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Nextracker Reports Q4 and FY24 Financial Results
[May 14, 2024]

Nextracker Reports Q4 and FY24 Financial Results


Nextracker (Nasdaq: NXT), a global market leader of intelligent solar tracker and software solutions, today announced financial results for the fourth quarter and fiscal year ended March 31, 2024.

Full FY2024 Financial Highlights

  • Revenue $2.5 billion, up 31% YoY
  • GAAP net income $496 million, diluted EPS $3.37
  • Adjusted EBITDA $521 million, up 150% YoY (excludes IRA 45X tax credit benefits)
  • Adjusted net income $451 million, adjusted diluted EPS $3.06 (excludes IRA 45X tax credit benefits)
  • Operating cash flow of $429 million and adjusted free cash flow of $427 million

Full FY2024 Business Highlights

  • Milestone of 100-gigawatts (GW) shipped globally since company inception
  • Record backlog of over $4 billion; Robust demand in U.S. and international markets
  • Launched 3 new products: NX Horizon Hail Pro™, NX Horizon XTR-1.5™, TrueCapture's Zonal Diffuse™
  • 20 new or expanded U.S. partner manufacturing facilities since 2021
  • Global annual supply capacity over 50 gigawatts, including U.S. capacity of over 30 gigawatts

Q4 FY2024 Financial Highlights:

  • Revenue $737 million, up 42% YoY
  • GAAP net income $223 million, diluted EPS $1.51
  • Adjusted EBITDA $160 million, up 120% YoY (excludes IRA 45X tax credit benefits)

"Fiscal year 2024 was a year of strong execution and significant growth for Nextracker, and we reached a record backlog of over $4 billion that more than tripled in 2 years," said Dan Shugar, founder and CEO of Nextracker. "We've accelerated our pace of product innovation, scaled global revenue and supply chain, more than doubled our profits from the prior year, and exceeded all elements of our full year guidance."

"We also reached a tremendous milestone being the first U.S. solar company to surpass 100 gigawatts of global shipments since Nextracker's inception, which underscores our sustained leadership position in the market. As we look ahead, we're very excited about solar accelerating its position as the number one source of new power generation in the U.S. and abroad."

FY2025 Annual Guidance

  • Revenue: $2.8 billion to $2.9 billion
  • GAAP net income: $369 million to $399 million
  • GAAP diluted EPS: $2.41 to $2.61
  • Adjusted EBITDA: $600 million to $650 million, which excludes approximately $95 million for stock-based compensation expense and net intangible amortization
  • Adjusted diluted EPS: $2.89 to $3.09, which excludes approximately $0.48 for stock-based compensation expense and net intangible amortization

Q4 FY2024 Earnings Call

May 14, 2024
2:00 p.m. PT / 5:00 p.m. ET
Live webcast available on investors.nextracker.com

The webcast replay, along with supporting materials, will be available on the Nextracker IR website following the conclusion of the event.

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 and optimize plant performance. With power plants operating in more than 30 countries worldwide, Nextracker offers solar tracker technologies that increase energy production while reducing costs for significant plant ROI. For more information, please visit www.nextracker.com.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the trends for future solar adoption and Nextracker's outlook for fiscal 2025 and other periods. These forward-looking statements are based on various assumptions and on the current expectations of Nextracker's management. These statements involve risks and uncertainties that could cause the actual results to differ materially from those anticipated by these forward-looking statements, including risks and uncertainties that are described under "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Nextracker's most recent Quarterly Report on form 10-Q, Annual Report on Form 10-K and other documents that Nextracker has filed or will file with the Securities and Exchange Commission. There may be additional risks that Nextracker is not aware of or that Nextracker currently believes are immaterial that could also cause actual results to differ from the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements. Nextracker assumes no obligation to update these forward-looking statements.

Use of Non-GAAP Financial Information

An explanation and reconciliation of non-GAAP financial measures to GAAP financial measures is presented in Schedules IV and V attached to this press release, and can be found, along with other financial information including the Earnings Presentation, on the investor relations section of our website at investors.nextracker.com.

Channels for Disclosure of Information

Nextracker intends to announce material information to the public through the Nextracker Investor Relations website investors.nextracker.com, SEC filings, press releases, public conference calls, and public webcasts. Nextracker uses these channels to communicate with its investors, customers, and the public about the company, its offerings, and other issues. As such, Nextracker encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.



Schedule I 

 

Nextracker Inc.

