Nextpower Q3 2026 Nextpower Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q3 2026 Nextpower Inc Earnings Call
Speaker #1: Good afternoon, everyone, and thank you for standing by. My name is Kevin, and I will be your conference operator today. Today's call is being recorded.
Operator: Good afternoon, everyone, and thank you for standing by. My name is Kevin, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to Nextracker's Q3 fiscal year 2026 earnings call. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. At this time, for opening remarks, I would like to pass the call over to Ms. Mary Lai, Head of Investor Relations. Sarah, you may begin.
Operator: Good afternoon, everyone, and thank you for standing by. My name is Kevin, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to Nextracker's Q3 fiscal year 2026 earnings call. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. At this time, for opening remarks, I would like to pass the call over to Ms. Mary Lai, Head of Investor Relations. Ms. Lai, you may begin.
Speaker #1: I would like to welcome everyone to NextPower's third-quarter fiscal year 2026 earnings call. After the speakers' remarks, there will be a Q&A session. If you would like to ask a question, please raise your hand.
Speaker #1: If you have dialed in to today's call, please press star 9 to raise your hand and star 6 to unmute. At this time, for opening remarks, I would like to pass the call over to Ms. Sarah Lee, Head of Investor Relations.
Speaker #1: Sarah, you may
Speaker #1: begin. Thank you, and
Mary Lai: Thank you, and good afternoon, everyone. Welcome to Nextracker's Q3 fiscal year 2026 earnings call. I'm Mary Lai, Nextracker's Head of Investor Relations, and I'm joined by Dan Shugar, our CEO and founder, Howard Wenger, our President, and Chuck Boynton, our CFO. As a reminder, there will be a replay of this call posted on the IR website, along with the earnings press release and shareholder letter. Today's call contains statements regarding our business, financial performance, and operations, including our business and our industry, that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations. Those statements are based on our current beliefs, assumptions, and expectations and speak only as of the current date.
Mary Lai: Thank you, and good afternoon, everyone. Welcome to Nextracker's Q3 fiscal year 2026 earnings call. I'm Mary Lai, Nextracker's Head of Investor Relations, and I'm joined by Dan Shugar, our CEO and founder, Howard Wenger, our President, and Chuck Boynton, our CFO. As a reminder, there will be a replay of this call posted on the IR website, along with the earnings press release and shareholder letter. Today's call contains statements regarding our business, financial performance, and operations, including our business and our industry, that may be considered forward-looking statements, and such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations. Those statements are based on our current beliefs, assumptions, and expectations and speak only as of the current date.
Speaker #2: Good afternoon, everyone. Welcome to NextPower's third-quarter fiscal year 2026 earnings call. I'm Sarah Lee, NextPower's Head of Investor Relations, and I'm joined by Dan Shugar, our CEO and founder; Howard Wenger, our President; and Chuck Boynton, our CFO.
Speaker #2: As a reminder, there will be a replay of this call posted on the IR website, along with the earnings press release and shareholder letter.
Speaker #2: Today's call contains statements regarding our business, financial performance, and operations, including our business and our industry, that may be considered forward-looking statements. Such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations.
Speaker #2: Those statements are based on our current beliefs, assumptions, and expectations, and speak only as of the current date. For more information on those risks and uncertainties, please review our earnings press release, shareholder letter, and our SEC filings, including our most recently filed quarterly report, Form 10-Q, and annual report on Form 10-K, which are available on our IR webpage at investors.nextpower.com.
Mary Lai: For more information on those risks and uncertainties, please review our earnings press release, shareholder letter, and our SEC filings, including our most recently filed quarterly report, Form 10-Q, and annual report on Form 10-K, which are available on our IR webpage at investors.nextracker.com. This information is subject to change, and we undertake no obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. Please note, we will provide GAAP and non-GAAP measures on today's call. The full non-GAAP to GAAP reconciliations can be found in the appendix to the press release and the shareholder letter, as well as the financial section of the IR webpage. And now I will turn the call over to our CEO and founder, Dan Shugar.
For more information on those risks and uncertainties, please review our earnings press release, shareholder letter, and our SEC filings, including our most recently filed quarterly report, Form 10-Q, and annual report on Form 10-K, which are available on our IR webpage at investors.nextracker.com. This information is subject to change, and we undertake no obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations. Please note, we will provide GAAP and non-GAAP measures on today's call. The full non-GAAP to GAAP reconciliations can be found in the appendix to the press release and the shareholder letter, as well as the financial section of the IR webpage. And now I will turn the call over to our CEO and founder, Dan Shugar.
Speaker #2: This information is subject to change, and we undertake no obligation to update any forward-looking statements as a result of new information, future events, or changes in our expectations.
Speaker #2: Please note we will record today's call. The full provided GAAP and non-GAAP measures, along with non-GAAP to GAAP reconciliations, can be found in the appendix to the press release and the shareholder letter, as well as the financial section of the IR webpage.
Speaker #2: And now, I will turn the call over to our CEO and founder, Dan.
Speaker #3: Good afternoon, and thank you for joining us. NextPower delivered another strong quarter characterized by solid operational discipline and execution, increased backlog, and continuing focus on customers and innovation.
Dan Shugar: Good afternoon, and thank you for joining us. Nextracker delivered another strong quarter, characterized by solid operational discipline and execution, increased backlog, and continuing focus on customers and innovation. This call represents an important milestone for the company, being the first quarterly earnings report under our new Nextracker brand. At our Capital Markets Day last November, we outlined our strategic evolution, started several years ago, from a pure-play tracking system supplier to an end-to-end solar technology platform. We followed that with a technology and market symposium, where we engaged directly with customers to showcase our expanding portfolio of value-enhancing products and services that we are building around our core tracker business, including our roadmap to incorporate power conversion solutions for utility-scale solar and battery energy storage. Customer response to the strategy has been very positive, and Howard will share more detail on how this is translating into customer adoption.
Daniel Shugar: Good afternoon, and thank you for joining us. Nextracker delivered another strong quarter, characterized by solid operational discipline and execution, increased backlog, and continuing focus on customers and innovation. This call represents an important milestone for the company, being the first quarterly earnings report under our new Nextracker brand. At our Capital Markets Day last November, we outlined our strategic evolution, started several years ago, from a pure-play tracking system supplier to an end-to-end solar technology platform. We followed that with a technology and market symposium, where we engaged directly with customers to showcase our expanding portfolio of value-enhancing products and services that we are building around our core tracker business, including our roadmap to incorporate power conversion solutions for utility-scale solar and battery energy storage. Customer response to the strategy has been very positive, and Howard will share more detail on how this is translating into customer adoption.
Speaker #3: This call represents an important milestone for the company, being the first quarterly earnings report under our new NextPower brand. At our Capital Markets Day last November, we outlined our strategic evolution—started several years ago—from a pure-play tracking system supplier to an end-to-end solar technology platform.
Speaker #3: We followed that with a technology and market symposium, where we engaged directly with customers to showcase our expanding portfolio of value-enhancing products and services that we are building around our core tracker business, including our roadmap to incorporate power conversion solutions for utility-scale solar and battery energy storage.
Speaker #3: Customer response to the strategy has been very positive, and Howard will share more detail on how this has translated into customer adoption. We recently completed the formation of a joint venture with Abu Nahyan of NextPower Arabia, our holding in the Middle East.
Dan Shugar: We recently completed the formation of Nextracker Arabia, our joint venture with Abunayyan Holding in the Middle East. The JV is already off to a strong start and will supply 2.25 GW of advanced tracking systems to one of the world's largest utility-scale solar projects. With the launch of Nextracker Arabia, we're focused on building local operations, manufacturing capability, and long-term partnerships that support the kingdom's energy ambitions. Together with Abunayyan Holding, we are advancing the localization of renewable energy technologies, strengthening supply chains, and creating the foundation to locally manufacture and support up to 12 GW of solar capacity annually, with the potential to create thousands of jobs over time. Saudi Arabia and the surrounding GCC sit at the center of one of the most dynamic energy transitions in the world.
We recently completed the formation of Nextracker Arabia, our joint venture with Abunayyan Holding in the Middle East. The JV is already off to a strong start and will supply 2.25 GW of advanced tracking systems to one of the world's largest utility-scale solar projects. With the launch of Nextracker Arabia, we're focused on building local operations, manufacturing capability, and long-term partnerships that support the kingdom's energy ambitions. Together with Abunayyan Holding, we are advancing the localization of renewable energy technologies, strengthening supply chains, and creating the foundation to locally manufacture and support up to 12 GW of solar capacity annually, with the potential to create thousands of jobs over time. Saudi Arabia and the surrounding GCC sit at the center of one of the most dynamic energy transitions in the world.
Speaker #3: The JV is already off to a strong start and will supply 2.25 gigawatts of advanced tracking systems to one of the world's largest utility-scale solar projects.
Speaker #3: With the launch of NextPower Arabia, we're focused on building local operations, manufacturing capability, and long-term partnerships that support the Kingdom's energy ambitions. Together with Abu Nahyan Holdings, we are advancing the localization of renewable energy technologies, strengthening supply chains, and creating the foundation to locally manufacture and support up to 12 gigawatts of solar capacity annually, with the potential to create thousands of jobs over time.
Speaker #3: Saudi Arabia and the surrounding GCC sit at the center of one of the most dynamic energy transitions in the world. Rapid growth in electricity demand, driven by economic transformation, mega projects, and the expansion of AI and digital infrastructure, calls for solutions that can scale quickly, reliably, and efficiently.
Dan Shugar: Rapid growth in electricity demand, driven by economic transformation, mega projects, and the expansion of AI and digital infrastructure, calls for solutions that can scale quickly, reliably, and efficiently. Solar energy is uniquely positioned to meet that demand. As the lowest cost and most scalable power generation technology available today, solar is playing a central role in the energy future of Saudi Arabia and the broader MENA region. Let's turn to our financial performance. We delivered robust financial results across all key metrics. Q3 revenue grew 34% year-over-year to $909 million, and adjusted EBITDA increased 15% to $214 million. Fiscal year-to-date revenue increased 32% year-over-year to $2.68 billion. We generated solid cash flow and further strengthened our balance sheet.
Rapid growth in electricity demand, driven by economic transformation, mega projects, and the expansion of AI and digital infrastructure, calls for solutions that can scale quickly, reliably, and efficiently. Solar energy is uniquely positioned to meet that demand. As the lowest cost and most scalable power generation technology available today, solar is playing a central role in the energy future of Saudi Arabia and the broader MENA region. Let's turn to our financial performance. We delivered robust financial results across all key metrics. Q3 revenue grew 34% year-over-year to $909 million, and adjusted EBITDA increased 15% to $214 million. Fiscal year-to-date revenue increased 32% year-over-year to $2.68 billion. We generated solid cash flow and further strengthened our balance sheet.
Speaker #3: Solar energy is uniquely positioned to meet that demand. As the lowest-cost and most scalable power generation technology available today, solar is playing a central role in the energy future of Saudi Arabia and the broader MENA region.
Speaker #3: Let's turn to our financial performance. We delivered robust financial results across all key metrics. Q3 revenue grew 34% year on year, to $909 million, and adjusted EBITDA increased 15% to $214 million.
Speaker #3: Fiscal year-to-date revenue increased 32% year over year, to $2.68 billion. We generated solid cash flow and further strengthened our balance sheet. We also became the first pure-play solar product company to receive an investment-grade rating.
Dan Shugar: We also became the first pure-play solar product company to achieve a formal investment-grade rating, reinforcing confidence that Nextracker can stand behind projects for decades, supporting financing, warranties, service, and asset performance over the full life cycle of these solar generation infrastructure projects. Discerning power plant owners greatly value Nextracker's financial strength. Based on our performance and the visibility we have across our business, we are raising our fiscal 2026 financial outlook, which Chuck will discuss in more detail. Finally, I would like to thank our customers for their continued trust and partnership, and our employees for their commitment to innovation and execution. We remain focused on scaling our technology platform and creating long-term value for shareholders. I'll now turn the call over to Howard to provide more color on the quarter.
We also became the first pure-play solar product company to achieve a formal investment-grade rating, reinforcing confidence that Nextracker can stand behind projects for decades, supporting financing, warranties, service, and asset performance over the full life cycle of these solar generation infrastructure projects. Discerning power plant owners greatly value Nextracker's financial strength. Based on our performance and the visibility we have across our business, we are raising our fiscal 2026 financial outlook, which Chuck will discuss in more detail. Finally, I would like to thank our customers for their continued trust and partnership, and our employees for their commitment to innovation and execution. We remain focused on scaling our technology platform and creating long-term value for shareholders. I'll now turn the call over to Howard to provide more color on the quarter.
Speaker #3: To achieve a formal reinforcing confidence that NextPower can stand behind projects for decades. Supporting financing, warranties, service, and asset performance over the full life cycle of these solar generation infrastructure projects.
