Nextpower — Financial Results
Revenue Rose 20% to $3.6 Billion, Driven Almost Entirely by U.S. Demand
| Metric | FY2026 | FY2025 | Change |
|---|---|---|---|
| Total Revenue | $3.56B | $2.96B | +20% |
| U.S. Revenue | $2.73B (77%) | $2.03B (69%) | +34% |
| Rest of World Revenue | $829M (23%) | $928M (31%) | -11% |
| GW Delivered | 38.0 | 33.6 | +13% |
Growth was strong overall, but the geographic story is uneven. The U.S. surged by $699 million while international shipments — particularly to Latin America — actually fell. The company is becoming increasingly dependent on the U.S. market, which now represents 77% of revenue, up from 69% the prior year.
Tariffs Squeezed Margins Even as a Tax Credit Provided a Large Offset
| Metric | FY2026 | FY2025 |
|---|---|---|
| Gross Margin | 32.6% | 34.1% |
| Tariff Costs | $130.4M | $19.7M |
| 45X Tax Credit Benefit (reduction to cost of sales) | $379.9M | $224.9M |
Tariffs (taxes on imported goods) jumped by $110.7 million year-over-year and were not fully passed on to customers in pricing, directly cutting into margins. The saving grace was the 45X Credit, a U.S. government manufacturing incentive that reduced costs by $380 million in FY2026. These two forces are pulling in opposite directions — and how they evolve will materially affect profitability going forward.
R&D Spending Jumped 52% as the Company Builds Out Beyond Trackers
Research and development expenses grew from $79.4 million to $120.9 million, a $41.5 million increase. Non-tracker products (foundations, electrical components, robotic services, software) grew to 12% of revenue, up from 8% the prior year. The company is deliberately broadening from a single-product tracker business into a wider solar infrastructure platform, and the rising R&D bill reflects that ambition.
Four Acquisitions in One Year Added Capabilities Across the Solar Plant Lifecycle
The company spent approximately $116.8 million (net of cash) acquiring four businesses in FY2026: Bentek (electrical infrastructure), OnSight (robotic inspection), Origami (steel panel frames), and Fracsun (panel soiling monitoring). Combined purchase price including potential earnouts totals up to $207.9 million. Each targets a different part of the solar plant — construction, operations, and materials — consistent with the strategy of becoming a full-lifecycle platform rather than just a tracker supplier.
Operating Cash Flow Dipped Despite Higher Profits
| Metric | FY2026 | FY2025 |
|---|---|---|
| Net Income | $585.9M | $517.2M |
| Operating Cash Flow | $562.9M | $655.8M |
Despite earning more, the company generated less cash from operations. The gap is largely explained by a $267 million increase in the 45X credit receivable (money owed from the government tax program that hasn't been collected yet) and other working capital build-up from rapid growth. This is not necessarily alarming, but investors should watch whether those receivables convert to cash efficiently.
$500 Million Share Buyback Authorized, Balance Sheet Remains Strong
The board approved a $500 million share repurchase program in January 2026, of which virtually all ($499.6 million) remained unused as of March 31. The company also upgraded its credit facility to a $1.0 billion unsecured revolving line (up from $500 million secured), leaving total available liquidity at approximately $2.0 billion. The debt-free balance sheet and strong credit facility give the company considerable flexibility for further acquisitions or returning cash to shareholders.