NXT - Earnings call transcript Q2 2025

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Operator

Good afternoon, everyone, and thank you for standing by. My name is Sierra, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to Nextracker's Second Quarter Fiscal Year 2025 Earnings Call. [Operator Instructions] At this time, for opening remarks, I would like to pass the conference over to Mary Lai, Vice President of Investor Relations. begin. may you Mary,

Mary Lai

our good XXXX Welcome Lai, Earnings Relations. Boynton, Dan of and our Howard Quarter and President; Vice Nextracker's Fiscal Investor Chuck Shugar, by joined Year Call. CFO. I'm and afternoon, you, Founder; to Wenger, everyone. our Second President CEO Thank I'm Mary

immediately open Q&A a session. we On remarks our into today's will call, CEO, transition from brief with Dan, and then

replay earnings of website, As release this posted a be reminder, IR our there on letter. along shareholder a with press will and the call

call statements beliefs, expectations. operations, cause may forward-looking risks our statements Those and may Today's contains financial involve assumptions regarding performance on and speak our expectations that considered including industry of actual are our based and only results be statements, business, statements uncertainties as and and to such our differ the date. current business and from that current materially

uncertainties, available we shareholder are on including our the recently and more to risks review on events Form which on earnings information annual filings, no SEC please our XX-Q changes report website our release, any and information result update Form press undertake our quarterly a statements in forward-looking as obligation expectations. new to change, information, investors.nextracker.com. is of and This report XX-K, subject those IR on filed For future our most letter and or at

call section our full call. the of the Founder. financial Please to And to and appendix note, today's and well press measures reconciliation The turn the I release will website. as IR and shareholder as non-GAAP we can will GAAP the now found to provide over GAAP the on Dan? CEO letter be the in non-GAAP

Daniel Shugar

QX you all Mary, earnings and our you, Thank call. joining for thank

company board financial across We strong are products, by operations. and solid pleased continued in performance. the driving sales with the execution the very

our largest performance, on in United market. comments is the the I'd offer to cover the we States, upcoming election company's which Before like a few

have the believe Nextracker the and our outcome. grow, There regarding solar. to We company been our industry election sector of will impact on of potential and addressed questions election regardless

prior As be we and we successful more of the markets. are about lowest grown projects less Republican have because administrations, politics steadily about believe energy Democratic cost solar in scenario we economics, and in through and energy any is will form most

new And maturity the believe the a about availability in solar shines. are has It's projects, projects we capital and of solar areas, to for U.S. risks in it's all to that of queue. and development positioned are considered. interconnection The the power, of battery where In need. projects finance these appetite growing about satisfy best

of and plants most the manufacturing real. are states, states in located the is underpinning those the significant in power and economic solar value Further, red to delivered investments country and

election. sent members Republican key unified demonstrating the speaker XX that for letter outcome persist House of the believe of so of bipartisan we much of Act will Representatives the IRA, in Inflation to independent Johnson So a clean again the upcoming Reduction and the the of why energy support elements support of

let's year-over-year. will fiscal with strong of And our our seventh marking our Nextracker the first of year-over-year. execution, quarter was 'XX continue believe to we quarter increase in under XX% record, revenue either of administration. of for summary, was another turn In now grow double-digit consecutive U.S. QX half an the growth performance. company to Revenue a

of for customers. all matter across criteria pricing and products a and in drive discipline. help lowest operating factors and the with We demand on will see highest our globally cost, strongly believe to lowest quality the technology range differentiated to most to We regions, installed by continue these product strong to that reliable driven engineering. highest flight that enable a part demand We Nextracker quality across offers and production the believe cost, market

Our and phase sales global at ethic team on rewarding these customer supply robust orders. values that chain journey. customer that sector service with delivers expertise, of time, the are products also requirements is to a each customer differentiated Customers domain measures a with in response

new backlog our Our significantly of for $X.X margin record year the pleased fiscal this we increased beyond. are over and profile quarter-over-quarter to a with of billion, backlog and

our midpoint we a As new the orders, to at the $XX $XXX of full fiscal for the million. result million raising are profit by year target

products, new NX in We are HailProXX Low also Horizon X.X, Tracker, our for customer NXTR both orders new NX receiving Carbon including Foundation Horizon, technologies. our NX NX

of been products these Most deployed products successfully the made focused of by field. from investments All resulted have R&D in these Nextracker.

