Nextracker (US:NXT)2026-01-27 21:07Financial Performance - Revenue for Q3 FY26 reached $909 million, representing a 34% year-over-year increase[4] - GAAP net income for Q3 FY26 was $131 million, up 12% from $117 million in Q3 FY25[4] - Adjusted EBITDA for Q3 FY26 was $214 million, reflecting a 15% increase compared to $186 million in Q3 FY25[4] - Revenue for the nine-month period ended December 31, 2025, increased to $2,678,873, a 31.6% rise from $2,034,855 in the same period of 2024[24] - Gross profit for the same period was $862,718, representing a gross margin of 32.2%, compared to $703,138 and a margin of 34.6% in 2024[33] - Net income attributable to Nextpower Inc. for the nine-month period was $435,280, up from $352,374, reflecting a 23.5% increase[24] - Basic earnings per share increased to $2.94 from $2.46, while diluted earnings per share rose to $2.86 from $2.41[24] - Adjusted operating income for the nine-month period was $643,801, with a margin of 24.0%, compared to $531,009 and a margin of 26.1% in 2024[33] - Adjusted net income for the nine-month period was $525,709, with a margin of 19.6%, compared to $437,268 and a margin of 21.5% in 2024[33] Cash Flow and Assets - Cash and cash equivalents at the end of the period were $952,624, an increase from $766,103 at the beginning of the period[29] - Total assets grew to $3,800,066, up from $3,192,516, indicating a 19.0% increase[26] - Net cash provided by operating activities was $391,483, down from $418,467 in the previous year[29] - Adjusted free cash flow for the nine-month period was $360,020, compared to $394,626 in 2024[29] Future Outlook - The FY26 revenue outlook has been raised to a range of $3.425 billion to $3.500 billion, up from the previous range of $3.275 billion to $3.475 billion[10] - Adjusted diluted EPS for FY26 is projected to be between $4.26 and $4.36, an increase from the previous range of $4.04 to $4.25[11] Strategic Initiatives - The company achieved an investment grade credit rating from Fitch, highlighting strong cash flow generation and financial management[4] - Nextpower authorized a share repurchase program of up to $500 million over three years, indicating confidence in cash flow and balance sheet strength[4] - The company secured a 2.25 GW supply commitment for the Bisha Solar Project through its joint venture Nextpower Arabia, targeting the MENA region[8] - Nextpower expanded its U.S. operations and opened a new Remote Monitoring Center, enhancing domestic manufacturing capacity[8] - The company launched the NX Earth Truss in Australia, marking a significant step in its international expansion efforts[8] Non-GAAP Financial Measures - Nextpower discloses non-GAAP financial measures such as Adjusted EBITDA, adjusted net income, and adjusted diluted earnings per share, which exclude certain charges and gains[36] - Non-GAAP measures are used to evaluate operating performance, compare with forecasts, and determine management's incentive compensation[37] - Stock-based compensation expense is excluded from non-GAAP measures to allow for better comparisons with peer companies[38] - Intangible amortization, primarily non-cash charges, is excluded to assess ongoing performance and forecast earnings trends[40] - Acquisition costs, including nonrecurring transaction costs, are also excluded from non-GAAP measures to reflect ongoing operational performance[41] - The company believes that excluding certain charges provides a clearer picture of its operating results and trends[39] - Tax adjustments related to non-GAAP measures aim to provide a more meaningful measure of non-GAAP net income[41] - Revolver extinguishment costs, incurred from terminating a credit agreement, are considered nonrecurring and excluded from non-GAAP measures[42]