Nextpower Hits Record $1.11B Revenue, Lifts FY2027 Outlook and Tops $6B Backlog

Nextpower (NXT) reported record fiscal second-quarter 2027 revenue of $1.109 billion on Wednesday, up 22.5% from a year earlier and 18.6% from the prior quarter, along with record bookings that lifted backlog above $6 billion. Adjusted EPS rose to $1.31 from $1.19. The company raised its full-year guidance, with revenue now expected at $4.2 billion to $4.45 billion and adjusted EPS at $4.61 to $4.87. Profit margins narrowed from a year earlier, and Nextpower expects third-quarter revenue growth of about 10%.

Second-quarter results

Revenue grew faster than profit: by our calculation, revenue rose 22.5% while adjusted EPS rose about 10% and net income about 12%. Compared with the first quarter, when revenue was $935 million, GAAP gross margin fell by 4.8 points from 35.9%, by our calculation, and adjusted EBITDA margin from 24.9%. Results included about $99 million of IRA 45X tax credit vendor rebates and tariffs, net, versus $67 million a year earlier.

Fiscal 2027 guidance raised

By our calculation, the midpoints rose about 2% for revenue, 4% for adjusted EPS and 2% for adjusted EBITDA. With first-half revenue of about $2.04 billion ($935 million plus $1,109 million), the new range implies second-half revenue of roughly $2.16 billion to $2.41 billion. For the third quarter, Nextpower expects revenue growth of about 10% year over year and an adjusted EBITDA margin about 1 to 2 percentage points below the fourth quarter.

What drove the quarter

CEO Dan Shugar said Nextpower delivered record quarterly revenue and bookings and grew backlog to more than $6 billion. Energy storage and complementary products made up about 22% of revenue. Nextpower signed a 1.1 GW inverter framework agreement across five projects and shipped its first NX Power Conversion systems. Electrical balance-of-system (eBOS) bookings exceeded $100 million, a quarterly record, and foundations also posted record bookings. NX PowerMerge, which now has a U.S. patent and is in commercial deployment, has more than 2 GW in backlog.

Zimmermann acquisition

Nextpower closed its acquisition of Zimmermann PV-Steel Group for about €230 million, subject to customary working capital adjustments, with no stock or earnout. The deal added 15 countries, bringing Nextpower's presence to 68.

Cash and buybacks

Operating cash flow was $158 million in the quarter and adjusted free cash flow was about $135 million, according to the CFO. Nextpower ended with cash of $1.03 billion and no debt, and repurchased about $162 million of its stock.

What it means

The quarter shows demand and backlog still expanding, with storage and complementary products taking a larger share of revenue. The trade-off is margin: gross and EBITDA margins fell from both a year ago and the prior quarter. Investors will watch whether margins stabilize in the second half, how quickly the backlog converts to revenue, and what Nextpower says at its Capital Markets Day in Las Vegas on Nov. 16.

Sources: Nextpower, "Nextpower Reports Q2 Fiscal Year 2027 Financial Results" (Form 8-K exhibit, Oct. 28). This is informational, not a recommendation to buy or sell.