third In QX, with Hyderabad, Center facility state-of-the-art facility foot India, Nextracker a square XX,XXX a Solar design we in XX-acre global in our of laboratory. inaugurated Excellence

Our X regional labs projects technologies, as in PV design incubate over customer and commercialize products global XX localized and around optimize for we needs requirements serving are world. the for countries

XXX% to our our A of manufactured XXX% We tracker. manufactured QX will of this a customer only the we few later months availability To accelerated ago, it, the year, are quarter. manufacturer U.S. received orders tracker deliver we this for customer can knowledge, to response tracker. domestically in which demand, ship that

bonus approximately customer their ITC or capability the provide benefits On to enable them a a ITC. a a entire $XX tracker. domestic capture XX% content higher roughly achieve because the can This the it XXX-megawatt to investment of the of much can them cost score value tremendous enables customers to and million, have credit, U.S. to XX% to tax bonus on can system, typical equivalent

we be the we exceeded expectations. month, At by quarter, acquisitions of year. America Last and business. end on reception the customer closing fiscal the North Foundation Conference Solutions of to NX our last integrated Yaris X business debuted Foundation the announced which are successfully track

robust solutions We have bookings business. signed new Horizon our trackers NX Foundation pipeline for orders a and and see our

and on types will customers. to achieve what customers, Solutions efficient of of plan In and excited developer remain EPC a on our double-digit summary, it first focused for growth quicker, our a raised revenue with great full year range do half was and we enabling for the more development executing target. fiscal profitability 'XX, We're solar for wide for safer our Foundation project a soil

our We industry-leading achieve Looking forward, ability execute products us growth the legacy mentioned. supported and customers' another our we both products to your demand by new comprised Horizon to I for questions. look and support growth year, fiscal The and such our XXXX backlog. forward confidence customer our to product of just success our give to X growing as the offerings be NX now expect

the pass me operator. back call Let the to

Operator

Capital first Our Instructions] question [Operator Partners. from today Philip Shen with ROTH comes

Philip Shen

quarter. in check very strong to on on the Congrats wanted the bookings.

that from the pleased you greater you of if with think billion you the what this like strong give you a baseline close was for base profile the were talk wondering math looks kind I not your for Can quarter. Our I mentioned margins. quarter? than suggests Dan, $X bookings if to could through remarks margins bookings. or margin to, the us were in comparison the

And agreements do orders you as maybe much think your that lower think new obligations line you the do about when any was little or higher? have backlog of that that, And in the then bookings or in And volume well? new you with a or commitment new MSA products? are bit bookings, how

Daniel Shugar

Dan. can that. Thank This you, weigh -- for question. is in thanks you multifaceted Appreciate Phil, Howard, and the Phil's on the question?

Howard Wenger

is Sure. Phil, this Howard.

of profitability and both P&L strong on another quarter So performance, we bookings. had revenue,

a is to great $X.X backlog our raising company. for new milestone a record the so of billion over And

U.S. and far for of the new is said As guidepost matters, bookings what's of domestic, the business as the is we and X/X in in And mix rest world. the our -- what's what the backlog. about X/X

vary some has you $X.XX the that the that's solar have we as and a where competitive And $X.XX is such do and out margins vary kilowatt East, cost region. in market call which pricing because rest at world Middle lowest select electricity pricing -- our by the And the hour, so the okay? world, to per markets of electricity can

the our bookings rest of said, And mix. we X/X, X/X, the that much we have, talk is new we're overall with It's forward. that with profitability profile in and about: contributions the those mix U.S.; to the margin on of line then very with both going both the for happy very that and X/X-X/X consistent world. the With

of bookings? MSAs, Phil, your is the the And answer yes. you, far have As for the type we do in as question. VCAs Thank --

Operator

next Praneeth question Wells Fargo. today Satish from with comes Our

Praneeth Satish

I echo Phil's comments on a strong quarter.

backlog mentioned the you to of in You quarters. realize X XX% that expect

Is I side? So faster improvement backlog quarter realize slight improvement a a it from revenue seeing X projects in talk line? Or where you are about U.S. last a think you expect you shrink that's with just higher on of international simply the time you that to an Can what's cycle? conversion helping quarters. mix said

