Slide 1: Q2 FY2025 Shareholder Letter
Q2 FY2025 SHAREHOLDER LETTER October 30, 2024 Winneke Solar Farm powering Melbourne Water’s Water Treatment Plant in Melbourne’s northeast, featured technology: Nextracker NX Horizon-XTRTM all terrain tracker
Slide 2: 1H FY25 Highlights
1H FY25 Highlights Revenue ($M) Adjusted EBITDA ($M) 348 +29% 26% +79% 1,355 Adj. EBITDA % 1,053 194 1H 18% 1H YoY YoY 1H FY25 adj. EBITDA margin of 26% 1H FY24 1H FY25 1H FY24 1H FY25 GAAP Adjusted Gross Profit ($M) Gross Profit ($M) 1H FY25 Financial Highlights • 29% revenue growth YoY and record
Slide 3: Dear Shareholder
Dear Shareholder, We are pleased to share the results of our second quarter of fiscal year 2025. On our earnings conference call, we will provide short opening remarks and a Q&A session. We look forward to speaking with you on our call, held on October 30 at 2:00 p.m. PT. Vision Mission A world powe
Slide 4: Q2 FY25 Results
Q2 FY25 Results Revenue +11% YoY We are very pleased with the continued excellent execution by the company across the board in products, sales, and operations driving solid financial performance. $636 Million Q2 revenue increased 11% YoY to $636 million and 1H FY25 Adjusted EBITDA +57% YoY revenue i
Slide 5: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook We are reaffirming FY25 revenue outlook and raising our FY25 profit outlook. We expect revenue to be in the range of $2.8 billion to large-scale projects spanning multiple quarters $2.9 billion, adjusted EBITDA to be in the range of and multiple geographies. $625 million to
Slide 6: Reaffirms Revenue Outlook, Raises Profit Outlook FY25
Reaffirms Revenue Outlook, Raises Profit Outlook FY25 Revenue • Adjusted EBITDA range increased $20 million to $645 million 2.8 - 2.9B at the midpoint and excludes approximately $119 million for $ $ stock-based compensation, acquisition related costs, and net intangible amortization. 14% YoY Growth
Slide 7: Innovation and Product Update
Technology featured: NX HorizonTM installed on full-scale wind tunnel test facility at the National Renewable Energy (NREL) Lab, Golden Colorado campus Innovation and Product Update Our customers recognize that proven engineering, technology, and delivery experience really matter. Our inventions, pr
Slide 8: NX Foundation Solutions: A Complete Portfolio
INNOVATION AND PRODUCT UPDATE Unveiled NX Foundation Solutions Landing Solar “Anywhere” at RE+ In September at RE+, we announced our NX Foundation Solutions • Acquisitions of Ojjo and Solar Pile International’s (SPI) foundations business business, which included the introduction of both the announce
Slide 9: NX Foundation Solutions services and share of wallet
INNOVATION AND PRODUCT UPDATE NX Foundation Solutions also include a suite of services Approximately comprising a team of experts providing geotechnical reviews, onsite testing, foundation design, product selection, proprietary 20%-40% equipment, and installation support. This new service offering s
Slide 10: Inaugurated India's R&D Center for Solar Excellence in Hyderabad
INNOVATION AND PRODUCT UPDATE Nextracker is further deepening its commitment to developing solar technology in India with a new Center for Solar Excellence in Hyderabad. Inaugurated India’s R&D Center Today, Nextracker has over 35 reliable utility for Solar Excellence in Hyderabad scale projects del
Slide 11: Customer Wins, Bookings, and Backlog
Customer Wins, Bookings, and Backlog Q2 marks our seventh consecutive quarter of sequential growth in backlog, resulting in a record total backlog of over $4.5 billion. With our solar tracker fleets operating in over 40 countries, global demand remained healthy in the quarter. We operate our busines
Slide 12: Customer Wins, Bookings, and Backlog: U.S. and International
CUSTOMER WINS, BOOKINGS, AND BACKLOG U.S. Business International Business - Rest of World Our differentiated value-driven products along In Q2, internationally, we delivered a solid quarter of with strategic alignment with both EPC partners bookings with one-third of our total bookings attributed an
Slide 13: A Global and Diversified Supply Chain
Nextracker technology featured on Koppal Solar Power Plant, Karnataka, India A Global and Diversified Supply Chain Nextracker’s 100 GW+ shipments demonstrate the global scale of our supply chain. Our annual global capacity remains over 50 GW, including over 30 GW of capacity in the U.S. We continue
Slide 14: Accelerating Shipment of 100% U.S. Domestic Content
A GLOBAL AND DIVERSIFIED SUPPLY CHAIN Accelerating Shipment of 100% Smart solar panel featured on NX Horizon smart solar tracker U.S. Domestic Content to End of CY24 Last quarter, we announced we are taking orders to fulfill what we believe will be the first 100% U.S. domestic content capability wit
Slide 15: Industry Update
NX HorizonTM integrated with TrueCaptureTM software and agrivoltaics powering University of Queensland at Warwick Solar Farm, Australia Industry Update In this section, we are highlighting short and long-term market dynamics that have relevant impacts on our business and industry. The increase in el
Slide 16: Industry Update: Solar and Storage Capacity Additions
INDUSTRY UPDATE Solar continues to dominate new power generation Battery storage is also increasing rapidly, from close to added to the U.S. utility grid, and the share of solar zero 3 years ago, to about 7 GW last year, or 13% of total continues to break away from all other forms of capacity added
Slide 17: Industry Update: DOE Transmission Study
