Q1 2027 Nextpower Inc Earnings Call

July 30, 2026

Speaker #1: Recorded. I would like to welcome everyone to Next Power's first quarter fiscal year 2027 earnings call. After the speakers' remarks, there will be a Q&A session.

Operator: Recorded. I would like to welcome everyone to NextPower's Q1 fiscal year 2027 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 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. Sarah, you may begin.

Speaker #1: If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute.

Speaker #1: At this time, for opening remarks, I would like to pass the call over to Ms. Sarah Lee, Head of Investor Relations. Sarah, you may begin.

Speaker #2: Thank you, and good afternoon, everyone. Welcome to Next Power's first quarter fiscal year 2027 earnings call. I'm Sarah Lee, Next Power'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.

Sarah Lee: Thank you, good afternoon, everyone. Welcome to NextPower's Q1 fiscal year 2027 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. 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. Such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations. Those statements are based on current beliefs, assumptions, and expectations and speak only as of the current date.

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.

Speaker #1: I would like to welcome everyone to Nextpower's first quarter fiscal year 2027 earnings call. After the speakers' remarks, there will be a Q&A session.

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 #1: If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star 9 to raise your hand, and star 6 to unmute.

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. In such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations.

Speaker #1: At this time, for opening remarks, I would like to pass the call over to Ms. Sarah Lee, Head of Investor Relations. Sarah, you may begin.

Speaker #2: Thank you, and good afternoon, everyone. Welcome to Next Power's first quarter fiscal year 2027 earnings call. I'm Sarah Lee, Next Power's Head of Investor Relations.

Speaker #2: Those statements are based on 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 website at investors.nextpower.com.

Speaker #2: 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.

Sarah Lee: 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 website at investors.nextpower.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 website. Now I'll turn the call over to our CEO and founder, Dan.

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. And such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations.

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 provide gap and non-gap measures on today's call. The full non-gap to gap reconciliations can be found in the appendix to the press release and the shareholder letter, as well as the financial section of the IR website.

Speaker #2: And now I'll turn the call over to our CEO and founder, Dan.

Speaker #3: Good afternoon, and thank you for joining us. We are very pleased by the company's performance and positioning as we report on the first quarter of our fiscal year.

Dan Shugar: Good afternoon, thank you for joining us. We are very pleased by the company's performance and positioning as we report on the Q1 of our fiscal year. NextPower delivered a strong quarter, characterized by continued bookings momentum and backlog growth, operational discipline and execution, and significant progress in the expansion of our technology platform. We achieved a record quarterly revenue of $935 million, with adjusted EBITDA of $233 million. Backlog grew to over $5.5 billion, reflecting healthy customer demand and booking strength across both our core tracker business and our expanding portfolio of non-tracker products. On top of the $5.5 billion, NextPower Energy Storage brings over $300 million of additional backlog. We demonstrated continued progress with our long-term strategy of solving customer problems and delivering tangible value and performance.

Speaker #3: Next Power delivered a strong quarter. Characterized by continued bookings momentum and backlog growth, operational discipline and execution, and significant progress in the expansion of our technology platform.

Speaker #3: We achieved a record quarterly revenue of $935 million, with adjusted EBITDA of $233 million. Backlog grew to over 5.5 billion. Reflecting healthy customer demand and booking strength across both our core tracker business and our expanding portfolio of non-tracker products.

Speaker #2: And now I'll turn the call over to our CEO and founder, Dan.

Speaker #3: Good afternoon, and thank you for joining us. We are very pleased by the company's performance and positioning as we report on the first quarter of our fiscal year.

Speaker #3: On top of the 5.5 billion, Next Power energy storage brings over 300 million of additional backlog. We demonstrated continued progress with our long-term strategy of solving customer problems and delivering tangible value and performance.

Speaker #3: For most of our history, this meant developing tracker products that helped customers lower LCOE, accelerate installation, improve reliability, reduce risk, and increase energy yield.

Dan Shugar: For most of our history, this meant developing tracker products that help customers lower LCOE, accelerate installation, improve reliability, reduce risk, and increase energy yield. That approach led to global market leadership in solar trackers. According to Wood Mackenzie for 2025 tracker market share, Nextracker was recognized as the number 1 solar tracker company in the US and globally for the 11th consecutive year, growing share to 55% in the US and 30% worldwide. By innovating tracker solutions that solve complex project challenges and improve financial outcomes, we have earned trust and repeat business from our global tier 1 customer base and deployed our technology across projects totaling more than 160 gigawatts. Each project deepens our customer relationships and gives us greater insight into evolving needs of utility-scale solar and storage customers.

