Nextpower | 8-K: FY2027 Q1 Revenue Misses Estimate at USD 935.17 M

Revenue: As of FY2027 Q1, the actual value is USD 935.17 M, missing the estimate of USD 943.21 M.

EPS: As of FY2027 Q1, the actual value is USD 1.07, beating the estimate of USD 0.8258.

EBIT: As of FY2027 Q1, the actual value is USD 199.18 M.

Financial Performance Q1 FY27 (ended July 3, 2026)

GAAP Metrics

• GAAP Gross Profit: Nextpower Inc. reported a GAAP gross profit of $336 million for Q1 FY27, an increase from $297 million in Q4 FY26 and $282 million in Q1 FY26.
• GAAP Gross Margin: The GAAP gross margin was 35.9% in Q1 FY27, up from 33.8% in Q4 FY26 and 32.6% in Q1 FY26.
• GAAP Net Income: GAAP net income for Q1 FY27 was $165 million, compared to $151 million in Q4 FY26 and $157 million in Q1 FY26.
• GAAP Net Income Margin: The GAAP net income margin for Q1 FY27 was 17.7%, slightly up from 17.1% in Q4 FY26 but down from 18.2% in Q1 FY26.
• Operating Income: Operating income was $190,907 thousand for Q1 FY27, an increase from $153,586 thousand in Q4 FY26, but lower than $186,230 thousand in Q1 FY26.
• Cost of Sales: Cost of sales was $599,317 thousand in Q1 FY27, compared to $583,140 thousand in Q4 FY26 and $582,527 thousand in Q1 FY26.
• Selling, General and Administrative Expenses: These expenses were $100,438 thousand in Q1 FY27, similar to $100,625 thousand in Q4 FY26, but higher than $73,936 thousand in Q1 FY26.
• Research and Development: Research and development expenses were $44,508 thousand in Q1 FY27, up from $43,166 thousand in Q4 FY26 and $21,560 thousand in Q1 FY26.
• Interest Expense: Interest expense was $253 thousand in Q1 FY27, decreasing from $338 thousand in Q4 FY26 and $1,216 thousand in Q1 FY26.
• Other Income, Net: Other income, net, was - $8,271 thousand in Q1 FY27, compared to - $6,387 thousand in Q4 FY26 and - $5,953 thousand in Q1 FY26.
• Provision for Income Taxes: The provision for income taxes was $33,570 thousand in Q1 FY27, an increase from $9,032 thousand in Q4 FY26, but similar to $33,784 thousand in Q1 FY26.

Adjusted (Non-GAAP) Metrics

• Adjusted Gross Profit: Nextpower Inc. reported an adjusted gross profit of $342 million for Q1 FY27, up from $304 million in Q4 FY26 and $285 million in Q1 FY26.
• Adjusted Gross Margin: The adjusted gross margin was 36.6% in Q1 FY27, compared to 34.5% in Q4 FY26 and 33.0% in Q1 FY26.
• Adjusted EBITDA: Adjusted EBITDA reached $233 million in Q1 FY27, increasing from $202 million in Q4 FY26 and $215 million in Q1 FY26.
• Adjusted EBITDA Margin: The adjusted EBITDA margin was 24.9% in Q1 FY27, up from 22.9% in Q4 FY26 and consistent with 24.9% in Q1 FY26.
• Adjusted Net Income: Adjusted net income was $186 million in Q1 FY27, compared to $162 million in Q4 FY26 and $176 million in Q1 FY26.

IRA 45X Tax Credit

• Q1 FY27, Q4 FY26, and Q1 FY26 results include approximately $99 million, $47 million, and $82 million, respectively, of IRA 45X advanced manufacturing tax credit vendor rebates and tariffs, net.

Balance Sheet Highlights

• Cash and Cash Equivalents: As of July 3, 2026, cash and cash equivalents were $1,213,898 thousand, up from $1,094,976 thousand as of March 31, 2026.
• Total Assets: Total assets were $4,262,207 thousand as of July 3, 2026, increasing from $4,073,212 thousand as of March 31, 2026.
• Total Stockholders’ Equity: Total stockholders’ equity stood at $2,557,103 thousand as of July 3, 2026, an increase from $2,334,397 thousand as of March 31, 2026.

Cash Flow from Operations

• Net Cash Provided by Operating Activities: Nextpower Inc. generated $121,059 thousand in net cash from operating activities in Q1 FY27, compared to $81,324 thousand in Q1 FY26.
• Purchases of Property and Equipment: Purchases of property and equipment were - $15,899 thousand in Q1 FY27, compared to - $11,258 thousand in Q1 FY26.
• Adjusted Free Cash Flow: Adjusted free cash flow was $105,160 thousand in Q1 FY27, up from $70,066 thousand in Q1 FY26.

Operational Metrics

• Backlog: Backlog grew to more than $5.5 billion.
• Acquisitions: The company expanded its clean power technology platform through the acquisition of the Prevalon energy storage business and key assets of Apex Power and Zigor Corporation’s inverter business.
• eBOS Bookings and Revenue: Nextpower Inc. delivered record quarterly eBOS bookings, with eBOS revenue on track to exceed well over $100 million for the year.
• Market Share: The company expanded its #1 U.S. and global tracker market shares, according to Wood Mackenzie, and its global project footprint to over 50 countries.

FY2027 Annual Outlook

• The updated outlook for GAAP net income is projected to be between $540 million and $573 million, an increase from the previous range.
• Adjusted EBITDA is now expected to be between $870 million and $930 million, also an increase from the prior outlook.
• This updated guidance incorporates approximately $50 million in planned incremental costs associated with accelerating Nextpower Inc.’s entry into the power conversion market.