Oct 28, 2026 earnings call — Record quarter and product expansion
Nextpower reported record Q2 revenue over $1.1 billion and raised fiscal year 2027 revenue outlook to $4.2 billion to $4.45 billion.
Revenue $1.1B (est $1.1B) · EPS $1.31 (est $1.10)
Key quotes
"Tracker sales drove sequential backlog growth to a new record, exceeding $6 billion, while our non-tracker businesses continued to gain momentum."
"Additionally, we secured a 1.1 gigawatt inverter framework agreement covering 5 projects, and we shipped our first Nextpower branded power conversion system to customers in the quarter."
"For full year 2027, we continue to expect adjusted gross margins in the low 30s and adjusted EBITDA margins in the low 20s."
Analyst Q&A 10
bookings size and non-tracker share
Q (Philip Shen · ROTH Capital): Confirm if bookings were greater than $1.6 billion and how much of bookings came from non-tracker products (eBOS $100 million, any BESS or inverter dollars). Also asked if strength continues into FQ3.
A: Management said they had "over $1 billion in bookings" and noted the quarter was well over a book-to-bill of 1. They said non-tracker bookings in the quarter were "greater than 20%" and that demand is strong for both tracker and non-tracker products in the U.S. and select international markets.
"Non-tracker bookings in the quarter were greater than 20%." — Howard Wenger (PRESIDENT)
module tariffs, permitting, and non-tracker mix
Q (Dimple Gosai · Piper Sandler): Are current delays tied to module supply, Commerce Section 232, or permitting? How confident are you in Q4 execution versus slippage into '28? And does non-tracker mix rising from 14% to 22% come from acquisitions or slower tracker growth and how to think about '27?
A: They said they see continued demand strength in the U.S. and are not seeing significant module supply pain for near-term projects, and "there are some projects that are impacted with permit delays, but there are other projects that are accelerating." They also said tracker growth remains strong and that the record backlog of "over $6 billion would have been over $6 billion without the storage acquisition," while new acquisitions will grow faster from a smaller base.
"In fact, our record backlog of over $6 billion would have been over $6 billion without the storage acquisition." — Charles Boynton (CFO)
Zimmermann deal and logistics costs
Q (Ben Kallo · Baird): How does the Zimmermann acquisition fit into the international opportunity and what mix should be expected going forward? Also, can you negotiate pass-throughs for rising fuel/logistics costs with customers?
A: They said Zimmermann brings a complementary European footprint and products, adding markets and cross-sell opportunities and enabling synergies across products, market and cost. On logistics and fuel, management said they built a domestic supply-chain hedge, noted "diesel year-to-date is up roughly 80% as a result of the Gulf War," and are considering ways to work with customers though logistics indices are less straightforward than commodity pass-throughs.
"They have a really excellent footprint in Europe that's complementary to ours." — Howard Wenger (PRESIDENT)
energy storage economics and backlog inclusion
Q (Christine Cho · Barclays): Are the $100 million revenue and $20 million adjusted EBITDA storage results representative? How will cadence and margins vary, opportunity for LTSAs, and does the $100 million include LTSAs? Also, does backlog and guidance include Zimmermann and was Prevalon backlog included last quarter?
A: They said the "$100 million is a number of customers, but primarily one larger customer, Tier 1 data center hyperscaler customer." They noted margins vary by application and that their initial model outlined mid-teens operating margins, that LTSA was immaterial for the quarter but they see long-term LTSA opportunity, and that Prevalon Nextpower Energy Storage was added to end-of-Q2 numbers while Zimmermann is included in outlook but its backlog is not included.
"Yes, the $100 million is a number of customers, but primarily one larger customer, Tier 1 data center hyperscaler customer." — Charles Boynton (CFO)
Zimmermann consideration and inverter timing
Q (Mark W. Strouse · JPMorgan): Why was the Zimmermann consideration and financial impact lowered since June? Also, was the 1.1 gigawatt inverter contract long in the works or driven by recent policy changes?
