Nextpower Inc. · NASDAQ:NXT
Nextpower — Q1 2025 Earnings Presentation
44 slides from Nextpower's earnings presentation, Aug 1, 2024
Slide 1: Q1 FY2025 Shareholder Letter
Q1 FY2025 SHAREHOLDER LETTER August 1, 2024
Slide 2: Q1 FY25 Highlights
Q1 FY25 Highlights Revenue ($M) Adjusted EBITDA ($M) 720 175 +50% +109% 24% Adj. EBITDA % 480 84 Q1 Q1 YoY 17% YoY Q1 FY25 adj. EBITDA margin of 24% Q1 FY24 Q1 FY25 Q1 FY24 Q1 FY25 GAAP Adjusted Gross Profit ($M) Gross Profit ($M) Financial Highlights • 6th consecutive quarter of double-digit revenu
Slide 3: Dear Shareholder, Vision and Mission
Dear Shareholder, We are excited to have updated our earnings materials to include this new shareholder letter format, which centralizes information and provides more insight to help our shareholders and analysts develop a deeper understanding of our business and the industry. In addition to this le
Slide 4: Q1 FY25 Results
Q1 FY25 Results Revenue +50% YoY We are off to a strong start to our FY25, delivering new records in Q1. We achieved our sixth consecutive quarter $720 Million of YoY double-digit revenue growth, with revenue increasing 50% YoY to $720 million. Adjusted EBITDA +109% YoY $175 Million Adjusted EBITDA
Slide 5: Business Highlights: New Director Jeffrey Guldner
Business Highlights: New Director, Jeffrey Guldner Joined Nextracker’s Board • Launched NX HorizonTM Low Carbon Tracker in April 2024, the industry’s first low carbon tracker solution In June 2024, Jeffrey Guldner became the • Unveiled Agrivoltaics in July 2024, Nextracker’s suite newest member of o
Slide 6: Fiscal Year 2025 Outlook
Fiscal Year 2025 Outlook For the full fiscal year 2025, we are reaffirming our outlook. We expect revenue to be in the range of $2.8 billion to $2.9 billion, adjusted EBITDA to be in the range of $600 million to $650 million, and adjusted EPS to be in the range of $2.89 to $3.09 per share. In FY25,
Slide 7: Innovation and Product Update
Innovation and Product Update Our customers recognize that engineering, technology, and proven delivery experience really matter. Our inventions, products and technologies in mechanical features, electronic controls, and software are backed with over 600 patents issued and pending, including Ojjo an
Slide 8: Nextracker's Foundations Offering
Nextracker’s Foundations Offering The development of any utility-scale project is a long and complex process. Foundations are a key part of every utility-scale solar project installation. In addition, projects are often confronted with significant challenges related to land use considerations and va
Slide 9: Adding Foundations with Ojjo and SPI
NEXTRACKER’S FOUNDATIONS OFFERING Adding Foundations with Ojjo and Solar Pile International’s Foundations Business We are thrilled to welcome the teams from Ojjo and SPI’s foundations team to Nextracker! With the success of our flagship tracker, NX-HorizonTM, and terrain following tracker, NX-Horizo
Slide 10: The Acquisition of Ojjo
NEXTRACKER’S FOUNDATIONS OFFERING The Acquisition of Ojjo Ojjo has innovated what we believe is a next generation of utility-scale solar foundations. An American company that was founded in 2018, Ojjo provides an innovative alternative solution for hard and rocky soil conditions for leading utility-
Slide 11: Advantages of Ojjo Solutions
NEXTRACKER’S FOUNDATIONS OFFERING Advantages of Ojjo Solutions • Less steel required • Controlled foundation positioning • Minimizes impact to environment with reduced grading and site earthwork Ojjo offers patented solar foundation solutions that reduce subsurface risk and eliminate the need for pr
Slide 12: Acquisition of Solar Pile International's Foundations Business
NEXTRACKER’S FOUNDATIONS OFFERING The Acquisition of Solar Pile International’s Foundations Business On July 31, 2024, we closed the acquisition of the solar foundations business held by Solar Pile International (SPI). The acquisition was completed through the purchase of Spinex Systems Inc. and ass
Slide 13: Agrivoltaics
Agrivoltaics NX HorizonTM — Industry’s Highly Configurable Solar Tracker System for Large-Scale AgriPV Projects AgriPV aligns with our mission as we scale our business in utility-scale solar. We view AgriPV as an incremental application for solar, which is also helpful in furthering community and pe
Slide 14: Agrivoltaics Enables Dual Land Use
AGRIVOLTAICS Just a few weeks ago, we celebrated the upcoming commercial operations of the 400 MW Mammoth North Star Project, one of the largest projects in the U.S. owned by Doral Renewables USA providing energy to American Electric Power, built by SOLV Energy. This is a great example of a real app
Slide 15: Agrivoltaics
AGRIVOLTAICS Paired with either the NX HorizonTM smart solar tracker or NX Horizon-XTRTM terrain following Agrivoltaics, in my mind, that’s the future tracker, we take a light-on-land approach that of solar. Agrivoltaics enables you to hand preserves rich topsoil, protecting vegetation and off the l
Slide 16: NX Horizon Low Carbon Tracker
NX Horizon Low Carbon Tracker In April, we launched the industry’s first low carbon tracker solution — our flagship NX HorizonTM solar tracker system with up to 35% reduced carbon footprint throughout the entire product lifecycle. While still early, we have secured initial sales orders from leading
Slide 17: NX Horizon Low Carbon Tracker
NX HORIZON LOW CARBON TRACKER By sourcing our steel from mills that use recycled In connection with our Made in America efforts, we have steel and Electric Arc Furnace (EAF) processes partnered with more than 20 domestic manufacturers powered by electricity instead of traditional throughout the U.S.
