NXT - Earnings call transcript Q3 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 Third Quarter Fiscal Year 2025 Earnings Call. there a remarks, session. speaker's the will Q&A be After would opening pass Lee, At Relations. for I Head like Investor Sarah this time, to remarks, to over this of conference begin. may you Sarah,

Sarah Lee

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

Following a remarks, Q&A our we to prepared transition will session.

and from of replay press a call be may letter. will operations, differ beliefs, that only results there reminder, of to business our expectations. uncertainties our assumptions along our actual earnings a the including on speak as may the based Today's regarding and current website, and considered industry involve release this the IR financial that statements and statements, As be posted cause on shareholder performance materially forward-looking statements business, and Those our date. call are with contains such and current expectations risks statements and

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

The financial the GAAP as the can press full provide well appendix release letter GAAP and and to IR be Please as to measures reconciliations the non-GAAP today's will the of note, call. the on website. section we found shareholder in non-GAAP

our Founder. will and now call the CEO Dan? over to And I turn

Daniel Shugar

wishes and Festival. you for financial fiscal today celebrating best joining to us Spring Nextracker's everyone to results, discuss QX Thank the

excellence, operational products strategic across demand our team's progress our led combined products focus our for on has pleased and and and are global to report performance that services with business. We innovative robust exceptional to

with achieved We revenue strong XX% was approximately growing $X revenue year-to-date. financial year-over-year QX $XXX results billion million. to

gross adjusted our and on ability strong market out market in remain saw results quarter a strong another efficiency These position. to reflecting meaningful operational environment, our and and improvements, close underscore execute profit deliver adjusted also track Our effectively EBITDA to the year. dynamic to we

$X.X trajectory. excellent confidence backlog us Our a quarter-over-quarter billion. new provides and hit to over robust visibility record, growth future our with backlog increasing significantly This in

the partnered X Solar on are and to with innovating execution further customers Energy new U.S., facilities engineering commitment In future X technology regions: expanded UC today. our we leaders. solar differentiated delivering develop technology CAL-NEXT to power market, remain the contents the the establish in value with solar Research and cutting-edge and and serving advance a plant focused million and R&D and India we Berkeley our Brazil Center for $X.X scaling products legacy to project enhance our To our hyper QX, to we deliver across to results,

power. demand us unprecedented We we as investments creation, leader strategic the and in believe driven innovation electricity to solar industry anticipate in expansion growth commitment global solar and and value longer critical drive position a these to and long-term we'll increasing our by term, experience reinforce technology solar global growth

market perspectives industry and will outlook. share now about the I our

And grid. added U.S., power of perform third the to Mackenzie, in to in over solar approximately generating about according X% grids fastest-growing last to ICF generation And expected is consulting the to of U.S. electricity decade. solar Department growth forecasts increase to demand power. added Power accounted all by U.S. gigawatts firm. new U.S. next the year, to Energy quarter as the demand XXXX to the XX most the the continues Solar XX% significantly, of for major According the International, world. around added XX% XXXX, in capacity XX% power Wood the a being of

power solar plus And by we reliability, increase dominated in peak storage key the morning source grid speed of X,XXX power's nearly been continued in years, reductions of are the has have Significant recent systems Cost, power remains delivering most the and helped electric in queue. solar. of evening a integration in solar by in with projects solar with believe battery early battery coupled of growth of and single many the in agents and costs, and the construction world. adoption powered powered conditions. growing U.S. availability Capacity practical chain supply solar solar drivers around fivefold firm

combined power us backlog for has to demand new 'XX and our by with in $XX of sequential target fiscal to million midpoint profit growth raise Robust our $XXX a million. enabled

solar operational strategic innovation, driving record Our your shareholders, remain in and industry. R&D opportunities creation to for strong growth to tremendous the backlog, excellence we sustainable quarterly value for the committed our support. investments results, continued capitalize and us We you in on and thank position

over Howard additional business. our of I'll the President call on now Wenger, color to pass provide Nextracker to

