Earnings call transcript Q1 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, ladies and gentlemen, and welcome to the Nextracker First Quarter Fiscal Year 2024 Financial Results Conference Call. At this time, all lines are in a listen-only mode.

Following the presentation, we’ll conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Wednesday, July 26, 2023.

I would now like to turn the conference over to Don Quinby, Director, Finance and IR. ahead. go Please

Don Quinby

Shugar; section afternoon, will for call Good me to and earnings at copy Dave Founder, Nextracker’s of the is our press Wenger; Thank Financial brief Chief first and release summary remarks by quarter being are will a Investor This recorded Q&A. call Officer, Investor website. the Dan be and replay nextracker.com. as section Officer our Relations Slides Chief All With call President, is fiscal conference Howard available as our and three well you. of our Bennett. from on on Executive financials this welcome Relations available and our give earnings XXXX today results. the followed for

which differ today’s on involve risks As call based expectations assumptions. cause statements, could materially. to that forward-looking contains actual These are and reminder, results and statements current our a uncertainties

please of Factors the For to section discussion Risk is obligation with a most presentation, statements of the forward-looking and in these the see cautionary statements. our full change, this undertake recent we these release in subject information Note, our update no filings and press or SEC. risks to uncertainties,

Relations as note, well full in Please conference today’s unless the the of stated in year-over-year be basis provide financials reconciliations website. section on can on found our metrics as call. will otherwise. measures summary non-GAAP on today’s will we non-GAAP The be GAAP All of Investor a the to appendix presentation growth posted slide

Dan? call our to like the turn CEO. I’d to Now over

Daniel Shugar

Wenger, Officer. and me first quarter today Dave review Bennett, for you are XXXX fiscal our Financial Thank results. us Chief to With President; Howard joining

questions. forward remarks, to our Following look we your

million, pleased turn with $XXX metrics. Please QX the Slide XX% all financial across X. results year-on-year. key in quarter our results. Starting was very increasing for with our Revenue and I’m execution to

pricing attributable discipline, the the flow and features provide product for monetization on Increased We XXX% industry. and financials. was quarter, profitability million, efficiency. of Dave improved cash to robust over $XX bolstering year-on-year. Our positive EBITDA in our detail up operational more distinct position further quarter for is solid the will achieved liquidity differentiated Nextracker’s

innovation to hardware, been software. value relentlessly technology customers solar tangible in have controls driving that provides and We

focused LCOE, Our reducing exercise innovation levelized profitability and solar increase is project our of which on customers cost supports pricing energy the discipline. their to Nextracker power, to

of We contract have of We the planned announcements exciting product quarter fiscal last September. achievements upon RE+ for another bookings Trade new in strong major year. building booking Show our posted

quarter $X.X geographies. expanding customers quarter, projects. business the the $X backlog We repeat was XX% the Sales up This in momentum revenue XXXX. in with strong attributable reflected to and is new international with ended billion, of performance continued our from across over of diverse end new over fiscal record our billion where of as year and overseas

strong and pleased market led significant on and were industry Wood are as global annual year Mackenzie position, Nextracker This for recently margin. Dave named that EBITDA the is eighth the Nextracker We our QX a our by share consecutive the has increasing guidance, Based will leader industry. XXXX we cover. revenue as results tracker

the new reviewed level that the call, attractive for years investment source also and the XX% we added IRA with for progress tax largest In upside LCOE And an quantified power solar grid. as prior growth of credit provides most today’s U.S. we our in manufacturing to of content. in earnings U.S., XX being

over of attended on Europe on quarter. market dynamics comments XXX,XXX for last Intersolar engagement give the will hundreds people customers I based provide our some of month, meeting To insights last sense at global Today, qualitative events a conference. at

electronics combined factors seeing demand with trackers and and as storage solar such in technology. true panels, battery cost power capture reduction are panels proven Nextracker’s in by driven strong performance We enhancements

sum, In of markets a the risk and as now typical cost, breaking is like in nuclear yielding included, is and from the lower major fossil solar battery are storage is lower power when and resource lower cost even away which LCOE faster these factors to deploy U.S.A.

is people the locally-made demand. directly just and in has announcements for demand in solar electricity over hundreds solar. electrification industrial thousands XX parallel, increasing new expanded with storage, or paired in In transportation customer U.S., and year past with the are pull the working of resulting of In of for factory end-use components policy

