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• Revenue: Q4 revenue reached a record $924 million, up 26% year-over-year; full-year revenue approximately $3 billion, an 18% increase over fiscal '24.

• Adjusted EBITDA: Q4 adjusted EBITDA was $242 million, a 52% increase year-over-year; full-year adjusted EBITDA was $776 million, up 49% compared to fiscal '24.

• Adjusted Gross Margin: Q4 adjusted gross margin was 33.4%, down 260 basis points from Q3.

• Adjusted Diluted EPS: Fiscal '25 adjusted diluted EPS was $4.22, up 38% year-over-year; Q4 adjusted EPS was $1.29, a 34% increase compared to the prior year.

• Adjusted Free Cash Flow: Q4 adjusted free cash flow was $227 million; full-year adjusted free cash flow was $622 million.

• Operating Cash Flow: Q4 operating cash flow was $237 million.

• Cash and Liquidity: Ended the year with $766 million in cash and approximately $1.7 billion of total liquidity.

• Debt and Acquisitions: Used $150 million to retire debt and $152 million for acquisitions, including Bentek Corporation.

• Fiscal 2026 Outlook: Expected revenue between $3.2 billion and $3.4 billion; adjusted EBITDA between $700 million and $775 million; adjusted diluted EPS between $3.65 and $4.03.

• CapEx and OpEx Plans: FY26 CapEx planned at approximately $100 million; OpEx to increase by approximately 100 basis points as a percentage of revenue.

• Warning! GuruFocus has detected 2 Warning Sign with NXT.

Release Date: May 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• NEXTracker Inc (NASDAQ:NXT) achieved $3 billion in revenue for fiscal year 2025, surpassing their forecast of $2.8 billion to $2.9 billion.

• The company delivered $785 million in adjusted EBITDA, exceeding their forecast of $600 million to $650 million.

• NEXTracker Inc (NASDAQ:NXT) has a strong market position, being the global and US market share leader for nine consecutive years.

• The company's backlog has more than doubled from $2.1 billion at their IPO in February 2023 to over $4.5 billion.

• NEXTracker Inc (NASDAQ:NXT) is expanding its product offerings by acquiring Bentek Corporation, enhancing their solar power platform capabilities.

Negative Points

• The company's adjusted gross margin in Q4 was 33.4%, down 260 basis points from Q3 due to onetime benefits recognized in the prior quarter.

• NEXTracker Inc (NASDAQ:NXT) anticipates increased OpEx as a percentage of revenue by approximately 100 basis points in fiscal 2026.

• The company expects to increase CapEx to approximately $100 million in fiscal 2026, which may impact free cash flow.

• There are ongoing policy uncertainties, particularly related to the house tax bill, which could impact future business.

• International margins are generally lower compared to the US, which could affect overall profitability as the company expands globally.