Howard Wenger

metric fed recognize of the X -- from to of in shorter with XX%. horizons, It's our increase actually. both to getting we and XX% over that and the expected what backlog We're to expect quarters. caused XX% backlog, XX% that's or revenue revenue next orders go

And yes, -- that's cycles. both contribution it's an on with equal shorter so

Operator

Our with Strouse from next Mark question JPMorgan. comes today

Mark W. Strouse

reason maybe double-digit Congrats of -- on in less fiscal stopping kind you you're in you letter, from but you're else I'm a fiscal X in that something double-digit than growth of revenue that double-digit that in of is about maybe just about there might growth short quarter. growth, backlog? the fiscal the here, the be making but Are talked splitting On you of talking kind growth there visibility you year? shareholder 'XX, your Page 'XX? that is Or the have seeing it then think activity growth that's next saying hairs 'XX bookings

Daniel Shugar

lot Mark, provide the plan Dan subsequent earnings 'XX Shugar we'll a answer. -- revenue color the The here. on more calls in FY is

more will never covered world. position in many around is seen of So better growth among today, we've We've been fee it seen the Howard's backlog. we'll billion regions the than. $X.X say, provide has company -- a than just I

And It's world other in and stronger will multiple region quarter-to-quarter, super than have all steady regions. X growth. to regions contributing be the

phone, we this The sure not noise there's the that's fiscal first of from. saw some coming where on -- year, half

you. Thank Okay.

half the more our as year planned fiscal shipments competitive regions, the So we the stronger very Middle such of regions, mentioned, -- as Howard year we're of is saw second first lower year. And in seeing growth this higher-value value, in strong the East. half

on we've we're going profitability for company growth raised double-digit We're this were going this Thanks our and the able expectations. said out, revenue to plan, do: But to on question. year. growing our hitting balance, be what doing we been we

Operator

Our Gosai of next Dimple Bank from with America. question today comes

Dimple Gosai

also the dynamics, domestic what speak seeing rushing terms some Can you bit a the get little competitive behavior, versus kind of about in of of please of door. some elections versus X customer or -- international? ahead new about of we're your is that product also then the wins, through in sorry. quoted I customers, And more little XX customer you new the a U.S. bit to think

Howard Wenger

Okay. This Howard. is

demand solid India, Australia, very So what increase the just clean the continued we're And Africa, all America, major board driven and the Latin electrification in data seeing a of seeing North world, America our across demand We're being the demand. in lot demand of electricity, Zealand. for centers, that's East, for across Middle is market hyperscalers, of electric vehicles regions Europe, energy. New by

And in so the macro overlay from demand And dampening not United is that picture. there the the is our on perspective. States election a

our in is Nextracker. we're proposition flight thing and quality company. what articulated on of the we've As delivering -- And sensing value side, -- the a showing, we're one is some. the for backlog then on There we're that's increasing customer our real to metrics

same. Not very the the We tracker. all architected are have trackers operate differentiated They same. a don't

sheet, believe a strong and Chuck let really that very balance then have superior the customers extends from operational with different bankability a operations it in -- and that to we a of excellence a company We halls our And architecture that tracker appreciate. balance very is sheet. fortress our

We as a have $X.X in billion liquidity company.

mean, lowest expenses the projects they solar these lot of require -- form energy some and our capital -- They a I expensive. And to storage. but they're require with of They're -- capital. around work. and are then finance of very a they not or with produce lot

system the is the to backbone tracker, which the And so of important it's operate. for

Nextracker. flight all to what our proposition a differentially so believe for and feed Really of quality appreciate these we the question. And things value is

Operator

comes Barclays. with Cho Our Christine from today question next

Christine Cho

I on thought hit maybe I margins. would

So and And X/X you the also guidance. think guys in high at XXs X%. I doing higher shift know year-to-date. realize letter the to talks guide, than And your is coming this are mix slightly is better full U.S. year your I software well I the shareholder about above the

half you of margins doing bring shift else on gross that But the back other to the than the to, world? where that, the anything alternatively, there bridge in is rest of this back than cost in down would better you you structure should mix expected? might point towards year, than Or gap shifting anything be other

that say better or subsidies? structural out Does the of when naturally credit explicit understand will lastly, XXx can where materials us lower offered that without gross XXx you you help settle is? it's just what mean of margins gross margin, think you And credit? any explicit Whether bill definition instead

Charles Boynton

Thank your appreciate you, question. I Christine, Chuck Boynton here.