New broad factories the providing industry. growing support for and jobs are

solar decarbonization. envision a Given grid solar world society share cost-effective of growth toward electricity and we keeps significant trends power provides today power as generation, for demand electric where under its long-term global the to increases X% of increasing responding

to back turning Nextracker. Now

our Our global manufacturing five cover continents. To increase global serve position ecosystem to competitive markets. about map footprint. valued to key which to local generally is Nextracker collaborate is and our across advantage, to we our comprises subcontractors shortly. partners supply a U.S. align chain ongoing I XX with our XX This countries will continuing growth, our

reported incrementally IRA’s we and content guidance for Treasury Receiving of helpful results, domestic After provisions. Department Nextracker further clarify the these requirements. continue to trade we our to customers U.S. with issued rules regarding our associations work the QX and clarifications was

to market pending IRA continue and guidance definitive exclude response. clarifications impacts potential We our from

and less stock our secondary market. pre-IPO owns Allowing quarter-end, to their to shares. offering Flex liquidity we the the a than following of ownership XX% of successful reduce Nextracker transaction, Nextracker of the increase After completed shareholders stock our

intermediate there and panel for noted on U.S. interconnection availability progress term, headwinds solar to permitting regarding and starts tangible electrical panel project The availability. delays for and construction solar is continue exist still though likely previously the are

that plant partner, has on manufacturing XX is key our ramping celebrated suppliers the with contract of been a capacity Accelerating our objective. gigawatts U.S. Last we X. opening I’m Tennessee a quarter, legacy Memphis, MSS. Slide track. supply in pleased new

trade event; dedication a a CEO Steel the regional our the partners. the underscore during key public Association, Corporation, At Ranch second the this Silicon U.S. ability Joined volume driving the to awarded of X association on material customer, to policy. solar quickly was key Nextracker sites me of Solar agreement Energy a supplier, with goods raw in our job gigawatts our scale who finished commitment opening, plant ship were floor and ready Industries us to

Our furnace the focus electric are lower arc oversees mills in that from to carbon sourcing be production. significantly continues U.S. than most steel

United facilities supply are chain build in planning next strategic and We to our dedicated lines continuing have another over We supply Nextracker XX with month the now are States. announcement. manufacturing

I’ll expand turn our now, Howard to the progress. over upon And commercial call to

Howard Wenger

Let Dan echo the me Nextracker team. by congratulating

technological we on the going was all another which company, We specifically in team, some execution regions this are with company’s Last May of on quarter innovation, it the to across provided first background public earlier reporting resulting XX, strong and covered allows our terrains. quarter coupled win us pleased our performance. given with I earnings very best-in-class call business year. our since

reflects quarterly an on with demand focus that $X.X while annual XXXX. Slide last reported customer large-scale had project billion, velocity quarter fiscal wins report backlog to ending This We company our sales turn a basis business. a Please our and annual as our We providing nature basis. of a the and plan and X. to year backlog to our we leading insights consistent significant is record of sales company on

are our backlog. our we continued report to to quarter, pleased added that momentum and strong significantly sales This we

partners repeat believe a and record new close is have at revenue competitive quarter-end, product This for with billion We our supply where pull. a now XX% of establishing demand by advantage, business. relationships than and greater backlog customers by we scale of company. is our Our generated the global $X driven our differentiated distinct creating offering, chain is over

Further, them. IRA. on we thesis There domestic Act on believe provided focus intact is domestic of is the Independent the for the bonus Inflation by provisions now. to the justifiably XX% a or how the government content U.S. large-scale solar and investment in guidance right Reduction of interpret lot content

a well-known the keep content mind XX% which or the consequential that well-formed in created But the solar no The establishing predominant has Credit, policy Investment requirements. has domestic a ITC ITC, instrument and decades. been policy IRA for of federal for Tax form in

well ITC economics is developing understood now the in XX% speaking, contemplated power generally solar So and of plants. is the

decline Further, to recall to year. was scheduled ITC pre that IRA next the XX%

holding incredibly it is it significant biggest and believe pillar IRA in to demand. it and an scale least driver we for the at So change, years XX of and terms solar constant utility is XX% elevating of

manufacturing propel segment the the content domestic and and and the ongoing, government credits today, still continue sufficient forward. we tax are clarifications to understanding market course, there believe solar but Of to IRA provisions large-scale important responses are is of

during our executed We believe these This on can are see QX. also are map demand XX seeing illustrated agreements but the demand U.S., over we in on you Slide we driving projects where internationally. of continued totaling gigawatts strength X, is the fiscal factors

intent this the is the and is reach continents. our customer of magnitude a breadth spanning subset and global wins the strength to the project highlight Nextracker’s multiple of from Although of our continued sales quarter,

had repeat of and Europe team healthy to grow. chain, support Africa, also and America, to wins the The America business provide sales, company from BCA in sample that supply strength QX further training, finance, with and a marketing, scale and from global Asia new and customers We EPC combination to reflect platform South of North a Oceania. and our

summary, demand the strength around our world. markets all of core In in we saw

discuss Bennett, financial to over details the our me Officer, Now and Dave to fiscal let of the our guidance for turn to quarter the XXXX. call Chief review Financial

