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    Why Nextracker (NXT) Is Up 6.2% After Margin Gains And Balance Sheet Strength Unveiled

    Simply Wall St·12/25/2025 04:44:22
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    • Nextracker recently reported that analysts expect quarterly EPS of US$0.93, lower than the prior-year period, alongside consensus revenue of US$808.49 million, which would mark strong year-on-year growth.
    • Beyond these headline figures, investors are focusing on Nextracker’s expanded product scope, rising margins, and fully deleveraged, cash-rich balance sheet as key strengths.
    • We’ll now examine how Nextracker’s expansion into higher-margin solutions and new regions could influence its existing investment narrative and risk profile.

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    Nextpower Investment Narrative Recap

    To own Nextpower, you need to believe utility scale solar will keep gaining share and that the company can convert its tracker leadership, expanded solutions and solid balance sheet into durable earnings. The latest expectation of US$0.93 EPS on about US$808.49 million in revenue does not materially change the near term focus on execution against its large backlog or the key risk from policy shifts, tariffs and U.S. market dependence.

    Among recent developments, the formation of Nextracker Arabia with Abunayyan Holding in Saudi Arabia stands out as most relevant, since it ties directly into the story of expanding into higher margin regional opportunities beyond the U.S. This new MENA presence sits alongside earlier investments in R&D and localized supply chains, and together they frame how future growth catalysts could offset the concentration and policy risks investors are weighing.

    Yet while growth opportunities look appealing, investors should be aware of how exposed Nextpower still is to shifting tariffs and U.S. policy...

    Read the full narrative on Nextpower (it's free!)

    Nextpower's narrative projects $4.3 billion revenue and $663.3 million earnings by 2028.

    Uncover how Nextpower's forecasts yield a $102.54 fair value, a 12% upside to its current price.

    Exploring Other Perspectives

    NXT 1-Year Stock Price Chart
    NXT 1-Year Stock Price Chart

    Three members of the Simply Wall St Community currently see fair value for Nextpower between US$90.68 and US$102.54, highlighting a fairly tight cluster of views. You can weigh those opinions against the company’s heavy reliance on the U.S. market and evolving policy and tariff risks, which could have meaningful implications for how the business performs over time.

    Explore 3 other fair value estimates on Nextpower - why the stock might be worth as much as 12% more than the current price!

    Build Your Own Nextpower Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.