Speaker #3: Discerning power plant owners greatly value NextPower's financial strength. Based on our performance and the visibility we have across our business, we are raising our fiscal 2026 financial outlook, which Chuck will discuss in more detail.
Speaker #3: Finally, I would like to thank our customers for their continued trust and partnership, and our employees for their commitment to innovation and execution. We remain focused on scaling our technology platform and creating long-term value for shareholders.
Speaker #3: I'll now turn the call over to Howard to provide more color on the quarter.
Speaker #4: Thank you, Dan. During the quarter, we saw continued strong customer bookings, which drove further backlog growth. We also continued to innovate and release important hardware and software to the market, and we had another strong quarter of financial performance enabled by our global operations team.
Howard Wenger: Thank you, Dan. During the quarter, we saw continued strong customer bookings, which drove further backlog growth. We also continued to innovate and release important hardware and software to the market, and we had another strong quarter of financial performance, enabled by our global operations team. We manage our business on an annual and multiyear basis, which is consistent with the nature of the utility-scale solar power industry, with large-scale projects spanning multiple quarters and multiple geographies. We are increasing our outlook for the remainder of the year based on the strength and diversity of our backlog, a continued flight to quality that favors Nextracker, and the deep capability and commitment of our global team. Turning now to regional demand. In the US, bookings were up and revenue increased 63% year-over-year, reflecting Nextracker's technology and customer experience advantage, or what we call a flight to quality.
Howard Wenger: Thank you, Dan. During the quarter, we saw continued strong customer bookings, which drove further backlog growth. We also continued to innovate and release important hardware and software to the market, and we had another strong quarter of financial performance, enabled by our global operations team. We manage our business on an annual and multiyear basis, which is consistent with the nature of the utility-scale solar power industry, with large-scale projects spanning multiple quarters and multiple geographies. We are increasing our outlook for the remainder of the year based on the strength and diversity of our backlog, a continued flight to quality that favors Nextracker, and the deep capability and commitment of our global team. Turning now to regional demand. In the US, bookings were up and revenue increased 63% year-over-year, reflecting Nextracker's technology and customer experience advantage, or what we call a flight to quality.
Speaker #4: We manage our business on an annual and multi-year basis, which is consistent with the nature of the utility-scale solar power industry, with large-scale projects spanning multiple quarters and multiple geographies.
Speaker #4: Outlook for the remainder of the year is based on the strength and diversity of our backlog, a continued flight to quality that favors NextPower, and the deep capability and commitment of our global team.
Speaker #4: Turning now to regional demand. In the U.S., bookings were up and revenue increased 63% year over year, reflecting NextPower's technology and customer experience advantage.
Speaker #4: Or what we call a flight to quality. There also continues to be an increasing demand shift for domestically manufactured systems, which we are able to meet with our robust domestic supply chain and favorable lead times.
Howard Wenger: There also continues to be an increasing demand shift for domestically manufactured systems, which we are able to meet with our robust domestic supply chain and favorable lead times. US project and demand creation continues, with developers generally reporting their ability to move projects forward through to final permitting and financing, and they are doing so across multiple years of completion, providing extended visibility. Encouragingly, several customer projects sited on federal lands that have been on hold, have begun to move forward as well. Demand for our core tracker technology remains strong, as reflected in sustained customer adoption of the NX Horizon Hail Pro. During calendar year 2025, our systems executed 2,170 hail stones worldwide, with our customers reporting a less than 0.007% module breakage rate. This is very good news and supports our innovation thesis.
There also continues to be an increasing demand shift for domestically manufactured systems, which we are able to meet with our robust domestic supply chain and favorable lead times. US project and demand creation continues, with developers generally reporting their ability to move projects forward through to final permitting and financing, and they are doing so across multiple years of completion, providing extended visibility. Encouragingly, several customer projects sited on federal lands that have been on hold, have begun to move forward as well. Demand for our core tracker technology remains strong, as reflected in sustained customer adoption of the NX Horizon Hail Pro. During calendar year 2025, our systems executed 2,170 hail stones worldwide, with our customers reporting a less than 0.007% module breakage rate. This is very good news and supports our innovation thesis.
Speaker #4: U.S. project and demand creation continues, with developers generally reporting their ability to move projects forward through to final permitting and financing, and they are doing so across multiple years of completion, providing extended visibility.
Speaker #4: Encouragingly, several customer projects cited on federal lands that have been on hold have begun to move forward as well. Demand for our core tracker technology remains strong.
Speaker #4: As reflected in sustained customer adoption of the NX Horizon during calendar year HALE Pro Tracker, 2025, our systems executed 2,170 HALE stows worldwide, with our customers reporting a less than 0.007% module breakage rate.
Speaker #4: This is very good news and supports our innovation thesis. Our expanding technology platform is now gaining traction for both tracker and non-tracker offerings, with an increasing and more diverse mix in our order book.
Howard Wenger: Our expanding technology platform is now gaining traction for both tracker and non-tracker offerings, with an increasing and more diverse mix in our order book. For example, this quarter, we booked a 552MW order incorporating a technology bundle on a single project, including our NX Horizon Hail Pro Tracker, eBOS manufactured in the US, our NX Earth Truss Foundation system, and our TrueCapture control system. Moving to the international market. Europe again stood out with record quarterly bookings and expansion into 2 new countries. We are also excited about the formation of our new JV company, Nextracker Arabia, to serve growing demand across the MENA region. Saudi Arabia alone has ambitions to install 130GW of renewable energy by 2030. We also introduced our NX Earth Truss Foundation solution overseas, marking a positive step in the international expansion of our technology platform.
Our expanding technology platform is now gaining traction for both tracker and non-tracker offerings, with an increasing and more diverse mix in our order book. For example, this quarter, we booked a 552MW order incorporating a technology bundle on a single project, including our NX Horizon Hail Pro Tracker, eBOS manufactured in the US, our NX Earth Truss Foundation system, and our TrueCapture control system. Moving to the international market. Europe again stood out with record quarterly bookings and expansion into 2 new countries. We are also excited about the formation of our new JV company, Nextracker Arabia, to serve growing demand across the MENA region. Saudi Arabia alone has ambitions to install 130GW of renewable energy by 2030. We also introduced our NX Earth Truss Foundation solution overseas, marking a positive step in the international expansion of our technology platform.
Speaker #4: For example, this quarter we booked a 552-megawatt order incorporating a technology bundle on a single project, including our NX Horizon HALE Pro Tracker, EBOS manufactured in the US, our NX Earth Trust Foundation system, and our TrueCapture control system.
Speaker #4: Moving to the international market, Europe again stood out with record quarterly bookings and expansion into two new countries. We are also excited about the formation of our new JV company, NextPower Arabia, to serve growing demand across the MENA region.
Speaker #4: Saudi Arabia alone has ambitions to install 130 gigawatts of renewable energy by 2030. We also introduced our NX Earth Trust Foundation solution overseas, marking a positive step in the international expansion of our technology platform.
Speaker #4: As Dan noted, we announced plans at our Capital Markets Day to extend our platform to include power conversion solutions. This project remains on track, with customer pilots planned for calendar year 2026.
Howard Wenger: As Dan noted, we announced plans at our Capital Markets Day to extend our platform to include power conversion solutions. This project remains on track, with customer pilots planned for calendar year 2026. Turning now to project timing and pricing. Project timing remains stable and manageable on a portfolio basis, consistent with previous quarters, with some projects accelerating and others pushing out. On balance, Q3 saw a modest net pull-in. Pricing continues to track the broader solar cost curve, and we continue to invest in R&D and scalable infrastructure to reduce cost while improving system performance. Our culture is to relentlessly serve our customers and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals remain strong. Demand is healthy, our backlog is large and growing,...
As Dan noted, we announced plans at our Capital Markets Day to extend our platform to include power conversion solutions. This project remains on track, with customer pilots planned for calendar year 2026. Turning now to project timing and pricing. Project timing remains stable and manageable on a portfolio basis, consistent with previous quarters, with some projects accelerating and others pushing out. On balance, Q3 saw a modest net pull-in. Pricing continues to track the broader solar cost curve, and we continue to invest in R&D and scalable infrastructure to reduce cost while improving system performance. Our culture is to relentlessly serve our customers and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals remain strong. Demand is healthy, our backlog is large and growing,...
Speaker #4: Turning now to project timing and pricing, project timing remains stable and manageable on a portfolio basis, consistent with previous quarters, with some projects accelerating and others pulling in. Balanced, Q3 saw a modest net pushing out.
Speaker #4: On pricing, it continues to track the broader solar cost curve, and we continue to invest in R&D and scalable infrastructure to reduce cost while improving system performance.
Speaker #4: Our culture is to relentlessly serve our customers and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals remain strong. Demand is healthy.
Speaker #4: Our backlog is large and growing. Project timing and execution visibility is solid, and we continue to strengthen our competitive position through innovation, customer focus, and operational excellence.
Howard Wenger: Project timing and execution visibility is solid, and we continue to strengthen our competitive position through innovation, customer focus, and operational excellence. With that, I'll turn the call over to Chuck.
Project timing and execution visibility is solid, and we continue to strengthen our competitive position through innovation, customer focus, and operational excellence. With that, I'll turn the call over to Chuck.
Speaker #4: With that, I'll turn the call over to
Speaker #4: Chuck. Thank you, Howard.
Chuck Boynton: Thank you, Howard. Good afternoon, everyone. Overall, Q3 was another quarter of strong execution, with results that reflected both healthy end market demand and continued discipline across the business. For our fiscal 2026 Q3, revenue was $909 million, and Adjusted EBITDA was $214 million, representing an Adjusted EBITDA margin of 23%. On a year-to-date basis, Adjusted EBITDA increased 22% year-over-year, demonstrating the durability of our margin profile, even as we navigate tariffs and invest in growth initiatives. We generated GAAP net income of $435 million year-to-date, underscoring the high-quality earnings power of the business. 81% of Q3 revenue came from the US, with 19% from rest of world markets. Year-to-date, our revenue mix was 75% US and 25% rest of world.
Chuck Boynton: Thank you, Howard. Good afternoon, everyone. Overall, Q3 was another quarter of strong execution, with results that reflected both healthy end market demand and continued discipline across the business. For our fiscal 2026 Q3, revenue was $909 million, and Adjusted EBITDA was $214 million, representing an Adjusted EBITDA margin of 23%. On a year-to-date basis, Adjusted EBITDA increased 22% year-over-year, demonstrating the durability of our margin profile, even as we navigate tariffs and invest in growth initiatives. We generated GAAP net income of $435 million year-to-date, underscoring the high-quality earnings power of the business. 81% of Q3 revenue came from the US, with 19% from rest of world markets. Year-to-date, our revenue mix was 75% US and 25% rest of world.
Speaker #1: Good afternoon, everyone. Overall, Q3 was another quarter of strong execution, with results that reflected both healthy end-market demand and continued discipline across the business.
Speaker #1: For our fiscal 2026 third quarter, revenue was $909 million, and adjusted EBITDA was $214 million, representing an adjusted EBITDA margin of 23%. On a year-to-date basis, adjusted EBITDA increased 22% year-over-year, demonstrating the durability of our margin profile even as we navigate tariffs and invest in growth initiatives.
Speaker #1: We generated GAAP net income of $435 million year to date, underscoring the high-quality earnings power of the business. Eighty-one percent of Q3 revenue came from the US, with 19% from rest of world markets.
Speaker #1: Year to date, our revenue mix was 75% US and 25% rest of world. This geographic balance gives us both scale and maximizes investment returns, and prioritizes disciplined diversification while allowing us to execute.
Chuck Boynton: This geographic balance gives us both scale and diversification, while allowing us to maximize investment returns and prioritize disciplined execution. Turning now to cash flow. We generated $123 million of operating cash flow in the quarter, and $391 million year to date. Capital expenditures remained modest, resulting in adjusted free cash flow of $119 million in Q3 and $360 million year to date. This level of cash generation reflects strong underlying profitability, disciplined working capital management, and the capital-efficient nature of our business. Importantly, it gives us significant flexibility to invest in growth while maintaining robust liquidity. Our balance sheet remains a core competitive advantage. We exited the quarter with $953 million of cash and cash equivalents and no debt.
This geographic balance gives us both scale and diversification, while allowing us to maximize investment returns and prioritize disciplined execution. Turning now to cash flow. We generated $123 million of operating cash flow in the quarter, and $391 million year to date. Capital expenditures remained modest, resulting in adjusted free cash flow of $119 million in Q3 and $360 million year to date. This level of cash generation reflects strong underlying profitability, disciplined working capital management, and the capital-efficient nature of our business. Importantly, it gives us significant flexibility to invest in growth while maintaining robust liquidity. Our balance sheet remains a core competitive advantage. We exited the quarter with $953 million of cash and cash equivalents and no debt.