David Bennett

XXXX Thank QX Nextracker period a the first financial public as fiscal company. you, Howard. represents full for

to off are a start. great We

high increase fiscal current Rest year-over-year of million, Slide mix. to QX World closed revenue turn $XXX XX% XXXX the was the million, up our at XX% XX% of Please our $XXX for X of and at for Revenue guidance results. year-over-year. an quarter the of our quarter end

U.S. due the panel primarily to availability. the permit As was certain pushouts revenue to year flat quarter, due of projects expected, relatively versus delays in prior and

revenue was particularly there of quarter, expectation this World XX% to no for will XX% strong While U.S. represent the our total that year. Rest to the of the change the is

Adjusted to ‘XX, quarter million million EBITDA increased fiscal increase over first XXX%. the from of $XX an of $XX

driven results strong largely execution, logistics with lower improved Our were by along costs.

approximately XX.X% margin from up at prior quarter the ended We the EBITDA year. in X% adjusted

our very with speak Nextracker are evaluate as increased outperformance you on slides. positive we and couple encourage expect EBITDA this to While I’ll to guidance an year-over-year don’t throughout of basis. of level the we remained pleased always, annual in growth We continue sustainable that annual year. have on the results, a focused And to

strong driven net working flow management, EBITDA. customer the Adjusted free million was $XXX by from adjusted for increased deposits cash quarter, elevated resulting bookings and capital

may which fund which Net as U.S. cash to quarters do working of pressure expect working planned to XX% manufacturing We revenue, favorable two temporarily was our levels. well XX net ramp less capital to to as continuing to was next annualized our over of capital growth, than support June flow. our free guided XX% XX% as the

with Turning the key liquidity, that a advantage. X balance an exceeds XX by sheet $XXX and undrawn cash of and for $XXX cash update We is million, to comprised liquidity. strong on million million, quarter our competitive structure, Total and We current over $XXX balance liquidity a our debt million. was as closed including revolver our our $XXX Slide capital ample of believe balance. of our June sheet which total

and to We maturities less EBITDA continue adjusted significant to debt no one fiscal operate than until with with a XXXX. debt of

the we Dan resulted that float increase for secondary outlined, common closed offering stock. Nextracker in in on As the public an

from approximately QX pre-IPO proceeds XX% the to owners. were It TPG. to closed approximately Flex in now is fiscal pre-IPO offering own first distributed of XX% important that the and comprised transaction, week XX% owners the of secondary to that our July note Nextracker, of all the Following

largely our last second turn expected strong Please to volume our higher by our results, Driven for next the fiscal XXXX half, fiscal full factors our updated QX from the year guidance assumptions the in quarter. are setting we The guidance. slide supporting increased have addition in in to guidance. XXXX unchanged

our ownership us. to of will XX% innovation the on the and opportunity follow-on to We adjusted current business, to for tax take production, invest adjusted ahead out including and further around transaction, adjusted structure we between income. XX% the expect in Based advantage to range rate ramping of team development, continue the building the product pretax continue of

have not from resulting in We Reduction again Act. the Inflation factored profitability additional

are billion. to $X.X we expecting the $XXX Our by XX% full as X% approximately range $X.X year-over-year are to revenue a or year fiscal revised of guidance follows: XXXX guidance midpoint, At billion is we growth. million increasing

at increasing million also business. pricing the due are XX% by of million strong million or to discipline over higher-margin EBITDA $XX $XXX and $XXX our to million We that guidance $XXX to includes execution maintaining prioritizing midpoint,

be weighted-average EPS $X.XX between approximately to XX% $X.XX approximately fiscal EPS Adjusted $X.XX compensation to intangible be to expected amortization. is grow and million At upon $X.XX XXX.X to includes the midpoint, outstanding. share based $X.XX shares expect is now between adjusted share per we and year-over-year. EBITDA stock-based ‘XX expected related to GAAP to per

as XX% same between volatility QX XX% the approximately XX% versus follows: expected XXXX. period to XXX be reflects EBITDA Our Adjusted QX grow to fiscal points XXXX compared outlook is last and expected EBITDA basis basis fiscal guidance is the to up business. XXX normal The margin to quarterly XX%, Revenue to the year. points of is