Unaudited condensed consolidated statements of operations and comprehensive income

(In thousands, except share and per share data)

 

Three-months ended

 

Twelve-months ended

 

March 31,
2024

 

March 31,
2023

 

March 31,
2024

 

March 31,
2023

Revenue

$

736,515

 

 

$

518,395

 

 

$

2,499,841

 

 

$

1,902,137

 

Cost of sales

 

396,045

 

 

 

428,083

 

 

 

1,686,792

 

 

 

1,615,164

 

Gross profit

 

340,470

 

 

 

90,312

 

 

 

813,049

 

 

 

286,973

 

Selling, general and administrative expenses

 

56,706

 

 

 

41,394

 

 

 

183,571

 

 

 

96,869

 

Research and development

 

13,090

 

 

 

8,336

 

 

 

42,360

 

 

 

21,619

 

Operating income

 

270,674

 

 

 

40,582

 

 

 

587,118

 

 

 

168,485

 

Interest, net

 

988

 

 

 

2,212

 

 

 

2,124

 

 

 

1,833

 

Other income, net

 

(13,378

)

 

 

(1,692

)

 

 

(23,003

)

 

 

(2,431

)

Income before income taxes

 

283,064

 

 

 

40,062

 

 

 

607,997

 

 

 

169,083

 

Provision for income taxes

 

59,864

 

 

 

12,532

 

 

 

111,782

 

 

 

47,750

 

Net income and comprehensive income

 

223,200

 

 

 

27,530

 

 

 

496,215

 

 

 

121,333

 

Less: Net income attributable to Nextracker LLC prior to the reorganization transactions

 

-

 

 

 

23,941

 

 

 

-

 

 

 

117,744

 

Less: Net income attributable to redeemable non-controlling interests and non-controlling interests

 

18,037

 

 

 

2,446

 

 

 

189,974

 

 

 

2,446

 

Net income attributable to Nextracker Inc.

$

205,163

 

 

$

1,143

 

 

$

306,241

 

 

$

1,143

 

 

 

 

 

 

 

 

 

Earnings per share attributable to the stockholders of Nextracker Inc.

 

 

 

 

 

 

 

Basic

$

1.48

 

 

$

0.02

 

 

$

3.97

 

 

$

0.02

 

Diluted

$

1.51

 

 

$

0.02

 

 

$

3.37

 

 

$

0.02

 

Weighted-average shares used in computing per share amounts:

 

 

 

 

 

 

 

Basic

 

138,389,259

 

 

 

45,886,065

 

 

 

77,067,639

 

 

 

45,886,065

 

Diluted

 

148,144,066

 

 

 

145,851,637

 

 

 

147,284,330

 

 

 

145,851,637

 

Schedule II 

 

Nextracker Inc.

Unaudited condensed consolidated balance sheets

(In thousands)

 

 

As of March 31,
2024

 

As of March 31,
2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

474,054

 

$

130,008

 

Accounts receivable, net of allowance of $3,872 and $1,768, respectively

 

382,687

 

 

271,159

 

Contract assets

 

397,123

 

 

297,960

 

Inventories

 

201,736

 

 

138,057

 

Other current assets

 

312,635

 

 

35,081

 

Total current assets

 

1,768,235

 

 

872,265

 

Property and equipment, net

 

9,236

 

 

7,255

 

Goodwill

 

265,153

 

 

265,153

 

Other intangible assets, net

 

1,546

 

 

1,321

 

Deferred tax assets and other assets

 

474,612

 

 

273,686

 

Total assets

$

2,518,782

 

$

1,419,680

 

LIABILITIES, REDEEMABLE INTERESTS AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

Current liabilities:

 

 

 

Accounts payable

 

456,639

 

 

211,355

 

Accrued expenses

 

82,410

 

 

59,770

 

Deferred revenue

 

225,539

 

 

176,473

 

Due to related parties

 

-

 

 

12,239

 

Other current liabilities

 

126,898

 

 

47,589

 

Total current liabilities

 

891,486

 

 

507,426

 

Long-term debt

 

143,967

 

 

147,147

 

TRA liability and other liabilities

 

491,301

 

 

280,246

 

Total liabilities

 

1,526,754

 

 

934,819

 

Redeemable non-controlling interest

 

-

 

 

3,560,628

 

Total stockholders' equity (deficit)

$

992,028

 

$

(3,075,767

)

Total liabilities, redeemable interests and stockholders' equity (deficit)

$

2,518,782

 

$

1,419,680

 

Schedule III 

 

Nextracker Inc.