Speaker #1: flow. We generated $123 million of operating cash flow in the quarter and $391 Turning now to cash million year to date. Capital expenditures remain modest, resulting in adjusted free cash flow of $119 million in Q3 and $360 million year to date.
Speaker #1: This level of cash generation reflects strong underlying profitability, disciplined working capital management, and the capital-efficient nature of our business. Importantly, it gives us significant flexibility to invest in growth while maintaining robust liquidity.
Speaker #1: Our balance sheet remains a core competitive advantage. We exited the quarter with $953 million of cash and cash equivalents and no debt. We also recently achieved a formal investment-grade credit rating, which we view as a meaningful external validation of our cash predictability, discipline, financial management, and the durable business model.
Chuck Boynton: We also recently achieved a formal Investment-Grade Rating, which we view as a meaningful external validation of our cash predictability, disciplined financial management, and the durable business model. This milestone is important to our customers and suppliers, while also enhancing our financial flexibility. Our capital allocation priorities remain unchanged. First, we continue to prioritize organic investment in new products and services. Second, disciplined M&A that strengthens our technology platform and creates customer value. Third, return of capital to shareholders. Today, we are announcing that the board authorized a share repurchase program of up to $500 million over 3 years. This program reflects our confidence in the long-term outlook of the business and our ability to generate durable cash flows while maintaining flexibility to invest for growth. Investments in organic growth and M&A continue to be our top priorities, followed by share repurchases. Moving on to tariffs.
We also recently achieved a formal Investment-Grade Rating, which we view as a meaningful external validation of our cash predictability, disciplined financial management, and the durable business model. This milestone is important to our customers and suppliers, while also enhancing our financial flexibility. Our capital allocation priorities remain unchanged. First, we continue to prioritize organic investment in new products and services. Second, disciplined M&A that strengthens our technology platform and creates customer value. Third, return of capital to shareholders. Today, we are announcing that the board authorized a share repurchase program of up to $500 million over 3 years. This program reflects our confidence in the long-term outlook of the business and our ability to generate durable cash flows while maintaining flexibility to invest for growth. Investments in organic growth and M&A continue to be our top priorities, followed by share repurchases. Moving on to tariffs.
Speaker #1: This milestone is important to our customers and suppliers while also enhancing our financial flexibility. Our capital allocation priorities remain unchanged. First, we continue to prioritize organic investment and new products and services.
Speaker #1: Second, disciplined M&A that strengthens our technology platform and creates customer value. Third, return of capital to shareholders. Today, we are announcing that the board authorized a share repurchase program of up to $500 million over three years.
Speaker #1: This program reflects our competence and the long-term outlook of the business, as well as our ability to generate durable cash flows while maintaining flexibility to invest for growth.
Speaker #1: Investments in organic growth and M&A continue to be our top priorities, followed by share repurchases. Moving on to tariffs: as expected, tariffs continue to have an impact on margins, particularly on a year-over-year basis.
Chuck Boynton: As expected, tariffs continued to have an impact on margins, particularly on a year-over-year basis. This quarter, the tariff impact was $44 million, up from $33 million last quarter. This increase was due to the partial impact in Q2, given the effective date of the new tariffs was 15 August. Our diversified and increasingly localized supply chain, combined with pricing discipline and operational execution, has allowed us to manage these impacts efficiently. We currently work with over 25 US partner manufacturing facilities, and Nextracker was the first to deliver 100% domestic content trackers under US Treasury guidelines, and we're seeing increased customer adoption of these solutions to mitigate tariff exposure. We also continue to work very closely with our customers to manage tariff-related impacts across multiple projects. Looking ahead, we expect tariff-related margin pressure to remain manageable and largely consistent with our prior expectations.
As expected, tariffs continued to have an impact on margins, particularly on a year-over-year basis. This quarter, the tariff impact was $44 million, up from $33 million last quarter. This increase was due to the partial impact in Q2, given the effective date of the new tariffs was 15 August. Our diversified and increasingly localized supply chain, combined with pricing discipline and operational execution, has allowed us to manage these impacts efficiently. We currently work with over 25 US partner manufacturing facilities, and Nextracker was the first to deliver 100% domestic content trackers under US Treasury guidelines, and we're seeing increased customer adoption of these solutions to mitigate tariff exposure. We also continue to work very closely with our customers to manage tariff-related impacts across multiple projects. Looking ahead, we expect tariff-related margin pressure to remain manageable and largely consistent with our prior expectations.
Speaker #1: This quarter, the tariff impact was $44 million, up from $33 million last quarter. This increase was due to the partial impact in Q2, which was August, given the effective date of the new tariffs was the 15th.
Speaker #1: Our diversified and increasingly localized supply chain, combined with pricing discipline and operational execution, has allowed us to manage these impacts efficiently. We currently work with over 25 U.S. partner manufacturing facilities, and Nextracker was the first to deliver 100% domestic content trackers under U.S. Treasury guidelines. We're seeing solutions to mitigate tariff exposure.
Speaker #1: We also continue to increase customer adoption of these, and work very closely with our customers to manage tariff-related impacts across multiple projects. Looking ahead, we expect tariff-related margin pressure to remain manageable and largely consistent with our prior expectations.
Speaker #1: Finally, based on our performance through the first three quarters, the strength and the quality of our backlog, and continued demand across our core markets, we are increasing our financial outlook for fiscal year 2026.
Chuck Boynton: Finally, based on our performance through the first three quarters, the strength and the quality of our backlog, and continued demand across our core markets, we are increasing our financial outlook for fiscal year 2026. We now expect revenue between $3.425 and 3.5 billion, adjusted EBITDA between $810 million and $830 million, and adjusted diluted EPS in the range of $4.26 to $4.36. We continue to expect gross margins to be in the low thirties and operating margins in the low twenties. The current outlook for next year indicates another year of solid growth. Our outlook assumes the current US policy environment remains intact and permitting processes and timelines will remain consistent with historical levels.
Finally, based on our performance through the first three quarters, the strength and the quality of our backlog, and continued demand across our core markets, we are increasing our financial outlook for fiscal year 2026. We now expect revenue between $3.425 and 3.5 billion, adjusted EBITDA between $810 million and $830 million, and adjusted diluted EPS in the range of $4.26 to $4.36. We continue to expect gross margins to be in the low thirties and operating margins in the low twenties. The current outlook for next year indicates another year of solid growth. Our outlook assumes the current US policy environment remains intact and permitting processes and timelines will remain consistent with historical levels.
Speaker #1: We now expect revenue between $3.425 billion and $3.5 billion, adjusted EBITDA between $810 million and $830 million, and adjusted diluted EPS in the range of $4.26 to $4.36.
Speaker #1: We continue to expect gross margins to be in the low 30s and operating margins in the low 20s. The current outlook for next year indicates another year of solid growth.
Speaker #1: The current US policy environment, our outlook assumes, remains intact, and permitting processes and timelines will remain consistent with historical levels. Overall, we feel confident in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation.
Chuck Boynton: Overall, we feel confident in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation. We continue to execute at a high level while maintaining strong margins and cash flows. We believe our strategy, team, and platform uniquely position us to deliver long-term shareholder value.
Overall, we feel confident in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation. We continue to execute at a high level while maintaining strong margins and cash flows. We believe our strategy, team, and platform uniquely position us to deliver long-term shareholder value.
Speaker #1: We continue to execute at a high level while maintaining strong margins and cash flows. We believe our strategy, team, and platform uniquely position us to deliver long-term shareholder value.
Speaker #1: Thank you, and with that, we'll take your questions. Operator.
Dan Shugar: ... Thank you. And with that, we'll take your questions. Operator?
Daniel Shugar: ... Thank you. And with that, we'll take your questions. Operator?
Speaker #2: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now.
Operator: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, a reminder to please press star nine to raise your hand and star six to unmute. Please stand by as we compile the Q&A roster. Your first question comes from the line of Philip Shen with Roth. Your line is open. Please go ahead.
Operator: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, a reminder to please press star nine to raise your hand and star six to unmute. Please stand by as we compile the Q&A roster. Your first question comes from the line of Philip Shen with ROTH. Your line is open. Please go ahead.
Speaker #2: If you have dialed in to today's call, a reminder to please press star nine to raise your hand and star six to unmute. Please stand by as we compile the Q&A roster.
Speaker #2: Your first question comes from the line of Philip Shen with Roth. Your line is open. Please go ahead.
Speaker #3: Hey guys, thanks for taking my questions. Great job in the quarter. I wanted to check in with you on bookings in the quarter and book-to-bill specifically.
Philip Shen: Hey, guys. Thanks for taking my questions. Great job on the quarter. Wanted to check in with you on bookings in the quarter and book-to-bill specifically. I know you guys talked about record backlog and backlog being greater than $5 billion, but wanted to understand if your bookings cleared, you know, $1 billion in Q3. And then, if you can, share some color on the revenue for Q3, what was the mix for the US business of Tracker versus non-Tracker? And then how might you expect that to trend in the coming quarters or years? Thanks.
Philip Shen: Hey, guys. Thanks for taking my questions. Great job on the quarter. Wanted to check in with you on bookings in the quarter and book-to-bill specifically. I know you guys talked about record backlog and backlog being greater than $5 billion, but wanted to understand if your bookings cleared, you know, $1 billion in Q3. And then, if you can, share some color on the revenue for Q3, what was the mix for the US business of Tracker versus non-Tracker? And then how might you expect that to trend in the coming quarters or years? Thanks.
Speaker #3: I know you guys talked about record backlog and backlog being greater than $5 billion, but I wanted to understand if your bookings cleared $1 billion in FQ3.
Speaker #3: And then, if you can, share some color on the revenue for Q3. What was the mix for the U.S. business of tracker versus non-tracker?
Speaker #3: And then how might you expect that to trend in the coming quarters or years?
Speaker #3: Thanks. Hey, Phil.
Howard Wenger: Hey, Phil, this is Howard Wenger. Thanks for your questions. So yeah, we're really pleased with the quarter, with everything that we executed, the name change, the capital markets day, coming you know, being prepared for that, and the customer day and the Enersource JV. So with all of that, we continue to execute the business really well. Bookings were strong, revenue, the financials. As far as bookings, to your question, we did have growth in our backlog. It is a new record. We're not giving specific numbers, but suffice it to say that it was one of our stronger quarters that we've had in some time, and we're really pleased with that. It was a little bit weighted to the United States, just to give you some color.
Howard Wenger: Hey, Phil, this is Howard Wenger. Thanks for your questions. So yeah, we're really pleased with the quarter, with everything that we executed, the name change, the capital markets day, coming you know, being prepared for that, and the customer day and the Enersource JV. So with all of that, we continue to execute the business really well. Bookings were strong, revenue, the financials. As far as bookings, to your question, we did have growth in our backlog. It is a new record. We're not giving specific numbers, but suffice it to say that it was one of our stronger quarters that we've had in some time, and we're really pleased with that. It was a little bit weighted to the United States, just to give you some color.
Speaker #4: This is Howard. Questions? So yeah, we're Wenger. Thanks. We're really pleased with the quarter—with everything that we executed: the name change, the capital markets day, being prepared for that, and the customer day, and the announcement of our JV.
Speaker #4: So, with all of that, we continue to execute the business really well. Bookings were strong—revenue and the financials. As far as bookings, to your question, we did have growth in our backlog.
Speaker #4: It is a new record. We're not giving specific numbers, but suffice it to say that it was one of our stronger quarters that we've had in some time.
Speaker #4: And we're really pleased with that. It was a little bit weighted to the United States, just to give you some color. And as far as tracker and non-tracker on the revenue mix, the non-tracker business is starting to have an impact.
Howard Wenger: As far as tracker and non-tracker on the revenue mix, the non-tracker business is starting to have an impact. What we're seeing is a little more mix on the US from that, because we're rolling out the non-tracker part of our platform first in the United States, and I'm talking about foundations, eBOS, robotic inspection, and other, and software and services are more focused on the US market first, and that is having some impact on bookings and revenue, and the mix weighting there, towards the US. Thanks for your question.
As far as tracker and non-tracker on the revenue mix, the non-tracker business is starting to have an impact. What we're seeing is a little more mix on the US from that, because we're rolling out the non-tracker part of our platform first in the United States, and I'm talking about foundations, eBOS, robotic inspection, and other, and software and services are more focused on the US market first, and that is having some impact on bookings and revenue, and the mix weighting there, towards the US. Thanks for your question.
Speaker #4: And what we're seeing is a little more mix on the U.S. from that because we're rolling out the non-tracker part of our platform first in the United States.
Speaker #4: And I'm talking about foundations, EBOS, robotic inspection, and other software and services are more focused on the US market first. And that is having some impact.
Speaker #4: On bookings and revenue, and the mix weighting there towards the US—thanks for your question.
