Nextpower Inc. (NXT)

Price$80.47Cached quoteAs of 2026-09-21 05:48 UTC

AI: Fair-priced

Price checkThe shares look roughly fair because investors already pay about twenty-three times recent earnings.

At the observed market price, Nextpower is about 23 times trailing diluted earnings of $3.87 a share. Management’s fiscal 2027 reported-earnings guidance of $3.42-$3.64 implies roughly 24-26 times earnings; its adjusted range of $4.42-$4.73 implies about 19-20 times, but that measure excludes stock pay, acquired-intangible charges, and deal costs. Trailing free cash flow—cash left after operations and capital spending—is about $549 million, or roughly a 4% yield on the equity value. Strong growth and net cash justify quality pricing, but not a clear bargain.

Big pictureProfit and cash generation are strong, but growth still depends on large solar projects.

Revenue climbed from $1.20 billion in fiscal 2021 to $3.56 billion in fiscal 2026, while net income reached $586 million and fiscal 2026 free cash flow was about $514 million. The latest quarter still grew revenue 8% and lifted gross margin to 35.9% from 32.6% a year earlier. Durability is not guaranteed: 83% of quarterly revenue came from the U.S., the top five customers represented 46%, and the quarter included about $99 million of manufacturing-credit rebates and tariff effects. Backlog exceeds $5.5 billion, but project timing can move sharply.

Business strengthA debt-free balance sheet provides protection, though acquisitions and stock awards can dilute shareholders.

At July 3, cash was $1.21 billion, debt was zero, and $3.03 billion of current assets comfortably exceeded $1.13 billion of current liabilities. That is real downside protection, but the snapshot came before July acquisition closings. Stock-based compensation was $29.6 million in the latest quarter, and diluted weighted shares rose to 155.1 million from 150.9 million a year earlier. A $500 million repurchase authorization exists, yet supplied fiscal 2026 history shows only $0.4 million of buybacks. Recent deals also use cash and, for Prevalon and Zimmermann, stock, so dilution deserves monitoring.

What could change the storyThe upside needs new products to grow faster without weakening profit margins or cash generation.

Management now guides fiscal 2027 revenue to $4.1-$4.4 billion, while reported earnings guidance of $3.42-$3.64 per share is below fiscal 2026’s $3.84. The bull case is that storage, power conversion, electrical products, and more than $5.5 billion of backlog restore faster earnings growth; Prevalon alone added more than $300 million of backlog. The bear case is that integration spending, stock compensation, and policy-linked benefits keep cash growth below sales growth. At today’s valuation, the shares need sustained high margins and renewed per-share earnings growth. Clear upside would require both stronger cash flow and limited dilution.

AI: News

Quarterly results reset expectationsRecord sales and backlog could not prevent investors from sharply marking down the shares afterward.

On July 30, Nextpower reported quarterly revenue of $935 million, up 8% year over year, net income of $165 million, and backlog above $5.5 billion. It raised fiscal 2027 revenue guidance to $4.1-$4.4 billion and adjusted earnings guidance to $4.42-$4.73 per share. Shares fell about 15% the next trading day. The timing shows the report reset expectations, but the price move cannot be attributed to any single line item with certainty.

Prevalon storage acquisitionBuying Prevalon opened battery storage and data-center markets while immediately lifting management’s growth outlook.

On May 28, Nextpower agreed to buy Prevalon for up to $365 million, including about $150 million cash, $50 million stock, and up to $165 million contingent cash. Prevalon had more than 6 gigawatt-hours of storage deployed and 1.3 gigawatts of firm supply contracts tied to artificial-intelligence and hyperscale data-center infrastructure. Nextpower also raised fiscal 2027 guidance. Shares jumped 12.1% the following session; contemporaneous reporting linked the move to the deal and higher outlook.

Zimmermann expansion dealThe planned European acquisition adds products and customers, but it also commits cash and new shares.