So product on plan do you time bit than on better to happen. execution. quality. service our were really first and based time, quarters. overdelivered in QX time, you product that deliver of with great teams, good teams out QX things to And We the strong our key little on field, our delivering incredibly on all, is on execution customer Margins on And great tend based a when tend you the projects word. schedule. be with products, deliver a when

systems in we've plant not it in repeat The the that software, will being margins might, is TrueCapture It we high of the QX That be second It and best the QX. to in that manages software accelerate but than in fairly of really TrueCapture. uptake QX. plan us the X% commissioned margins power will more our QX thing best that a drives because is lot X%. like industry. allowed TrueCapture significant and higher has industry-leading is was that and really to probably QX. a in sales seen saw in

the will QX half third of XXX the that likely we basis We repeat into in accumulated year. some XXx to QX. that about XXx. and factor from amortized and then benefits in are prior letter, points In back not the in the quarters is QX, So QX overachievement of talked got not had that repeat

great international then projects And The In U.S. mentioned half, margins, that the customers. our averages back scheduled first value very to really some had projects, international:U.S. company strong delivered projects. for share the that half especially we mix. have high markets, X/X:X/X effectively we large of in out year, a competitive Howard that and the in effectively of very are QX, deliveries very, the really

would like? The is blend XXs. average, be if really on structurally, average thinking is X/X:X/X we're should out structural on the in be model XXs, saying, what about the step international, the margin comment what it you the low margin of look back, And business taking high a maybe profile

you, that great made really a we've comment been the consistently, Christine. that has that's So and on company overperforming based execution. Thank

Next question.

Operator

question from Lee Brian next comes Goldman Sachs. Our with

Brian Lee

I had. questions of couple a Just

on attach Dan, you software piece, or out. at the of terms time like it to be kind to I IPO Just this first can is forward. could it I too but you the of talking about speak it think -- time Chuck the if to probably that you the broke of rate, don't in know out was percent opportunity an remember seems small this the sales, break going you of

about So attach guys a think you how of rate? just sense

XX% situations is of a of structural software able coming aren't are maybe for what the And the high at? cost? the mean, there quantify in I to outside then of where Like the just maybe up get to growth? you And sort uplift, if in you customer TrueCapture, to margin kind can drivers compared incremental sign of some where

Daniel Shugar

Thanks, Brian.

have in adaptive independent So value we the long the an ago. knowledge, We to first commissioned term, that world. around projects regions the TrueCapture TrueCapture. rate introduced significantly. is my major with our over been TrueCapture. over It's X all There which increased the XXX all about engineers that are, worked TrueCapture, with years leading software attach operating -- tracking This has of

increasingly with we've been field. That And does And mean? TrueCapture has have it. the there, gone comfortable customers out in TrueCapture. measured become What empirically means validated that

markets a the markets go so increasing And well we it's early markets into attach mature, an understood. we have TrueCapture as new go -- or to And forward. as mature tends as rate

the turned and recognition business, upon One is hardware TrueCapture, delivery. during revenue of where, systems case In process TrueCapture discussed the does TrueCapture hardware happens a the than on. profitability when in recognition the the then revenue are have recognized revenue the our we model of is different business, things around IPO

a to TrueCapture have you commissioned, -- so and used. is then are then between hardware and when systems delivery So there's lag

basically this it So more the because TrueCapture yet, so turned And mentioned, technology systems efficacy TrueCapture's revenue it that where in shipped, was weren't stands. were field. Chuck business feel great that's last the being We terms okay? about the features, globally, the as independent in building really engagement keep releasing they growth about TrueCapture but we the in We of the engineers. saw on increases up quarter, by

Internet, at go a feature go a Boost, a released generates Zonal released highly the which on we feature can that Diffuse. on And feature look also And called Split more YouTube we example, differentiated on For energy. and called that. you is

see type not go they you These your TrueCapture. of increase on if Boost, Split Nextracker, Thank only in energy how you'll well, question. works. increase YouTube you and for by So generated it actually things the amount --

Charles Boynton

little side, just is -- tend costs. Brian, R&D different because animal the higher you you add I'll margin have a on software have to

spend You lot money the on that IP, technology. of developing a

this so quarter, the investment you. investment R&D it increase in OpEx that's and you'll is increased is the this high, this with and additional margin to again our Thank in line. in in plan gross we And very R&D, QX reported what's our R&D comes we've And note driving QX, but and value.