Howard Wenger

you, Dan. Thank

like $X.X both profile positive to of World backlog more than milestone IPO the driving be to further the time have this and doubled than U.S. $X.X book-to-bill have continued we ago, bottom so done at noting greater in lines. demand greater while X. stood since and years company's We would that record the We X a had by Our we backlog to bookings billion the than regions, top our at and which billion. growing with our highlight quarter ratio significantly for Rest

In over bit Now of in bookings mix of for quarter, a U.S., covering in QX. the diverse states more we total the the project sales in had new contracts detail across a country. XX% XX

a is span of a more business innovative range synergy interest. additional combining new is complete growing We in are and foundations solution conditions. recognizing currently NX get Platform that of U.S. focused Our Tracker a wide helping soil pipeline us on customers with the our market wins foundations the of believe Horizon

reduce electricity siting enables help of lower These total the enabling need yield. U.S. to are with Tracker, capture and We storms. for increased solar new expensive boost features, see which in to as we auto Pro-XX plant stow the our bookings site grading can radically power help And weather and continue true Pro-software pleased sales as XTR are also our systems software Train Extreme projects, costs owners are quarter with quarter designed Following severe energy demand. expanding U.S. which address can our innovations greater flexibility protect in for strong rapidly the to during well Hail which of to sales Hail for power Tracker

Middle Chile, and of India Australia, In the software countries the Brazil, the gaining India, Saudi The to QX in and are we in the in traction XXX and megawatts in Europe, are contracts signed XXX the Of Arabia. seeing for continues installing signed and note countries international pipeline MEIA more new U.S., Europe, Africa. East, quarter. Latin in internationally international XTR Peru capacity TrueCapture also arena, America, solar, the grow, we excluding XX projects, with to range and we different in and we region of each Australia XX

strategic that We supply. the believe Shifting moment sales. of more a enables is to our supply advantages for one chain global

enables the with flexibility performance for reduce superior our U.S., operate example, us increasing lead to partners throughout while customers factories products, over For in delivery on-time which our times our XX construction. producing

As announced, per are U.S. we XXX% previously now content treasury domestic shipping guidance.

content U.S. that increasingly currently domestic only and We shipping domestic finding we for XXX% company and content our are we're a projects, believe tracker. customers want their the first

many In QX, XX% revenue over repeat apart that to there enable partner. us be we are the from coming We had and factors believe of preferred us tracker set customers.

with relentless reliable We most offering We mindset rely LCOE. EPCs, the highest company that service owners industry built operationally believe record. upon we and a have with and in track financially significantly and in a the at the a that superior and can And lowest the developers delivers have proven customer we strong solar power performing a service a product focus have differentiated company and and trust.

give customers and stakeholders factors as us these will deliver. them peace and with of of our work partners and that mind All set we apart

In costs have over resulting costs size doing continues location, vary costs. type and company our knowhow reduce project and and costs and more QX, decreased and for power industry the in pricing most the was this time, manage to system customer, ingenuity scale, and pricing other among technologies. install to Pricing region, panel generation by condition, costs generate stable solar to soil energy. to solar and trend continue to well. with becoming the Moving part factors. Nextracker continues We're as competitive Historically, to

nature the track some and to another summary, on with portfolio Finally, to out of in and multiple was year. performed our some in spanning pushing and on projects and business quarter project QX which timing years. quarter a very out, are is strong close we basis stable fiscal projects accelerating well large-scale In the deliver quarters manageable the

I'll that, pass Chief over Chuck Boynton, to Officer. the call Financial with our Chuck? And

Charles Boynton

you another Howard. and earnings to to call. Thank thrilled us XXXX quarter exceptional in satisfaction performance driving for joining innovation quarter I'm our continued for financial you, year outlook. of Good everyone. execution and our afternoon, financial We're present Thank product third our report globally. pleased fiscal demonstrating team's results customer

over we revenue achieved of improvement represents QX. $XXX X% which QX, sequential million, For a

XX% growth year-over-year. reflecting Our year-to-date revenue billion, reached strong $X a

World of with mix Our projections. XX% aligning and Rest our XX% QX was geographic U.S.

