Nextpower Inc. (NASDAQ:NXT) shares rose in premarket trading Wednesday after the company reported fourth-quarter results that topped Wall Street estimates, raised its fiscal 2027 revenue outlook and announced an acquisition aimed at expanding its power conversion and energy infrastructure business.
Earnings Beat Expectations
Nextpower reported adjusted earnings of $1.05 per share, ahead of analysts’ estimates of 92 cents, according to Benzinga Pro data.
Quarterly revenue increased to $881 million, surpassing the consensus estimate of $827 million. The company said its Middle East joint venture reduced reported revenue by about 300 basis points because the venture is not consolidated into its financial statements.
The company ended the quarter with approximately $1.1 billion in cash and cash equivalents and no debt.
Guidance And Growth Outlook
For fiscal 2027, Nextpower projected adjusted earnings of $4.21 to $4.59 per share, compared with analysts’ expectations of $4.76 per share.
The company raised its fiscal 2027 revenue guidance to a range of $3.8 billion to $4.1 billion, up from its prior outlook and roughly in line with the consensus estimate of $3.92 billion.
Nextpower said it expects revenue to remain weighted toward the U.S. market, with high-70% range coming from domestic operations and low-20% range from international markets. The company also projected non-tracker products to grow more than 40% and account for about 15% of total sales.
For the first quarter, the company expects revenue to increase in the low single-digit percentage range sequentially.
View more earnings on NXT
Gross margins are projected to remain in the low-30% range, while adjusted EBITDA margins are expected in the low-20% range. Management said freight and logistics costs could pressure margins in the near term.
Nextpower forecast adjusted free cash flow of $450 million to $500 million and capital expenditures of $75 million to $100 million. Over the longer term, the company said it is targeting an operating expense ratio of 8% to 9% as the business scales.
Acquisition Expands Power Strategy
Nextpower also announced an agreement to acquire selected assets of Zigor Corporation and its U.S.-based subsidiary, Apex Power.
The transaction includes about $80.5 million in cash consideration, consisting of $46 million upfront and up to $34.5 million in earnout payments. Nextpower also plans to invest an additional $50 million to support growth initiatives and expand its power conversion strategy.
The acquisition is expected to strengthen the company’s utility-scale solar inverter capabilities and support its planned expansion into battery storage and data center power markets.
Nextpower said the deal will also help scale U.S. inverter manufacturing, with production ramp-up targeted for 2027, while improving integration across its trackers, eBOS and broader solar platform to enhance deployment speed and system efficiency.
NXT Price Action: Nextpower shares were up 13.26% at $141.99 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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This article Nextpower Stock Hits 52-Week High – Here's Why originally appeared on Benzinga.com
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