Slide 18: Customer Wins, Bookings, and Backlog
Customer Wins, Bookings, and Backlog With our solar tracker fleets operating in over 40 countries, global demand remained healthy in the quarter. We are off to an excellent start to our fiscal year 2025 with healthy U.S. and international bookings. Q1 marks our sixth consecutive quarter of sequentia
Slide 19: Customer Wins, Bookings, and Backlog: U.S. and International
CUSTOMER WINS, BOOKINGS, AND BACKLOG U.S. Business Our bookings momentum continued with strategic alignment with both EPC partners and developers and owners. Leading with our deep engineering and technology offerings, we have successfully booked multiple large project orders in Q1. The overall produ
Slide 20: A Global and Diversified Supply Chain
A Global and Diversified Supply Chain Last quarter, we proudly announced our 100 GW shipment milestone that demonstrates the true scale of our global supply chain. Our annual global capacity is over 50 GW, including over 30 GW of capacity in the U.S. We remain very well positioned with more than 80
Slide 21: U.S. Supply Chain
A GLOBAL AND DIVERSIFIED SUPPLY CHAIN U.S. Supply Chain U.S. federal incentives such as the investment tax credit (ITC) for project owners and Section 45X domestic manufacturing tax credits have empowered Nextracker and our industry partners to confidently invest in U.S. manufacturing — creating new
Slide 22: Announcing 100% U.S. Domestic Content Capability
A GLOBAL AND DIVERSIFIED SUPPLY CHAIN Announcing 100% U.S. Domestic Content Capability We are currently taking orders expecting to fulfill what Our view is that the policy intention of the 45X we believe will be the first 100% U.S. domestic content tax credit is to enable U.S.-manufactured solar cap
Slide 23: JM Steel Pittsburgh and Unimacts Factory Expansions
A GLOBAL AND DIVERSIFIED SUPPLY CHAIN JM Steel’s Pittsburgh Facility Expansion In April 2024, Nextracker and JM Steel, a subsidiary of JENNMAR Holdings, jointly announced the completion of a major expansion of Nextracker-dedicated manufacturing lines at JM Steel’s facility in Leetsdale, Pennsylvania
Slide 24: Industry Update
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 electric power demand in the U.S. and key global regions is driven in part by the growth of data center demand, electrification of mobilit
Slide 25: Industry Update: Solar & Solar + Storage
INDUSTRY UPDATE Last quarter, we discussed the significance of the electric grid interconnection queue and its impact on new power generation and capacity. According to the U.S. Department of Energy’s Lawrence Berkeley Laboratories, for new planned power, solar and storage make up over 80% of the 20
Slide 26: Industry Update: Grid-Enhancing Technologies
INDUSTRY UPDATE It’s clear from the queue data there’s a significant shift We believe the current adoption of HTLS in the U.S. is to renewables underway in the U.S. All of this growth low. As such, HTLS offers an opportunity to decongest is not without headwinds. One major constraint we the grid in
Slide 27: Global Solar Markets Heating Up
INDUSTRY UPDATE Global Solar Markets Heating Up In the last few years, we have seen real tangible benefits in the U.S. from federal policies, boosting both the U.S. economy and manufacturing efforts. We believe the policy incentives represented by the U.S. Inflation Reduction Act is motivating simil
Slide 28: Financial Results
Financial Results Shareholder Letter Q1 FY2025 Page 28
Slide 29: Financial Results: Revenue and Revenue Mix
FINANCIAL RESULTS Revenue ($M) Revenue Mix 737 710 720 Revenue Q4 Q1 Q2 Q3 Q4 Q1 $M, except % FY23 FY24 FY24 FY24 FY24 FY25 573 518 U.S. 390 270 382 556 494 511 480 YoY Change 30% 0% 23% 70% 27% 89% RoW 128 209 191 155 242 208 YoY Change -9% 56% 23% -17% 89% 0% U.S. % 75% 56% 67% 78% 67% 71% Q4 FY23
Slide 30: Financial Results: Profitability
FINANCIAL RESULTS Profitability Adjusted EBITDA ($M) $M, except % Q4 Q1 Q2 Q3 Q4 Q1 and per share FY23 FY24 FY24 FY24 FY24 FY25 168 175 160 Adj. Gross Profit 102 116 152 212 222 241 24% 24% 22% Adj. YoY Change 159% 130% 135% 157% 118% 109% 110 EBITDA % 84 19% Adj. Gross Margin 20% 24% 27% 30% 30% 34
