Nextpower Inc. (NASDAQ: NXT) saw its shares climb 12.5% to $141 in premarket trading on Wednesday following a series of strategic announcements that underscore the company's pivot toward higher-margin power conversion technologies. The solar equipment supplier raised its fiscal 2027 revenue forecast, reported record fiscal 2026 revenue, and unveiled plans to acquire key inverter assets from Zigor Corporation and Apex Power for up to $80.5 million.
Record Fiscal 2026 Results
For the fiscal year ending March 31, 2026, Nextpower reported revenue of $3.56 billion, a 20% increase year-over-year. The company's backlog reached a record $5.25 billion, and cumulative tracker shipments surpassed 160 gigawatts. Adjusted earnings per share for the fourth quarter came in at $1.05, beating Wall Street expectations, while adjusted EBITDA hit $202 million. Chief Financial Officer Chuck Boynton highlighted "meaningful cash generation" as a key driver behind the improved outlook.
Raised Fiscal 2027 Guidance
Nextpower lifted its fiscal 2027 revenue guidance to a range of $3.8 billion to $4.1 billion, up from the previous $3.6 billion to $3.8 billion. The company also forecasts adjusted EBITDA between $825 million and $900 million, with adjusted diluted EPS of $4.21 to $4.59. The new guidance incorporates approximately $50 million in incremental costs related to the expansion into power conversion.
Strategic Acquisition in Power Conversion
The company has agreed to acquire the power conversion assets of Spain's Zigor Corporation and U.S.-based Apex Power in an $80.5 million cash deal. Approximately $46 million will be paid at closing, with up to $34.5 million in potential earnouts. An additional $50 million has been earmarked for growth spending related to the acquisition. The deal brings modular inverter technology and engineering talent, positioning Nextpower to capture a larger share of the electrical balance of systems (eBOS) market, which includes inverters, wiring, and connectors critical for solar, battery storage, and data center applications.
Market Context and Competitive Landscape
The move comes as developers grapple with increasingly complex power setups, including battery storage, grid enhancements, and surging demand from data centers. Inverters, which convert direct current from solar panels or batteries into grid-ready alternating current, are at the heart of this trend. According to Wood Mackenzie, Nextpower ranks first globally among photovoltaic tracker manufacturers, ahead of China's Trina Tracker and U.S. rival Array Technologies. Senior Research Analyst Timothy Shen noted that the lead was not solely about shipment volume but also about technological breadth.
Risks and Execution Challenges
The acquisition faces regulatory hurdles, including approval from Spanish authorities for foreign direct investment and standard closing conditions. The company has flagged risks such as integration costs, staff retention, shifts in inverter demand, and potential regulatory or economic headwinds. CEO Dan Shugar emphasized the importance of "building out U.S. manufacturing as quickly as is prudent," with production expected to begin ramping in 2027.
Management Changes
Nextpower's board has appointed Robert Vinje as chief operating officer, effective June 15. Vinje joins from solar recycling firm SOLARCYCLE, where he served as COO, and previously held roles at Amazon and SunPower. Marco Miller, who served as COO, will transition to chief project development officer. The leadership change signals a focus on operational execution as the company scales its power electronics platform.
Outlook
With a record backlog, an expanded product roadmap, and a raised 2027 outlook, Nextpower is positioning itself to convert its order book into sustained top-line growth. The key challenge remains navigating the regulatory approval process and successfully integrating the new inverter assets into its platform.