INDUSTRY UPDATE The DOE also completed a major electric transmission study in October, and announced four important new power lines awarded for construction. Key takeaways from the study • Under current policies, the lowest-cost U.S. electricity system • Grid reliability is significantly enhanced wi
Slide 18: Released Nextracker's Inaugural Sustainability Report
Agrivoltaics lab at Nextracker HQ Center for Solar Excellence, Fremont, California Released Nextracker’s Inaugural Sustainability Report Nextracker has been promoting sustainability principles since the Company’s inception in 2013. As a fully independent public company, we built on our earlier susta
Slide 19: Sustainability Report Highlights
RELEASED NEXTRACKER’S INAUGURAL SUSTAINABILITY REPORT In October, we released the Nextracker 2024 Inaugural Sustainability Report. This report highlights our first independent response to the Sustainability Accounting Standards Board (SASB) standard for the Electrical & Electronic Equipment industry
Slide 20: Financial Results
NX HorizonTM smart solar tracker featured at Janauba Solar Power Plant, Brazil (1.3 GW) Financial Results Shareholder Letter Q2 FY2025 Page 20
Slide 21: Financial Results: Revenue and Revenue Mix
FINANCIAL RESULTS Revenue ($M) Revenue Mix 737 710 720 Revenue Q1 Q2 Q3 Q4 Q1 Q2 636 $M, except % FY24 FY24 FY24 FY24 FY25 FY25 573 U.S. 270 382 556 494 511 462 480 YoY Change 0% 23% 70% 27% 89% 21% RoW 209 191 155 242 208 174 YoY Change 56% 23% -17% 89% 0% -9% U.S. % 56% 67% 78% 67% 71% 73% Q1 FY24
Slide 22: Financial Results: Profitability and Adjusted EBITDA
FINANCIAL RESULTS Profitability Adjusted EBITDA ($M) $M, except % Q1 Q2 Q3 Q4 Q1 Q2 175 173 and per share FY24 FY24 FY24 FY24 FY25 FY25 168 160 24% Adj. Gross Profit 116 152 212 222 241 228 27% 24% 22% Adj. YoY Change 130% 135% 157% 118% 109% 50% 110 EBITDA % 84 19% Adj. Gross Margin 24% 27% 30% 30%
Slide 23: Financial Results: Quarterly Results
FINANCIAL RESULTS Q2 net interest and other income was $4 million, to the two foundations company acquisitions, and the primarily driven by favorable foreign currency and implementation of transfer pricing strategies. At the interest income on our strong average cash balance end of Q2 FY25, diluted
Slide 24: Balance Sheet and Cash Flow
FINANCIAL RESULTS Balance Sheet and Cash Flow Our strong balance sheet, cash flow generation, Our debt to adjusted EBITDA (TTM) ratio is and ample liquidity remain competitive advantages. approximately 0.2x, with no significant debt maturities until fiscal 2028. In Q2, we have funded We closed the q
Slide 25: About Nextracker
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 acro
Slide 26: Forward Looking Statements
Forward Looking Statements This shareholder letter contains forward-looking perceptions of historical trends, current conditions, statements within the meaning of Section 27A of the expected future developments and other factors they Securities Act of 1933, as amended, and Section 21E believe to be
Slide 27: Use of Adjusted Financial Information
customers, their inability to perform under their Use of Adjusted contracts, or their default in payment to us; defects Financial Information or performance problems in our products; delays, disruptions or quality control problems in our product development operations; severe weather events, An expl
Slide 28: Schedule I: Statements of Operations
Schedule ScheduleI I Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except per share data) Three-month periods ended September 27, 2024 September 29, 2023 Revenue $ 635,571 $ 573,357 Cost of sales 410,776 424,247 Gross profit 224,795
Slide 29: Schedule II: Balance Sheets
Schedule II Schedule II Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) As of September 27, 2024 As of March 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 561,884 $ 474,054 Accounts receivable, net of allowance of $4,825 and $3,872, respectively 357,586 3
Slide 30: Schedule III: Statements of Cash Flows
Schedule III Schedule III Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) Three-month periods ended Six-month periods ended September 27, 2024 June 28, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Cash flows from operating activities: Net inc
Slide 31: Schedule IV: GAAP to Non-GAAP Reconciliation
Schedule Schedule IV IV Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages and per share data) Three-month periods ended September 27, 2024 June 28, 2024 March 31, 2024 December 31, 2023 September 29, 2023 June 30, 2023 GAAP gross profit & margin
Slide 32: Schedule IV: GAAP to Non-GAAP Reconciliation (continued)
development $ 19,193 3.0% $ 16,519 2.3% $ 13,090 1.8% $ 12,897 1.8% $ 7,146 1.2% $ 5,629 1.2% Stock-based compensation expense 1,987 2,834 2,317 1,780 — — Adjusted research and Schedule IV development $ 17,206 2.7% $ 13,685 1.9% $ 10,773 1.5% $ 11,117 1.6% $ 7,146 Schedule 1.2% IV $ 5,629 1.2% Nextr
Slide 33: Schedule V: Notes
Schedule V Nextracker Inc. Notes To supplement Nextracker’s unaudited selected performance on a period-to-period basis because financial data presented consistent with U.S. such items are not, in our view, related to the Generally Accepted Accounting Principles (“GAAP”), Company’s ongoing operationa
Slide 34: Schedule V: Notes (continued)
Schedule V each of these individual items in the reconciliations solar tracker. The Company has contractually of these non-GAAP financial measures: agreed with these suppliers to share a portion of the credit related to Nextracker’s purchases. The Stock-based compensation expense consists of Company