0001852131-25-000064
SEC filingRevenue grew 31% YoY to $1.77B driven by 34% GW delivery increase and acquisitions, while gross margin contracted 160bps due to tariff headwinds.
For the six months ended September 26, 2025, Nextracker delivered strong revenue growth of 31% year-over-year to $1.77 billion, fueled by a 34% increase in gigawatts (GW) delivered, particularly in the U.S., and contributions from recent acquisitions (Bentek, OnSight, Origami). Gross profit increased 24% to $575 million, but gross margin contracted 160 basis points to 32.5% from 34.1% in the prior year. The margin compression was driven by a $35.4 million increase in tariffs (largely steel-related), partially offset by a $192.3 million benefit from the Section 45X tax credit for domestic production. Operating income grew 25% to $368 million, while operating margin declined 90 basis points to 20.8%, reflecting higher selling, general, and administrative costs (up 19%) and research and development spending (up 36%) as the company scales its sales organization and invests in innovation. Net income rose 26% to $304 million, with adjusted EBITDA margin slipping to 24.8% from 25.6%. Non-GAAP adjustments included stock-based compensation ($54.0 million), intangible amortization ($5.0 million), and acquisition-related costs ($3.7 million).
Revenue by geography: U.S. revenue increased 32% to $1.29 billion, representing 73% of total revenue, driven by higher project volumes and demand. Rest of World revenue grew 26% to $483 million, led by shipments to Latin America, the Middle East, and Europe. Customer concentration remained moderate, with Customer H representing $222.5 million (12.6% of revenue) and Customer G $192.7 million (10.9%). The company's revenue mix remains predominantly solar tracker systems, but it has begun recognizing revenue from TrueCapture, eBOS, foundations, and robotic solutions following the acquisitions.
Management highlighted a disciplined capital allocation strategy prioritizing organic and M&A growth. The joint venture with Abunayyan Holding in Saudi Arabia is expected to close in the fourth fiscal quarter of 2026, expanding Middle East and North Africa exposure. The new $1.0 billion unsecured revolving credit facility (maturing 2030) enhances liquidity to $1.8 billion, supporting growth investments and potential future M&A. No explicit numeric guidance was provided, but the company expects research and development expenses to increase over time and selling, general and administrative costs to moderate as a percentage of revenue. The 45X tax credit continues to be a significant tailwind, while tariff impacts persist. The company remains focused on technological differentiation and expanding its integrated tracker platform.
As of September 26, 2025, Nextracker held $845.3 million in cash and cash equivalents, up from $766.1 million at March 31, 2025. The company has no outstanding debt on its balance sheet. A new $1.0 billion unsecured revolving credit facility was entered on September 8, 2025, replacing the prior $500 million secured facility. The facility matures in 2030, with $915.0 million available (net of $85 million in outstanding letters of credit). Total assets grew to $3.67 billion from $3.19 billion, driven primarily by $115.8 million in acquisition-related cash outflows and a $102.6 million increase in goodwill. Deferred tax assets stood at $513.7 million, largely related to the company's investment in Nextracker LLC.
Remaining performance obligations (RPO) totaled $471.2 million as of September 26, 2025, with approximately 79% expected to be recognized within the next 12 months. Deferred revenue on the balance sheet was $471.2 million ($372.3 million current, $98.9 million long-term). The company disclosed a significant contingent liability related to potential antidumping and countervailing duties (AD/CVD) on imported CSPV modules. The potential liability is estimated to be as much as approximately $120 million, plus compounded interest, though the likelihood and amount cannot be reasonably estimated at this time. The company has also accrued $21.3 million in product warranty reserves (current and long-term combined).
Nextracker did not repurchase any shares or pay dividends during the period. The company invested $26.7 million in capital expenditures (1.5% of sales). Net cash used in financing activities was $46.4 million, primarily for a $27.4 million payment under the Tax Receivable Agreement, $14.0 million payment of acquisition deferred purchase price, and $3.0 million in distributions to former non-controlling interest holders. The company wrote off $5.8 million in unamortized issuance costs related to the termination of its prior credit facility.
The company operates as a single reportable segment. Geographic revenue data shows that U.S. revenue accounted for $1.29 billion (72.7%) of the $1.77 billion six-month total, with Rest of World contributing $483.1 million (27.3%). The CODM evaluates performance using consolidated net income.