So we evaluate annual as direct an you to always, progress on our basis.

for now the some turn will Dan concluding I remarks. back call to

Daniel Shugar

The investment renewables. solar U.S. the is you, for Thank we to macro and see accelerated in Dave. continue and strong abroad, into

significant these in trends source long-term generation Solar growth of leverage continue, new technology ideally number and positioned cost power will Nextracker believe reduction. that industry which and opportunity. has to achieved the result this We will is its through position one as

of our every Regarding work without none of we’re and been of endeavor the appreciative. possible we team customers, hard confidence have the these Nextracker’s day extremely would for to which which results and Nextracker the performance, earn dedication

We look forward your now questions. to

Operator

you. Thank

the session. the comes We Instructions] your question of Bank America. Julien from Dumoulin-Smith question-and-answer Please go from And of [Operator line will now ahead. begin first

Alexander Virgo

Alex actually Congrats Hey, again. guys. on It’s strong the yet for Virgo on Julien. results

you of around on sort sort forward the expand you how and headwinds to specifically, sort is then or content kick to sort on then but a there. the are that how Thanks. flagging confirm And a the domestic in piece positioning the exposures guidance, projects not of maybe sort of you’re of you seeing dynamics on catalyst permitting just put some off curious here. U.S. relative if headwind that. wanted your with transferability of the back Obviously, only a also Just and for I’m as date relatively order of to even some can move developers guys. half on with geographies flat,

Daniel Shugar

Shugar. your I’ll part. will question. first Dan the Alex, Howard part, Thank take second you take the for

respect guidance there can increased So enormous projects Any permitting, in, portfolio environment expectations. reflects with our first, supporting. be that our project to the pushed, a is we’re of we’re operating project an individual that

are for in projects So geographies they so has on either take we basis we factors into if in those probabilistic level slowed usually and down, managing another take upcoming where entitlements that stand. or account there’s An project based entitlements granted a on the where is advantage us projects wanting many consider one many to of place. so its

be to if address of would that. that part second my the could answer Howard, the you question. So And

Howard Wenger

that just Sure. still same the our Dan we and I may something basis. you We the Alex, hit believe international And an said on so end about mean we of things of headwinds. want to quarter-to-quarter, we’re for mix guide. high annual U.S. planning mentioned, fluctuate. – as

bookings U.S. quarter to our strong really We reorienting well. So a – going in performance. that’s including we said, everyone keep annual extremely That are had things why the

right that clarification. tax in We transferability, seeing with do we’re upside there equity. as and there tax far over constraints the not believe now transferability equity is As

so question. appreciate And we the

Daniel Shugar

have please. Did free Thank question, Next follow-on? for Alex. Feel you. a follow-on, a you

Alexander Virgo

Yes.

a brief on Just piece. pricing just the follow-up

guys couple of Obviously, distillate to benefits chain rolling mentioned Dave’s the You off a supply comments. some maybe pricing times. side on

a you on that briefly. if could curious Just little bit, expand really

Daniel Shugar

a there’s place don’t say share of will ASP. What is Well, we I quality.

position on their that that execution, them want highest business liquidity to solid that trackers Our been understands with are covered stability, customers really a to that’s on ability really financial the in Dave with a their performance supported, service and ensure projects the has shoes. with designed commissioning our team company

improvement the of the the significant have very as really delivery. the in in many economics have Customers a a now in U.S., credit. tax projects given credit mentioned, Howard to are how have on which anticipated tax – been investment XX% so And investment focused XX%

excellence value, and in we to with we don’t so are deliver ensure the do And everything really What to our operational customers we is projects deliver do to chase projects. try really need successful do price.

we’re So focused. that’s where

question, Next please.

