Nextpower Raises Outlook as Revenue Hits Record
Quarterly revenue reached $935 million as margins widened and backlog topped $5.5 billion.
Nextpower (NXT), the solar-energy technology company, returned to sequential growth as quarterly revenue rose 8.2% from a year earlier and profitability recovered.
The results reversed the previous quarter’s revenue decline and extended a margin rebound that began late in fiscal 2026. GAAP gross margin widened to 35.9% from 33.8% sequentially and 32.6% a year earlier.
Revenue increased from $864 million a year earlier, while diluted earnings rose to $1.07 a share from $1.04. Adjusted diluted earnings increased to $1.20 a share from $1.16 and were up from $1.05 in the preceding quarter.
Adjusted EBITDA climbed to $232.6 million from $201.8 million sequentially, lifting its margin to 24.9% from 22.9%. Operating cash flow rose 49% from a year earlier to $121.1 million, and cash and equivalents ended the quarter at $1.214 billion.
Backlog grew to more than $5.5 billion from more than $5.25 billion at fiscal year-end. Nextpower also reported record quarterly electrical balance-of-system bookings, while cumulative PowerMerge bookings exceeded 850 megawatts after the product received UL certification during the quarter.
The company completed its acquisition of energy-storage provider Prevalon in July, adding more than 6 gigawatt-hours of deployed battery systems, 1.3 gigawatts of firm AI and hyperscaler supply contracts and more than $300 million of incremental backlog. It also completed acquisitions of Apex Power and key Zigor inverter assets and agreed to acquire Zimmermann PV-Steel Group.
Nextpower now expects fiscal 2027 revenue of $4.1 billion to $4.4 billion, raising the lower end by $100 million. It also forecasts adjusted EBITDA of $870 million to $930 million and adjusted diluted earnings of $4.42 to $4.73 a share, lifting the lower ends of both ranges.
The outlook includes about $50 million of planned incremental costs to accelerate the company’s entry into power conversion. Research-and-development expense had already more than doubled from a year earlier to $44.5 million, reflecting the broader technology buildout.