QX up EBITDA points up year. our marking prior Our adjusted to compared X adjusted margin expanded remarkable adjusted $XXX XX% year. of million, to translates an EBITDA an XX% growth, from the the XX%, This previous year-over-year. to EBITDA shown increase has Year-to-date, percentage

the million free It's year. adjusted more 'XX, flow, the the exclude free important in our million prior flow from credits. doubling year $XXX Year-to-date, cash $XX increase the a in we've QX, XX% period cash XXx note, year. in from during results We from the million to generated million same adjusted in $XXX than last $XXX generated adjusted fiscal impact

flow Total end debt at financial fiscal $XXX cash QX increased billion, strong with no with significant flexibility. the sheet significant $XXX with remain and providing closed us million XXXX. maturities and total cash $X.X in Our total QX of until to in competitive advantages. generation million debt balance liquidity We

adjusted gross Our roughly margins quarter-over-quarter. were in XX% line of

significant year-over-year last growth our to seeing TrueCapture rate a software sales higher quarter, by Similar of projects. from driven of commissioned we're

software revenue. X% our to approximately expect we forward, of Looking be revenue

across not major exceptional saw in products our for confidence for profitability only demand with significantly to but all foundation XXXX strong outlook also billion. experience fiscal This global bolsters to a current growing than bookings $X.X QX markets. our raising solid greater beyond. lays the our continue and backlog our year for We performance

in be be be $XXX to the in billion, EBITDA range 'XX, of total. $X.XX the $X.X billion per adjusted U.S. expect of year of diluted mix EPS adjusted million, For in to million share, to $X.X the revenue range to the X/X range be the full to fiscal revenue we $XXX of $X.XX to to approximately

reflecting in expect We our XXs, pricing margins management. cost gross be and the structural execution, discipline our continued to low

We an solar manage and our business basis, nature on with consistent of the power the industry. utility scale multiyear annual

to stakeholders. differentiated value believe our and culture, continued shareholders confidence our for driven strong support by continue momentum industry-leading that's delivering enable a for position bookings position demand innovation products, and success, strategy, us is strategic team strong to and Our market enabling continued will customer ability other and We and customer customers, financial execute investments.

Operator? your Thank to we forward look questions. you, and

Operator

Instructions]. [Operator

Our Harrison Piper Sandler. first Kashy question today with comes from

Kashy Harrison

to to, one I'm Congrats get on lot to about going sure. only the ask ask a backlog. I'm another quarter. because again to want strong I there's

do above quarter. math the you've You significantly said like kind past, $X at feels and least of if rough it's billion billion we just it in $X.X a done

the right around on $X backlog? in at reality we billion are this So point

Howard Wenger

happy Wenger. new public getting the really going and Howard before had every then. this increasing actually since with It's quarter is milestone. This backlog We're to quarter actually we've and

give than continues in to X. supports precise math the but the roughly answer, a quarter our we $X what bookings. greater you're So exceeded book-to-bill be to that going billion saying in We're

Operator

Truist. Levy Our next from today Jordan with question comes

Jordan Levy

And quarter. congratulations really a strong on

come just tariffs U.S. could I talk you you on your on around and supply steel. a manufacturing view that chain if all fruition front? but you there risks whatnot. solid see anything wanted discussions potential all the with to know footprint to wanted I have just around see should to pretty how Just

Daniel Shugar

cases, nearby. strong U.S. in we've Dan the In or We still stood some the and producing. chain, Jordan, partners, supply some feel Shugar very mills about good very overseas. our enjoy States major we U.S., newest the facilities speaking. both manufacturing the with U.S. the mills with the on up relationships in very campus of United of actually, In

position tubes the the that virtually We're we're much as And terms for launch all in were, sold. the in making Every of an We we're cleaner we in U.S. U.S. raw manufacturing make of our steel. carbon has the U.S. steel material. that uses steel making delivering we the U.S. tracker tube in -- the XXX% the U.S. product mix of a content example, manufacturing low