A: They said after closing they re-forecasted Zimmermann by reviewing backlog, forecast and pipeline and "conformed it to the way we look at things and how we put forecast together," which led to updated consideration but the deal remains accretive with fundamentals intact. On the inverter, they said the opportunity "has been in the works for a while," the FCC ban and cybersecurity concerns are tailwinds, and they are shipping UL- and IEC-listed units and building U.S. capacity to start operating next summer.
"And during that interval, we looked very closely at their backlog, their forecast, their pipeline, and we conformed it to the way we look at things and how we put forecast together." — Howard Wenger (PRESIDENT)
data center storage traction and tests
Q (Brian Lee · Goldman Sachs): What's the outlook and customer engagement for data center/hyperscaler wins in energy storage? Any color on traction with hyperscaler customers?
A: They described the market as a new category where battery inverter systems can support data-center-type loads that the grid and rotating machines cannot, enabling customers to come online and use more solar. They also said their Hybrid Power Stabilizer "just recently passed full-scale testing at a major national laboratory," is UL listed, and the team has delivered 38 projects over the last 8 years.
"It just recently passed full-scale testing at a major national laboratory, which is really exciting." — Daniel Shugar (CEO)
inverter ramp and timing
Q (Carter Goman · Jefferies): Over what time period does the 1.1 gigawatt framework deliver? And how should we think about the ramp to the 10 gigawatts of capacity next summer and whether demand shows up in '27 or later?
A: They said they will provide more detail at Capital Markets Day in 3 weeks and that they will start delivering units this summer from the new factory. They emphasized they are focused on product quality, reliability and meeting customer needs.
"We'll be providing more color on the ramp at Capital Markets Day in 3 weeks from now." — Daniel Shugar (CEO)
tax credit outlook and international mix
Q (Corinne Blanchard · Deutsche Bank): Any view on the midterm election outcome or extension of manufacturing tax credits like 45X, and what percent of revenue do you expect from international for the rest of '27 and '28 and any margin impact from diversification?
A: On 45X and manufacturing credits they said those credits have strong bipartisan support and they expect their inverter program to participate, but they would not call the election outcome. On international, they said international accelerated in Q2 and with Zimmermann will add more, and "For the full year, it looks to be about 80-20, but the back half, it will be more high 70s for U.S. and kind of low 20s for international." They also noted storage is mainly focused in the U.S., which could skew percentages.
"For the full year, it looks to be about 80-20, but the back half, it will be more high 70s for U.S. and kind of low 20s for international." — Charles Boynton (CFO)
cross-sell products in Europe
Q (Christopher Dendrinos · RBC): What cross-sell opportunities exist in Europe now with Zimmermann, and which products will you take to market to leverage that relationship?
A: They said they see opportunities to extend beyond trackers, starting with foundations and then moving outward to inverter and storage, and they are also looking at bringing eBOS to market. They expect storage demand in countries with excess daytime solar like Germany and Spain and said this is part of a go-to-market plan that would hit revenue in fiscal year '28, with more detail at Capital Markets Day.
"And we're doing that with foundations first to kind of go from the tracker outward to the inverter and then storage, and that's been the sequence." — Howard Wenger (PRESIDENT)
cost inflation, sharing, and indexation
Q (Sean McLoughlin · HSBC): What level of cost sharing do you have with customers on freight and commodities, how indexed are you to commodity prices like steel, and has anything changed in customer discussions because of higher costs?
A: They said their global factory footprint provides an advantage that reduces logistics exposure, and that freight and logistics costs are usually built into project quotes and for long-term contracts they generally absorb those costs while they would share costs for contracts already in flight. For steel they said cost-sharing arrangements exist in some contracts like their VCA agreements, but it depends on timing and contract structure.
"And so those are just costs that, in general, for long-term contracts that we will absorb." — Charles Boynton (CFO)