Nextracker Q4 FY2025 slides: Record revenue and 49% EBITDA growth, acquires Bentek

Nextracker Inc (NASDAQ:NXT) reported record financial results in its Q4 and fiscal year 2025 shareholder presentation on May 14, 2025, highlighting substantial growth across key metrics and announcing a strategic acquisition to expand its product portfolio.

Executive Summary

Nextracker delivered strong financial performance for both the fourth quarter and full fiscal year 2025, with revenue reaching approximately $3 billion, representing an 18% increase year-over-year. The company’s adjusted EBITDA surged 49% to $776 million, while maintaining a healthy 26% adjusted EBITDA margin.

"We significantly increased our backlog this year, exceeded our financial targets, and continued to localize manufacturing around the world," the company stated in its shareholder letter. "We have now shipped over 130 GWs of our tracker systems since the company was founded."

The solar tracking systems provider also announced the acquisition of Bentek Corporation, an electrical balance of systems (eBOS) company, marking its third acquisition in FY2025 as part of its strategy to expand beyond core tracking products.

Quarterly Performance Highlights

Nextracker’s fourth quarter showed particularly strong momentum, with revenue reaching a record $924 million, up 26% compared to the same period last year. This performance exceeded analyst expectations, as confirmed in the company’s earnings call where it reported an EPS of $1.29 against a forecast of $0.73.

Q4 adjusted EBITDA expanded to $242 million, representing a 52% year-over-year increase and maintaining the 26% adjusted EBITDA margin seen across the full fiscal year. The company generated $227 million in adjusted free cash flow during the quarter, contributing to the full-year total of $622 million, a 46% increase from FY2024.

The geographic mix of Nextracker’s business continues to diversify, with Q4 revenue comprising approximately 66% from the U.S. and 34% from international markets. For the full year, the split was 69% U.S. and 31% Rest of World.

Strategic Initiatives

A key highlight of Nextracker’s presentation was the announcement of its acquisition of Bentek Corporation, expanding the company’s product platform into electrical balance of systems (eBOS) solutions. This strategic move aligns with Nextracker’s goal of providing integrated offerings that reduce costs, simplify construction, and improve long-term performance of solar installations.

"As the solar power market matures, there is a growing emphasis on quality and reliability which is in turn driving product innovation and a focus on system interaction and integration," the company explained in its presentation. The Bentek acquisition follows two foundations company acquisitions earlier in FY2025, demonstrating Nextracker’s commitment to expanding beyond its core tracking systems.

The company also highlighted significant progress in product innovation, including the uptake of its new Hail Pro series trackers and XTR series products. Nextracker achieved record bookings for its TrueCapture® technology in FY2025 and expanded its geographic footprint to serve over 40 countries.

Forward-Looking Statements

Looking ahead to fiscal year 2026, Nextracker provided guidance indicating continued growth, albeit at a more moderate pace than FY2025. The company expects revenue to range between $3.2 billion and $3.4 billion, representing approximately 7-13% growth. Adjusted EBITDA is projected to be between $700 million and $775 million, potentially flat to slightly negative compared to FY2025’s $776 million.

Nextracker noted that FY2026 will be "more heavily weighted to the first half" and plans to "increase investments in both organic and inorganic growth." The company expects structural gross margins in the low 30s for the full year.

The company’s outlook aligns with its statement that "the market is expanding rapidly, driven by increasing global electricity demand," and that "renewables, led by solar, are expected to be the leading electricity source by 2030."

Detailed Financial Analysis

Nextracker closed FY2025 with a strong balance sheet, reporting $766 million in total cash and cash equivalents with zero debt. The company emphasized its "capital efficient business" and focus on "maintaining and improving cash conversion cycle" as competitive advantages.

The company’s backlog continued to grow, marking the ninth consecutive quarter of sequential growth since becoming a public company. Total (EPA:TTEF) backlog now stands at "significantly over $4.5 billion," providing visibility into future revenue streams.

Nextracker’s adjusted gross profit increased from $703 million in FY2024 to $1,023 million in FY2025, while GAAP gross profit rose from $813 million to $1,009 million. Adjusted operating income grew from $523 million to $769 million, and GAAP operating income increased from $587 million to $639 million.

Following the earnings announcement, Nextracker’s stock rose 2.64% in after-hours trading to $56.50. However, more recent data shows some pullback, with the stock down 3% in after-market trading as of the latest available information, suggesting some profit-taking following the strong results.

The company’s financial health remains strong, with an "EXCELLENT" financial health score of 3.96 according to InvestingPro, and it trades at an attractive P/E ratio of 13.57 relative to its growth prospects.

Full presentation:

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