FY25
During the reporting quarter, it booked projects in 12 countries outside of its biggest single market, the US
Riding on this strong backlog, it has revised its annual profit guidance higher by $20 million at the midpoint to $645 million
US-based solar tracker manufacturer Nextracker continued its winning streak in Q2 FY25 (period ending September 30, 2024), exiting the quarter with its backlog increasing to a record $4.5 billion, prompting it to increase its profit target for FY 2025 by $20 million at the midpoint to $645 million.
It expects to realize 90% of this backlog over the next 8 quarters. Nextracker President and Director Howard J. Wenger said the reason is it is getting orders with shorter horizons. During Q2, it booked customer projects in 12 countries outside the US including first-time projects in New Zealand and Malaysia.
“We saw a record 1H in EU bookings, and delivered our second largest quarter of bookings in Q2, with nearly 8 GW operational and under fulfillment in Europe,” shared the management.
In the fiscal year to date, Nextracker won new orders for all of the company’s newly launched products, including NX Horizon-XTR 1.5 all-terrain tracker, NX Horizon Low Carbon Tracker, NX Hail Pro-75, and NX Foundation Solutions.
In Latin America, it has nearly 20 GW of operational and under fulfillment orders, and more than 15 GW combined in the Middle East, India and Africa regions.
Financials
During Q2 FY25, its revenues increased by 11% year-on-year (YoY) to $636 million, while in H1 FY25, it went up by 29% to approximately $1.4 billion. For Q2, the US accounted for 73% of its geographical mix and 27% came from the rest of the world.
Adjusted EBITDA in Q2 went up by 57% YoY to $173 million, representing an adjusted EBITDA margin of 27%. For the H1 period, the YoY increase in adjusted EBITDA of $348 million was 79%.
The group’s net income for the reporting quarter swelled by 194% to $115.39 million.
Guidance
For FY 2025 (period ending March 31, 2025), Nextracker’s revenue guidance remains the same at $2.8 billion to $2.9 billion. The management, however, has upped its GAAP net income guidance to $378 million to $408 million, compared to $363 million to $393 million previously.
Even it expects the adjusted EBITDA to settle in the $625 million to $665 million range, as against the previously guided range of $600 million to $650 million.
The management’s confidence for the year stems from a strong backlog and visibility. It expects Q4 to be the ‘single biggest quarter in the company’s history.’ Nextracker CEO, Founder and Director Daniel S. Shugar emphasized that his company as well as the solar industry will grow regardless of the outcome of the US Presidential election.
“The US has a growing appetite for new power and we believe solar and battery projects are best positioned to satisfy that need. Further most of the manufacturing investments in solar power plants in the country are located in red states, and the underpinning economic value delivered to those states is significant and real,” stated Shugar.
The company earned words of praise from analysts as Philip Shen of ROTH MKM pointed out that while the rest of the industry complains about pushouts and headwinds, Nextracker continues to deliver. One reason for this is its ‘maniacal focus on customer service and satisfaction.’
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