For a seventh consecutive quarter, US solar PV tracker manufacturer Nextracker has had a sequential growth in its backlog which sits at over US$4.5 billion.
During its financial results for the third quarter of 2024 (Q2 FY25 for Nextracker), the company expects that nearly 90% of the backlog to be recognized over the next eight quarters, while continuing to have strong repeat customers that represent over 80% of its revenue.
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Although down on a quarterly basis, revenue for Q3 2024 is up on a yearly basis by 11% to US$636 million. The bulk of the company’s revenue came from the US, which represented 73%, while the rest of the world accounted for the remainder of the 27%. Whereas its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 57% from the same period last year with US$173 million in Q3 2024.
The increased adjusted EBITDA margin (of 27%) in Q3 2024 was driven by the revenue growth and 45X advanced manufacturing tax credits of US$51 million in Q3 2024, up from US$47 million in the previous quarter.
In the preceding quarter (Q2 2024), the company announced it was taking orders to fulfill a 100% US domestic content capability by early 2025, however it has moved forward its timeline and aims to ship the first such orders before the end of 2024. Nextracker expects to “significantly enhance and support customer efforts” to qualify for the 10% investment tax credit (ITC) bonus credits moving forward.
Outside of the US, Nextracker has had a record booking in the first half of its financial year in Europe with nearly 8GW of capacity operational or under fulfillment. In Latin America the company has nearly 20GW of operational and under fulfillment capacity, while in the Middle East, India and Africa it is over 15GW. During Q3 2024, the company received orders in two markets, Malaysia and New Zealand.
Its global nameplate capacity remains above 50GW, of which more than 30GW from the US alone.
Continued growth in solar foundation business
During Q3 2024, the company unveiled its new tracker foundation system, NX Anchor, during an event ahead of RE+ in Anaheim, California, last September, for which PV Tech was in attendance. At the same event, the tracker supplier also presented its NX Foundation Solutions portfolio, which includes the company’s acquisitions made earlier this year in the solar foundation business, such as Ojjo and Solar Pile International (SPI).
Dan Shugar, founder and CEO of Nextracker, said: “In the quarter, we successfully executed on the launch of our new NX Foundation Solutions portfolio. We are also pleased to report that we have received customer orders for all of our new products launched in the last year, including NX Horizon-XTR 1.5 all-terrain tracker, NX Horizon Low Carbon Tracker, NX Hail Pro-75, and NX Foundation Solutions.”
Opening of a third R&D facility in India
Moreover, in the research and development (R&D) front, Nextracker has, for another quarter in a row and despite lower revenue between Q2 2024 and Q3 2024, increased its investment to US$19.2 million in Q3 2024 and also inaugurated its third R&D facility in Hyderabad, India.
The Indian facility, dubbed the Center for Solar Excellence, spans 13 acres and will feature a 30,000 square foot laboratory, a comprehensive solar tracker installation and training facilities covering the entire lifecycle of a PV project. The US tracker manufacturer has another R&D facility in Brazil, which was opened in 2022 and one near the company’s headquarters in Northern California, US.
Similarly to what the company has been doing in the US, its Indian tracker manufacturing capabilities have increased to 95% of domestic content.
Finally, Nextracker reaffirmed its revenue outlook for the fiscal year 2025, targeting revenue between US$2.8-2.9 billion, while it has increased its adjusted EBITDA outlook to US$625-665 million from previously US$600-650 million.