And locally India on for then we export in to for chain and with overseas, or make we've other happening what's built great can We're arbitrage, out in those global chain. supply supply markets. can position markets depending we this local the places

So in we supply customers competitive -- chain back. the a as is are strength like reflecting we global Nextracker, that for really Howard and mentioned remarks, opening footprint our feel our

Operator

Brian question next Our Sachs. Goldman comes from Lee with

Brian Lee

seeing? just the I up? love And next but your share it's than even maybe say here. generally, -- quarter bookings momentum maybe that do holding faster as U.S. I XX-XX year environment had bit a first, X. expected picking a then here? the see growing than of just Or And into you're the mix market to on based that on well? Howard, drivers you, Kudos I perspective. your is guess, both, would or Dan the is hear would Maybe solid you

Howard Wenger

Well, second. roughly. previously, holding discussed the typically the question And U.S. mix to talk mix and we've velocity is in our XX% I'll first the that is and -- seen then you've as take in about XX% as We're

in the indicative had goes, for And or means continued both in We we internationally. of is speaks growing grow, the velocity as U.S. is, pipeline both And volume regions strength. is demand and our that strong. as market bookings in company. -- both the so U.S. quarter. what as the far And And that to we're the the domestically record this

where we're moment. So happy are things at the

of There in market data As the we're data monitor. the share on over, your But not on well question. we share, done really the that's basis. that can Thank months that is after isn't comes like something X year feel for no annual an accurately is marketplace. far Most as X you we market actually lagging. it's doing to

Operator

Our with next question Shen from Capital Philip Partners. ROTH comes today

Philip Shen

indeed. Congrats the on quarter strong

You consistently to surprised upside, great the guys so have job.

the backlog quarter on is question First conversion.

of guys that can What highlighted majority You XX%. Is X? in color kind year share you the there? of

pricing outlook. 'XX a any see that terms and 'XX? And in can of or bookings, terms adjustment then in do through in go if of the been pricing, change you maybe we but about as talk you curious So to fiscal down the what touch there's share pricing coming just you can

Howard Wenger

our realized Thanks, for Phil. that of is slated the of the recognized X Yes, next on quarters. XX% over over next Majority yes. X being the backlog quarters,

call. the more commenting So the we'll be more visibility that us into gives that earnings next ahead, year in on and

have value where interest. goes, your stable reduces seeing United question shareholders over As costs seen in we for as are quite of chain part what the on we're with is time entire what we've second and as the solar is of the pricing States, what reduced industry And the and the company now a globally pricing, saw the is our for scale. lot price far as right

remarked, more solar. be as competitive all generation other whole an astonishing XX% a versus a faulted globally And -- we measured solar where and get that's was invest to the tracker cost, period lowering lower we the yield be extend to can while so more continue way from are time upfront position That's innovation figure. price our and in lower we more that can as of platform And industry a technologies. cost, the in to in generating energy installed what's to over current Dan we of we can

cost done price and that's all -- reduction So and reduction. through

currently, price But seeing, reiterate, just we're what Phil. the Thanks, is to environment quite stable.

Operator

Our next Satish Praneeth Wells comes from with question Fargo.

Praneeth Satish

Phil's question Maybe conversion that just up metric. on following on backlog

So XX% this XX% last quarter. quarter,

it think was quarter the that. XX% before I

more going of about the what over environment on natural So do and does today is we the kind the metric your band you XX% tariffs to of this and clarity macro with get to think Trump this then XX% view And to there's a kind potential on, as this metric? and like? of think way variability everything improve good IRA XX% given of