Speaker #3: Great, thanks. Hey Howard, quickly, can you clarify—when you said 'one of the stronger quarters that you've had in some time,' does that mean for bookings specifically?
Philip Shen: Great, thanks. Hey, Howard, very quickly, just can you clarify, you said one of the stronger quarters that you've had in some time. Does that mean for bookings specifically, that this quarter was one of the stronger bookings quarters in a long time, or does that mean just the, your quarter overall?
Philip Shen: Great, thanks. Hey, Howard, very quickly, just can you clarify, you said one of the stronger quarters that you've had in some time. Does that mean for bookings specifically, that this quarter was one of the stronger bookings quarters in a long time, or does that mean just the, your quarter overall?
Speaker #3: Does that mean this quarter was one of the stronger bookings quarters in a long time, or does that mean just your quarter?
Speaker #3: overall? I was
Howard Wenger: I was speaking particularly to bookings when you look at contribution to our backlog, Phil.
Howard Wenger: I was speaking particularly to bookings when you look at contribution to our backlog, Phil.
Speaker #4: At contribution to, speaking particularly to bookings, when you look at our backlog,
Speaker #4: Phil. Great.
Philip Shen: Great. So that would suggest that it was at least $1 billion. Is that fair?
Philip Shen: Great. So that would suggest that it was at least $1 billion. Is that fair?
Speaker #3: So that would suggest that it was at least a billion. Is that fair?
Speaker #4: Really appreciate the question, Phil, and your persistence.
Howard Wenger: Really appreciate the question, Phil, and your persistence.
Howard Wenger: Really appreciate the question, Phil, and your persistence.
Speaker #3: Thanks, Howard. I'll pass.
Philip Shen: Thanks, Howard. I'll pass.
Philip Shen: Thanks, Howard. I'll pass.
Howard Wenger: We'll leave it right there. Thank you so much.
Howard Wenger: We'll leave it right there. Thank you so much.
Speaker #4: We'll leave it right there. Thank you so much.
Speaker #2: And your next question comes from the line of Pranit Satish with Wells Fargo. Your line is open. Please go ahead.
Operator: And your next question comes from the line of Praneeth Satish with Wells Fargo. Your line is open. Please go ahead.
Operator: And your next question comes from the line of Praneeth Satish with Wells Fargo. Your line is open. Please go ahead.
Praneeth Satish: Thanks, and congrats on the quarter. Maybe if you could just provide a little bit more detail on the permit freeze. You mentioned that some of the projects on federal lands are still moving forward. I guess, are you seeing any slowdown at the front of the funnel for projects that would be targeting 2028 in-service dates that require permits this year? Or are you saying that so far, developers have been able to kind of manage around some of these constraints? Just any clarity there would be helpful.
Praneeth Satish: Thanks, and congrats on the quarter. Maybe if you could just provide a little bit more detail on the permit freeze. You mentioned that some of the projects on federal lands are still moving forward. I guess, are you seeing any slowdown at the front of the funnel for projects that would be targeting 2028 in-service dates that require permits this year? Or are you saying that so far, developers have been able to kind of manage around some of these constraints? Just any clarity there would be helpful.
Speaker #5: Thanks, and congrats on the quarter. Maybe if you could just provide a little bit more detail on the permit freeze? You mentioned that some of the projects on federal lands are still moving forward.
Speaker #5: I guess, are you seeing any slowdown at the front of the funnel for projects that would be targeting 2028, and service days that require permits this year?
Speaker #5: Or are you saying that so far, developers have been able to kind of manage around some of these constraints? Just any clarity there would be helpful.
Speaker #5: helpful. Hey, Pranit.
Dan Shugar: Hey, Praneeth, Dan Shugar here. We were speaking specifically about several projects that are on federal lands that are now moving forward. While in total number, those are a small percentage of the projects that we're working on, it was great to see that those, those move forward. And so, Howard, do you want to take the second part of that question?
Daniel Shugar: Hey, Praneeth, Dan Shugar here. We were speaking specifically about several projects that are on federal lands that are now moving forward. While in total number, those are a small percentage of the projects that we're working on, it was great to see that those, those move forward. And so, Howard, do you want to take the second part of that question?
Speaker #4: Dan Shugar here. We were speaking specifically about several projects that are on federal lands that are now moving forward. While in total number, those are a small percentage of the projects that we're working on, it was great to see that those move forward.
Speaker #4: And so, Howard, do you want to take the second part of that?
Speaker #4: question?
Speaker #3: Sure. So we're
Howard Wenger: Sure. So we're in close touch with developer owners and EPC partners, both. But on the developer owner side, what we're seeing and hearing is their project portfolios are moving forward. Now, some are completely not on public lands, public and federal lands. In fact, a number of many developers that way, they have very little exposure to public lands, and consequently, they're less impacted. But what we're reporting on is both favorable velocity of projects through to the permit phase, both on the public lands and on private lands. And that includes areas where there are a Federal Nexus. And just generally speaking, in the US, we're very pleased with the broadening pipeline that we have, a growing pipeline of opportunities.
Howard Wenger: Sure. So we're in close touch with developer owners and EPC partners, both. But on the developer owner side, what we're seeing and hearing is their project portfolios are moving forward. Now, some are completely not on public lands, public and federal lands. In fact, a number of many developers that way, they have very little exposure to public lands, and consequently, they're less impacted. But what we're reporting on is both favorable velocity of projects through to the permit phase, both on the public lands and on private lands. And that includes areas where there are a Federal Nexus. And just generally speaking, in the US, we're very pleased with the broadening pipeline that we have, a growing pipeline of opportunities.
Speaker #3: In close touch with developer owners, and EPC partners both. But on the developer owner side, what we're seeing and hearing is their project portfolios are moving forward.
Speaker #3: Now, some are completely not on public lands—public and federal lands. In fact, a number of many developers, that way, they have very little exposure to public lands.
Speaker #3: And consequently, they're less impacted. But what we're reporting on is both favorable velocity of projects through to the permit phase, both on the public lands and on private lands.
Speaker #3: And that's a federal nexus. And just generally speaking, in the US, we're very pleased with the broadening pipeline that we have and the growing pipeline of opportunities.
Speaker #3: And so, developers are navigating their very safe harbor. They have a lot of visibility into the future, and it's really quite positive.
Howard Wenger: And so developers are navigating, they're very Safe Harbored, they have a lot of visibility into the future, and it's really quite positive.
And so developers are navigating, they're very Safe Harbored, they have a lot of visibility into the future, and it's really quite positive.
Speaker #5: Good to hear. Thank
Mark Strouse: Good to hear. Thank you.
Praneeth Satish: Good to hear. Thank you.
Speaker #5: you. And your next
Operator: Your next question comes from Dimple Gosai of Bank of America. Your line is open. Please go ahead.
Operator: Your next question comes from Dimple Gosai of Bank of America. Your line is open. Please go ahead.
Speaker #2: Of Bank of America, your line is open. The question comes from Dimple Gosai. Please go ahead.
Speaker #6: Well, hold on—a very nice quarter. And good evening, gents. This quarter, you know, good drift with bookings and rising bundled attach. So could you give us a sense of what the attach rate is for TrueCapture, eBOS, OSTRAS, robotics—any sense and color there would be helpful.
Dimple Gosai: Well, hold on, a very nice quarter, and good evening, gents. This quarter, you noted direct bookings and rising bundled attach. So could you give us a sense of what the attach rate is for, you know, TrueCapture, eBOS, Ostras, robotics? Any sense and color there would be helpful. And then also give us a sense of just the growth margin uplift, you know, for a typical bundle versus tracker only, especially given that you're seeing some more traction on that side. Thank you.
Dimple Gosai: Well, hold on, a very nice quarter, and good evening, gents. This quarter, you noted direct bookings and rising bundled attach. So could you give us a sense of what the attach rate is for, you know, TrueCapture, eBOS, Ostras, robotics? Any sense and color there would be helpful. And then also give us a sense of just the growth margin uplift, you know, for a typical bundle versus tracker only, especially given that you're seeing some more traction on that side. Thank you.
Speaker #6: And then also, give us a sense of just the gross margin uplift for a typical bundle versus tracker only, especially given that you're seeing some more traction on that side.
Speaker #6: Thank you.
Speaker #4: Sure. So this is Howard. I'll take the first part, and Chuck, if you want to talk about gross margin, I can also do that.
Howard Wenger: Sure. So this is Howard. I'll take the first part, and, Chuck, if you want to talk about gross margin, I can also do that. But on the attach side, first of all, we have both a inorganic and organic approach to innovation and filling out our platform. So we're developing new tech internally, but we're also making acquisitions, as you know. Some of those acquisitions are fairly recent. For example, the eBOS acquisition we made, which is significant, occurred in May of 2025. So it's been, what is that, like, eight months? So using eBOS as an example, what we're seeing is, by far, the pipeline is expanding exponentially in terms of opportunities because of our sales platform, and we're beginning to see more and more, bookings and sales and revenue come through that particular channel.
Howard Wenger: Sure. So this is Howard. I'll take the first part, and, Chuck, if you want to talk about gross margin, I can also do that. But on the attach side, first of all, we have both a inorganic and organic approach to innovation and filling out our platform. So we're developing new tech internally, but we're also making acquisitions, as you know. Some of those acquisitions are fairly recent. For example, the eBOS acquisition we made, which is significant, occurred in May of 2025. So it's been, what is that, like, eight months? So using eBOS as an example, what we're seeing is, by far, the pipeline is expanding exponentially in terms of opportunities because of our sales platform, and we're beginning to see more and more, bookings and sales and revenue come through that particular channel.
Speaker #4: But on the attached side, first of all, we have both an inorganic and organic approach to innovation and filling out our platform. So we're developing new tech internally.
Speaker #4: But we're also making acquisitions, as you know. Some of those acquisitions are fairly recent. For example, the EBOS acquisition we made, which is significant.
Speaker #4: Occurred in May of '25. So it's been—what was that? Like eight months. So using EBOS as an example, what we're seeing is, by far, the pipeline has expanded exponentially in terms of opportunities because of our sales platform.
Speaker #4: And we're beginning to see more and more bookings, sales, and revenue come through that particular channel. We're not giving specific attach numbers at this time.
Howard Wenger: We're not giving specific attach numbers at this time, but suffice it to say, we're seeing some very significant projects. The one we highlighted as an example is a 552MW project where we have our trackers, foundations, eBOS, and TrueCapture all bundled together. So, we'll be talking more and more about that as our pipeline matures for these other products and services that are what we call non-tracker, but fill out the platform and complement the tracker. As to financials and margin, do you want to weigh in on that, Chuck?
We're not giving specific attach numbers at this time, but suffice it to say, we're seeing some very significant projects. The one we highlighted as an example is a 552MW project where we have our trackers, foundations, eBOS, and TrueCapture all bundled together. So, we'll be talking more and more about that as our pipeline matures for these other products and services that are what we call non-tracker, but fill out the platform and complement the tracker. As to financials and margin, do you want to weigh in on that, Chuck?
Speaker #4: But suffice it to say, we're seeing some very significant projects. And the one we highlighted as an example is a $552 million project where we have our trackers, foundations, EBOS, and TrueCapture all bundled together.
Speaker #4: So we'll be talking more and more about that as our pipeline matures. For these other products and services that are what we call non-tracker.
Speaker #4: But fill out the platform and complement the tracker. As to financials and margin, do you want to weigh in on that, Chuck?
Chuck Boynton: Sure. Certainly. Thanks, Dimple. You know, we don't break out in detail the non-tracker, tracker revenue splits. You know, really, today it's all about scaling the technology and the go-to-market. In general, they're roughly at the corporate average. Of course, some are higher. Software, as you know, Dimple, is quite a bit higher, and other ones are kind of around the corporate average. But I would just think of it from a modeling standpoint, as roughly consistent with the guidance and the outlook that we provided.
Chuck Boynton: Sure. Certainly. Thanks, Dimple. You know, we don't break out in detail the non-tracker, tracker revenue splits. You know, really, today it's all about scaling the technology and the go-to-market. In general, they're roughly at the corporate average. Of course, some are higher. Software, as you know, Dimple, is quite a bit higher, and other ones are kind of around the corporate average. But I would just think of it from a modeling standpoint, as roughly consistent with the guidance and the outlook that we provided.
Speaker #3: Certainly. Thanks, Dimple. We don't break out in detail the non-tracker/tracker revenue splits. Really, today it's all about scaling the technology and the go-to-market.
Speaker #3: In general, they're roughly at the corporate average. Of course, some are higher—software, as you know, Dimple, is quite a bit higher. And other ones are kind of around the corporate average.
Speaker #3: But I would just think of it from a modeling standpoint as roughly consistent with the guidance and the outlook that we provided.
Speaker #6: Thank
Dimple Gosai: Thank you.
Dimple Gosai: Thank you.
