Nextpower reports $1.1 billion quarterly revenue, raises FY2027 guidance
Nextpower posted record second-quarter revenue of $1.1 billion, up 23% year-on-year, driven by growth in energy storage and power conversion. The company raised its full-year revenue guidance to $4.2-4.45 billion and highlighted a debt-free cash position exceeding $1 billion.
Nextpower reported $1.1 billion in revenue for the second quarter of fiscal year 2027, marking a 23% increase from the same period last year. The company’s quarterly adjusted EBITDA reached approximately $250 million, a 12% year-on-year rise.
In conjunction with the earnings report, Nextpower raised its full-year revenue guidance for fiscal year 2027. The new range is set at $4.2 billion to $4.45 billion, an adjustment from the previously stated $4.1 billion to $4.4 billion.
Storage and Conversion Growth
- Energy storage generated approximately $100 million in revenue.
- Adjusted EBITDA for energy storage exceeded $20 million.
- eBOS bookings surpassed $100 million.
- Orders for the NX PowerMerge solution totaled over 2 GW.
- The company’s global footprint expanded to 68 countries, up from 53.
CEO Dan Shugar noted that "Large data centres can experience extremely rapid changes in power requirements..."
Strategic Acquisitions and Capacity
Nextpower purchased the Zimmermann PV-Steel Group for €230 million. This deal adds more than 20 GW of project experience to the company's holdings. For fiscal year 2027, the purchase is projected to generate roughly $100 million in sales and $10 million in adjusted EBITDA.
The firm intends to boost production capability past 10 GW by the close of calendar 2027. To back this expansion, Nextpower has allocated about $40 million for capital spending during the coming year. Non-tracker items now represent 22% of income, a rise from 14% in earlier times.
Financial Position and Outlook
Nextpower projects full-year fiscal 2027 adjusted EBITDA between $890 million and $940 million, alongside a free cash flow target exceeding $500 million. The company anticipates second-half adjusted gross margins in the high-20% range and adjusted EBITDA margins in the high-teens. Its balance sheet remains strong, holding over $1 billion in cash with no debt.
A record backlog exceeding $6 billion underpins this outlook. Recent activity includes a 1.1 GW inverter framework agreement spanning five projects, adding to the order book.
Cost Pressures and AI Infrastructure
Diesel prices rose approximately 80% year-to-date, a factor management cited alongside steel, freight, and logistics costs as drivers for the expected margin moderation in the second half of fiscal 2027. The company’s energy storage segment secured a behind-the-meter project for a Tier-1 hyperscaler operating in the AI data centre space. CEO Dan Shugar explained that the company’s Hybrid Power Stabilizer technology enables data centres to connect faster while providing grid stability, addressing challenges posed by rapid fluctuations in electricity demand from AI computing loads. This application represents a new market for battery storage beyond conventional utility-scale projects. Management indicated that the inverter business was initiated in response to customer requirements for reliable, bankable suppliers, with emerging US concerns around cybersecurity and restrictions on imported equipment providing additional tailwinds.
What to watch
Investors will turn their attention to Nextpower’s upcoming Capital Markets Day on November 16.
Source: Saur Energy. This article is an original Luminity report based on the linked source.