Nextpower Raises 2027 Revenue Outlook to $4.2–$4.45 Billion After Strong Quarterly Growth
Key Facts
Nextpower reported revenue of $1.109 billion in the second quarter of its fiscal 2027, ended October 2, 2026, compared with $905.268 million in the same period of the previous fiscal year. The company raised its fiscal 2027 revenue outlook to $4.2–$4.45 billion from $4.1–$4.4 billion previously. The results were announced at the end of the calendar third quarter, explaining why some coverage described the period as the third quarter. Adjusted diluted earnings per share were $1.31, compared with $1.19 a year earlier, while net income under U.S. accounting standards was about $165.5 million, compared with $146.9 million. Diluted earnings under the same standards also rose to $1.08 per share from $0.97 in the year-ago period.
The outlook revision extended beyond revenue: the company set its fiscal 2027 adjusted diluted earnings per share range at $4.61–$4.87 and its adjusted EBITDA range at $890–$940 million. Nextpower also provided estimates for net income under U.S. accounting standards of $559–$598 million and diluted earnings under those standards of $3.62–$3.87 per share. The previous ranges for those two items were $540–$573 million and $3.42–$3.64 per share, respectively. The company said its adjusted EBITDA estimate excludes about $185 million in stock-based compensation, amortization of intangible assets and acquisition costs. This gives investors a separate view of the items the company excluded from its adjusted earnings measure.
The company attributed some of its business strength to demand for tracker systems, alongside accelerating orders for additional products and services, including storage and complementary offerings. Chief Executive Dan Sugar said the company continues to see "strength in demand for our tracker products, alongside rapid acceleration in orders for our incremental products and services." Bookings reached a quarterly record, while backlog exceeded $6 billion at quarter-end. These indicators point to a broader base of business awaiting execution, alongside sales recorded during the period. In October, Nextpower completed its acquisition of Zimmermann PV-Steel Group for about 230 million euros, subject to customary working capital adjustments and with no share issuance or contingent payments.
The acquisition added 15 countries to the company's operating footprint, bringing its presence to 68 countries. On costs, quarterly results included about $99 million in supplier credits tied to advanced manufacturing incentives under the Inflation Reduction Act and tariffs, net, compared with about $67 million in the year-ago period. The company reported cash flow from operations of $158 million and adjusted free cash flow of about $135 million. It ended the quarter with more than $1 billion in cash and cash equivalents and no debt. It also returned about $162 million to shareholders through share repurchases during the period.
For the third quarter of fiscal 2027, the company said it expects year-over-year revenue growth of about 10%. However, it expects adjusted EBITDA margin to be about 1–2 percentage points below its level in the fourth quarter of fiscal 2027. In trading after the results announcement, shares rose 3.32% to $82.08 in the regular session on October 28, then gained 1.12% after the close to $83. The stock had closed at $79.44 on October 27. Nextpower is scheduled to hold a capital markets day in Las Vegas on November 16 to present its long-term strategy and financial framework.