Operator: Your next question comes from Brian Lee of Goldman Sachs. Your line is open. Please go ahead.
Operator: Your next question comes from Brian Lee of Goldman Sachs. Your line is open. Please go ahead.
Speaker #2: Brian Lee of Goldman Sachs, your line is open. Go ahead.
Speaker #2: The line is open. Please go ahead. Your next question comes from...
Speaker #7: Hey, guys. Good afternoon. Thanks for taking the questions, and kudos on the solid execution. The first question I had was: Given the higher base of revenue and profit here for fiscal '26, is there any update on the view for fiscal '27 that you provided at the Analyst Day last November, or maybe just how should we think about flow-through into next year given the stronger results here?
Brian Lee: Hey, guys. Good afternoon. Thanks for taking the questions, and kudos on the solid execution. The first question I had was, you know, given the higher base of revenue and profit here for fiscal 2026, is there any update on the view for fiscal 2027 that you provided at the Analyst Day last November? Maybe just how should we think about flow-through into next year, given the stronger results here? And then the follow-up would just be on, you know, some of the accounting here with the IRA credits; they're down despite higher US mix. Curious, I mean, that does mean ex-IRA gross margins are higher here than the past couple of quarters, but is that timing related, or is there something with respect to sharing of credits and pricing that's impacting that dynamic of, you know, US sales higher but IRA credits down?
Brian Lee: Hey, guys. Good afternoon. Thanks for taking the questions, and kudos on the solid execution. The first question I had was, you know, given the higher base of revenue and profit here for fiscal 2026, is there any update on the view for fiscal 2027 that you provided at the Analyst Day last November? Maybe just how should we think about flow-through into next year, given the stronger results here? And then the follow-up would just be on, you know, some of the accounting here with the IRA credits; they're down despite higher US mix. Curious, I mean, that does mean ex-IRA gross margins are higher here than the past couple of quarters, but is that timing related, or is there something with respect to sharing of credits and pricing that's impacting that dynamic of, you know, US sales higher but IRA credits down?
Speaker #7: And then follow-up would just be on some of the accounting here with the IRA credits. They're down despite higher U.S. mix. Curious—I mean, that does mean ex-IRA gross margins are higher here than the past couple of quarters, but is that timing-related, or is there something with respect to sharing of credits and pricing that's impacting that dynamic of U.S. sales higher but IRA credits down?
Speaker #7: Thanks,
Brian Lee: Thanks, guys.
Thanks, guys.
Speaker #7: guys. Yeah.
Chuck Boynton: Yeah, the IRA credits are roughly in line with the prior quarter, Brian. What you're seeing effectively is the blending of the tariff impact. You know, as I mentioned in the prepared remarks, the tariff impact went from $33 million last quarter to $44 million this quarter, and that's really just because you have a full quarter impact of the overall tariffs. As it relates to our outlook for next year, you know, we just provided our outlook just a couple of months ago at our capital markets day, so we're not updating or changing that. But I'll just say, you know, with the strength of the business, we feel, you know, really good going into next year, and we're set up for a strong Q4 and feel really good about going into next year with a great backlog.
Chuck Boynton: Yeah, the IRA credits are roughly in line with the prior quarter, Brian. What you're seeing effectively is the blending of the tariff impact. You know, as I mentioned in the prepared remarks, the tariff impact went from $33 million last quarter to $44 million this quarter, and that's really just because you have a full quarter impact of the overall tariffs. As it relates to our outlook for next year, you know, we just provided our outlook just a couple of months ago at our capital markets day, so we're not updating or changing that. But I'll just say, you know, with the strength of the business, we feel, you know, really good going into next year, and we're set up for a strong Q4 and feel really good about going into next year with a great backlog.
Speaker #3: The IRA credits are roughly in line with the prior quarter, Brian. What you're seeing, effectively, is the blending of the tariff impact. And as I mentioned in the prepared remarks, the tariff impact went from $33 million last quarter to $44 million this quarter.
Speaker #3: And that's really just because you have a full quarter impact of the overall tariffs. As it relates to our outlook for next year, we just provided our outlook just a couple of months ago at our Capital Markets Day.
Speaker #3: So we're not updating or changing that. But I'll just say, with the strength of the business, we feel really good going into next year.
Speaker #3: And we're set up for a strong Q4, and feel really good about going into next year with a great backlog.
Speaker #2: And your next question comes from Mark Strauss of J.P. Morgan. Your line is open. Please go ahead. Mark, your line is open. You may have to unmute.
Operator: Your next question comes from Mark Strouse of J.P. Morgan. Your line is open. Please go ahead. Mark, your line is open. You may have to unmute.
Operator: Your next question comes from Mark Strouse of J.P. Morgan. Your line is open. Please go ahead. Mark, your line is open. You may have to unmute.
Speaker #3: Sorry about that. Thanks for taking our questions. Great to see the $2.25 gigawatt Nextracker Arabia order. I know we've talked in the past about the longer-term targets from KSA and whatnot, but just kind of curious, just looking out over the next, whatever, 12, 18, 24 months, what a reasonable expectation might be?
Mark Strouse: Sorry about that. Thanks for taking our questions. Great to see the 2.25 GW Nextracker Arabia order. I know we've talked about in the past kind of the longer term targets from KSA and whatnot, but just kind of curious, just looking out over the next, you know, whatever 12, 18, 24 months, kind of what a reasonable expectation might be. Can we expect to see similar GW-scale orders coming through from that JV? And I have a quick follow-up. Thank you.
Mark Strouse: Sorry about that. Thanks for taking our questions. Great to see the 2.25 GW Nextracker Arabia order. I know we've talked about in the past kind of the longer term targets from KSA and whatnot, but just kind of curious, just looking out over the next, you know, whatever 12, 18, 24 months, kind of what a reasonable expectation might be. Can we expect to see similar GW-scale orders coming through from that JV? And I have a quick follow-up. Thank you.
Speaker #3: Can we expect to see similar gigawatt-scale orders coming through from that JB? And I have a quick follow-up. Thank you.
Speaker #3: you. Hey,
Howard Wenger: Hey, Mark, Dan Shugar here. We just came back from spending a lot of time in Abu Dhabi, Dubai, and Saudi Arabia, and that market is really, really strong in terms of-
Daniel Shugar: Hey, Mark, Dan Shugar here. We just came back from spending a lot of time in Abu Dhabi, Dubai, and Saudi Arabia, and that market is really, really strong in terms of-
Speaker #4: Mark. Dan Shugar here. We just came back from spending a lot of time in Abu Dhabi and Dubai and Saudi Arabia, and that market is really strong in terms of the amount of solar that's happening there.
Dan Shugar: ... the amount of solar that's happening there. I mean, not just in those countries, but the region, very strong. We're seeing very strong double-digit GW growth happening. Very ambitious targets that are being set and executed upon with multiple public solicitations from some of the largest energy participants in the region. There's national targets, and there's targets at utilities. Really big stuff happening. For example, in UAE, so the largest market is Saudi Arabia, and UAE is also a very strong market. There's a project called the Round the Clock project. Very interesting, 5GW of solar single project with a tremendous amount of battery.
... the amount of solar that's happening there. I mean, not just in those countries, but the region, very strong. We're seeing very strong double-digit GW growth happening. Very ambitious targets that are being set and executed upon with multiple public solicitations from some of the largest energy participants in the region. There's national targets, and there's targets at utilities. Really big stuff happening. For example, in UAE, so the largest market is Saudi Arabia, and UAE is also a very strong market. There's a project called the Round the Clock project. Very interesting, 5GW of solar single project with a tremendous amount of battery.
Speaker #4: The—I mean, not just in those countries, but the region—very strong. We're seeing very strong, double-digit gigawatt growth happening. Very ambitious targets—they're being set.
Speaker #4: And executed upon with multiple public solicitations from some of the largest energy participants in the region. There are national targets, and there are targets at utilities.
Speaker #4: Really big stuff happening. For example, in UAE—so the largest market is Saudi Arabia, and UAE is also a very strong market. There’s a project called the Round the Clock Project.
Speaker #4: Very interesting. 5 gigawatt of solar single project with a tremendous amount of batteries. It's either 19 or 29 gigawatt hours. I can't remember at this instant, but that enables 24/7 renewable power solar power to be served to the region.
Dan Shugar: It's either 19 or 29 GWh, I can't remember at this instance, but that enables 24/7 renewable power, solar power to be served to the region. That's really quite an interesting project, and we're seeing. But it exemplifies the ambitious scale of what's happening there. And I think it also provides, you know, a little bit of context for how cost effective solar is, because obviously there's a tremendous amount of oil and gas there. Solar is still the lowest cost way to generate power, even though all those natural resources are there. And so, we're excited to be a participant in the region.
It's either 19 or 29 GWh, I can't remember at this instance, but that enables 24/7 renewable power, solar power to be served to the region. That's really quite an interesting project, and we're seeing. But it exemplifies the ambitious scale of what's happening there. And I think it also provides, you know, a little bit of context for how cost effective solar is, because obviously there's a tremendous amount of oil and gas there. Solar is still the lowest cost way to generate power, even though all those natural resources are there. And so, we're excited to be a participant in the region.
Speaker #4: That's really quite an interesting project, and we're seeing it exemplifies the ambitious scale of what's happening there. And I think it also provides a little bit of context for how cost-effective solar is because, obviously, there's a tremendous amount of oil and gas there.
Speaker #4: Solar is the lowest-cost way to generate power, even though all those natural resources are there. And so we're excited to be a participant in the region.
Speaker #4: We were the first. We did the first utility-scale power plant in the region—the 400-megawatt Zacaca project in Saudi Arabia, seven years ago.
Dan Shugar: We did the first utility scale power plant in the region, the 400MW Sakaka project in Saudi Arabia 7 years ago, which has performed with exemplary reliability. And there's a strong flight to quality performance there. We personally visited one of our projects that was in the field. It was outperforming. It was operating at about 105% of expectation, the whole system, and so the customers are really pleased with that. So, yeah, we're very excited about being there. Thank you.
We did the first utility scale power plant in the region, the 400MW Sakaka project in Saudi Arabia 7 years ago, which has performed with exemplary reliability. And there's a strong flight to quality performance there. We personally visited one of our projects that was in the field. It was outperforming. It was operating at about 105% of expectation, the whole system, and so the customers are really pleased with that. So, yeah, we're very excited about being there. Thank you.
Speaker #4: with exemplary, which has performed reliability. And there's a strong flight to quality and performance there. We personally visited one of our projects that was in the field.
Speaker #4: It was outperforming. It was operating at about 105% of expectation, the whole system. And so the customers are really pleased with that. So yeah, we're very excited about being there.
Speaker #4: Thank you. Okay.
Mark Strouse: Okay, thanks, Dan.
Mark Strouse: Okay, thanks, Dan.
Speaker #3: Thanks, guys. If I can ask you a quick follow-up to Chuck. I think I know the answer to this, but since it's the first time you guys are issuing a buyback authorization, I just want to check.
Dan Shugar: Thanks.
Daniel Shugar: Thanks.
Mark Strouse: If I can ask you a quick follow-up to Chuck. I think I know the answer to this, but, you know, since it's the first time you guys are issuing a buyback authorization, just wanna check just how you're planning to approach that. Is there a base level of buyback activity you're looking to do each quarter, or is it just completely random, completely opportunistic? Thank you.
Mark Strouse: If I can ask you a quick follow-up to Chuck. I think I know the answer to this, but, you know, since it's the first time you guys are issuing a buyback authorization, just wanna check just how you're planning to approach that. Is there a base level of buyback activity you're looking to do each quarter, or is it just completely random, completely opportunistic? Thank you.
Speaker #3: Just how are you planning to approach that? Is there a base level of buyback activity you're looking to do each quarter, or is it just completely random—completely opportunistic?
Speaker #3: Thank you.
Speaker #4: Yeah. No, it'll be a structured program, Mark. But again, since we're kind of first time in the market, we're going to kind of go slow and cautious out of the gates because, again, it's new to us.
Chuck Boynton: Yeah. No, it'll be a structured program, Mark, but again, since we're kind of first time in the market, we're gonna kind of go slow and cautious out of the gates, because, again, it's new to us, and so we'll develop our program more formally. But the goal would be, you know, for it to be a, more of a formalized program versus just opportunistic.
Chuck Boynton: Yeah. No, it'll be a structured program, Mark, but again, since we're kind of first time in the market, we're gonna kind of go slow and cautious out of the gates, because, again, it's new to us, and so we'll develop our program more formally. But the goal would be, you know, for it to be a, more of a formalized program versus just opportunistic.
Speaker #4: And so we'll develop our program more formally. But the goal would be for it to be more of a formalized program versus just—
Speaker #4: opportunistic. And
Operator: And your next question comes from Julien Dumoulin-Smith of Jefferies. Your line is open. Please go ahead. Your line is open. Star six to unmute.