Slide 31: Financial Results: Quarterly Results
FINANCIAL RESULTS Q1 net interest and other expense was $8 million, primarily driven by unfavorable foreign currency losses in Latin America. Interest expense was more than offset by interest income, driven by our healthy cash balance throughout the quarter. Q1 adjusted effective tax rate of 21% was
Slide 32: Balance Sheet and Cash Flow
FINANCIAL RESULTS Balance Sheet and Cash Flow Our strong balance sheet, cash flow generation, and maturities until fiscal 2028. As of the date of ample liquidity remain competitive advantages. this letter, we have funded acquisitions of approximately $150 million with existing cash. We closed the qu
Slide 33: Outlook
Outlook We are reaffirming our FY25 annual outlook. We manage our business on an annual and multi-year basis, which is consistent with the nature of large-scale projects. Every project can be impacted by both headwinds and tailwinds, such as interconnection agreements, permitting, weather, equipment
Slide 34: Earnings Call
Earnings Call August 1, 2024 2:00 p.m. PT / 5:00 p.m. ET Live webcast available on investors.nextracker.com Shareholder Letter Q1 FY2025 Page 34
Slide 35: Upcoming Events
UPCOMING EVENTS Upcoming Events RE+ Industry Event We are excited to be a part of the largest clean energy event in North America, RE+ in Anaheim, California. We expect to have new product announcements at RE+ and look forward to seeing many of you there! Events Aug 5 Keybanc Investor Conference Web
Slide 36: About Nextracker
About Nextracker Nextracker is a leading provider of intelligent, integrated solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects around the world. Our products enable solar panels power plants to follow the sun’s movement across the sky
Slide 37: 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 38: Use of Adjusted Financial Information
in our products; delays, disruptions or quality control Use of Adjusted problems in our product development operations; Financial Information severe weather events, natural disasters and other catastrophic events; our continued expansion into new markets; electric utility industry policies and An ex
Slide 39: Schedule I
Schedule I Schedule I Nextracker Inc. Unaudited condensed consolidated statements of operations and comprehensive income (In thousands, except share and per share data) Three-month periods ended June 28, 2024 March 31, 2024 June 30, 2023 Revenue $ 719,921 $ 736,515 $ 479,543 Cost of sales 482,481 39
Slide 40: Schedule II
Schedule II Schedule II Nextracker Inc. Unaudited condensed consolidated balance sheets (In thousands) As of June 28, As of March 31, 2024 2024 ASSETS Current assets: Cash and cash equivalents $ 471,879 $ 474,054 Accounts receivable, net of allowance of $4,020 and $3,872, respectively 401,937 382,68
Slide 41: Schedule III
Schedule III Schedule III Nextracker Inc. Unaudited condensed consolidated statements of cash flows (In thousands) Three-month periods ended June 28, 2024 March 31, 2024 June 30, 2023 Cash flows from operating activities: Net income $ 124,794 $ 223,200 $ 63,645 Depreciation and amortization 941 1,22
Slide 42: Schedule IV
Schedule IV Nextracker Inc. Reconciliation of GAAP to Non-GAAP Financial measures (In thousands, except percentages, shares and per share data) Schedule IV Three-month periods ended June 28, 2024 March 31, 2024 December 31, 2023 September 29, 2023 June 30, 2023 March 31, 2023 GAAP gross profit & mar
Slide 43: Schedule V Notes
Schedule V Nextracker Inc. Notes (1) 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 operat
Slide 44: Explanations of Non-GAAP Adjustments
The following are explanations of each of the footprint. These suppliers produce 45X Credit adjustments that we incorporate into non-GAAP eligible parts, including torque tubes, and structural measures, as well as the reasons for excluding fasteners, that will then be incorporated into a each of the