Nextpower (NASDAQ:NXT) Posts Quarterly Earnings Results, Beats Estimates By $0.15 EPS

Nextpower (NASDAQ:NXT) released its earnings results on Thursday. The company reported $1.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.15, FiscalAI reports. Nextpower had a return on equity of 28.18% and a net margin of 16.46%.The firm had revenue of $935.17 million for the quarter, compared to the consensus estimate of $935.39 million.

Here are the key takeaways from Nextpower’s conference call:

• Record Q1 performance: Revenue rose 8% year over year to $935 million, adjusted EBITDA reached $233 million, and backlog exceeded $5.5 billion, with more than $300 million of additional backlog from the newly acquired energy storage business.
• Nextpower raised its fiscal 2027 outlook to $4.1–$4.4 billion in revenue, $870–$930 million in adjusted EBITDA, and $4.42–$4.73 in adjusted diluted EPS. Management cited strong demand, bookings, backlog quality, and execution, while excluding any contribution from the pending Zimmermann acquisition.
• The company is expanding beyond trackers through eBOS, foundations, TrueCapture, inverters, and energy storage. eBOS is on track to generate more than $100 million of revenue this year, foundations revenue grew 50% year over year, and the UL-certified Apex inverter is expected to begin deliveries in early 2027 with more than 10 GW of U.S. capacity planned by next summer.
• Nextpower Energy Storage launched following the Prevalon acquisition, adding approximately 6 GWh of turnkey project experience and exposure to utilities, standalone storage developers, hyperscalers, and data centers. Management said storage demand is growing rapidly and highlighted Prevalon’s fast-response power stabilization systems for data centers.
• Near-term margins may be pressured as Nextpower invests in engineering, manufacturing, sales, and service capabilities for new products and integrates acquisitions. Although Q1 adjusted gross margin was 37%, it benefited from IEEPA tariff recoveries and favorable mix, while higher logistics costs were a headwind; management continues to target long-term gross margins in the low 30s and operating margins in the low 20s.

Nextpower Stock Up 4.6%

Shares of NASDAQ:NXT traded up $4.23 during trading on Thursday, hitting $96.90. 3,855,816 shares of the stock traded hands, compared to its average volume of 2,716,663. The company has a fifty day moving average price of $118.31 and a two-hundred day moving average price of $116.47. Nextpower has a 52-week low of $52.61 and a 52-week high of $163.13. The company has a market cap of $14.56 billion, a price-to-earnings ratio of 25.30, a P/E/G ratio of 1.85 and a beta of 1.86.

Key Stories Impacting Nextpower

Here are the key news stories impacting Nextpower this week:

• Positive Sentiment: Q1 FY2027 earnings exceeded expectations: Nextpower reported adjusted EPS of $1.20, above the $1.05 consensus estimate. Revenue reached $935.2 million, essentially matching expectations and rising 8.2% year over year. GAAP diluted EPS was $1.07, compared with $1.04 a year earlier. Nextpower quarterly earnings report
• Positive Sentiment: Profitability and cash generation improved: Gross profit increased 19.2% to $335.9 million, lifting gross margin to 35.9% from 32.6% a year earlier. Operating cash flow climbed 48.9% to $121.1 million, while cash and equivalents reached approximately $1.2 billion. Nextpower Q1 fiscal year 2027 financial results
• Positive Sentiment: Power-conversion acquisition completed: Nextpower finalized its purchase of power-conversion assets from Zigor Corporation and Apex Power, expanding its platform with certified central inverters for U.S. utility-scale solar and energy-storage projects. The deal could accelerate the company’s U.S. manufacturing ramp. Nextpower acquisition announcement
• Neutral Sentiment: Analyst sentiment remains favorable: Roth Capital reiterated its Buy rating, and 16 analysts have issued price targets during the past six months with a median target of $150.22. However, analyst targets are not guarantees and reflect expectations rather than new company guidance. Roth Capital rating on Nextpower
• Negative Sentiment: Insider selling is a risk signal: Company insiders reported 24 open-market sales and no purchases over the past six months, including sales by the CEO, president, COO and CFO. Institutional activity was mixed, with 327 investors adding shares and 275 reducing positions. Nextpower earnings and trading activity

Insider Activity

In related news, insider Bruce Ledesma sold 3,248 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $134.72, for a total transaction of $437,570.56. Following the sale, the insider owned 246,130 shares in the company, valued at approximately $33,158,633.60. This trade represents a 1.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Daniel S. Shugar sold 26,077 shares of Nextpower stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $134.72, for a total transaction of $3,513,093.44. Following the completion of the transaction, the chief executive officer directly owned 931,419 shares of the company’s stock, valued at $125,480,767.68. The trade was a 2.72% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 168,574 shares of company stock valued at $22,559,770 in the last three months. Corporate insiders own 0.84% of the company’s stock.

Hedge Funds Weigh In On Nextpower

Several institutional investors and hedge funds have recently modified their holdings of the business. Vident Advisory LLC increased its position in shares of Nextpower by 72.7% in the third quarter. Vident Advisory LLC now owns 6,643 shares of the company’s stock valued at $492,000 after buying an additional 2,796 shares in the last quarter. Polymer Capital Management US LLC acquired a new position in shares of Nextpower during the 4th quarter worth approximately $440,000. PharVision Advisers LLC purchased a new position in shares of Nextpower during the 3rd quarter valued at approximately $336,000. Numerai GP LLC purchased a new position in shares of Nextpower during the 3rd quarter valued at approximately $326,000. Finally, Quantinno Capital Management LP grew its stake in Nextpower by 10.6% in the 2nd quarter. Quantinno Capital Management LP now owns 5,379 shares of the company’s stock valued at $292,000 after acquiring an additional 514 shares during the period. Hedge funds and other institutional investors own 67.41% of the company’s stock.

Analyst Ratings Changes

NXT has been the topic of a number of research reports. Robert W. Baird increased their price objective on Nextpower from $133.00 to $156.00 and gave the company an “outperform” rating in a report on Wednesday, May 13th. JPMorgan Chase & Co. upped their price objective on shares of Nextpower from $155.00 to $174.00 and gave the company an “overweight” rating in a report on Friday, May 29th. KeyCorp raised their target price on shares of Nextpower from $152.00 to $164.00 and gave the stock an “overweight” rating in a report on Friday, May 29th. Wolfe Research restated an “outperform” rating and set a $160.00 target price on shares of Nextpower in a research report on Friday, May 29th. Finally, Royal Bank Of Canada set a $179.00 price target on Nextpower in a research report on Tuesday, July 21st. Two investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $151.42.

About Nextpower

Nextpower, formerly known as Nextracker, is traded on NASDAQ under the symbol NXT and is a leading provider of advanced solar tracking solutions for utility-scale and distributed energy projects. The company specializes in the design, engineering and manufacturing of single-axis tracker systems that optimize the capture of solar energy by following the sun’s trajectory throughout the day. Nextpower’s core hardware offerings aim to enhance energy yield, reduce balance-of-system costs and simplify installation and maintenance for downstream solar developers and operators.

In addition to its tracker hardware, Nextpower provides a suite of digital software and analytics tools to maximize asset performance.