Operator: And your next question comes from Julien Dumoulin-Smith of Jefferies. Your line is open. Please go ahead. Your line is open. Star six to unmute.
Speaker #2: Your next question comes from Julian Dumoulin-Smith of Jefferies. Your line is open. Please go ahead. Your line is open. Star 6 to unmute.
Speaker #2: Unmute. Hi, this is Deshawn here for
Vasant: Hi, this is Vasant here for Julien. Hi, you guys. I just had a quick few questions on the Saudi JV. Maybe if you could share a little bit more about the timing of it and how does the margin cadence look like? Just how, how can we think about it kind of flowing through over time, the 2.25GW?
[Analyst] (Jefferies): Hi, this is Vasant here for Julien. Hi, you guys. I just had a quick few questions on the Saudi JV. Maybe if you could share a little bit more about the timing of it and how does the margin cadence look like? Just how, how can we think about it kind of flowing through over time, the 2.25GW?
Speaker #5: Julian: Hi, you guys. I just had a quick few questions on the Saudi JV. Maybe if you could share a little bit more about the timing of it, and how does the margin cadence look like?
Speaker #5: Just how can we think about it kind of flowing through over time? The 2.25 gigawatts.
Speaker #4: I'll start with the timing, and then Chuck, if you want to weigh in on the second part. So, the JV has been launched, and we closed it a few weeks ago.
Dan Shugar: I'll start with the timing, and then Chuck, if you want to weigh in on the second part. The JV has been launched, and we closed it a few weeks ago. It's operational. The 2.25GW project that we announced, we're already delivering on that project this quarter, materially. We had an existing factory in Riyadh. That's continuing to produce. We have a new factory under construction in Jeddah. We visited that factory last week. It looks fantastic. It's quite large scale. Additionally, we're continuing to work with some of our legacy supply partners, and we're extremely pleased to be partnered with Abunayyan Holding. Fantastic organization, and we're set up and operating. Chuck, second part two?
Daniel Shugar: I'll start with the timing, and then Chuck, if you want to weigh in on the second part. The JV has been launched, and we closed it a few weeks ago. It's operational. The 2.25GW project that we announced, we're already delivering on that project this quarter, materially. We had an existing factory in Riyadh. That's continuing to produce. We have a new factory under construction in Jeddah. We visited that factory last week. It looks fantastic. It's quite large scale. Additionally, we're continuing to work with some of our legacy supply partners, and we're extremely pleased to be partnered with Abunayyan Holding. Fantastic organization, and we're set up and operating. Chuck, second part two?
Speaker #4: It's operational. The 2.25-gigawatt project that we announced—we're already delivering on that project this quarter, materially. And we had an existing factory in Riyadh.
Speaker #4: That's continuing to produce. We have a new factory under construction in Jeddah. We visited that factory last week. It looks fantastic. It's quite large scale.
Speaker #4: Additionally, we're continuing to work with some of our legacy supply partners, and we're extremely pleased to be partnered with Abu Nahyan Holdings. Fantastic organization.
Speaker #4: And we're set up and operating. Chuck, second part, two?
Speaker #3: Yeah. So the way that I think about this is, as Dan mentioned, Abu Nahyan is a blue-chip company. It's the kind of company that a great Silicon Valley company would want to partner with.
Chuck Boynton: Yeah. So, you know, the way that I think about this is, as Dan mentioned, Abunayyan Holding is a blue chip company. It's the kind of company that a great Silicon Valley company would want to partner with, and so we're really proud to partner with them. As we mentioned in the past, it's structured as roughly a 50/50 JV. It's not quite. We will not consolidate, and that is on purpose, because effectively it fits well with our high ROIC capital light model. And so what you'll see is, when the JV sells projects, we effectively will generate revenue by selling some technology into the JV. There'll be a revenue, a royalty, and then, of course, our share of the JV's profits.
Chuck Boynton: Yeah. So, you know, the way that I think about this is, as Dan mentioned, Abunayyan Holding is a blue chip company. It's the kind of company that a great Silicon Valley company would want to partner with, and so we're really proud to partner with them. As we mentioned in the past, it's structured as roughly a 50/50 JV. It's not quite. We will not consolidate, and that is on purpose, because effectively it fits well with our high ROIC capital light model. And so what you'll see is, when the JV sells projects, we effectively will generate revenue by selling some technology into the JV. There'll be a revenue, a royalty, and then, of course, our share of the JV's profits.
Speaker #3: And so we're really proud to partner with them. As we mentioned in the past, it's structured as roughly a 50/50 JV—it's not quite.
Speaker #3: We will not consolidate, and that is on purpose, because effectively it fits well with our hierarchical, capital-light model. And so what you'll see is, when the JV sells projects, we effectively will generate revenue by selling some technology into the JV.
Speaker #3: There'll be a royalty, and then, of course, our share of the JV's profits. So we'll provide a little more color next quarter as we do our kind of 2028 outlook or guidance, or 2027 outlook and guidance.
Chuck Boynton: So we'll provide a little more color next quarter as we do our kind of 2028 outlook or guidance, or 2027 outlook and guidance. So stay, stay tuned, but we're really excited about this opportunity, and we think Abunayyan is gonna be a great partner.
So we'll provide a little more color next quarter as we do our kind of 2028 outlook or guidance, or 2027 outlook and guidance. So stay, stay tuned, but we're really excited about this opportunity, and we think Abunayyan is gonna be a great partner.
Speaker #3: So let's say stay tuned, but we're really excited about this opportunity, and we think Abu Nahyan is going to be a great—
Speaker #3: partner. Awesome.
Vasant: ... Awesome. Thank you, guys. And then just one quick follow-up. When you talk about the power conversion, could you just talk a little bit about how that, you know, of how your conversations with customers are evolving there? What does that look like? Like, are they more focused on BESS versus solar? And how does the competitive landscape look like, for power conversion?
[Analyst] (Jefferies): ... Awesome. Thank you, guys. And then just one quick follow-up. When you talk about the power conversion, could you just talk a little bit about how that, you know, of how your conversations with customers are evolving there? What does that look like? Like, are they more focused on BESS versus solar? And how does the competitive landscape look like, for power conversion?
Speaker #5: Thank you, guys. And then just one quick follow-up. When you talk about the power conversion, could you just talk a little bit about how your conversations with customers are evolving there?
Speaker #5: What does that look like? Are they more focused on BES versus solar? And how does the competitive landscape look like for power?
Speaker #5: conversion?
Dan Shugar: I'll speak to that. Howard and I have been in this business since the 1980s, and power conversion has been the opportunity for greatest operational performance of solar and batteries over that, for that whole time, okay? And, you know, why are we launching this, this, category? Well, it's because, it's not easy. Let's start with that, and we take it very seriously. We're doing it because there's opportunity to deliver higher efficiency, higher reliability, and availability, safer and better service of that product category. We have a lot of experience here, at the company with our, our technical team and our leadership team in this area, and we're factoring in user requirements to be able to achieve higher plant availability.
Daniel Shugar: I'll speak to that. Howard and I have been in this business since the 1980s, and power conversion has been the opportunity for greatest operational performance of solar and batteries over that, for that whole time, okay? And, you know, why are we launching this, this, category? Well, it's because, it's not easy. Let's start with that, and we take it very seriously. We're doing it because there's opportunity to deliver higher efficiency, higher reliability, and availability, safer and better service of that product category. We have a lot of experience here, at the company with our, our technical team and our leadership team in this area, and we're factoring in user requirements to be able to achieve higher plant availability.
Speaker #4: I'll speak to
Speaker #4: Howard and I have been in this business since the 1980s. Power conversion has been the opportunity for greatest operational performance of solar and batteries over that whole time.
Speaker #4: Okay? And why are we launching this category? Well, it's because it's not easy—let's start with that. And we take it very seriously. We're doing it because there's opportunity to deliver higher efficiency, higher reliability, and availability.
Speaker #4: Safer and better service of that product category. We have a lot of experience here at the company, with our technical team and our leadership team in this area.
Speaker #4: And we're factoring in user requirements to be able to achieve higher plant availability. The number one item on our radar to improve the operating fleet around the world is to have better reliability and performance in this particular category.
Dan Shugar: The number one item on a Pareto to improve the operating fleets around the world is to have better reliability and performance of this particular category. So that's why we're doing it, and we're approaching it where we're not cutting corners, but yet developing a product that's competitive and has local manufacturing attributes. We're starting in the United States. We have operating alpha units. We showed our skid of this particular solution in the field at our Capital Markets Day, and we're looking forward to fulfilling some initial beta projects with customers this year, and then scaling the business responsibly after that. Thank you. Next question, please.
The number one item on a Pareto to improve the operating fleets around the world is to have better reliability and performance of this particular category. So that's why we're doing it, and we're approaching it where we're not cutting corners, but yet developing a product that's competitive and has local manufacturing attributes. We're starting in the United States. We have operating alpha units. We showed our skid of this particular solution in the field at our Capital Markets Day, and we're looking forward to fulfilling some initial beta projects with customers this year, and then scaling the business responsibly after that. Thank you. Next question, please.
Speaker #4: So that's why we're doing it. And we're approaching it where we're not cutting corners, but yet developing a product that's competitive and has local manufacturing attributes.
Speaker #4: We're starting in the United States. We have operating alpha units. We showed our skid of this particular solution in the field at our Capital Markets Day, and we're looking forward to fulfilling some initial beta projects with customers this year and then scaling the business responsibly after that.
Speaker #4: Thank you. Next question, please.
Speaker #2: And your next question comes from Vikram Bagri of Citi. Your line is open. Please go ahead.
Operator: Your next question comes from Vikram Bagri of Citi. Your line is open. Please go ahead.
Operator: Your next question comes from Vikram Bagri of Citi. Your line is open. Please go ahead.
Speaker #2: ahead. Good evening, everyone.
Vikram Bagri: Good evening, everyone. I wanted to ask a housekeeping question first, and then I have a follow-up. You mentioned the non-tracker margins are comparable to corporate average. At the Analyst Day, the margins for non-tracker were indicated to be about 6%. So are you saying those margins are tracking higher, the EBITDA margin expected to the Analyst Day? And what changed between Analyst Day and now?
Vikram Bagri: Good evening, everyone. I wanted to ask a housekeeping question first, and then I have a follow-up. You mentioned the non-tracker margins are comparable to corporate average. At the Analyst Day, the margins for non-tracker were indicated to be about 6%. So are you saying those margins are tracking higher, the EBITDA margin expected to the Analyst Day? And what changed between Analyst Day and now?
Speaker #6: I wanted to ask a housekeeping question first, and then I have a follow-up. You mentioned the non-tracker margins are compatible to the corporate average. At the analyst day, the margins for non-tracker were indicated to be about 6%.
Speaker #6: So are you saying those margins are tracking higher than the EBITDA margin expected at the Analyst Day? And what changed between Analyst Day and now?
Speaker #3: Yeah, nothing has changed. I was talking gross margins, not EBITDA margins. And effectively, because it's a fairly small base, it doesn't really change the overall profile.
Chuck Boynton: Yeah. Nothing has changed. I was talking gross margins, not EBITDA margins, and effectively, because it's a fairly small base, it doesn't really change the overall profile. But I'd point out a big part of the non-tracker revenue is software, and that's way, way above the corporate average. The other ones are smaller, and therefore, the way to think about it in the short term is kind of blending with the corporate average. It's not gonna change a whole lot. Over time, what we outlined at our Capital Markets Day is still intact. Thank you.
Chuck Boynton: Yeah. Nothing has changed. I was talking gross margins, not EBITDA margins, and effectively, because it's a fairly small base, it doesn't really change the overall profile. But I'd point out a big part of the non-tracker revenue is software, and that's way, way above the corporate average. The other ones are smaller, and therefore, the way to think about it in the short term is kind of blending with the corporate average. It's not gonna change a whole lot. Over time, what we outlined at our Capital Markets Day is still intact. Thank you.
Speaker #3: But I'd point out a big part of the non-tracker revenue is software, and that's way, way above the corporate average. The other ones are smaller, and therefore the way to think about it in the short term is kind of blending with the corporate average.
Speaker #3: It's not going to change a whole lot. Over time, what we outlined at our Capital Markets Day is still intact. Thank you.
Speaker #3: you. Thanks,
Vikram Bagri: Thanks, Nick. And as a follow-up, you know, you mentioned in your prepared comments, investment-grade rating is important for customers. Can you, can you highlight in which regions is it important? Does it play an important role in Saudi? And if there is a way to quantify how many customers consider it important, like how much of an edge does it provide to you relative to your competition? Thank you.
Vikram Bagri: Thanks, Chuck. And as a follow-up, you know, you mentioned in your prepared comments, investment-grade rating is important for customers. Can you, can you highlight in which regions is it important? Does it play an important role in Saudi? And if there is a way to quantify how many customers consider it important, like how much of an edge does it provide to you relative to your competition? Thank you.
