Nextracker (NXT) - 2025 Q4 - Annual Results

Financial Performance - Nextracker reported record Q4 FY25 revenue of $924 million, a 26% increase year-over-year[1] - For FY25, total revenue reached approximately $3 billion, with a year-over-year increase of about 18%[4] - GAAP net income for Q4 FY25 was $158 million, resulting in a net income margin of 17.1%[2] - The company generated $622 million in free cash flow and ended the year with over $766 million in cash and no debt[6] - Nextracker's adjusted EBITDA for Q4 FY25 was $242 million, with an adjusted EBITDA margin of 26.2%[2] - Nextracker's FY2026 revenue outlook is projected to be between $3.2 billion and $3.4 billion, with GAAP net income expected to range from $445 million to $503 million[7] - Nextracker's adjusted diluted EPS for FY2026 is projected to be between $3.65 and $4.03[8] - Net income for the twelve-month period ended March 31, 2025, was $517,246 thousand, a slight increase from $496,215 thousand in the previous year, reflecting a growth of 4.1%[28] - Adjusted free cash flow for the twelve-month period ended March 31, 2025, was $621,873 thousand, compared to $426,563 thousand in the prior year, indicating a significant increase of 46.0%[28] - Diluted earnings per share increased to $3.47 for the twelve-month period ended March 31, 2025, compared to $3.37 in the previous year[32] Assets and Liabilities - Total assets increased to $3,192,516 thousand as of March 31, 2025, up from $2,518,782 thousand a year earlier, representing a growth of 26.7%[25] - Total current liabilities rose to $1,033,512 thousand as of March 31, 2025, compared to $891,486 thousand in the previous year, marking an increase of 15.9%[25] - Cash and cash equivalents at the end of the period were $766,103 thousand, up from $474,054 thousand, representing a growth of 61.7%[28] Profit Margins - GAAP gross profit margin improved to 34.1% for the twelve-month period ended March 31, 2025, compared to 32.5% in the previous year[32] - Adjusted operating income margin increased to 26.0% for the twelve-month period ended March 31, 2025, up from 20.9% a year earlier[32] - The company reported an adjusted net income margin of 21.3% for the twelve-month period ended March 31, 2025, compared to 18.1% in the previous year[32] Acquisitions and Business Expansion - The company launched its electrical balance-of-systems business through the acquisition of Bentek Corporation for approximately $78 million[9] - The company made a payment for acquisitions totaling $152,175 thousand during the twelve-month period ended March 31, 2025[28] - The NX Horizon Hail Pro™ series trackers achieved over 9 GW booked in FY25, expanding the market for solar in extreme weather locations[4] - The company now serves over 40 countries and has expanded its geographic footprint with over 90 global partner factory facilities[11] Tax Credits and Non-GAAP Measures - The Company recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects from January 1, 2023, through March 31, 2024[40] - The 45X Advanced Manufacturing Production Tax Credit is a per-unit tax credit for each clean energy component produced and sold domestically, eligible for parts manufactured after January 1, 2023[40] - The Company has executed agreements with suppliers to ramp up its U.S. manufacturing footprint, producing parts eligible for the 45X Credit, including torque tubes and structural fasteners[40] - Acquisition costs consist primarily of nonrecurring transaction costs for business acquisitions, impacting the assessment of ongoing performance[41] - The Company excludes stock-based compensation expense from non-GAAP measures to provide more accurate comparisons of operating results to peer companies[37] - Intangible amortization is considered by the Company to allow for more meaningful period-to-period comparisons of ongoing operating results[38] - The Company believes that excluding certain charges when presenting non-GAAP financial measures is relevant for assessing internal operations and comparing performance with competitors[39] - The adjustment for taxes relates to the tax effects of various adjustments incorporated into non-GAAP measures, providing a more meaningful measure of non-GAAP net income[41] - The Company plans to include 45X credit vendor rebates in non-GAAP financial measures starting in the first quarter of fiscal year 2025[40] - The Company aims to better identify trends in its underlying business through the exclusion of certain non-cash charges[38]