Nextracker (US:NXT)2025-10-23 20:07Financial Performance - Q2 FY26 revenue reached $905 million, representing a 42% year-over-year increase[5] - GAAP net income for Q2 FY26 was $147 million, with a net income margin of 16.2%[2] - Adjusted EBITDA for Q2 FY26 was $224 million, up 29% year-over-year, with an adjusted EBITDA margin of 24.7%[5] - The company raised its FY26 revenue outlook to a range of $3.275 billion to $3.475 billion[7] - Net income for the six-month period ended September 26, 2025, was $304,044 thousand, compared to $242,058 thousand for the same period in 2024, reflecting a year-over-year increase of 25.7%[25] - Adjusted diluted EPS for FY26 is projected to be between $4.04 and $4.25, excluding certain costs[8] - Diluted earnings per share for the six-month period ended September 26, 2025, was $2.01, compared to $1.62 for the same period in 2024, an increase of 24.0%[29] Operational Highlights - Nextracker's backlog grew to a record level of over $5 billion, indicating strong future demand[5] - The company launched the new NX PowerMerge product and achieved record quarterly bookings for electrical balance of systems (eBOS) solutions[5] - Operating cash flow year-to-date was $268 million, with $845 million in cash and no debt at the end of the quarter[5] - The company shipped over 150 GW of tracker systems since inception, highlighting its market leadership[6] Asset and Liability Management - Total assets increased to $3,668,889 thousand as of September 26, 2025, up from $3,192,516 thousand as of March 31, 2025, representing a growth of 14.9%[22] - Total current liabilities increased to $1,119,806 thousand as of September 26, 2025, from $1,033,512 thousand as of March 31, 2025, an increase of 8.3%[22] - Cash and cash equivalents at the end of the period were $845,342 thousand, up from $561,884 thousand at the end of the same period last year, an increase of 50.4%[25] - Total stockholders' equity increased to $1,985,698 thousand as of September 26, 2025, from $1,628,130 thousand as of March 31, 2025, a growth of 22.0%[22] Profitability Metrics - GAAP gross profit margin for the three-month period ended September 26, 2025, was 32.4%, compared to 35.4% in the same period last year, indicating a decline of 3.0 percentage points[27] - Adjusted operating income margin for the three-month period ended September 26, 2025, was 24.1%, down from 26.3% in the same period last year, a decrease of 2.2 percentage points[27] - Adjusted free cash flow for the six-month period ended September 26, 2025, was $241,471 thousand, slightly down from $259,727 thousand in the prior year, a decrease of 7.0%[25] - Adjusted net income margin for the six-month period ended September 26, 2025, was 20.1%, compared to 20.9% in the same period last year, a decrease of 0.8 percentage points[29] Strategic Initiatives - Nextracker entered into a joint venture agreement to form Nextracker Arabia, expanding its footprint in the Middle East and North Africa markets[9] Non-GAAP Measures and Adjustments - The company emphasizes the ability to make more meaningful period-to-period comparisons of ongoing operating results[35] - The company focuses on identifying trends in its underlying business and performing related trend analysis[35] - The company excludes intangible amortization charges when evaluating ongoing performance and forecasting earnings trends[36] - Acquisition costs are primarily nonrecurring transaction costs for business acquisitions, impacting the assessment of non-GAAP net income[37] - The company adjusts for tax effects related to various adjustments incorporated into non-GAAP measures[37] - Revolver extinguishment costs consist of nonrecurring costs for the termination of an existing credit agreement entered into on February 13, 2023[38]