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Investing.com -- Clean energy stocks are showing resilience despite industry headwinds, with several companies positioned for growth according to recent analysis from Wolfe Research.
The firm highlights companies with strong bookings momentum, solid balance sheets, and strategic positioning to capitalize on evolving market conditions.
Wolfe Research is bullish on Array’s bookings momentum following clarification on the Ownership-Based Bonus Build (OBBB) and Treasury safe harbor rules. The company is expected to report Q3 revenues of $322 million, exceeding consensus estimates of $309 million, with adjusted EBITDA of $61 million versus consensus of $56 million.
Array’s backlog is projected to grow beyond the $1.8 billion reported in Q2, with a book-to-bill ratio likely exceeding 1.0x.
While tariffs may create a 50 basis point drag on gross margins in the second half of 2025, falling U.S. steel prices could partially offset this impact.
The recent $179 million acquisition of APA Solar is expected to be a modest tailwind to Array’s targeted gross margin profile.
Array Technologies has completed its acquisition of APA Solar, a provider of solar racking and structural solutions. The company also received a new Buy rating from Deutsche Bank, while Jefferies raised its price target on the stock, citing the completion of the APA transaction.
Nextracker is expected to exceed revenue estimates for fiscal Q2, with Wolfe forecasting $872 million against consensus of $843 million. The company’s backlog, which stood at over $4.75 billion in FQ1, could reach $5 billion following Treasury’s favorable safe harboring rules.
Nextracker’s recent acquisitions in EBOS, foundations, robotics, and steel module frames represent key components of its growth strategy, allowing the company to capture more revenue per megawatt of solar deployments.
With projected free cash flow exceeding $150 million in FQ2 and over $500 million for the full fiscal year 2026, Nextracker maintains what Wolfe describes as a "fortress" balance sheet with no meaningful debt.
In recent developments, Nextracker signed a multi-year framework agreement with T1 Energy, valued at over $75 million, to supply steel module frames for T1’s new solar manufacturing facility. Additionally, Needham initiated coverage on the company with a Buy rating, and UBS reiterated its Buy rating.
Quanta is expected to report in-line Q3 results with revenue of $7.4 billion and adjusted EBITDA of $828 million. Multiple catalysts could fuel backlog growth, particularly related to data center demand. The company’s electric infrastructure segment backlog is estimated at $30.9 billion with a book-to-bill ratio of 1.1x.
Quanta is also positioned to benefit from growing interest in gas-fired generation, with the company reportedly in discussions with existing customers about building gas plants.
While renewable energy remains a concern for investors, Wolfe believes the fear is overstated, noting that Quanta’s customer base is concentrated among tier 1 renewable developers with sufficient capital.
Quanta Services received an upgrade to Buy from Jefferies, which cited growth opportunities in data centers and renewables. The company also saw price target increases from Stifel and TD Cowen, along with new coverage initiations from Mizuho and Texas Capital Securities.
MasTec is expected to report Q3 results in line with guidance, with revenue of $3.9 billion and adjusted EBITDA of $368 million. Despite delays in the Greenlink transmission project, Wolfe Research sees MTZ approaching an inflection point in gas infrastructure spending to support LNG export infrastructure and gas-fired generation build-out for data center power demand.
The company’s communications segment is forecast to maintain steady growth, with full-year revenue expected to increase 20% year-over-year, supported by strong demand in wireline and fiber for data centers.
Like Quanta, MasTec has focused on larger, better-capitalized developers, which should help mitigate concerns about renewable headwinds.
MasTec was recently upgraded to Outperform by Wolfe Research, which noted an approaching inflection point in gas infrastructure spending. The company also received price target increases from KeyBanc and Stifel, and Mizuho initiated coverage with an Outperform rating.
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