Operator

from Thank go of question Please from you. next comes Strouse ahead. And Mark line JPMorgan. the your

Mark Strouse

kind you these those of continue I’m kind of the is you goalpost partnerships, point afternoon. then Are very out with Or fixed? kind keep? Good and upside for to credit split any build just how to of as Yes. is Thank you’re new the you’re there of – that as contracts kind baking IRA here. the that taking a kind question. to And contracts XXx in might be see chain baking there? percentage you’re signing can new the flexibility able that these supply you of to still our us an Good curious, unknown. contracts those much guidance or as of downside far what some in flexibility of the treasury there into kind

Daniel Shugar

the are you we’re last speaking With and just speak not Thank flexibility, suppliers. little to that to this the time, dealing XXx relationships number the with we we for how credit. address to I’ll respect – of a our split at question want the I potential to key of first, and back a have Mark. subcontractors that. a with pull No,

productively a the a us. these industry understand long we have we’ve markets. work on decades. with in supplier we They used an the in was to life of Memphis. factory one bring for was MSS. able had many had We quarter, have with old relationship a and manufacturing were warehousing, to and with continents, openings that been And facility had able been is this It in suppliers with well hadn’t to just that been used worked Last that multiple public of for variety

really reliable with participants new the we’ve And some some to in is help – – cultivate the new work industry, so which And exciting. performers. continued and our

robust. think chain very the differentiated – our a It’s we company. is supply So advantage for we

As we with of over we gigawatts capacity. U.S. contracted XX have facilities XX noted, across over

announcement. And we’re next factory major month, planning another

we’re relationship build. served company, strong future. and that think Mark, and do a we’re we please. really So you historically, follow-on well continuing have question, a to well on But us the

Mark Strouse

please. Yes,

follow-up BCA? from I or Just the want sure metric appropriate backlog I’m question that just just here. about make I it think than correctly. real I’m billion to comparing a simple make exclude to greater include the Does $X quarter. sure, want to last I thinking

Howard Wenger

includes It BCAs.

Mark Strouse

Okay. you Thank very Howard. Thank you, much.

Howard Wenger

BCA It’s term on It’s a not is collateral finding to agreement. binding not deposits letter specific sides like a both agreement pricing. and project and I’d It’s sheet. with interest. thing and add sensor an It’s backed of commitment volume LOI. on with One a liquidated not damages sizes by projects

as you EPC So wrapped of multiple an agreement, Appreciate agreements one Mark. EPC question, agreement can it but think the into

Daniel Shugar

Next question, please.

Operator

next Thank And Barclays. Cho question Christine from your go Please of the you. line comes ahead. from

Christine Cho

Thank the Good for you question. evening. taking

being bookings also So backlog to U.S. would fair if quarter, as on a maybe if we about talked you could are one-third backlog. and say that it fiscal you qualitative a on the did? And for start trending. bookings I to did specifics the you give guys any be two-third, basis, on the BCAs it the still the Rest quarterly you could first but you World. And I split think how want the of provide about that Previously, in have comments split understand valid for for is don’t

Howard Wenger

Howard. is This Sure.

So that’s correct.

know more insights giving $X And of providing a But backlog billion – we on we’re quarter. our we’re be annually example, lot backlog. quarterly. about you in to this going We’re detail for

we and XX on note contracts over in also Slide the We gigawatts executed the signed associated more of than those. geographies with XX quarter have X gigawatts, that

amount lot that a giving a you guidance. of give of actually directional we’re information So fair should

the answered and are both and growth there as a on historical contained far follow-on? backlog agreements our and discussed have agreements last the as that consistent goes, EPC I mix previous a and to question, As question. we it’s Do our BCA agreements the you in with EPCs the the mix quarter. BCAs contributed Appreciate to of call

Christine Cho

do. I

Okay.

quarter. Just the thinking of contracts about the in executed XX gigawatts signed

come bookings As we about how steel trended you able just quarter, as think have bookings talk about down? be ASPs would for for qualitatively the have prices to

Howard Wenger

geography, project and on pricing size stable. pricing actually is project geography to so can of even Well, But forth. macro terrain and vary by because a scale,

Christine Cho

you. Thank

Howard Wenger

Thank you.

Operator

And line comes Bagri your question you. Please of Thank Citi. Instructions] the ahead. from from next go [Operator Vikram

Vikram Bagri

revenues in about panels levered are XX% like of delayed. Good the afternoon, orders and from revenues be of the looks coming magnitude the year talk was everyone. U.S. the than remainder the like with It fiscal I wondering to in size in you to the you of related looks and permitting of it of if delays rest will saw U.S. more can

wanted understand converting confidence orders to U.S. Just year. this the in

Daniel Shugar

issue, Yes. something. a or it’s just or Thank you then few for usual, a but permit the issue be that have question. an there’ll as issue Typically, jobs it’s a business whether panel

why We’re we’re our XX% forecast covered earnings, on guidance orders. XX% X% not sorry, which in by revenue confident in and – as day of I’m increased we our is and seeing delays

permit. We’re projects there’ll – issue building that – projects be jurisdiction requires but seeing have a local a every occasional they proceeding, project to then

if at like for adding you permit something Just need or your a you’re house that. bathroom a

local in was some originally by so what delays the And anticipated there’s jurisdictions, project.

