Nextracker announces split from majority holder, raises 2024 earnings outlook

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Nextracker, a leading provider of solar trackers and software solutions, announced its majority holder Flex has enacted a plan to spin-off all of its remaining interests in Nextracker, Inc, making payments to Flex shareholders. The transaction, expected to take place in Q4, would result in a separation by Flex from its ownership in Nextracker.

Nextracker plans to file a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, that includes a preliminary proxy statement of Flex, which will include additional information regarding the spin-off. The separation from Flex is currently expected to close in fiscal Q4 ending March 31, 2024, but remains subject to a number of conditions, and no assurance can be given that the spin-off will in fact occur.

Flex helped us considerably in maturing our business processes and supporting our expansion into emerging markets, especially in our early years as a young company,” said Dan Shugar, Nextracker founder and chief executive officer. “We are energized to start our next chapter.”

Earnings

Nextracker also released its fiscal Q2 quarterly earnings on October 25, showing growth in-quarter and strong earnings guidance for the “next chapter” of 2024.

For Q2 fiscal year 2024, revenue was $573 million, up 23% year-over-year. GAAP net income totaled $81 million, while earnings per share was $0.55. Adjusted EBITDA reached $110 million, rising 164% year-over-year.

“We closed our third consecutive quarter of growth year-over-year, as a public company, and it was our sixth consecutive quarter of margin expansion on a sequential basis,” said Shugar. “With a record first half and our anticipation of a strong second half of the fiscal year, we have raised our annual profit guidance and the mid-point of our annual revenue guidance.”

The company raised its mid-point Fiscal Year 2024 revenue range as a result of strong performance. The company now expects revenues to range $2.3 billion to $2.4 billion. It raised GAAP net income expectations to $237 million to $266 million (raised from previous expectations of $176 million to $205 million. GAAP earnings per share guidance was substantially raised from a range of $1.45 to $1.65 to $1.95 to $2.15.

Nextracker said the quarter was defined by global supply chain repositioning and capacity expansions and product innovation with the next generation of its technology suite. The company launched three new products, including:

  • NX Horizon Hail Pro: Hail-stowing solution with hardware, software, service
  • NX Horizon XTR-1.5: Doubling the undulation capability of its terrain-following tracker
  • TrueCapture Zonal Diffuse: Enhanced energy yield in varied irradiance conditions

“We are well-positioned with our global scale and growth profile, and we are excited to pursue the market opportunities ahead,” said Shugar.

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