Howard Wenger

Howard. is This

XX% or stated the the quarters. the -- the as next and a majority it XX% back going from it. XX X And of about amount not we the and of is to that So -- quarters it's we're huge probably previously, good X the X that vast driver think to majority is quarters is over is XX realized next thing to to really next a way XX, because important on the over

to So in as a continue record what the for we we book noted, we internationally we're achieved bookings quarter, seeing U.S. this more projects, is and

going quarters. the fill And so our span entire of along X backlog to we're continue to up

are into they're We the contribute these get amount. back typically that through X multiyear and do the as the -- VCA drop they have end in and orders agreements projects EPCs, nature, that the But the into ones come of bucket. those perfected more that quarter to

of So certainty deposits, project names, a with cetera. projects but extension lot project it's this and more of project et because those with visibility are sites, schedules, pipeline, our sort contracted

been circle back, move to consistent -- the a that So think over bookend as right for us about getting XX% back way is XX% just as probably to forward. but time. to And we that's

Operator

with Our Strouse one next Mark JPMorgan. comes from

Mark W. Strouse

new domestic administration? came just that how in kind the customers content you IRA under wanted ask Or that seen overall the sticky out the be since kind are waiting activity I Have of quoting potentially any of of ago. couple acceleration a to could see rules about to weeks out? came

with I extent power tracker you percentage the assigned and change XXX% kind And content any that to or power with with that the a new think there's going higher rules, to of pricing the in capability. kind obviously, pricing just domestic your the mean, of quick follow-up.

Daniel Shugar

Mark, will we'll part. second a X-part the do part. answer first answer the answer. I'll Howard

time a very logistics for United minimize needs. updated their over So customers in them providing by the to capacity to across domestic finished U.S. we're content. with It value and shipping they are It improves easier generally it position achieve meet the factories XX treasury it's they simplifies have chain also things to amplified to shorten XX% the optimized in for pleased we related the customers. customers the the And really were strong picture rules goods from to by bonus ITC. with ensure such lead geographically site, that being to States costs and supply --

you want second to please? do Howard, part, the take

Howard Wenger

domestic I'll just and only add higher more and more content. not what perspective we're part more content, domestic seeing but our that of to seeing from in domestic be have to levels wanting higher and actual to XXX% pipeline we're a do content content. have customer our and bookings, customers We're of contracted domestic

up the As tracker rules more it tracker customers you content. know, are the be expressing gives that basis points to on And domestic that comfort number the you by some ratcheted XXX%. plus on them of have get it points XXX can

something it's -- that to we think value well, we So it's seeing know we're customers. a that

business In partners with we're -- we're repeat terms of XX% business. our if our customers -- pricing, is particularly customers. as repeat of our

will that's If increase reflective the content, only for -- relationships. that for wants the close in very company. terms modest in premium there of Thank of cost to the have but be we that price, a a question. So domestic customer you

Operator

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

Dimple Gosai

you talk which about healthy. pretty bit be little seems a just position, your to Can liquidity

shareholders looking activity further In you Europe returning market or think terms in U.S.? how allocation in otherwise share about M&A versus capital opportunities do expansion cash priorities, the to grow via to of

Charles Boynton

Thank Dimple, you, Chuck. is this

and possible and are not prioritizing projects programs. activities later organically. at has how value changed. growth, at focused this on policy then look build We And activities investments then looking year, in shareholder capitalization M&A. We're can seeing Our we M&A via we'll buyback

are talked the due before, we restrictions As there to spin. certain

real more pleased of very end that you. that we balance it we're get as about a our Thank think year. to date sheet. And But talk is advantage. we'll fortress closer competitive this so with calendar I year, And

Operator

with Nassano Our Wolfe Research. next question comes from Dylan

Dylan Nassano

harbor like to event you meet IRA? of the talk result might changes your look accelerated to about you strategy Can pull-forward demand could need an what safe should that be

Daniel Shugar

supply X-part commercial on will Yes. are Dan. We'll set that. to a of aspects from is this this, Howard the speak do how chain standpoint. up the then speak to And I'll maybe

reason, position very to need respond So be first, to schedule. both needs are delivery and job to to move activity respond whatever very customers needs, if to Or chain need, quickly those address on we can customer in their if harbor to strength geographic given we safe accelerate supply the position. a normal our quickly it's able day very, to, for

resulted repeat all it's needs, in them confidence about in and so successful meeting helping be has then And project, customer orders. engendering every which then

Howard Wenger

just business. I'll a wants we'll work that a them. add for safe with If harbor, customer we're open

Operator

comes Our from next Ben with Kallo question Baird.