you with and Thank have in the Did and demand, guidance. to strong delays, a we’re aggregate, you. seeing overall fulfillment strong increase question? we’re follow-on able occasional But our in grow but aggregate, demand

Vikram Bagri

market. to by and be of peers. your XXx can the I a I wondering do. retained competition the I you’re wanted Yes, seeing if how ask credit in question much about was the talk on you pricing you time

pricing. stiff. competition what you’re sort peers the pricing you chasing remains mentioned and we not You are balancing on understand pretty with from we’ve growth what versus competing How the of pricing seen

XXx may competed the environment. well? that Just are a competitive lot market credit get in seeing in this does wondering away like you that the indicate as And of

Daniel Shugar

answer the dollar XXx in be think you how don’t with general factor or we that It pricing we about customers. No, really question. Thank see a a for has that. to would

biggest have have that performance that – on mean they be reliable them. to We’re with really doesn’t of have be in really that supporting projects, they that focused conversely, and customers, the reliable customers because quality on focused terms going customers, have supporting developing X projects, necessarily new to Nextracker we’re and Tier need the want but they to quality work we’re operations, for there really

And in volume on, the that so facility Silicon agreements of some as the executed executed Howard quarter, focused and – example, Corporation Ranch a Memphis commitment several we’re really, mentioned, this what for second we’ve volume with from came as original Howard an commitment last agreement, X-gigawatt which with doubled financial the had agreement had that agreement X.X we They year, securities, fund one was gigawatts. commitment back we a mentioned.

What is, they’re that. what hey, Thank regionalized, want reliable you it’s with we’re set content, question. support really things we on U.S. design really for for high-performing focused our and are to trackers up That’s do customers supply that. your with looking like and valued

question, please. Next

Operator

Thank you. ROTH of your next ahead. comes Philip go MTM. Shen question Please the from from And line

Philip Shen

congrats strong guys, Hey, on execution. the

margins. on is question First

You those a really able us were you give drive color strong here. a margins. had quarter strong Can more how little you to bit on

you us of it revenue then about monetization actually, price there’s what little profit degree quarter. this features is something gross And both how more give But talked and specifically, that you could did software XXx much support to contributing to Dan, and think a I else. discipline, Howard line. And detail?

of to margins down for back the Dave, to Or do quarter you talked quarter is XX%? about or look And so Thanks. just the have we you new next level forth? it year. that you at a go and at look looking say to whole ahead, and can’t But extrapolate fair at quarter I know, the whole we’re this

Daniel Shugar

part Hi, thanks question, Phil, multiple the question. for and

for. a is Let margin. I sure last I reset me does From some I to looking guidance took contemplate yes, – our notes the you’re higher the capture part, answer what make think

our spoke that start benefit we the from than to would remarks, to That continue execution of in that costs that lower the I same the expect that As logistics profitability level. finish we did to in upside. were at quoting execution not and product, expected is to upside, opening had included

reset the baked on of have executing other But our elements into that guidance. that on are we there top we’re that,

Just what look closed quarter sorry, QX EBITDA. or and at our current backlog, update EBITDA. the XX.X% ‘XX of EBITDA And a by fiscal of ‘XX, XX%. and at at that’s revenue that by fiscal guidance – just looking current was We XX% the X% our at the increasing drove

at EBITDA if to look And answer of the midpoint of the specifically, at end an the approximately the high XX%. revenue. you of guidance, That’s

element So additional yes, our forward look. we profit into have baked an

about asked software. You

messaged elements last and One of now the has panel revenue continue to availability impacted our that message is software quarter we recognition.

actually to our of quarter. are for We below the X% revenue X% guided

We expect that to year. the be back throughout up

do expect land to X%. So we that at X% to

David Bennett

we’re Phil, the definitive we in. And benefit upside do, But XXx either X, XXx, until come respect when That’s that XX, none of treasury the printed. to with confident in results will we’re baked its just baking they all not and guidance. issues it

Philip Shen

standpoint could XXXX. in think market from a Great. booking Thanks, the be the guys. Shifting you do and XXXX over to, let’s see here, total overall market What size. U.S.

see Thanks. and fast you Just came be, growing be how market Wood but Mack the an figure versus might might trying as you showed you array neck kind out growing market what more do neck, think and of to is share fast how well? your with to and numbers guys out some wanted