Speaker #6: Chuck. And as a follow-up, you mentioned in your prepared comments, IT rating is important for customers. Can you highlight in which regions it is important?
Speaker #6: Does it play an important role in Saudi? And is there a way to quantify how many customers consider it important, like how much of an edge does it give us over the competition?
Speaker #6: Thank you. I’ll provide that to you relative to your question.
Speaker #6: you. Yeah.
Chuck Boynton: Yeah. So, investment-grade rating is important to all customers and suppliers, some different. Internationally, it makes a big difference. If you're, you know, working with a large developer or owner, they care deeply about the credit profile of their counterparty, whether it's a customer or a supplier. And so while, you know, it may not matter as much to you, financial community, it matters a lot to our customers. Really a testament to how well the company's managed and the disciplined approach that we take to operating our business. Dan, do you want to add anything?
Chuck Boynton: Yeah. So, investment-grade rating is important to all customers and suppliers, some different. Internationally, it makes a big difference. If you're, you know, working with a large developer or owner, they care deeply about the credit profile of their counterparty, whether it's a customer or a supplier. And so while, you know, it may not matter as much to you, financial community, it matters a lot to our customers. Really a testament to how well the company's managed and the disciplined approach that we take to operating our business. Dan, do you want to add anything?
Speaker #3: So investment grade rating is important to all customers and suppliers—some different. Internationally, it makes a big difference. If you're working with a large developer or owner, they care deeply about the credit profile of their counterparty.
Speaker #3: Whether it's a customer or a supplier, and so while it may not matter as much to you, financial community, it matters a lot to our customers. It's really a testament to how well the company's managed and the disciplined approach that we take to operating our business.
Speaker #3: Dan, do you want to add anything?
Speaker #4: Yeah. What I would add is that if you look at a number of markets—let's just talk about the United States—if you went back 5 or 10 years ago, there were a lot of developers that were then flipping projects.
Dan Shugar: Yeah. What I would add is that if you look at a number of markets, let's just talk about the United States. If you went back five or 10 years ago, there were a lot of developers that were then flipping projects. Today, some of that occurs, but most of those type of organizations have evolved into also operators, owners of systems, independent power producers. Also, we've seen a huge growth in utility ownership of solar, and folks are really concerned about the long-term operation, really optimizing the risk-adjusted levelized cost of energy, and that's really important. We're in the Middle East. I mentioned a few weeks ago, there's a huge system there, not with Nextracker, that's being completely dismantled and rebuilt due to, let's just say, performance issues.
Daniel Shugar: Yeah. What I would add is that if you look at a number of markets, let's just talk about the United States. If you went back five or 10 years ago, there were a lot of developers that were then flipping projects. Today, some of that occurs, but most of those type of organizations have evolved into also operators, owners of systems, independent power producers. Also, we've seen a huge growth in utility ownership of solar, and folks are really concerned about the long-term operation, really optimizing the risk-adjusted levelized cost of energy, and that's really important. We're in the Middle East. I mentioned a few weeks ago, there's a huge system there, not with Nextracker, that's being completely dismantled and rebuilt due to, let's just say, performance issues.
Speaker #4: Today, some of that occurs, but most of those types of organizations have evolved into also operators, owners of systems, independent power producers. Also, we've seen a huge growth in utility ownership of solar.
Speaker #4: And folks are really concerned about the long-term operation, really optimizing the risk-adjusted levelized cost of energy. And that's really important. We're in the Middle East.
Speaker #4: I mentioned a few weeks ago, there's a huge system there—not with Nextpower—that's being completely dismantled and rebuilt due to, let's just say, performance issues.
Speaker #4: And we folks want to not be penny wise and pound foolish. So we're really seeing support for development finance, long-term ability to supply, operation, spare parts, and warranty reserve over the life of the project really be a much more important attribute as the industry's matured and gone to long-term risk-adjusted levelized cost of energy.
Dan Shugar: And we folks want to be not be penny-wise and pound-foolish, so we're really seeing long-term ability to support the development, finance, supply.
And we folks want to be not be penny-wise and pound-foolish, so we're really seeing long-term ability to support the development, finance, supply.
Howard Wenger: ... operation, spare parts, warranty reserve, over life of the project will be a much more important attribute as the industry's matured and gone to long-term risk-adjusted, levelized cost of energy optimization.
... operation, spare parts, warranty reserve, over life of the project will be a much more important attribute as the industry's matured and gone to long-term risk-adjusted, levelized cost of energy optimization.
Speaker #4: optimization. Thank
Speaker #6: you.
Dan Shugar: Thank you.
Vikram Bagri: Thank you.
Speaker #2: And your next question comes from Ben Callow of Baird. Your line is open. Please go ahead.
Operator: Your next question comes from Ben Kallo of Baird. Your line is open. Please go ahead.
Operator: Your next question comes from Ben Kallo of Baird. Your line is open. Please go ahead.
Speaker #7: Hey, guys. Congrats on the results. Two questions—may be bigger picture. Number one, with all the emphasis on bringing your own power, has that showed up in your discussions or in orders, and maybe just talk to that?
Ben Kallo: Hey, guys. Congrats on the results. Two questions, maybe big, bigger picture. Number one, you know, with all the emphasis on bring your own power, has that showed up in your discussions or in orders? Maybe just talk to that. And then, the second question, you know, energy storage volumes are very large, to say the least. Any way that you guys are thinking about, you know, addressing that market or working with that market? And thanks, guys.
Benjamin Kallo: Hey, guys. Congrats on the results. Two questions, maybe big, bigger picture. Number one, you know, with all the emphasis on bring your own power, has that showed up in your discussions or in orders? Maybe just talk to that. And then, the second question, you know, energy storage volumes are very large, to say the least. Any way that you guys are thinking about, you know, addressing that market or working with that market? And thanks, guys.
Speaker #7: And then the second question, energy storage volumes are very large, to say the least. Is there any way that you guys are thinking about addressing that market, or working with that market?
Speaker #7: And thanks,
Speaker #7: guys.
Speaker #4: Hey, Ben, this is
Howard Wenger: Hey, Ben, this is Howard. So I'll start, and then Dan will finish. So on the bring your own power, there's absolutely an amazing dynamic that's happening in not only the United States, but around the world with respect to AI, electrification, which includes electric vehicles, the data centers that powers everything that we do, robotics. The energy requirement for chips is just going up and up. So what's happening, what you're seeing in this country, and which spills over to other countries, is some of the larger hyperscalers are getting more and more involved. You've seen some announcements directly in making sure that the power is there for their expansion and their requirements. So there's no question that that's the Bring Your Own Power is part of the equation.
Howard Wenger: Hey, Ben, this is Howard. So I'll start, and then Dan will finish. So on the bring your own power, there's absolutely an amazing dynamic that's happening in not only the United States, but around the world with respect to AI, electrification, which includes electric vehicles, the data centers that powers everything that we do, robotics. The energy requirement for chips is just going up and up. So what's happening, what you're seeing in this country, and which spills over to other countries, is some of the larger hyperscalers are getting more and more involved. You've seen some announcements directly in making sure that the power is there for their expansion and their requirements. So there's no question that that's the Bring Your Own Power is part of the equation.
Speaker #4: Howard: So I'll start, and then Dan will finish. So, on the bring-your-own-power, there's absolutely an amazing dynamic that's happening in not only the United States, but around the world with respect to AI, electrification—which includes electric vehicles.
Speaker #4: The data centers that power everything that we do—robotics, the energy requirement for chips—is just going up and up. So what's happening, what you're seeing in this country, which spills over to other countries, is some of the larger hyperscalers are getting more and more involved.
Speaker #4: You've seen some in making sure that the power announcements directly is there for their expansion. And their requirements, so there's no question that the bring your own power is part of the equation.
Speaker #4: There's no question that we're seeing that in our opportunity base. And with respect to storage, I'll just start and Dan will finish. There's this great symbiotic relationship between solar and storage.
Howard Wenger: There's no question that we're seeing that in our opportunity base. And as with respect to storage, I'll just start, and Dan will finish. There's this great symbiotic relationship between solar and storage, and it's the fastest thing that can be deployed to market. We've seen that in the United States alone, over 80% of the new electrical capacity this year, well, in from January 2025 to November 2025, over 80% was solar and storage. And you know, companies are reporting, large developer owners are reporting it, that they span both fossil and renewables, and over 80% of their portfolios are solar and storage. So it's a logical extension for Nextracker to offer the solar power platform that extends into storage, and our power conversion system is something that can be used for in the storage category.
There's no question that we're seeing that in our opportunity base. And as with respect to storage, I'll just start, and Dan will finish. There's this great symbiotic relationship between solar and storage, and it's the fastest thing that can be deployed to market. We've seen that in the United States alone, over 80% of the new electrical capacity this year, well, in from January 2025 to November 2025, over 80% was solar and storage. And you know, companies are reporting, large developer owners are reporting it, that they span both fossil and renewables, and over 80% of their portfolios are solar and storage. So it's a logical extension for Nextracker to offer the solar power platform that extends into storage, and our power conversion system is something that can be used for in the storage category.
Speaker #4: And it's the fastest thing that can be deployed to market. We've seen that in the United States alone, over 80% of the new electrical capacity this year—well, from January of 2025 to November of 2025—over 80% was solar and storage.
Speaker #4: And companies are reporting, large developer owners are reporting that they span both fossil and renewables, and over 80% of their portfolios are solar and storage.
Speaker #4: So, it's a logical extension for NextPower—to offer the solar power platform that extends into storage. And our power conversion system is something that can be used in the storage category.
Howard Wenger: Dan?
Dan?
Speaker #4: Dan? Yeah, thanks, Ben. When we've heard this 'bring your own power,' it can mean there can be two definitions of that, okay? Definition one can be: install electric generating capacity at some point in the grid that is then contractually generating a certain amount of gigawatt hours that flow through the grid to an end use.
Dan Shugar: Yeah. Thanks, Ben. When we've heard this, bring your own power, there can be two definitions for that, okay? Definition 1 can be, install electric generating capacity at some point in the grid that is then contractually generating a certain amount of gigawatt-hours that flow through the grid to a, to an end use. Definition number 2 could be on-site power, where the power is right there at the load, which reduces or potentially eliminates the need to be connected to the grid, okay? Almost all of what's happened and happening and discussed is the first definition. There are some cases of the second thing. So let's just speak to the first thing for a minute. That's been happening for more than 5 years.
Daniel Shugar: Yeah. Thanks, Ben. When we've heard this, bring your own power, there can be two definitions for that, okay? Definition 1 can be, install electric generating capacity at some point in the grid that is then contractually generating a certain amount of gigawatt-hours that flow through the grid to a, to an end use. Definition number 2 could be on-site power, where the power is right there at the load, which reduces or potentially eliminates the need to be connected to the grid, okay? Almost all of what's happened and happening and discussed is the first definition. There are some cases of the second thing. So let's just speak to the first thing for a minute. That's been happening for more than 5 years.
Speaker #4: Definition number two could be on-site power, where the power is right there at the load, which reduces or potentially eliminates the need to be connected to the grid.
Speaker #4: Okay? Almost all of what's happened, and is happening and discussed, is the first definition. There are some cases in the second thing. So let's just speak to the first thing for a minute.
Speaker #4: That's been happening for more than five years. A huge amount of our projects with our customers are for serving those applications: hyperscalers, data centers, that are buying the energy to support through the wire, but through the wires to support their operations.
Dan Shugar: A huge amount of our projects are with our customers and are for serving those applications, hyperscalers, data centers, that are buying the energy to support through the wires to support their operations. So people have been bringing their own power. That's increasing, but it's not necessarily co-located at the actual facility. We have seen some projects co-located at the actual facility on the customer side of the meter. I do think we'll see some more of that, but customers generally want the grid, and they can supply their own energy through the grid. The grid's a very reliable thing. It's a kind of a battery, if you will. And then, what happens on the customer side of the meter is backup power and uninterruptible power supply.
A huge amount of our projects are with our customers and are for serving those applications, hyperscalers, data centers, that are buying the energy to support through the wires to support their operations. So people have been bringing their own power. That's increasing, but it's not necessarily co-located at the actual facility. We have seen some projects co-located at the actual facility on the customer side of the meter. I do think we'll see some more of that, but customers generally want the grid, and they can supply their own energy through the grid. The grid's a very reliable thing. It's a kind of a battery, if you will. And then, what happens on the customer side of the meter is backup power and uninterruptible power supply.
Speaker #4: So, people have been bringing their own power—that's increasing—but it's not necessarily co-located at the actual facility. We have seen some projects co-located at the actual facility on the customer side of the meter.
Speaker #4: I do think we'll see some more of that, but customers generally want the grid, and they can supply their own energy through the grid.
