Nextracker is undergoing a significant transformation, evolving from a mere provider of solar trackers into a sophisticated energy technology platform. This strategic shift is fundamentally reshaping its growth trajectory and market position. The company's innovative integration of eBOS (electrical balance of system), AI-driven software solutions like TrueCapture and Navigator, alongside its advanced steel foundations, is substantially increasing its revenue per gigawatt and pushing profit margins to unprecedented levels. Nextracker's recent financial achievements underscore the success of this evolution. For the second quarter of fiscal year 2026, the company reported a remarkable 42% year-over-year increase in revenue, reaching $905 million. This robust performance is complemented by a burgeoning backlog exceeding $5 billion, and a book-to-bill ratio comfortably above 1, indicating strong future demand for its offerings.
This platform-centric approach is not only driving revenue growth but also enhancing Nextracker's profitability. The shift is enabling the company to achieve gross margins in the mid-30% range and EBITDA margins nearing 25%. Such impressive margins, coupled with a projected revenue growth rate exceeding 30%, lend strong support to its current valuation. Nextracker is trading at approximately 21 times its fiscal year 2026 earnings and 3.9 times its forward sales, figures that reflect investor confidence in its sustained growth and profitability. Furthermore, a pivotal $75 million multi-gigawatt steel frame deal stands to significantly bolster domestic content, making the company eligible for lucrative 45X credits. This initiative is also expected to accelerate installation times and reduce the Levelized Cost of Energy (LCOE), making solar power more competitive and accessible.
Nextracker's strong financial health provides a solid foundation for its ambitious expansion plans. The company boasts a robust balance sheet with $845 million in cash and no debt, complemented by $1.8 billion in total liquidity. This substantial financial capacity empowers Nextracker to pursue self-funded global expansion, investing in research and development, and scaling its operations worldwide without reliance on external financing. The positive results from Q2 further solidify its investment appeal, reinforcing a strong buy rating as the company continues to innovate and lead in the renewable energy sector.
Nextracker's strategic evolution represents a pivotal moment in the renewable energy landscape, demonstrating how innovation, integration, and robust financial management can drive both significant growth and sustainable profitability. By expanding beyond its core solar tracker business into a holistic energy technology platform, the company is not only enhancing its own value but also contributing significantly to the global transition towards cleaner, more efficient energy solutions. This forward-thinking approach, marked by a commitment to technological advancement and operational excellence, positions Nextracker as a key player in shaping the future of solar power, fostering a more sustainable and electrified world.