Unaudited condensed consolidated statements of cash flows

(In thousands) 

 

Twelve-months ended

 

March 31, 2024

 

March 31, 2023

Cash flows from operating activities:

 

 

 

Net income

$

496,215

 

 

$

121,333

 

Depreciation and amortization

 

4,363

 

 

 

4,626

 

Changes in working capital and other, net

 

(71,605

)

 

 

(18,290

)

Net cash provided by operating activities

 

428,973

 

 

 

107,669

 

Cash flows from investing activities:

 

 

 

Purchases of property and equipment

 

(6,160

)

 

 

(3,183

)

Proceeds from the disposition of property and equipment

 

-

 

 

 

24

 

Purchase of intangible assets

 

(500

)

 

 

-

 

Net cash used in investing activities

 

(6,660

)

 

 

(3,159

)

Cash flows from financing activities:

 

 

 

Proceeds from bank borrowings and long-term debt

 

-

 

 

 

170,000

 

Repayments of bank borrowings

 

(1

)

 

 

(20,000

)

Net proceeds from issuance of Class A shares

 

552,009

 

 

 

693,781

 

Net proceeds from issuance of Class B shares

 

-

 

 

 

76

 

Purchase of LLC common units from Yuma, Inc.

 

(552,009

)

 

 

(693,781

)

Distribution to non-controlling interest holders

 

(66,881

)

 

 

(175,000

)

Net transfers (to) from Flex

 

(8,335

)

 

 

24,205

 

Other financing activities

 

(3,050

)

 

 

(2,853

)

Net cash used in financing activities

 

(78,267

)

 

 

(3,572

)

Effect of exchange rate on cash and cash equivalents

 

-

 

 

 

-

 

Net increase in cash and cash equivalents

 

344,046

 

 

 

100,938

 

Cash and cash equivalents beginning of period

 

130,008

 

 

 

29,070

 

Cash and cash equivalents end of period

$

474,054

 

 

$

130,008

 

 

Twelve-months ended

Adjusted free cash flow

March 31, 2024

 

March 31, 2023

Net cash provided by operating activities

$

428,973

 

 

$

107,669

 

Purchases of property and equipment

 

(6,160

)

 

 

(3,183

)

Proceeds from the disposition of property and equipment

 

-

 

 

 

24

 

Other financing

3,750

-

 

Adjusted free cash flow

$

426,563

 

 

$

104,510

 

Schedule IV 

 

Nextracker Inc.

Reconciliation of GAAP to Non-GAAP Financial measures

(In thousands, except percentages, shares and per share data)

 

Three-months ended

 

Twelve-months ended

 

March 31,
2024

 

March 31,
2023

 

March 31,
2024

 

March 31,
2023

GAAP gross profit

$

340,470

 

 

$

90,312

 

 

$

813,049

 

 

$

286,973

 

Stock-based compensation expense

 

3,096

 

 

 

11,689

 

 

 

10,764

 

 

 

12,794

 

Intangible amortization

 

87

 

 

 

62

 

 

 

275

 

 

 

250

 

Advanced manufacturing tax credit vendor rebate

$

(121,405

)

 

$

-

 

 

$

(121,405

)

 

$

-

 

Non-GAAP gross profit

$

222,248

 

 

$

102,063

 

 

$

702,683

 

 

$

300,017

 

GAAP operating income

$

270,674

 

 

$

40,582

 

 

$

587,118

 

 

$

168,485

 

Stock-based compensation expense

 

16,889

 

 

 

29,204

 

 

 

56,783

 

 

 

31,994

 

Intangible amortization

 

87

 

 

 

62

 

 

 

275

 

 

 

1,207

 

Legal costs and other

 

-

 

 

 

-

 

 

 

-

 

 

 

1,441

 

Advanced manufacturing tax credit vendor rebate

 

(121,405

)

 

 

-

 

 

 

(121,405

)

 

 

-

 

Non-GAAP operating income

$

166,245

 

 

$

69,848

 

 

$

522,771

 

 

$

203,127

 

GAAP net income

$

223,200

 

 

$

27,530

 

 

$

496,215

 

 

$

121,333

 

Stock-based compensation expense

 

16,889

 

 

 

29,204

 

 

 

56,783

 

 

 

31,994

 

Intangible amortization

 

87

 

 

 

62

 

 

 

275

 

 

 

1,207

 

Adjustment for taxes

 

23,567

 

 

 

(897

)

 

 

19,527

 

 

 

(2,880

)

Legal costs and other

 

-

 

 

 

-

 

 

 

-

 

 

 

1,441

 

Advanced manufacturing tax credit vendor rebate

 

(121,405

)

 

 

-

 

 

 

(121,405

)

 

 

-

 

Non-GAAP net income

$

142,338

 

 

$

55,899

 

 

$

451,395

 

 

$

153,095

 

GAAP Net income

$

223,200

 

 

$

27,530

 

 

$

496,215

 

 

$

121,333

 

Interest, net

 

988

 

 

 

2,212

 

 

 

2,124

 

 

 

1,833

 

Provision for income taxes

 

59,864

 

 

 

12,532

 

 

 

111,782

 

 

 