On June 22, Nextpower announced an agreement to acquire Germany’s Zimmermann PV-Steel for up to €330 million: about €180 million cash, €105 million stock, and up to €45 million contingent cash. Management expects roughly €300 million of annual revenue and €45 million from its adjusted profit measure before interest, taxes and certain non-cash charges. The deal adds four product lines and reach into 15 more countries. Shares fell 6.5% the next day versus a 1.4% S&P 500 decline, but timing alone does not prove causation.

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Revenue

2021

2022

2023

2024

2025

2026

Net income

2021

2022

2023

2024

2025

2026

Free cash flow

2021

2022

2023

2024

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2026

Total cash / debt

CashTotal debt

2021

2022

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2026

Financial statements

	2026	2025	2024	2023	2022	2021
Revenue	$3.56B	$2.96B	$2.50B	$1.90B	$1.46B	$1.20B
Gross profit	$1.16B	$1.01B	$813.0M	$287.0M	$147.0M	$232.0M
Gross margin	32.59%	34.09%	32.52%	15.09%	10.09%	19.40%
Research & development	$120.9M	$79.4M	$42.4M	$21.6M	$14.2M	$13.0M
Operating expenses	$462.8M	$369.7M	$225.9M	$118.5M	$81.1M	$73.5M
Operating income	$697.3M	$639.1M	$587.1M	$168.5M	$65.9M	$158.5M
Operating margin	19.59%	21.60%	23.49%	8.86%	4.52%	13.26%
EBITDA	$727.9M	$652.5M	$591.5M	$173.1M	$77.1M	$175.3M
EBITDA margin	20.45%	22.05%	23.66%	9.10%	5.29%	14.67%
Net income	$585.9M	$509.2M	$306.2M	$1.1M	$0	$0
Net profit margin	16.46%	17.21%	12.25%	0.06%	0.00%	0.00%
Basic EPSper basic share	$3.96	$3.55	$3.97	$0.02	—	—
Diluted EPSper diluted share	$3.84	$3.47	$3.37	$0.02	—	—

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of NXT
Holder	Shares held
BlackRock, Inc.	21.14M
FMR LLC	18.75M
PRIMECAP MANAGEMENT CO/CA/	6.69M
VANGUARD CAPITAL MANAGEMENT LLC	6.5M
VANGUARD PORTFOLIO MANAGEMENT LLC	5.96M
Invesco Ltd.	4.87M
STATE STREET CORP	4.74M
WELLINGTON MANAGEMENT GROUP LLP	3.43M
GEODE CAPITAL MANAGEMENT, LLC	3.42M
Fundsmith LLP	2.86M
Pictet Asset Management Holding SA	2.56M
PRICE T ROWE ASSOCIATES INC /MD/	2.46M
BNP PARIBAS ASSET MANAGEMENT Holding S.A.	2.04M
Handelsbanken Fonder AB	2.01M
ROYAL LONDON ASSET MANAGEMENT LTD	1.8M
Jupiter Topco LLC	1.71M
Amundi	1.68M
UBS Group AG	1.66M
BANK OF AMERICA CORP /DE/	1.61M
ALLIANCEBERNSTEIN L.P.	1.59M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)49$60.33M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 1, 2026Form 4 · 10b5-1	BOYNTON CHARLES DChief Financial Officer	SellCommon Stock	4.5K	$151.79	$683.1K	358.5K
May 29, 2026Form 4 · 10b5-1	Miller Nicholas MarcoChief Operating Officer	SellCommon Stock	22.4K	$156.00	$3.50M	186.2K
May 26, 2026Form 4 · 10b5-1	Wenger HowardPresident	SellCommon Stock	1.3K	$132.59	$174.9K	426.5K
May 26, 2026Form 4 · 10b5-1	Wenger HowardPresident	SellCommon Stock	7.8K	$131.39	$1.03M	427.8K
May 26, 2026Form 4 · 10b5-1	Wenger HowardPresident	SellCommon Stock	22.5K	$130.78	$2.94M	435.6K