Speaker #4: The grid's a very reliable thing. It's kind of a battery, if you will. And then what happens on the customer side of the meter is backup power and uninterruptible power supply.
Speaker #4: So, I'd say it's been happening for quite a while. And we're going to see increased pull as large, concentrated loads with data centers increase.
Dan Shugar: So I'd say it's been happening for quite a while, and we're gonna see increased, increased pull as, large, you know, concentrated loads with, data centers increases. With respect to Nextracker, serving, battery storage as well as solar, our inverter platform, power conditioning system, the fundamental architectures can definitely support both. It was conceived that way, we're continuing to evolve it. There are some differences as it goes to final prioritization for how in software and some of the applications for how those systems interface. But the fundamental platform can apply to both, and that's how we introduced it at Capital Markets Day and showed folks in the field.
So I'd say it's been happening for quite a while, and we're gonna see increased, increased pull as, large, you know, concentrated loads with, data centers increases. With respect to Nextracker, serving, battery storage as well as solar, our inverter platform, power conditioning system, the fundamental architectures can definitely support both. It was conceived that way, we're continuing to evolve it. There are some differences as it goes to final prioritization for how in software and some of the applications for how those systems interface. But the fundamental platform can apply to both, and that's how we introduced it at Capital Markets Day and showed folks in the field.
Speaker #4: With respect to Nextpower, serving battery storage as well as solar are inverter platform power conditioning systems. The fundamental architecture can definitely support both.
Speaker #4: It was conceived that way. We're continuing to evolve it. There are some differences as it goes to final productization for how—in software and some of the applications—for how those systems interface.
Speaker #4: But the fundamental platform can apply to both, and that's how we introduced it at Capital Markets Day and showed folks in the—
Speaker #4: field. Thank you,
Operator: Thank you, guys. Your next question comes from Jon Windham with UBS. Your line is open. Please go ahead.
Operator: Thank you, guys. Your next question comes from Jon Windham with UBS. Your line is open. Please go ahead.
Speaker #2: Guys, your next question comes from John Wyndham with UBS. Your line is open. Please go ahead.
Speaker #5: Hey, perfect. Perfect timing to bring me on. I guess I have a follow-up question. So Dan, you've been in the industry a long time.
Jon Windham: Hey, perfect. Perfect timing to bring me on, because I have a follow-up question. So Dan, you've been in the industry a long time. You've been a leader of it. I'd love to get your thoughts on the potential impact from greater availability of storage in the United States. Obviously, Ford had a very big announcement converting some of their, what was supposed to be EV batteries into stationary storage. Stellantis and GM could potentially do the same thing. Just your thoughts on the potential impact to solar demand if we sort of go to a market that's awash in batteries.
Jon Windham: Hey, perfect. Perfect timing to bring me on, because I have a follow-up question. So Dan, you've been in the industry a long time. You've been a leader of it. I'd love to get your thoughts on the potential impact from greater availability of storage in the United States. Obviously, Ford had a very big announcement converting some of their, what was supposed to be EV batteries into stationary storage. Stellantis and GM could potentially do the same thing. Just your thoughts on the potential impact to solar demand if we sort of go to a market that's awash in batteries.
Speaker #5: You've been a leader of it. I'd love to get your thoughts on the potential impact from greater availability of storage in the United States.
Speaker #5: Obviously, Ford had a very big announcement converting some of what was supposed to be EV batteries into stationary storage. Solanas and GM could potentially do the same thing.
Speaker #5: Just your thoughts on the potential impact of solar demand if we sort of go to a market that's awash in—
Speaker #5: batteries. We think it's fabulous
Dan Shugar: We think it's fabulous to build capacity of making battery cells, packs, containers in the United States, and other major markets. Fantastic development. There's been a lot of tailwind to stationary storage that's come from electric vehicle demand and manufacturing scale up, and then in the case of a few of the companies you mentioned, repurposing some of that capacity to stationary storage. We think it's awesome, and we think, as Howard mentioned, solar and storage go together, kind of like bass guitar and drums go together. And so what they, they do is they're quite complementary, and the other thing that's just been amazing to see over the last 5 years, solar, or excuse me, storage 5 years ago was predominantly 1-hour storage. Then you saw 2-hour storage. Now we're seeing 4-hour storage.
Daniel Shugar: We think it's fabulous to build capacity of making battery cells, packs, containers in the United States, and other major markets. Fantastic development. There's been a lot of tailwind to stationary storage that's come from electric vehicle demand and manufacturing scale up, and then in the case of a few of the companies you mentioned, repurposing some of that capacity to stationary storage. We think it's awesome, and we think, as Howard mentioned, solar and storage go together, kind of like bass guitar and drums go together. And so what they, they do is they're quite complementary, and the other thing that's just been amazing to see over the last 5 years, solar, or excuse me, storage 5 years ago was predominantly 1-hour storage. Then you saw 2-hour storage. Now we're seeing 4-hour storage.
Speaker #4: To build capacity of making battery cells, packs, containers in the United States—and other major markets—fantastic development. There's been a lot of tailwind to stationary storage that's come from electric vehicles.
Speaker #4: Demand and manufacturing scale-up, and then, in the case of a few of the companies you mentioned, repurposing some of that capacity to stationary storage.
Speaker #4: We think it's awesome. And we think, as Howard mentioned, solar and storage go together kind of like bass guitar and drums go together. And so what they do is they're quite complementary.
Speaker #4: And the other thing that's just been amazing to see over the last five years is solar—or excuse me, storage. Five years ago, it was predominantly one out.
Speaker #4: Storage. Then you saw two-hour storage. Now we're seeing four-hour storage. We have some customers with projects that are six- or eight-hour storage. I mentioned the project in the United Arab Emirates that's 24-hour storage.
Dan Shugar: We have some customers with projects that are 6- or 8-hour storage. I mentioned the project in the United Arab Emirates; that's 24-hour storage. I mean, it's mind-boggling. So what we've seen happen in storage is the same thing that happened in photovoltaic cells, where there was this cost reduction from the production learning curve effect, where every time the cumulative production doubled, cost dropped about 20%. And with this exponential growth in storage, you're seeing, you know, a commensurate reduction in the cost. That allows more hours and allows solar to be more and more ubiquitous as it, as it gets, as, as the deployments continue. So we're very excited about the manufacturing build-out, and we think that'll be a very good thing for the industry.
We have some customers with projects that are 6- or 8-hour storage. I mentioned the project in the United Arab Emirates; that's 24-hour storage. I mean, it's mind-boggling. So what we've seen happen in storage is the same thing that happened in photovoltaic cells, where there was this cost reduction from the production learning curve effect, where every time the cumulative production doubled, cost dropped about 20%. And with this exponential growth in storage, you're seeing, you know, a commensurate reduction in the cost. That allows more hours and allows solar to be more and more ubiquitous as it, as it gets, as, as the deployments continue. So we're very excited about the manufacturing build-out, and we think that'll be a very good thing for the industry.
Speaker #4: I mean, it's mind-boggling. So what we've seen happen in storage is the same thing that happened in photovoltaic cells, where there was this cost reduction from the production learning curve effect, where every time the cumulative production doubled, cost dropped about 20%.
Speaker #4: And with this exponential growth in storage, you're seeing a commensurate reduction in the cost. That allows more hours, and it allows solar to be more and more ubiquitous as the deployment continues.
Speaker #4: So we're very excited about the manufacturing buildout, and we think that'll be a very good thing for the industry.
Speaker #5: Thank you.
Jon Windham: Thank you.
Jon Windham: Thank you.
Speaker #2: And your next question comes from Dylan Massano of Wolfe. Your line is open. Please go ahead. Your line is open—you may have to unmute.
Operator: Your next question comes from Dylan Nassano of Wolfe. Your line is open. Please go ahead. Your line is open. You may have to unmute.
Operator: Your next question comes from Dylan Nassano of Wolfe. Your line is open. Please go ahead. Your line is open. You may have to unmute.
Speaker #6: Yeah, sorry about that. Good afternoon. Thanks for taking my question. I think earlier in the call, you mentioned there was a little bit of pull-forward in the quarter.
[Analyst]: Yeah, sorry about that. Good afternoon. Thanks for taking my question. I think earlier in the call you mentioned there was a little bit of pull forward in the quarter, and then obviously you raised the guidance for the year. So I guess I just wanted to check on that, kind of within the context of the preliminary fiscal 2027 guidance that you gave on the Capital Markets Day.
Dylan Nassano: Yeah, sorry about that. Good afternoon. Thanks for taking my question. I think earlier in the call you mentioned there was a little bit of pull forward in the quarter, and then obviously you raised the guidance for the year. So I guess I just wanted to check on that, kind of within the context of the preliminary fiscal 2027 guidance that you gave on the Capital Markets Day.
Speaker #6: And then, obviously, you raised the guidance for the year. So I guess I just wanted to check on that, kind of within the context of the preliminary fiscal 2027 guidance that you gave at the Capital Markets event.
Speaker #6: day. Yeah.
Chuck Boynton: Yeah. So, like we mentioned before, we're not updating or changing our fiscal 2027 outlook from Capital Markets Day. It was just a couple months ago, and as it relates to Q3, it was an incredibly strong quarter. You know, when our customers would like us to accelerate schedules, we can. You know, it was overall a very, very strong quarter. We raised the year, and Q3 was just incredibly strong on the heels of customers wanting more product earlier. Howard, do you want to add anything else?
Chuck Boynton: Yeah. So, like we mentioned before, we're not updating or changing our fiscal 2027 outlook from Capital Markets Day. It was just a couple months ago, and as it relates to Q3, it was an incredibly strong quarter. You know, when our customers would like us to accelerate schedules, we can. You know, it was overall a very, very strong quarter. We raised the year, and Q3 was just incredibly strong on the heels of customers wanting more product earlier. Howard, do you want to add anything else?
Speaker #4: So, like we mentioned before, we're not updating or changing our fiscal '27 outlook from Capital Markets Day—it was just a couple of months ago.
Speaker #4: And as it relates to Q3, it was an incredibly strong quarter. When our customers would like us to accelerate schedules, we can. It was an overall very, very strong quarter.
Speaker #4: We raised the year, and Q3 was just incredibly strong on the heels of customers wanting more product earlier. Howard, do you want to add anything?
Speaker #4: else? No,
Dan Shugar: No, well, I'll just say that, we're in very close contact with our customers. Some want acceleration, some want to slow down because of a particular situation, a site or timing, and we are just really working to meet the schedules of our customers and have exceptional on-time delivery, which we do have. In this particular quarter, there was a net acceleration. We have a portfolio of projects we manage on an annual basis, as we've said, and so you can see revenue going from one quarter to the next, but the year looks really good. The next quarter, we've talked about Q4, you've got that. Q1, FY 2027, looks very strong and up and to the right.
Howard Wenger: No, well, I'll just say that, we're in very close contact with our customers. Some want acceleration, some want to slow down because of a particular situation, a site or timing, and we are just really working to meet the schedules of our customers and have exceptional on-time delivery, which we do have. In this particular quarter, there was a net acceleration. We have a portfolio of projects we manage on an annual basis, as we've said, and so you can see revenue going from one quarter to the next, but the year looks really good. The next quarter, we've talked about Q4, you've got that. Q1, FY 2027, looks very strong and up and to the right.
Speaker #3: Well, I'll just say that we're in very close contact with our customers. Some want acceleration; some want to slow down because of a particular situation at a site or timing.
Speaker #3: And we are just really working to meet the schedules of our customers and have exceptional on-time delivery, which we do have. In this particular quarter, there was a net acceleration; we have a portfolio project.
Speaker #3: We manage on an annual basis, as we've said. And so you can see revenue going from one quarter to the next, but the year looks really good.
Speaker #3: The next quarter—we've talked about Q4, you've got that. Q1, FY '27, looks very strong and up and to the right. So yeah, we're very pleased with our backlog, and it really gives us visibility to manage the company on an annual basis.
Dan Shugar: So, yeah, we're very pleased with our backlog, and it really gives us visibility to manage the company on an annual basis.
So, yeah, we're very pleased with our backlog, and it really gives us visibility to manage the company on an annual basis.
Speaker #3: Thank you so much. Okay. Hey, we really appreciate everyone dialing in. Thank you to those that participated on Capital Markets Day. And this concludes this quarter's earnings call.
Chuck Boynton: Thank you so much.
Dylan Nassano: Thank you so much.
Dan Shugar: Okay. Hey, we really appreciate everyone dialing in. Thank you for those that participated on Capital Markets Day, and this concludes this quarter's earnings call.
Howard Wenger: Okay. Hey, we really appreciate everyone dialing in. Thank you for those that participated on Capital Markets Day, and this concludes this quarter's earnings call.
Speaker #3: Thank you.
Chuck Boynton: Thank you.
Chuck Boynton: Thank you.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
Operator: This concludes today's call. Thank you for attending. You may now disconnect.
