Nextpower's Growth Story Extends Beyond Solar Trackers, Analyst Says

Core Viewpoint - Nextpower Inc. reported strong third-quarter financial results, exceeding expectations, and raised its FY26 guidance, leading to a significant increase in stock price [1][2]. Financial Performance - The company achieved a revenue growth of 34% year-over-year, totaling $909 million, surpassing the consensus estimate of $810.7 million [1]. - Adjusted EPS was reported at $1.10, exceeding the street view of 93 cents [1]. - For FY2026, Nextpower raised its adjusted EPS guidance to a range of $4.26–$4.36, up from $4.04–$4.25, slightly above the analyst estimate of $4.25 [2]. - The FY2026 sales outlook was lifted to $3.425 billion–$3.500 billion from $3.300 billion–$3.500 billion, compared to the street view of $3.449 billion [2]. Share Repurchase Program - The company authorized a share repurchase program to buy back up to $500 million of common stock over the next three years [2]. Joint Venture and Project Development - Nextpower announced a joint venture to supply 2.25 GW of solar tracking systems to Larsen & Toubro for the Bisha Solar project, one of Saudi Arabia's largest utility-scale solar plants [3]. Analyst Ratings and Market Position - KeyBanc analyst Sophie Karp upgraded Nextpower from Sector Weight to Overweight with a price target of $142, citing strong U.S.-focused revenue growth [4]. - The U.S. business saw a 63% year-over-year increase, with 81% of sales being domestic [4]. - Profitability remained robust, with an adjusted EBITDA margin of 23.5% and an adjusted gross margin of 32.4% [4]. - The analyst anticipates multi-year growth opportunities and a competitive edge due to the company's focus on less-commoditized BOS products [5]. Future Revenue Estimates - The analyst estimates revenue of $812.2 million for Q4 FY26, $3.49 billion for FY26, and $3.76 billion for FY27, with varying comparisons to consensus estimates [6]. Stock Performance - Following the positive financial results and guidance, Nextpower shares increased by 14.05%, reaching $121.79 [6].