47,750

 

Depreciation expense

 

1,138

 

 

 

970

 

 

 

4,088

 

 

 

3,419

 

Intangible amortization

 

87

 

 

 

62

 

 

 

275

 

 

 

1,207

 

Stock-based compensation expense

 

16,889

 

 

 

29,204

 

 

 

56,783

 

 

 

31,994

 

Legal costs and other

 

-

 

 

 

-

 

 

 

-

 

 

 

1,441

 

Advanced manufacturing tax credit vendor rebate

 

(121,405

)

 

 

-

 

 

 

(121,405

)

 

 

-

 

Other tax related income, net

 

(21,138

)

 

 

-

 

 

 

(28,397

)

 

 

-

 

Adjusted EBITDA

$

159,623

 

 

$

72,510

 

 

$

521,465

 

 

$

208,977

 

Net income (% of revenue)

 

30.3

%

 

 

5.3

%

 

 

19.8

%

 

 

6.4

%

Non-GAAP gross margin

 

30.2

%

 

 

19.7

%

 

 

28.1

%

 

 

15.8

%

Adjusted EBITDA (% of revenue)

 

21.7

%

 

 

14.0

%

 

 

20.9

%

 

 

11.0

%

Diluted earnings per share

 

 

 

 

 

 

 

GAAP

$

1.51

 

 

$

0.02

 

 

$

3.37

 

 

$

0.02

 

Earnings per share attributable to Non-GAAP adjustments

$

(0.55

)

 

$

-

 

 

$

(0.30

)

 

$

-

 

Non-GAAP

$

0.96

 

 

$

0.02

 

 

$

3.06

 

 

$

0.02

 

 

 

 

 

 

 

 

 

Diluted shares used in computing per share amounts

 

148,144,066

 

 

 

145,851,637

 

 

 

147,284,330

 

 

 

145,851,637

 

See the accompanying notes on Schedule V attached to this press release

Schedule V

Nextracker Inc.

Notes

(1) To supplement Nextracker's unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including Adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA"), non-GAAP gross profit, non-GAAP operating income, non-GAAP net income, non-GAAP diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker's results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company's performance.

In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company's operating performance on a period-to-period basis because such items are not, in our view, related to the Company's ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management's incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results "through the eyes" of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company's GAAP financials, provide useful information to investors by offering:

  • the ability to make more meaningful period-to-period comparisons of the Company's ongoing operating results;
  • the ability to better identify trends in the Company's underlying business and perform related trend analysis;
  • a better understanding of how management plans and measures the Company's underlying business; and
  • an easier way to compare the Company's operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.

The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:

Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees and assumed in business acquisitions. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.

During fiscal year 2023, the Company granted equity compensation awards to employees under the First Amended and Restated 2022 Nextracker LLC Equity Incentive Plan (the "2022 Nextracker Plan"), Vesting of awards under the Plan was contingent on a Nextracker Initial Public Offering (IPO) which occurred on February 9, 2023. In addition to the 2022 Nextracker Plan, prior to the Flex spin-off, Flex maintained several stock-based incentive plans for the benefit of certain of its officers, directors, and employees, including the employees of Nextracker. Stock-based compensation expense for the period prior to the Flex spin-off also include expense recognized under the Flex plan.

Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.

The 45X Advanced Manufacturing Production Tax Credit ("45X Credit") which was established as part of the Inflation Reduction Act (IRA), is a per-unit tax credit earned over time for each clean energy component domestically produced and sold by a manufacturer. The 45X Credit was eligible for domestic parts manufactured after January 1, 2023. The Company has executed agreements with certain suppliers to ramp up its U.S. manufacturing footprint. These suppliers produce 45X Credit eligible parts, including torque tubes, and structural fasteners, that will then be incorporated into a solar tracker. The Company has contractually agreed with these suppliers to share a portion of the credit related to Nextracker's purchases. The Company accounts for these credits as a reduction of the purchase price of the parts acquired from the vendor and therefore a reduction of inventory until the part is sold, at which point the Company recognizes such credit as a reduction of cost of sales on the unaudited condensed consolidated statements of operations and comprehensive income. During the fourth quarter of fiscal 2024, the Company determined the amount of the 45X vendor rebates it expects to receive in accordance with the vendor contracts and recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects starting on or after January 1, 2023. The Company believes that the assessment of its operations excluding the benefit from the vendor credits provides a more consistent comparison of its performance given the cumulative nature of the amount recorded in the fiscal fourth quarter.

Legal costs and other consist primarily of costs not directly related to core business results and may include matters relating to commercial disputes, government regulatory and compliance, intellectual property, antitrust, tax, employment or shareholder issues, product liability claims and other issues on a global basis.

Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable.


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