Nextracker (US:NXT)2025-05-21 00:45Investment Rating - The report maintains a positive investment rating for Nextracker, categorizing it as a high-quality tracking stock in the solar energy sector and a key recommendation among global renewable energy stocks covered by Haitong International [1]. Core Insights - Nextracker's revenue for the fourth quarter of fiscal year 2025 significantly exceeded market expectations, with adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for fiscal year 2026 also surpassing consensus estimates. The company reported a backlog of over $4.5 billion, indicating strong solar demand and stable pricing [1][2]. - The company expects fiscal year 2026 revenue to be between $3.2 billion and $3.4 billion, with EBITDA projected at $700 million to $775 million, and net income estimated at $445 million to $503 million. Most of the revenue is anticipated to be realized in the first half of fiscal year 2026, with a reaffirmed gross margin in the low 30% range [2][3]. - Nextracker's fourth quarter revenue reached $924 million, significantly above the consensus estimate of $831 million, with a gross margin maintained at 33.4%. Adjusted net income for the quarter was $193 million, exceeding market expectations [2][5]. Summary by Sections Financial Performance - For the fourth quarter of fiscal year 2025, Nextracker reported net revenue of $924 million, a 36% quarter-over-quarter increase and a 25% year-over-year increase. The adjusted EBITDA was $242 million, reflecting a 30% increase from the previous quarter [5]. - The company maintained a gross margin of 33.4% and an adjusted net income of $193 million, which included $75 million from tax credits under the Inflation Reduction Act [2][5]. Order Backlog and Market Position - Nextracker's backlog reached over $4.5 billion by the end of the fourth quarter of fiscal year 2025, indicating a strong demand for solar solutions. The order-to-shipment ratio remains above 1, showcasing robust market activity [3]. Supply Chain and Strategic Moves - The company expressed confidence in its supply chain, emphasizing the use of 100% domestically sourced steel for its U.S. manufactured components. Nextracker is the first solar company to achieve 100% localization of components in the U.S., which enhances customer confidence and allows for moderate pricing premiums [3]. - Nextracker announced the acquisition of US Bentek Corporation for approximately $78 million in cash, aimed at integrating procurement and project logistics [3].