Operator

Nassano with next comes Research. Dylan Our question Wolfe from

Dylan Nassano

their those just you you to from product. have comes to warehouses should call but that ready you delivery specifically call, know that you necessary? shipping is, questions kind have to night. of And customers the be it on accept it if guys last in listen They're also seen just on yet modules spoke your aren't contractual earnings exercising X when us for Peer talking what rights projects on who about do don't to remind actions? impact your recourse backlog any can I

Daniel Shugar

I'm modules your sorry, repeat Yes. warehouses? to announced can who you shipping

Dylan Nassano

Yes.

First just They warehouses. talking were yes, was it Solar. about, Sorry, directly to shipping

Howard Wenger

Howard. for I'll consistent What what the we're seeing shifting My that's we're to answer schedules want First We're is an schedules basis. least don't seeing to saying. from in. understanding on means is some some that speak project project-by-project fairly project that it's at This question. activity a we're very pulled right, limited, is the I Solar. being quarter-to-quarter,

of with, in number U.S. have we work whole, of on internationally, back of we the number that we're because projects forth the the number and of manage totality. And of that in able the diversity our flows EPCs and these owners to the and

we've proven last that quarters think I X going the over since public.

about we're But a seeing It's or a weeks, the last not not sometimes delay We're month, trend. a not we up basis, relative very see shift individual seeing to going materially that. not an longer. project of quarter. a But concerted we -- on it's talked can X right what even into

stability, So for actually quarter we're say, seeing last I schedules shipping to more in the this from our question. would Thanks quarter.

Operator

with Our next Mizuho. question from Ajith Madeley comes

Unknown Analyst

the First, just revenue cadence. on

new QX. weighted. in you've this the think It's flattish QX to I how that pointed in

just and the you do about you billings QX book how many talk if So or still for need half? second to

the for higher ratio talked just R&D, should on how think or going margins talk think forward? And we QX about you OpEx of expect? you about structural structuring I separately, QX, in that about the but OpEx could that, you

Howard Wenger

the part will spending. second and answer answer This Chuck question, part I'll the of about first the is Howard.

our our of So visibility. we our 'XX and feel backlog very FY solid about because

we're really what that's there. shape really, There say. is -- good So so I'll

have that and beat lot And shipments We've the a Dan next QX, which driven into by going quarter as our really And line, which, or includes confidence either year. is -- -- each of confident the robust is take and we for megawatt quarter. hit our Chuck it's Chuck, comments provide a quite the quarter. on, to we're want to color we quarter. OpEx? on in delivering you it's expect And going very and do top

Charles Boynton

sold pressure biggest you. strong and work going but be challenge, it's history, They I are in Thank a to we of chain and single context, will booked and really supply really, on the be QX quarter team. the lot have put of to a business, it's just company's amazing to and to And will. lot put going a our the QX.

the technology. important strategic making On investments want deepen to the primarily in technology, a with believe R&D. has investments, we that OpEx in We side, company and our widen very key moat moat investments, and big really with we're

in up and intend flat. SG&A to R&D in was $X go-to-market would as of coming well geographies revenue in and in the drive key year back saw for sales spend went by And the R&D continue to You QX half invest million. sales years. as we to

Operator

from with Osha Guggenheim comes question Joseph Partners. next Our

Joseph Osha

I'd to Turning the reading referred to to The basis the does totality It I is clarify. refer your uplift. Am not the your of uplift like XXx credit. you incremental point disclosure, XXX of sort that language XXx correctly? to

Charles Boynton

of Think great was basis is, field our yes. XXx TrueCapture, I that other, of points of and execution which that the combination Joe, would a XXX call teams.