Daniel Shugar

Yes. Phil. Thanks,

a HI, clarify, also market in by year on not a as Just believe number similar had focused eighth number but report Wood Mack by We one a to They in significant H-I U.S. we – margin. published share. actually saw Nextracker both and the and numbers global share row margin for lesser we’re the the yesterday. with the one

forth. for value reinvesting value and adding so monetizing on keep we solar can appropriate advance company, innovation, customers, in where focused We’re to to the so new tech

panels And governor market U.S. I gain that’s ITC happened. stimulus U.S. mean, governor, mentioned, Look, Howard that’s as this has, mean I the the on been debottleneck. XX% as principal unprecedented debottleneck are the – market. the with we seeing

Asian and We’re company and X outlook U.S. for their the solar, U.S. near-term continuing. U.S. U.S. ad seeing capacity, coming plants having has that supplier We’ve Tier panels increase chain, of constraints solar and new largest supply the domestic for the the in several their with customers their largest from manufacturers border the as shipments less production increased Southeast protection. other the significantly online predominantly increased their Asia, from suppliers are suppliers in are manufacturing their seen recently in has

So in terms past, of solar career fast how is underestimated the grow. said the could whole how in big one be, market I’ve the of the market I’ve my well, can in consistently things as

positioned with We’re not and now – we are Nextracker.

One big which States, executed over contracted XX really United XX reasons is number. the capacity, to gigawatts in gigawatts we a of went capacity of of the

able upside. One of to to the incremental reasons some handle we big be is went

I think question other how the fast are Asia some the coming how scale Southeast these scaling. So can sectors supply chains U.S., comes the panel and manufacturers can continue India the really from to answer and in to fast of

So we’ve – of which bottom-up which and year. one we’re is very question. on based concrete one Thanks for – this but the your data, plan increased reasons of is the optimistic our for

question, Next please.

Operator

And you. Jordan next go from Thank your Levy of from Please the Truist line comes question Securities. ahead.

Jordan Levy

last Afternoon, of see briefly. and nice international to your negative wanted performing of quarter. are you of could you just markets positive the to particular side could some about see we your how what I international momentum the in the the pipeline any us major outside all, if just a markets to over versus shift or business U.S. versus gave any expectations. if And I key wanted in talk quarter?

Howard Wenger

internationally a We deliveries. as area demand flow. we in And the continents, it’s strong multiple with one our the of country or great that in noted, country on is a a of continents, in respond leading picture. I’ll share really that. we being if as – And another terms can This four of and an benefits side, overall, then P&L is quarter to Howard. had a

And Australia and activity certain of parts the lot so Europe. in like a seeing of world we’re great in

Brazil is the a of price large but because little bit for power, very to wholesale market. customers dynamic that they’re committed

But a that So strong a going quick Do follow-up? something for watching question. and year at feel through we’re developments to feel company, going the is closely. but for growing the confident and Thank for have in continuing the with forward clip the it’s mix for very good see to – the overall, business. we Brazil, really we’re our and you picture we’re international – like you

Jordan Levy

if see move on just how a months. bit that seen all your if It quick impact at impacted backlog. higher and grow the over steel years? up steel of quick all get last we doesn’t on to follow-up seem at wanted prices results we’ve last just ability several the refresher changed the look it’s like over a or could little prices, you A But to few that’s to

Daniel Shugar

really strong relationships most The of mills and some about That of to abroad. We the think mills our altogether. – demand, And between of light a larger answer and Jordan, is and our supply the U.S. our came the structured a relationship our bit speaking. this not is the fabrication operation. longer-term with very ability our take Dan in narrowing larger view have Memphis really. in

a epicenter. lot in really just which middle public focused – just an We have their states, let’s – that’s was let’s a is this tracker opened regionalized, doubled right say factory just it Nextracker tenancy their X-gigawatt down – the of they’re for BCA they center. really, a thing And with with BCA. went down we of is or value we’re opening from demand say, it’s but demand But beautiful a prior around May. where – Memphis, with in customer, tripled Ranch, many we in in to starting a X.X-gigawatt Silicon because the the had had We

mill performing of right David have a speakers Steel It’s home, – River of on in One facility. a U.S. then short Burritt, from highest mill one steel of producing about it’s being the privilege distance CEO which River bringing this other Steel, the It’s particular COX Arkansas. facility. a standpoint, to the lowest in one was of has the amongst mills of the fantastic called Mississippi or it’s Big mill cleanliness them. the that I there. the other And very world the from and across the side tracker the certainly

coil steel can that coat to and we – in our melt can then process process MSS mill partner particular their that facility. so And

that facilities demand limited as pairing delivering Nextracker’s have over that mill mill But fabrication XX limited Now we model capacity partner, nor like that of really to under we possible to this be MSS reduce mentioned, as not with is contract. particular facility and to to is we we minimize cost, a COX so lot, transport supplier. customers, as and logistics for reliable minimize altogether supply to much optimized that’s to the regionally lead system and in costs a can Thanks that with time of because shorten a Jordan.

