Nextpower (NXT) Q1 2027 earnings summary

Executive summary

• Achieved record Q1 revenue of $935.2 million, up 8% year-over-year, driven by strong U.S. demand, higher average selling prices, and disciplined execution.

• Backlog grew to over $5.5 billion, with an additional $300 million from the Prevalon acquisition, reflecting robust bookings across core and new technologies.

• Expanded technology platform through acquisitions of Prevalon (energy storage), Apex (inverters), Zigor Corporation (power conversion), and pending Zimmermann PV-Steel Group.

• Maintained leading U.S. and global tracker market shares, with non-tracker products contributing 14% of revenue.

• Net income rose 5% to $165.4 million, with diluted EPS of $1.07.

Financial highlights

• GAAP gross profit was $336 million (35.9% margin), with adjusted gross profit of $342 million (37% margin).

• Adjusted EBITDA reached $233 million (24.9% margin), and adjusted diluted EPS was $1.20.

• Net cash provided by operating activities was $121 million, with adjusted free cash flow of $105 million; cash and cash equivalents totaled $1.21 billion at quarter-end.

• Margin overachievement driven by tariff recoveries and strong TrueCapture revenue, partially offset by higher logistics costs.

• Operating income rose 3% to $190.9 million; adjusted operating income was $228.1 million.

Outlook and guidance

• FY2027 revenue guidance raised to $4.1–$4.4 billion, with adjusted EBITDA of $870–$930 million and adjusted diluted EPS of $4.42–$4.73.

• Guidance includes $50 million in planned investments for power conversion market entry.

• Expect modest sequential revenue increases throughout the year; Zimmermann acquisition not yet included in outlook.

• Management expects continued strong U.S. demand but notes potential headwinds from regulatory changes, tariffs, and evolving tax credit frameworks.

• Liquidity and credit facilities are sufficient to support operations and investments for at least the next 12 months.