Ben Kallo

talked You projects international similar being just about type you to guys the that of are past, mentioned the you've different because those like trending XXX-megawatt kind you projects. margins Australia the how about there's wondering talked In U.S. won. I'm

of some that impacting we how are these about we getting forward. as so big of and go kind And think margin cadence things

Howard Wenger

Howard. is This

yes, pleased in we're the market. international So velocity the with really

and Arabia. Australia, we India, the Saudi across had Peru Europe, sales As we and in significant Brazil, noted, quarter Chile

And all of there. in big margins kind some projects region. regions So vary the and by do

the our a and customers, the delivery, of well there, track big what CapEx-sensitive, the is we no about of from our differentiation, a more Internationally, differentiation, change past. in we balance to company, given more of cost record, reliability what talked supply our the had our upfront technology there's company, record It we're chain, sheet, competitive environment. kind Really, our our offer quarter. we've But the our strength sensitive. doing

happy with we're So that.

-- change margin really no Thanks, really the at guidance time. material this profile Ben. so there's And

Operator

comes Partners. Our from Guggenheim next with question Joseph Osha

Joseph Osha

what's wondering happened you and bit I'm Soltec in demand East Middle bankrupt. a previous light of can pricing and the trends going on if with about talk Following North in Africa, question, especially

Howard Wenger

Saudi goals, have Kingdom the particularly where Africa in on the they East ambitious in XX the and very Middle order vast Arabia alone. a potential of target solar Middle and in per the of year gigawatts East have Saudi So and

solar market substantial. pricing like disclosed, per I hour. power, sharpen and really chain is as a the really needs world. lowest $X.XX be that Super can power, the really it's pencils in region the to So to mean, for as It's low whatever been everybody has hour. happen. $XX their megawatt do we And value that in pricing the means make that along kilowatt can

benefit Now solar, no field. there there, over a the of playing no is there's it's There's operating is level -- part, that in for real subsidies and there tariffs.

see And we're a hour. unsubsidized, quite so just, market you what there's when $XX no can And per to do It's at can impressive. that's solar in tariffs really really $XX delivering megawatt

in trajectory more go terms we changing I that part And because question. commentary. that So to see to he Dan think don't that I'm of going some to has answer of

Daniel Shugar

the is will -- quality I technology. and are Nextracker I I Yes. as Dhabi that some in many with of had event, Middle a you're in years. markets World meet East, the at to within -- for to the just flight What we customers real Abu that for appreciation region. have participated they Future seeing say opportunity as there's Energy the as durability largest Summit, of in mature,

performance. competitive mentioned, Nextracker sells And has there of areas. about a markets that. more those durability appreciation it's is has And both so and higher such in intrinsic no But proven power the that's very in Howard that is as for there market question differentiated technology the as get -- that market, cost

Operator

question comes from next Fox Fox Our Steven with Advisors.

Steven Fox

from ones me. Two quick

there the would attribute best in was you the On especially couple growth, if you then happening, growth in in it of terms why where force is could you're sales of I the the visibility rank wondering the continues? why to came and been that international the that maybe seeing quarter. from quarters backlog, it's anything And last

