Nextracker, a prominent US solar tracker manufacturer, has unveiled its robust financial results for the third quarter of 2023, reflecting substantial revenue and earnings growth. Headlining these results are revenue figures of US$573 million and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of US$110 million.
These figures, which pertain to the quarter ending on September 29, 2023, represent the second quarter of Nextracker's 2024 financial year and showcase notable progress when compared to previous years. Nextracker's revenue has surged by 23% year-on-year, rising from US$479.5 million in the second quarter of this year. Additionally, the company's EBITDA has experienced a remarkable 164% year-on-year increase, elevating it from US$83.7 million in the previous quarter.
Concurrently, Nextracker's parent company, the Singapore-headquartered electronics manufacturer Flex, has announced its intention to transfer ownership of Nextracker to its shareholders. Flex currently holds a 51.47% stake in Nextracker, following a series of stake sales to investor TPG Rise and a public offering. This latest move signals Nextracker's complete separation from Flex, subject to conditions outlined in an agreement inked between the two companies in February of this year.
CEO Dan Shugar expressed the company's positive trajectory, stating, “We closed our third consecutive quarter of year-over-year growth as a public company, and it was our sixth consecutive quarter of margin expansion on a sequential basis.”
Nextracker's growth can be attributed in large part to the introduction of new products, including trackers designed to withstand unpredictable or adverse weather conditions such as hailstorms. Additionally, the company has expanded its manufacturing capacity, capitalizing on financial incentives offered for US renewable power manufacturing under the Inflation Reduction Act by inaugurating a new component factory in Las Vegas.
The company's strong performance has led to revisions in its end-of-year forecasts. Nextracker now anticipates generating revenue between US$2.3 billion and US$2.4 billion by the close of its 2024 financial year, which concludes next March. This forecast represents an increase from the initial projection of US$2.2 billion to US$2.4 billion. Furthermore, Nextracker expects its adjusted EBITDA to rise from the initial range of US$290 million to US$340 million to a new range of US$390 million to US$440 million by the conclusion of its next financial year.