Speaker #3: That approach led to global market leadership in solar trackers, according to Wood McKenzie for 2025, tracker market share, Next Power was recognized as the number 1 solar tracker company in the U.S.

Speaker #3: On top of the $5.5 billion, Next Power energy storage brings over $300 million of additional backlog. We demonstrated continued progress with our long-term strategy of solving customer problems and delivering tangible value and performance.

Speaker #3: and globally for the 11th consecutive year. Growing share to 55% in the U.S., and 30% worldwide. By innovating tracker solutions that solve complex project challenges and improve financial outcomes, we have earned trust and repeat business from our global Tier 1 customer base and deployed our technology across projects totaling more than $160 gigawatts.

Speaker #3: For most of our history, this meant developing tracker products that helped customers lower LCOE, accelerate installation, improve reliability, reduce risk, and increase energy yield.

Speaker #3: That approach led to global market leadership in Solar Trackers, according to Wood McKenzie for 2025, tracker market share, Next Power was recognized as the number one solar tracker company in the US and globally for the 11th consecutive year.

Speaker #3: Each project deepens our customer relationships, and gives us greater insight into evolving needs of utility-scale solar and storage customers. Those insights guide how we invest, both organically and through disciplined M&A, to enhance the value we can deliver to our customers.

Dan Shugar: Those insights guide how we invest, both organically and through disciplined M&A, to enhance the value we can deliver to our customers. Customers continue to ask us to do more as utility-scale solar, storage, and critical power infrastructure projects become larger and more complex. With the acquisition of Prevalon, which closed last Monday, we launched Nextpower Energy Storage. Prevalon brings us a proven team with an excellent track record across 6 gigawatt hours of turnkey storage solutions, spanning applications from dispatchable peaking power to data center stabilization, serving blue-chip customers. Solar and storage are highly symbiotic technologies for electric grids, enabling low-cost energy and rapid capacity deployment for dispatchable firm power. Energy storage also represents a significant growth factor and opportunity for Nextracker, as it is projected to grow at 33% CAGR from 2025 to 2028.

Speaker #3: Growing share to 55% in the US and 30% worldwide. By innovating tracker solutions that solve complex project challenges and improve financial outcomes, we have earned trust and repeat business from our global tier-one customer base and deployed our technology across projects totaling more than 160 gigawatts.

Speaker #3: Customers continue to ask us to do more, as utility-scale solar storage and critical power infrastructure projects become larger and more complex. With the acquisition of Prevalon, which closed last Monday, we launched Next Power energy storage.

Speaker #3: Each project deepens our customer relationships and gives us greater insight into evolving needs of utility-scale solar and storage customers. Those insights guide how we invest, both organically and through disciplined M&A, to enhance the value we can deliver to our customers.

Speaker #3: Prevalon brings us a proven team with an excellent track record across 6 gigawatt-hours of turnkey storage solutions, spanning applications from dispatchable peaking power to data center stabilization, serving blue-chip customers.

Speaker #3: Solar and storage are highly symbiotic technologies for electric grids, enabling low-cost energy and rapid capacity deployment for dispatchable firm power. Energy storage also represents a significant growth factor and opportunity for Next Power, as it is projected to grow at 33% CAGR from 2025 to 2028.

Speaker #3: Since our last call, we also announced the pending acquisition of Zimmermann PV Steel Group, a very well-respected company based in Germany with an excellent European footprint.

Dan Shugar: Since our last call, we also announced the pending acquisition of Zimmermann PV-Steel Group, a very well-respected company based in Germany with an excellent European footprint. Upon closing, Zimmermann is expected to expand Nextracker's offering with 5 new product lines, extending the company's reach into 15 additional countries and creating cross-selling opportunities for Nextracker EBOS, power conditioning systems, and batteries. These transactions follow our customer-focused playbook: identify critical pain points, invest in differentiated technology, scale through Nextracker's global footprint and trust relationships, and reinvest to strengthen the platform. As we execute on this strategy, we believe we can improve customer outcomes, increase our project participation scope, strengthen Nextracker's competitive moat, and generate attractive long-term returns for shareholders. I also want to proactively address questions around Tuesday's announcement by the FCC related to imported inverters.

Speaker #3: Upon closing, Zimmermann is expected to expand Next Power's offering with 5 new product lines, extending the company's reach into 15 additional countries, and creating cross-selling opportunities for Next Power eBOSS, power conditioning systems, and batteries.

Speaker #3: These transactions follow our customer-focused playbook. Identify critical pain points, invest in differentiated technology, scale through Next Power's global footprint and trust relationships, and reinvest to strengthen the platform.