Howard Wenger

this Okay, Howard. is

that's America, India the answer just aren't really where areas, quarter was Australia. Latin the it quarter, and performance question and Africa really the that It's Those on vary and your Middle pleased there. were regions. the quarter and And important. X excellent say we're to to the saw that's that. but not Europe can standout But East from in in specific we the So really in regions

we're many the As buying brand we're We're contribute here's and believe flight see happening, our what which yield, biggest -- phrase used them. also to the sheet far picture these scale, we We low-cost, that but or believe we bigger, are getting over quality. really segment that's -- what's it. projects there's to as trusted vectors, the the our more key bigger technology, that time, emerging as with Dan offer. for of lower differentiated we as across proven LCOE, energy all in in sector of proven proven balance big

know-how. customers, team to I we that's committed so think success happening. to what an unbelievable deliver and what's focus and And for Just as the that's of stretching service and a can and boundaries just do our we customer innovation company with extreme amount of

separation for Thank we some for results that. there I to continue what much that's to your question. you -- want we're there's that speak think doing. And to and the us drive, there's very

Operator

comes Maheep question from Mizuho. Mandloi next with Our

Maheep Mandloi

after you the missed I not it but beat margin the remarks, understand What if why just QX? can gross in help high prepared a drove in sorry And us be I'm repeat would this that? or of cadence that Trump it understand the in bookings, next I or of how to has started? elections after the administration quarter the And been next just year? secondly, wanted then

Daniel Shugar

did some margins Howard gross I'll and we at the first very second strong quarter a was XX%, part, have part. margin Certainly, tailwinds. can take overall, take QX the

did bit operationalized I a was repeat. our not detail, costs these were a but operationalized of tailwind some opportunities repeat. where were have would in of that We FX all really that onetime, won't hope we Some to lower team. tends freight to them we go through

world-class drive operations were Our they team savings freight. able and in to is

some had material also in overhead. We savings and

were we necessarily to opportunities able we capture in but real And plan so that these don't are QX. on,

Looking forward talk QX and I'll beyond, into about QX.

very we'll large margin quarter about that Next And down mix. margins a bit. did bit, international delivered international year. mostly down call, the overall this that projects QX earnings talk about get of a next bring year last -- some we because the mix talk go large little fiscal

So strong based strong margin little a a you're a compression very seeing really on QX, international, QX Howard? with

Howard Wenger

with calm very contracted and in really and checked on. and the feeling our they're with that projects customers they've We their good us pipelines about

the really this feel year fiscal year. and coming about we out closing So good

technology of rapidly where to country and electricity electricity big force and has and to solving to demand debottleneck about that. just demand be kind which and nimble can there's has part proven with the debottleneck constraints a industry toggle we you be rapid a this how escalating Solar anywhere a demand deploy deal consumption And growth. is proven in picture, transmission, the super for big of really that, And we're and distribution that

story successful So we every and think been will the administration. macro in we've prevail

Going of XX the have for are the more. or in back, in that industry years us company many been

it Thank you And so all, it's the seen and for we've prevails. question. the kind of story just macro

Operator

Our from next Dumoulin-Smith question comes Jefferies. with Julien

Julien Dumoulin-Smith

thinking international origination the Look, geography. are these a that a to geographies? lot just strategy How on business bit I strategy the more little following you of conversation, to and about on international ask coverage. expanding up discussion MSA by wanted novel

of MSA into considering backlog duration broadly beyond about comparable also to strategy kind perspective, more thinking MSA margins or an international of How and maybe be thinking of of here are sustainability thinking the longer that seeing sort markets? a strategy from in implementation term the added you incremental adoption terms of you're potential the

Howard Wenger

Howard. is this Julien,

internationally, been our We've course. of have United much energy big are agreements States. customers in framework of Many very multinational, focused conversations had the companies. Our

the for friction interest it's global and is in agreements. approach, proven, think and these our and And And we continue partners, so good we it's which sign for reduces to and we business. great really welcome. a framework It us is there

So that say clip next would XX% in several more we'll time. commentary But projects It's now, internationally. on can project-by-project have core the I a repeat we at business quarter. region a of see -- is international And right approximately same or similar. also to customers very basis at repeat our however, the continues be more the

which more about acclimated already day So with agreement, when framework companies of and with really it, of in out. talk true. And hey, we're them, getting this they we but kind many that partnering these say, to are them day approach, we is kind they're in a of work

commentary So more next bring it call. back Thank you. for we'll the on

Operator

with next question McLoughlin HSBC. Sean from Our comes

Sean McLoughlin

to back I new just wanted to come products.

