Nextracker Reports Q2 FY25 Financial Results

Reaffirms FY25 Revenue Outlook and Raises FY25 Profit Outlook

October 30, 2024

FREMONT, Calif. -- (BUSINESS WIRE) - Nextracker (Nasdaq: NXT), a global market leader of intelligent solar tracker and software solutions, today announced financial results for the second quarter of fiscal year 2025, ended September 27, 2024.

Financial Summary
(In millions, except per share)

	Q2 FY25*	Q1 FY25*	Q2 FY24*
Revenue	$636	$720	$573
GAAP Gross Profit	$225	$237	$149
GAAP Gross Margin	35.4%	33.0%	26.0%
GAAP Net Income	$117	$125	$81
GAAP Net Income Margin	18.5%	17.3%	14.2%
GAAP Diluted EPS	$0.79	$0.84	$0.55
Adjusted Gross Profit	$228	$241	$152
Adjusted Gross Margin	35.9%	33.5%	26.6%
Adjusted EBITDA	$173	$175	$110
Adjusted EBITDA Margin	27.2%	24.3%	19.2%
Adjusted Net Income	$145	$139	$96
Adjusted Diluted EPS	$0.97	$0.93	$0.65

*Q2 FY25 and Q1 FY25 GAAP and adjusted results include approximately $51 million and $47 million, respectively, of IRA 45X advanced manufacturing tax credit vendor rebates (45X credits). Q2 FY24 results do not include 45X credits.

Please refer to Nextracker's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K for more information on 45X credits and schedules IV and V attached to this press release for a reconciliation of non-GAAP to GAAP financial measures. Additional information can be found on the Investor Relations section of our website.

Business Highlights

• Unveiled NX Foundation Solutions at 2024 RE+ North America in Anaheim, California
• Signed 100% U.S. domestic content project contracts and accelerated planned ship date to the end of CY24
• Expanded manufacturing footprint to over 85 partner manufacturing facilities
• Inaugurated India's first R&D Center for Solar Excellence in Hyderabad, the third global R&D center along with centers in Brazil and the U.S.

"We're very pleased with the company's execution, driving a record first half of fiscal year 2025 with strong demand in Q2," said Dan Shugar, founder and CEO of Nextracker. "In the quarter, we successfully executed on the launch of our new NX Foundation Solutions portfolio. We are also pleased to report that we have received customer orders for all of our new products launched in the last year, including NX Horizon-XTR™ 1.5 all-terrain tracker, NX Horizon™ Low Carbon Tracker, NX Hail Pro-75, and NX Foundation Solutions. Finally, we accelerated our planned timeline for our 100% U.S. domestic content projects ship date from early CY25 to before the end of the current calendar year."

"We finished Q2 with strong execution and operational discipline, driving meaningful improvements in margins, which allows us to raise our FY25 profit outlook," said Chuck Boynton, CFO of Nextracker. "In the first half of FY25, we generated $260 million in adjusted free cash flow, bolstering our balance sheet with over $560 million of total cash and cash equivalents, bringing our total liquidity to over $1.5 billion."

FY2025 Annual Outlook
Reaffirms FY25 revenue outlook and raises FY25 profit outlook

Updated Outlook	Previous Outlook
Revenue	$2.8 billion to $2.9 billion	$2.8 billion to $2.9 billion
GAAP Net Income	$378 to $408 million	$363 million to $393 million
GAAP Diluted EPS	$2.50 to $2.70	$2.37 to $2.57
Adjusted EBITDA	$625 to $665 million	$600 million to $650 million
Adjusted Diluted EPS	$3.10 to $3.30	$2.89 to $3.09

Adjusted EBITDA and adjusted diluted EPS exclude approximately $119 million and $0.60, respectively, for stock-based compensation, acquisition related costs and net intangible amortization.

Q2 FY2025 Earnings Call

October 30, 2024
2:00 p.m. PT / 5:00 p.m. ET
Live webcast available on investors.nextracker.com

We encourage you to review our Q2 FY25 Shareholder Letter, which, along with this press release, is available on the Nextracker Investor Relations website and includes important information for Nextracker shareholders that supplements and expands on the information in this press release.

The webcast replay will be available on the Nextracker Investor Relations website following the conclusion of the event.

Upcoming Events

Nextracker leadership executives will present at the upcoming investor conferences:

Baird Global Industrial Conference - Chicago, IL

Fireside Chat
November 13, 2024
8:50 a.m. PT / 11:50 a.m. ET

UBS Tech West - Scottsdale, AZ

Fireside Chat
December 4, 2024
10:35 a.m. PT / 1:35 p.m. ET
Live webcasts available on investors.nextracker.com

About Nextracker
Nextracker is a leading provider of intelligent, integrated solar tracker, foundations, and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar PV power plants to follow the sun's movement across the sky and optimize plant performance. With power plants operating in more than forty countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption, the expected benefits of the Ojjo, Inc. and Solar Pile International acquisitions, the expected benefits of the NX Foundation Solutions portfolio launch and other new product launches, our domestic content capabilities, and Nextracker's outlook for fiscal 2025 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker's management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Nextracker's most recent Quarterly Report on Form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements.

Use of Adjusted Financial Information
An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules III, IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com.

Channels for Disclosure of Information

Nextracker intends to announce material information to the public through the Nextracker Investor Relations website investors.nextracker.com, SEC filings, press releases, public conference calls, and public webcasts. Nextracker uses these channels to communicate with its investors, customers, and the public about the company, its offerings, and other issues. As such, Nextracker encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.

Investors, Financial Media & Press
Mary Lai
VP, IR & Financial Communications
[email protected]

Media
Kristan Kirsh
SVP, Global Marketing
[email protected]

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