Nextracker Inc. Reports 11% Revenue Growth, 51% Gross Profit Increase in Latest Quarter

Nextracker Inc. reported significant financial growth in its latest 10-Q filing for the period ending September 27, 2024. The company achieved revenues of $635.6 million for the three-month period, marking an 11% increase from $573.4 million in the same period of the previous year. For the six-month period, revenues rose by 29% to $1.36 billion, compared to $1.05 billion in the prior year. This growth was driven by a 44% increase in gigawatts delivered, particularly in the U.S. market, which saw a revenue increase of approximately 49%.

Gross profit for the three-month period surged to $224.8 million, a 51% increase from $149.1 million year-over-year. The six-month gross profit also saw a substantial rise of 76%, reaching $462.2 million. Operating income for the three-month period increased by 42% to $133.5 million, while for the six-month period, it rose by 75% to $293.6 million. Net income attributable to Nextracker Inc. for the three-month period was $115.4 million, compared to $39.3 million in the prior year, reflecting a significant improvement in profitability.

The company’s total assets increased to $2.77 billion as of September 27, 2024, up from $2.52 billion at the end of the previous fiscal period. Stockholders’ equity also rose to $1.27 billion, compared to $961 million previously. The accumulated deficit improved to $(2.83 billion) from $(3.07 billion), indicating a positive shift in financial health.

Nextracker completed two acquisitions during the six-month period, acquiring Ojjo, Inc. and the solar foundations business from Solar Pile International for a total cash consideration of approximately $144.7 million. This strategic move is expected to enhance the company’s capabilities in solar technology.

Operating expenses increased, with selling, general, and administrative expenses rising by 62% to $133 million, primarily due to higher stock-based compensation and expansion of the sales organization. Research and development expenses surged by 180% to $35.7 million, reflecting a commitment to innovation.

The company also reported a net cash increase of $87.8 million for the six-month period, with cash and cash equivalents totaling $561.9 million as of September 27, 2024. Nextracker's liquidity position remains strong, with over $1.5 billion available, including unutilized amounts under its revolving credit facility. The company continues to navigate market conditions and capitalize on growth opportunities in the solar energy sector.