sales competitive mean, was time. for And to Maybe could much the you new your continue. on of the how you going for order if just or push about and pricing quarter R&D, products? the that I kind just over quantify talk pipeline is product intake can advantage If with you see new of suggests maybe this

Daniel Shugar

Howard, Sean, I'll part the answer the first second. and

the new about in market. our excited of all, we're First products the progress with really

helps As products we've product validated doubled that in introduce information noted, in products accepted those more those and than And investment our these R&D come with become products, development. we've the we as new market.

that TrueCapture on had a verification example, introduced our protocol. we of data period measurement utility technology, time we we're For scale when for projects operating and with

can when bring actually operate. market, to know hardware, it's and products customers firmware the software, these real So we real products real

to speak our relative to how plan? we want to do think about Howard, you that

Howard Wenger

of Yes. about how I quarter getting we a that which strong we for solution we And areas Pro-XX balls. example, we our that extreme a ago. leading on, hail large weather, we're product, believe really including bookings mean, for new that talked didn't and launch product, with something is quarter long -- traction as had of that experienced we're an Hail the this industry we're about it

in to So develop them we then invest then customers, our pilot basically them the to of them our really, can really R&D acquire foundation. and the approach market. -- new technologies case launch is in and or But we with

In next products year. sure, material to be new our will aggregate, these for

XTR, the foundations aggregate to next the to color that technologies, are going are that. important in very next R&D paying really for -- answer we'll sure. We the Thanks dividends your And your TrueCapture, question. year, Those Pro, question So important to more and be the the time. Hail say are have investments for of these company. about part for story

Operator

next with Our from comes question Citi. Bagri Vikram

Vikram Bagri

too. international, on focus to wanted I

the the you are and the real business moving PPA you Brazil are the business, wondering country, lot what rebound a environment going how's seeing of the depreciation if the was there? X/X parts. in hydro, there of can negotiations in with the it's now, talk Although about I

of some the gap at And lowest if level? and in if I look forward the seems between margins conversion you I wondering, margin and the And sort way similar at World, is U.S. countries quantify in on when Rest can meaningfully profile like Middle are you wondering was what somewhat going country the was margin East countries like those corporate Australia. the the in it within can just of India, margin and move Brazil

question. housekeeping a finally, then And

be the what was I I revenues is think software to will if of attach you there understand X% you upside an or is that much wondering mentioned going software the number an rate of of currently to quoted. X% the that there how is forward. upside

Howard Wenger

company That's product will in Howard. about significant right bad plays in company. we okay? world answer present we So TAMs, software and well. has for the in terms where in is And want ethos business, the example, for not Chuck the an to of large the This regions be now, chasing best are not China. Look, TAMs Okay. our not question. a market the

plenty other that and are that's markets are of internationally countries that renewables. sort we're drive carbon tops-down there's that setting seeing creating are to more the a growing that's added zero countries driving But time. are really targets. targets all those new and that for And driving what And being of

the our of for favorable. We're the that proprietary And so that, appreciate is position the really with but markets margin concert we source not And feel world. about differentiation the so -- and We feel good we parts is that's In lowest there. in of fundamentals question. something talking around in generation, international like at technology many these about this world, growth okay? is cost our time the

you Chuck, why now And software? don't address

Charles Boynton

you. Thank

a it's our the but attach significant last the to talking which much throughout but in to the end. very look for don't a customers quarter proud rate comment to contribution. On software customers improving. at still great we'll that is have today, a existing really the time here. customers the really side, room We of bit increasing we quarter stack we upselling why tech that We've fairly exact increase saw and new software built selling been quarter, appreciate. an really specifically on the there's the with rate, taking end been results. With forward many Thank and you attach call we more, team's of next that, improve you And and we're

Operator

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

now may lines. You your disconnect

Nextracker (NXT) 28 Jan 252025 Q3 Earnings call transcript