Executive Summary
Nextracker Inc reported remarkable financial results for Q1 2026, with a year-over-year revenue growth of 20% to reach $864 million, underpinned by strong demand for solar tracker solutions. The adjusted EBITDA rose by 23% to $215 million, reflecting improved operating efficiency and a robust margin of 25%. The company's backlog has surged to over $4.75 billion, indicating a solid demand outlook in an increasingly competitive market. CEO Dan Shugar highlighted the significance of recent legislative changes that have alleviated uncertainties in the solar manufacturing sector, showcasing Nextracker’s adeptness in navigating the evolving policy landscape.
Key Performance Indicators
Key Insights
**Revenue Performance:** Q1 2026 revenue of $864 million, up 20% YoY from $719 million in Q1 2025. Q1 also saw a decrease of 6.5% QoQ due to typical seasonality after a strong previous quarter. The company achieved gross profit of $282 million, representing a gross margin of 32.6%.
**Profitability:** Adjusted EBITDA increased 23% YoY, with an EBITDA margin of 25%. The net income for the quarter reached $157 million, reflecting a net margin of 18.2%, an increase from the previous year’s ...
Financial Highlights
Revenue Performance: Q1 2026 revenue of $864 million, up 20% YoY from $719 million in Q1 2025. Q1 also saw a decrease of 6.5% QoQ due to typical seasonality after a strong previous quarter. The company achieved gross profit of $282 million, representing a gross margin of 32.6%.
Profitability: Adjusted EBITDA increased 23% YoY, with an EBITDA margin of 25%. The net income for the quarter reached $157 million, reflecting a net margin of 18.2%, an increase from the previous year’s margin of 14.0%.
Balance Sheet Health: Cash at the end of the period was $743 million, with no outstanding debt, underscoring a strong liquidity position. The debt-free status allows Nextracker to invest in strategic opportunities, including recent acquisitions in robotics and AI.
Cash Flow: Generated $70 million in adjusted free cash flow, which was impacted by higher growth investments but still indicates strong operational cash generation capabilities.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
864.25M |
20.05% |
-6.50% |
| Gross Profit |
281.73M |
18.65% |
-7.84% |
| Operating Income |
186.23M |
16.33% |
-4.65% |
| Net Income |
157.18M |
29.16% |
0.25% |
| EPS |
1.06 |
23.26% |
-1.85% |
Management Commentary
Growth Strategy: CEO Dan Shugar stated, "We're scaling our platform to address this rapidly expanding opportunity and announced three strategic acquisitions in robotics and AI." This reflects Nextracker's focus on enhancing its product offerings beyond traditional solar solutions.
Market Position: President Howard Wenger remarked, "We are the #1 tracker provider worldwide... increasing our market share to 26% during 2024." This establishes Nextracker's leadership in the solar industry amidst competitive pressures.
Customer Sentiment: Wenger also noted, "Our backlog is solid. No projects are dropping out," signifying strong customer retention and satisfaction postpartum OBBBA legislation.
"Our ability to consistently execute in challenging conditions speaks to the strength of our team, differentiated products and the quality of our customer relationships." - Dan Shugar
— Dan Shugar
"We experienced strong demand for our core NX Horizon tracker systems and TrueCapture technology, with recent products seeing quarter-over-quarter sales up 43% and 22%, respectively." - Howard Wenger
— Howard Wenger
Forward Guidance
Nextracker anticipates full-year revenue guidance between $3.2 billion and $3.45 billion. Management expects adjusted EBITDA between $750 million and $810 million, representing continued robustness in operational execution. The company is closely watching changes in the regulatory environment that might affect future project timelines and profitability. Shugar emphasized, "We're monitoring potential updates to safe harbor provisions..."