Nextracker Reports Record Revenue Growth In FY 2024

• Nextracker exited FY 2024 with a 31% annual growth in revenues, with the US contributing majorly to the demand 
• Its backlog of more than $4 billion more than tripled in 2 years with 'sizable' customer contracts from international markets beyond the US 
• For FY 2025, Nextracker expects to report $2.8 billion to $2.9 billion in revenues 

US solar tracker manufacturer Nextracker marked FY 2024 (period ending March 31, 2024) with a 31% annual growth in revenues and achieved record backlog of over $4 billion. It attributes this growth to robust demand within and outside the US. 

It also claims to have become the 1st US solar company to reach 100 GW in cumulative shipments. 

The company now has more than 50 GW of global annual supply capacity including over 30 GW within the US. Since 2021, Nextracker counts to have launched or expanded 20 US partner manufacturing facilities. 

Recently, it completed the expansion of dedicated manufacturing lines at JM Steel's Leetsdale steel facility, achieving 4 GW capacity. The factory was originally commissioned in April 2022 (see Nextracker Opens New Production Line In US).     

Its home turf of the US accounted for 68% of Nextracker's FY 2024 total revenues of $2.5 billion during the year, while 32% share came from the rest of the world, maintaining the status quo of last year. 

Adjusted EBITDA during the year rose by 150% to $521 million compared to $209 million in FY 2023. 

Q4/FY 2024 

During Q4/FY 2024 (period covering January to March), Nextracker's quarterly revenues went up 42% Year-over-Year (YoY) to $737 million with the share of the US market being 67%. 

Its adjusted EBITDA for the quarter went up YoY to $160 million, but it was a drop of $8 million since the previous quarter. 

Backlog  

The company also increased its backlog of more than $4 billion that it says more than tripled in 2 years. It defines backlog as executed contracts or purchase orders with deposits, bill of materials, and ship dates. Beyond the US, it counts sizable customer contracts in India, Australia, Europe, and Brazil. 

Guidance  

Nextracker now targets to achieve between $2.8 billion and $2.9 billion in revenues for FY 2025 with a GAAP net income of $369 million to $399 million. It guides for adjusted EBITDA within the range of $600 million to $650 million. 

Roth MKM's Philip Shen calls the FY 2025 revenue guidance conservative, assuming it to have factored in industry headwinds including Southeast Asia (SEA) AD/CVDs. During its post-financial results call with analysts, Nextracker CEO Dan Shugar shared that the company has not yet seen 'impact velocity' in the market or bookings and that demand remains strong. 

Nextracker's results differ from its compatriot and fellow tracker manufacturer Array Technologies, which reported a strong order book of $2.1 billion at the end of March 2024, but its Q1/2024 revenues declined significantly due to customer pushouts (see US Solar Tracker Manufacturer Reports Net Loss In Q1 2024).