Nextpower Inc. (NASDAQ:NXT) shares are trading higher after the company reported better-than-expected third-quarter financial results and raised its FY26 guidance.
• Nextpower stock is approaching key resistance levels. Why is NXT stock breaking out?
Earnings Snapshot
On Tuesday, the company reported revenue growth of 34% year-over-year of $909 million, which exceeded the consensus of $810.7 million and adjusted EPS of $1.10, exceeding the street view of 93 cents.
The company authorized a share repurchase program to buy back up to $500 million of common stock over the next three years.
Nextpower raised its FY2026 guidance, projecting adjusted EPS of $4.26–$4.36, up from $4.04–$4.25 and slightly above the $4.25 analyst estimate.
The company also lifted its FY2026 sales outlook to $3.425 billion–$3.500 billion from $3.300 billion–$3.500 billion, versus the street view of $3.449 billion.
Solar Tracking Systems JV In Saudi Arabia
The company also announced that its joint venture will supply 2.25 GW of solar tracking systems to Larsen & Toubro for the Bisha Solar project.
The Bisha Solar project is one of Saudi Arabia's largest utility-scale solar plants under the NREP Wave 6 program.
Rating Upgrade
KeyBanc analyst Sophie Karp upgraded Nextpower from Sector Weight to Overweight and announced a price target of $142.
The analyst writes that third-quarter revenue was heavily U.S.-focused, with 81% domestic sales and the U.S. business up 63% YoY, reflecting a continued “flight to quality” toward reliable domestic solutions.
Profitability stayed strong, with adjusted EBITDA margin at 23.5% (vs. KBCM 22.3%) and adjusted gross margin at 32.4% (vs. KBCM 31.0%), adds the analyst.
Karp writes that he expects multi-year growth opportunities and a platform expanding beyond traditional solar trackers.
The analyst says that the company’s focus on less-commoditized BOS products should support competitive positioning and margins.
NXT's debt-free balance sheet and growing cash provide flexibility for opportunistic share buybacks, adds the analyst.
The analyst estimates revenue of $812.2 million (vs. consensus of $859.9 million) for the fourth quarter of FY26, $3.49 billion (vs. street view of $3.45 billion) for FY26, and $3.76 billion (vs. consensus of $3.84 billion) for FY27.
NXT Price Action: Nextpower shares are up 14.05% at $121.79 at publication on Wednesday.
Photo: fuyu liu via Shutterstock