Next question, please.

Operator

from Northland Thank Capital Markets. ahead. you. And line from go question Donovan the your comes Schafer Please of next

Donovan Schafer

the for Thanks guys. question. taking Hey,

want question ask. So the to first I

as like a something But piece least X revenue terrain to idea So say, public-facing would may mix value like like of of like I’d where instance, to tracker. don’t from a disclosures the as mix offerings what on actually or gigawatt to product qualitative to kind fraction you for here you you far based give something like following get or are – a The a number. take, the practice the in I for bring revenue only like, corporate share products following terrain as I it is I maybe a sort standpoint designed and at the even know know that. – of some with willing different that some you small table a it’s from use deployment, types.

your to or gee, sort could talked what’s as offerings things fraction. So understand to want a what the to it when like revenue to it trigger these But about indicate be pulling like behavior, these we I’d in what strictly that a they customer as the the certain you – or the certain XX% or Anything enabled the because getting on something it. with come for terrain-following do availability are of ends new solution, XP, capture number can site with that? a XP solution Gemini win a true could by portions even be like up used to if something the like if when validate way bookings kind us that x the extent – of time customers externally value use of and are of maybe something you by on help of I a mix,

degree you quantification, updates if offering. and anything on just So the but or provide breadth customers that ideally taking any shows could of action of that clarification

David Bennett

Appreciate the question.

TrueCapture more XXX next quarter. But we few it over – – XX say last projects deployed has a anything. consider – for talked XTR, about than been we’ll we we on over words, I’ll been how and call, terrain and our deployed how quarter. request appreciate projects the has on So and then the last extreme terrain-following

So these we products. are – commercial

are We monetizing them.

his them. the which – in remarks, at on RE+ Vegas the of upcoming the improving releases September. called in Dan trade is year, in of second show the U.S. Las new We’re this product largest in to alluded prepared week week

understand And to cognizant to of want so we’re and monetized. follow they’re very continue investors those how our us to products who and

request A we seriously. question. take your Thanks follow-up. So the quick will for

Donovan Schafer

I the if – Yes. And can into Yes. sure. yes, get

follow-up quick a just usual that geographies, of the international stand there any is So outside out. culprits exciting

I know kind think Brazil, pay Australia, attention all to of we to that.

India think a to that potential, market challenging has in a but lot can I domestically reasons. various of be operate for

anything you’ve be could in or So like the anything but in somewhere under promising if maybe radar? that Or that? the India any in atypical what’s most traction what or would East? Just markets, seen be Africa like Middle

David Bennett

Yes.

quarter select during these on of So Slide we wins subset a just are the X. – put –

XX correspond These gigawatts – over are on have – a map these where by mean that wins we place. global contracts. XX pens We placed wins, took to of

yes; parts the America. and the Europe; Africa; the Europe, just other Middle America you place Latin of And Brazil, yes, not so Latin geography, not in of approximate in Asia, only yes; in so can yes, Spain parts East, and India, see,

in America, the even and in States a North quarter, pin above there’s United Just that’s Canada. the up

are whole for move company of rapidly We last growing like markets So Thanks United more need we’re the markets, either there present are promising mature the and much. on or growing pie markets, to our with number States. where very that to a upside the which question. have

more or no one questions? question have further We

Operator

are further proceed. There time, please Yes. questions at no this

Daniel Shugar

generate very for fundamentals: – questions and Shugar performance are cost of here. Yes. the market dynamics inverters, out due Nextracker’s in way lowest the strong cost this solar, And Dan technology. you Thank totality, our In to panels, by in precious very market better around much TrueCapture call. of to the you trackers, really improving is is most reduction including proven the solar, all to comments. Thank is thank investor world the dialing much, power. patented for you and grids because

Operator

Ladies all for and conclude today. gentlemen, Thank Thank for our that you. you participating. conference does

may disconnect. You all

Nextracker (NXT) 26 Jul 232024 Q1 Earnings call transcript