Executive Summary

Strong beat-and-raise quarter: revenue $0.905B vs $0.840B consensus* and adjusted EPS $1.19 vs $1.01 consensus*; management raised FY26 revenue and adjusted EBITDA ranges; GAAP EPS range narrowed with a slightly higher low end .
Margins remained robust (GAAP gross margin 32.4%), though tariffs were a ~300 bps headwind vs Q1; management flagged back-half mix/tariff pressure with H2 weighted to Q4 .
Backlog surpassed $5B with record eBOS, foundations, TrueCapture, and Europe bookings; cash ended at $845M with no debt and new $1B unsecured revolver (investment-grade terms)—ample capacity to fund platform expansion (eBOS, advanced module frames, robotics/AI) .
Key stock reaction catalysts: broad-based demand strength and platform expansion (eBOS, frames, JV in MENA), raised FY26 outlook, and commentary on tariff headwinds/project cadence (Q4 > Q3) .

Note: Consensus figures marked with * are from S&P Global.

What Went Well and What Went Wrong

What Went Well
- Broad-based growth with record bookings across eBOS, foundations, TrueCapture and Europe; backlog >$5B; CEO: “Bookings…remain healthy, leading to a record backlog of greater than $5 billion” .
- Platform expansion gaining traction: launched NX PowerMerge eBOS trunk connector (record eBOS bookings), acquired Origami Solar (advanced module frames) and signed a multi‑GW, multi‑year frame supply agreement (> $75M deal value noted on the call) .
- Balance sheet and liquidity strength: $845M cash, no debt, new $1B revolver; CFO: “total liquidity of nearly $1.8 billion…investment‑grade terms” .
What Went Wrong
- Tariffs tightened margins: ~300 bps headwind in Q2 (up ~200 bps vs Q1), with management expecting modest margin pressure in H2 given Section 232 and higher international mix .
- GAAP gross margin eased YoY (35.4% → 32.4%) and QoQ (32.6% → 32.4%); adjusted EBITDA margin also declined YoY (27.2% → 24.7%) as mix/tariffs offset scale benefits .
- Guidance quality mixed on GAAP metrics: FY26 GAAP EPS and GAAP net income ranges narrowed with lower top ends even as revenue and adjusted EBITDA ranges were raised .

Financial Results

Metric	Q2 FY25	Q4 FY25	Q1 FY26	Q2 FY26
Revenue ($USD Billions)	$0.636	$0.924	$0.864	$0.905
GAAP Gross Margin %	35.4%	33.1%	32.6%	32.4%
GAAP Operating Income ($USD Millions)	$133	$195	$186	$181
GAAP Net Income ($USD Millions)	$117	$158	$157	$147
GAAP Diluted EPS ($)	$0.79	$1.05	$1.04	$0.97
Adjusted EBITDA ($USD Millions)	$173	$242	$215	$224
Adjusted EBITDA Margin %	27.2%	26.2%	24.9%	24.7%
Adjusted Diluted EPS ($)	$0.97	$1.29	$1.16	$1.19

Q2 FY26 estimate comparison (SPGI consensus):

Revenue: $0.905B actual vs $0.840B consensus* (beat) .
Adjusted Diluted EPS: $1.19 actual vs $1.01 consensus* (beat) .
EBITDA (SPGI basis): $191M actual* vs $196M consensus* (miss); company-reported adjusted EBITDA was $224M .
Note: Values marked with * are from S&P Global.

KPIs and other quantitative disclosures:

Backlog: >$5B (record) .
45X credits/tariffs net included in results: ~$67M in Q2 FY26 (vs $82M in Q1 and $48M in Q2 FY25) .
Operating cash flow YTD: $268M; Cash & equivalents: $845M; Deferred revenue (current): $372M .
Adjusted free cash flow YTD: $241.5M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY26	$3.2–$3.45B	$3.275–$3.475B	Raised (both ends)
GAAP Net Income	FY26	$496–$543M	$499–$529M	Narrowed/mixed (lower top end)
GAAP Diluted EPS	FY26	$3.24–$3.55	$3.26–$3.46	Narrowed; higher low end, lower top end
Adjusted EBITDA	FY26	$750–$810M	$775–$815M	Raised (both ends)
Adjusted Diluted EPS	FY26	$3.96–$4.27	$4.04–$4.25	Narrowed; higher low end, slightly lower top end

