Solar tracker firm Nextracker has recorded a net income of $139 million, a 95% year-over-year (YoY) increase compared to $71 million for the first quarter (Q1) of the financial year 2025, reflecting significant growth across various metrics.

The company reported a 50% YoY increase in revenue, reaching $720 million for Q1 FY25.

This marks the sixth consecutive quarter of double-digit revenue growth, driven by healthy demand in both U.S. and international markets.

The company achieved a record-adjusted EBITDA of $175 million, an increase of 108% YoY from $84 million, underscoring its operational efficiency and profitability.

The backlog increased quarter-over-quarter and now exceeds $4 billion.

Nextracker’s strategic acquisitions of Ojjo and Solar Pile International have broadened its technological capabilities and market reach.

These acquisitions enable the company to offer integrated solutions for a wide range of soil conditions, enhancing its value proposition for utility-scale solar projects globally.

Domestic Content and Manufacturing

Nextracker has increased its domestic manufacturing capabilities, aligning with the U.S. government’s emphasis on domestic content for renewable energy projects.

The company now operates over 20 manufacturing facilities with an annual capacity exceeding 30 GW.

Nextracker is taking orders for solar tracker solutions with 100% U.S. domestic content, with expected shipments beginning in early 2025. This initiative positions the company favorably under the Inflation Reduction Act and its associated tax credits.

Despite the strong start to the fiscal year, Nextracker’s guidance for the remainder of FY25 reflects a balanced view, considering the anticipated increase in international revenue contribution and the variability in project timelines due to permitting and interconnection delays.

The company expects a shift towards a higher proportion of international revenues in the latter half of the year, which typically have a different margin profile than U.S. revenues.

Approximately 80% of the current backlog will be realized over the next eight quarters, providing a stable revenue stream.

The company said it continues to navigate industry challenges such as supply chain disruptions and regulatory uncertainties. However, the company remains optimistic about its growth prospects, which are driven by strong market demand and strategic initiatives.

The company has implemented a hybrid strategy to mitigate logistics costs and ensure supply chain resilience, including building significant manufacturing capacity within key markets.

Nextracker is currently exploring opportunities to participate in grid-enhancing technologies, which can accelerate the integration of renewable energy projects into the grid.

Nextracker’s fourth-quarter revenue jumped 42% to $737 million in FY 2024 from $518 million last year, reflecting robust product demand. The demand was driven by 27% growth in the U.S. and 89% growth in the rest of the world.

In the previous quarter, the company reported a 38% year-over-year jump in its, helped by higher deliveries in the U.S.