And benefits, so XXx, though, that the X/X as be think to just of maybe that, year-over-year clear, of Joe.

up in GAAP XXx not cumulative had prior was catch was a numbers. year might recall, you that ago as our only. QX, We in

when XXx, be to comparative. so year-over-year clear just you transparent And to and not they're super you. want that Thank we purely compare

Operator

comes from Markets. Jonathan question next with Daiwa Kees Capital Our

Jonathan Kees

results. limit kudos Great. add your just the instructions, also to the I'll quarter, one. Of my all myself

ask to about wanted project cancellations. Just

a was just a quarter, had who You customer you last out. had mentioned small had It canceled customer.

that had you anything if quarter. like curious Just this

Daniel Shugar

your for Thanks question.

over not the have that this over were projects of X had projects. was last of that was that X We project -- context any the there quarter. context And out quarter, canceled XXX canceled

And we stand. so that's where

Operator

comes question Piper Sandler. next Our with Harrison from Kashy

Kashy Harrison

Congrats quarter. on the

question my on So is Foundation.

would be finally, I could under And do expect terrain otherwise you 'XX? on quantifying U.S. start of any if in hard Foundation revenues, then was terrain And to Foundation you your pipeline, based Just applicable Ojjo? hard discuss to have wondering definition sites when the you of fiscal your what do then proportion of the backlog? that fall or analysis

Daniel Shugar

of the of Chuck, the question. take the question, And the Okay. second part I'll part take then, first please? you

Charles Boynton

Yes.

Daniel Shugar

U.S. metric Ares we the meter at And out turns from launch X ground, our the Bedrock shows that is the of what within event surface, hit showed it that rocked you is a you fabulous if And service traditional geological U.S. were the on of a significant was. just surface geographically Foundations where recollection portion, rock. the a putting when of my the there's map near pile has had of a business. We

it's And what as that across also the broadened rock we've of number be that have just clay addressed geographically or all seen rock, as prevalence frosty over of U.S., solar the soils. other is, the expansive years, -- market to not a greater but quite also to the And has sites difficult soils have swampy Foundation soils, the above. were of or X site-type technologies such address soils, the

we that are covered In terms numbers XX% like what of numbers, difficult to sites sites. the of were XX-plus forum, percent there in

their customers their activity. half of our Some depending geographic range over on have sites of

significant. answer So terms in to the of it's part second very That's the the of question. first half. Chuck, the

Charles Boynton

In question. QX, revenue actually booked you our new business. the reported and for thank for we Foundations Kashy, Yes.

customers that real we money for paying So us super we're have technology. this

We color next We as that's about have Thank fiscal the transactions. about We'll tuned new on provide expect we for stay and year. talking Analyst more our dollars be we'll this significant think don't be And -- a year. next to booked views you. year. Day

Operator

with Windham comes question next from Our UBS. Jon

Jonathan Windham

U.S. domestic XXX% on Congratulations the capabilities. content Perfect.

what to about appreciate and I your U.S. that wondering just some it. that if or As you likely guidepost is proportion be? business to us you plan of next could ramp year, thoughts give ship

Daniel Shugar

tracker of a just clarification, quarter. And have we Jon. point this XXX% actually for delivery our scheduled as Thanks, U.S. first

to With on their that we're year comes see were use to module the the So that later. to speak and able of relates based on have mix. customer customer tracker. that respect needs. going could It also XXX% to we to business domestic percentage demand. It and bit next We're it accelerate the to wait to our a

But markets other a to of getting curve. working U.S. we've Better, India. such our IRA, we're Build from Nextracker we supply prior massively chain, our and how with Back prior supply to business it ahead as the ramping ramped on what is, And U.S. consistent in that's ramped were standpoint, key chain

we've in major capacity in gigs This we of for the the in announced for content, over in a XX% components India. gigs India quarter, And XX U.S., XX of U.S. in example, India, with our had India, the over U.S. for

wait that seeing address demand stronger on and our than to content XXX% earnings potentially that the Analyst see continued number, the Day before or to We'll you. we this we call and we subsequent mentioned. demand guide could are that U.S. or tracker. Thank have for We anticipated following Chuck

Operator

Our with Baird. next from question Ben comes Kallo

Ben Kallo

because do guys is better or is U.S. opportunity the flow? opportunity Sales growth, the so big, and for? Just international EPS What you cash or margins. optimize growth margin

Daniel Shugar

we responsibly. keep we're to grow. so Ben, want and means -- want do we want to And profitably to an that We growing, and in accretive way.

of like we evaluate the to sort an company, So if new M&A. is we go it's region, accretive a into

way, we which a opportunity addition so there in vast to U.S. the market. international your see it is is And