Context: H2 margins to see modest pressure from Section 232 tariffs and higher international mix; revenue more weighted to Q4 than Q3 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY25)	Previous Mentions (Q1 FY26)	Current Period (Q2 FY26)	Trend
AI/Robotics & Digital	Highlighted acquisitions and innovation cadence; platform strategy expanding beyond trackers	Announced three robotics/AI acquisitions; integration with TrueCapture and digital twin workflows	Continued progress; On‑Site robots/fire detection adoption; new Chief AI & Robotics Officer noted earlier; TrueCapture ~2% of rev with rising adoption	Expanding platform, increasing customer adoption
Supply chain/domestic manufacturing & tariffs	100% domestic tracker; >25 U.S. partner facilities; structural margins in low-30s; monitoring policy	Safe Harbor flexibility; 45X ~11% of U.S. revenue; prudent tariff assumptions in outlook	~300 bps tariff headwind in Q2; expect modest H2 margin impact; liquidity and domestic footprint help mitigate	Tariff headwinds up; mitigation ongoing
Product performance (XTR/Hail Pro/eBOS)	Record uptake of Hail Pro and XTR; eBOS entry via Bentek acquisition	Strong QoQ sales for Hail Pro (+43%) and XTR (+22%); foundations >1 GW cumulative	eBOS PowerMerge launched with record bookings; foundations/TrueCapture record bookings; advanced module frame platform launched	Broadening portfolio driving bookings
Regional trends	Europe strongest year; U.S. ~69% of revenue; global wins across 17 countries	Stable timing; U.S. robust, ROW growing; #1 tracker share in Europe as well	U.S. revenue up 49% YoY; record Europe bookings; JV in KSA to localize supply, expand MENA	U.S. strength sustained; Europe accelerating
Regulatory/policy	Monitoring House bill; need improvements on timing/FOCI provisions; structural demand robust	OBBBA reconciliation addressed uncertainties; Safe Harbor dynamics manageable	Outlook assumes current U.S. policy intact; Q&A emphasized manageability and safe-harbored pipelines	Policy watch continues; visibility solid
Advanced module frames	Not yet; focus on eBOS/foundations	N/A	Acquired Origami Solar; multi‑GW frame supply agreement; >$75M deal value noted	New growth vector
Backlog/bookings	Backlog significantly >$4.5B; sequential increases	Backlog >$4.75B; sequential growth (15th quarter)	Record backlog >$5B with record bookings in multiple lines	Sustained growth

Management Commentary

Strategy and platform expansion: “Together, these product lines broaden the capability of our platform…enable us to capture increased wallet share…translating measured R&D and M&A investments into meaningful revenue and profit” — Dan Shugar, CEO .
Demand and regional momentum: “In the U.S., bookings and revenue were up significantly year over year, with revenue up 49%…Europe…delivering record sales in Q2” — Howard Wenger, President .
Tariffs and margins: “We continue to see tariff-related headwinds of approximately 300 bps in Q2…Looking ahead, we are raising our full-year FY26 outlook” — Chuck Boynton, CFO .
Capital structure: “We enhanced our capital structure with a $1 billion unsecured revolving credit facility at investment grade terms…strong cash position, no debt” — Chuck Boynton .
MENA expansion: “Entered into a joint venture…Nextracker Arabia…localize production, strengthen regional supply chains” — Press release; “roughly 50/50 JV…we do not plan to consolidate” — CFO on call .

Q&A Highlights

Cadence and seasonality: H2 revenue slightly weighted to Q4; strong Q3 visibility with trucks/deliveries scheduled; smoother cadence as scale increases .
Tariffs/Section 232: ~300 bps Q2 headwind; modest margin impact expected in H2; domestic supply chain mitigates impacts .
Backlog/bookings: Backlog increased again; customers seeking broader solutions; record bookings in eBOS and foundations support platform approach .
Advanced module frames: Multi‑GW, multi‑year supply agreement; benefits include greater panel rigidity, domestic content, faster installation; can co‑optimize with trackers .
JV in KSA (MENA): 50/50 JV, not consolidated; local factory shipping finished goods; positions NXT for Vision 2030 demand (targeted ~20 GW/year in KSA) .
TrueCapture: ~2% of quarterly revenue; adoption increasing with feature additions and strong backlog .

Estimates Context

Q2 FY26 vs SPGI consensus: Revenue $0.905B vs $0.840B* (beat); Adjusted Diluted EPS $1.19 vs $1.01* (beat) .
EBITDA (SPGI basis) $191M actual* vs $196M consensus* (miss); company-reported adjusted EBITDA was $224M .
Estimate breadth: EPS (22 estimates), Revenue (24 estimates)*.

Note: Values marked with * are from S&P Global.

Key Takeaways for Investors

Beat-and-raise with quality: revenue and adjusted EPS beats vs consensus and raised FY26 revenue/adjusted EBITDA ranges should support estimate revisions upward; GAAP ranges narrowed with lower tops .
Margin watch: structural gross margins remain in low-30s, but tariffs (~300 bps in Q2) and higher international mix are near-term headwinds; H2 margin modestly lower than H1 per management .
Platform flywheel: eBOS PowerMerge, foundations, advanced module frames, and robotics/AI are expanding TAM and wallet share; early traction evidenced by record bookings across new lines .
Backlog/visibility: record backlog >$5B with customers safe-harbored and project timing “stable and manageable” provides multi-quarter revenue visibility .
Regional catalysts: U.S. demand remains strong (49% YoY revenue growth), Europe accelerating to record bookings, and MENA JV adds localized capacity—diversified growth vectors .
Liquidity optionality: $845M cash, no debt, and a $1B revolver enable continued organic/M&A investment while maintaining flexibility .
Trading implications: Near-term, focus on tariff headlines and Q3-to-Q4 weighting; medium-term, watch execution in non-tracker businesses (eBOS/frames/AI) and international mix effects on margins .

Additional Notes

Non-GAAP adjustments primarily exclude stock-based compensation, intangible amortization, acquisition-related costs, and related tax effects; 45X credits reduce cost of sales under GAAP .
Q2 included ~$67M of 45X/tariffs net in results; YTD operating cash flow $268M; adjusted free cash flow YTD $241.5M .

Nextracker Inc. (NXT)·Q2 2026 Earnings Summary