Solar tracker firm Nextracker reported a 38% year-over-year (YoY) jump in its revenue for the third quarter (Q3) of the financial year (FY) 2023-24, helped by higher deliveries in the U.S. and supply chain optimization.

The company’s net income, however, fell to $41.3 million in Q3 FY24 from $42.5 million last year when Nextracker was a subsidiary of diversified manufacturing company Flex. In February 2023, Nextracker raised $638 million in an initial public offering by selling 26.6 million shares at $24 per share.

Its revenue rose to $710 million from $513 million last year, while its order backlog now stands at over $3 billion. Given a healthy pace of increase in bookings, the company also raised the midpoint of its previous annual revenue and profit guidance by about $100 million and $73 million, respectively, making it the third consecutive quarter in which it has raised revenue and profit guidance.

“Nextracker achieved a record third quarter, outperforming across revenue, profit, and backlog, which reflects strong execution and spotlights our capability to meet customer requirements,” CEO Dan Shugar said in a statement.

During the quarter, the company also reached a 10 GW milestone in the Middle East, India, and Africa.

The CEO, during a post-earnings call with investors, highlighted that solar module availability in the U.S. has improved significantly over recent quarters and that he sees solar power contributing increasingly to meet the additional demand from data centers and electrification of transportation.

The company’s president, Howard Wenger, however, warned that some shipments are being rerouted due to the Red Sea and Suez Canal conflict, which has an impact on deliveries and costs.

9M FY24

Nextracker posted a profit of $101 million for the nine months (9M) of FY24, up 7.7% from $93.8 million in the same period last year.

The company’s revenue in the same period rose 27% to $1.76 billion from $1.38 billion last year.

Its net cash on hand increased by $130 million to $368 million in the first nine months of FY24, compared to an increase of $71 million to $100 million in the same period last year.

Last year, SB Energy Global, a U.S.-based integrated renewable energy platform, secured $2.4 billion to support the development of renewable energy projects focusing on the domestic content utilization provision under the Inflation Reduction Act. Nextracker was the supplier for trackers from its recently expanded component providers in Pennsylvania, Nevada, and Tennessee.