It's If goal. to to a funding. than they to XX I I there. by -- gigawatts personally for renewables XXX-gigawatt just clean they a comply for RPS. just came XXXX. clean trip. And back goal That's our don't, spent are power target states more They this That is to required get this like from really week have The India. India. understanding don't a year goal. that per receive from translates an this meet

So worldwide this and happening there electrification movement energy. is clean on

going for we going to into responsibly. Thanks keep we're are that we -- question. and And are doing your that, so tapping to

Operator

Truist. Levy Jordan today question from comes next Our with

Jordan Levy

but and get to there Chuck, around into new if -- not -- could an you technologies also additional of expansion new what earlier earlier we any many could attractive just question, get wanted we to see I to are into too you? comment to into markets. talked think in opportunities specifics, the R&D sort on side in color an I efforts the on

Charles Boynton

Yes.

new you what that are R&D efforts Dan, should question. maybe is, question we the taking on. So take

Daniel Shugar

mechanical, Sure. and patents if Jordan, X you over thank way electronic patents, and look about you. to the categories: we Jordan, our this and think best pending issued have at XXX software. controls I think is in

so system, The add And the to mechanical the we're these value customers. which relates example, to software, really not and They're relate for these And silos. other. relates in TrueCapture. control to each continuing, for

in continuing where then all look that in well value based to be to by the contribute and really of evolved it risk And to factors monetized the can frame. what's have a what's we're customer, and on are So a go is we innovation how time quantified much value incremental what's we customer at investment the that budget invest does the and we a very available have. and the what list these and at These categories. process look have the we that

then we we've that just investing field. things of these to they've everything we increase And about release one we've we're continued in can really speak as afford, efficacy. seen is And the And great in we a been and that the technologies, budget. piloted

utility-scale We've it's there our And customers and plants out Pro-XX so Hail great. real operating power got forth. in with so

been it's So very productive.

company. do technologies for Now to looking X We're And that, to operator? also believe open be that at to that. more We we open can very I we're having question. acquired said additive the we've time technology. -- have

Operator

from comes Julien question Dumoulin-Smith. Our next

Julien Dumoulin-Smith

Guys, can you me . hear okay?

Daniel Shugar

Julien. Crystal,

Julien Dumoulin-Smith

Awesome.

it earlier. if I about coming was Sorry that. sure wasn't through

domestic of is kind is quickly Obviously, think Earlier terms you the year, remainder on back of $X.X the back product? EBITDA what as the half, And that about up. follow be of of half the about here. under that coming can think XXX% rate clarify to good you a you content many half the versus indicator content, to qualifying half put points run backlog in margin first across U.S. just for how up what just that you to year exit of back should the Just then question margin you about that an as in for going kind forward in backlog? this really embedded the of Or thinking first billion? the

Howard Wenger

you, I'll Chuck, first Thank Howard. this the is the Julien, second. part. answer

of a qualify for than we XXX. enable domestic large that that. can quarter because part take-up customers. to the In really now seeing XX.X able Why? to don't on content, that customer I deliver anticipated our for out happy for this be to know. So higher we points We're

So that's the a required, quarter towards okay? or XX% XX%

need that's increasing you time. if and over -- So

half or a credit. XX So we're more to points the points, need to get if you than XX of XX%

seeing in they to okay, achieve how plus domestic hurdle. much do So thinking that. really about, that customers They're interested need tracker panels we're panel

to the Chuck? of that's first answer part question. your So the

Charles Boynton

Yes. next structural XX-ish going for too not kind going today. do new beyond it's gross of to call translate of at call next really there's margins for to outlook Analyst into, XXs, Julien, sort look of Day and we our attach that's rates the to factors, out of or the that earnings businesses. And close? right lot outlook we're to factors, our the because next more of But like a what TrueCapture, Foundations about to low XXs now QX EBITDA at it, our year you maybe would do lot mix, year. our year roll Dan, say talk appropriate a it's as margin high want

Daniel Shugar

Yes.

We shareholders Thanks call. our today. world. earnings joining and for ahead for powered call highly everyone, and the renewably thank for we as our valued joining our entire our Nextracker you, partners team, march thank customers First,

Mary Lai

concludes you. Thank earnings our call. This QX

Operator

That you participation. will your conclude today's call. Thank for conference

You may now disconnect.

Nextracker (NXT) 30 Oct 242025 Q2 Earnings call transcript