Nextpower Inc (NXT) Q2 2027 Earnings Report

The call was strongly positive, characterized by record revenue, EBITDA, bookings, backlog, cash generation, strong demand across tracker and non-tracker products, a raised fiscal 2027 outlook, and progress in storage, eBOS, foundations, power conversion, and international expansion. The main challenges were second-half margin compression, elevated freight and commodity costs, project timing variability, tariff-related module pricing pressure, and the reduced fiscal-year contribution expected from Zimmermann. Highlights significantly outweighed lowlights.

For fiscal year 2027, Nextpower expects revenue of $4.2 billion to $4.45 billion, adjusted EBITDA of $890 million to $940 million and adjusted diluted EPS of $4.61 to $4.87 per share, and increased its free cash flow estimates from $450 million to over $500 million; it continues to expect adjusted gross margins in the low 30s and adjusted EBITDA margins in the low 20s, with adjusted gross margin and adjusted EBITDA margin in the back half of the year expected to be in the high 20s and high teens, respectively. Second half revenues are expected to be more heavily weighted toward Q4, with Q3 revenue down sequentially from record Q2 but up approximately 10% year-over-year, setting up a very strong finish with potential record revenue and adjusted EBITDA in Q4. For Zimmermann, the company expects approximately $100 million of revenue and $10 million of adjusted EBITDA for the balance of the fiscal year. Over the next 12 months, Nextpower expects to invest approximately $40 million of CapEx in its U.S. manufacturing plant and expects a P&L impact of approximately $50 million as it ramps and scales power conversion, with products expected to ship by the end of next summer and over 10 gigawatts of capacity by the end of calendar '27.