Speaker #3: Since our last call, we also announced the pending acquisition of Zimmerman PV Steel Group, a very well-respected company based in Germany with an excellent European footprint.

Speaker #3: Upon closing, Zimmerman is expected to expand Next Power's offering with five new product lines extending the company's reach into 15 additional countries, and creating cross-selling opportunities for Next Power E-BOSS, power conditioning systems, and batteries.

Speaker #3: As we execute on this strategy, we believe we can improve customer outcomes and increase our project participation scope, strengthen Next Power's competitive moat, and generate attractive long-term returns for shareholders.

Speaker #3: I also want to proactively address questions around Tuesday's announcement by the FCC related to imported inverters. Next Power launched a power electronics business to solve customer needs in inverters, which include better operating performance, stronger domestic manufacturing, enhanced cybersecurity, and support from an investment-grade U.S.

Dan Shugar: Nextracker launched a power electronics business to solve customer needs in inverters, which include better operating performance, stronger domestic manufacturing, enhanced cybersecurity, and support from an investment-grade US company that has a strong product service culture. Our new inverter business satisfies these needs and helps to further de-risk customers as we may see additional US government restrictions on overseas inverters. We're pleased to announce today that our acquisition of the Apex inverter business has closed, and that our product has achieved Underwriters Laboratories' UL 1741 SB certification. We are further accelerating our US manufacturing build-out across multiple locations. We expect deliveries to begin in early 2027 and plan to have over 10 gigawatts of US capacity online next summer. Our UL-certified Apex inverter is designed to enhance cybersecurity using site-level optical fiber communications and is designed to meet all government requirements.

Speaker #3: As we execute on this strategy, we believe we can improve customer outcomes increase our project participation scope, strengthen Next Power's competitive moat, and generate attractive long-term returns for shareholders.

Speaker #3: company that has a strong product service culture. Our new inverter business satisfies these needs and helps to further de-risk customers as we may see additional U.S.

Speaker #3: government restrictions on overseas inverters. We're pleased to announce today that our acquisition of the Apex Inverter business has closed, and that our product has achieved underwriters' laboratories UL-1741SB certification.

Speaker #3: We are further accelerating our U.S. manufacturing build-out across multiple locations. We expect deliveries to begin in early 2027 and plan to have over 10 gigawatts of U.S.

Speaker #3: Our new inverter business satisfies these needs and helps to further de-risk customers as we may see additional US government restrictions on overseas inverters. We're pleased to announce today that our acquisition of the APEX inverter business has closed.

Speaker #3: capacity online next summer. Our UL-certified Apex Inverter is designed to enhance cybersecurity, using site-level optical fiber communications and is designed to meet all government requirements.

Speaker #3: And that our product has achieved underwriters' laboratories UL 1741 SB certification. We are further accelerating our US manufacturing build-out across multiple locations. We expect deliveries to begin in early 2027 and plan to have over 10 gigawatts of US capacity online next summer.

Speaker #3: Customer response to our inverter technology manufacturing cyber, domestic manufacturing, and service plan has been very strong. We're doubling down on ramp plan for these essential products and services, with the goal of having the highest availability operating inverters for solar and storage power plant owners.

Dan Shugar: Customer response to our inverter technology, manufacturing, cyber, domestic manufacturing, and service plan has been very strong. We're doubling down on ramp plan for these essential products and services with the goal of having the highest availability operating inverters for solar and storage power plant owners. The current market environment represents a structural tailwind for our business. Global electricity demand continues to accelerate, driven by electrification, industrial growth, artificial intelligence, data centers, and the need for more reliable and resilient power infrastructure. Solar and storage are the fastest, lowest cost, and proven ways to add new capacity. As this market moves forward toward terawatt-scale annual deployment volumes, customers need partners that can deliver high-performing, reliable energy infrastructure solutions at scale. We believe Nextpower is uniquely positioned to meet that demand.

Speaker #3: The current market environment represents a structural tailwind for our business. Global electricity demand continues to accelerate, driven by electrification, industrial growth, artificial intelligence, data centers, and the need for more reliable and resilient power infrastructure.

Speaker #3: Our UL-certified APEX inverter is designed to enhance cybersecurity, using site-level optical fiber communications and is designed to meet all government requirements. Customer response to our inverter technology manufacturing, cyber, domestic manufacturing, and service plan has been very strong.

Speaker #3: Solar and storage are the fastest, lowest-cost, and proven ways to add new capacity. As this market moves forward toward terawatt-scale annual deployment volumes, customers need partners that can deliver high-performing, reliable, energy infrastructure solutions at scale.

Speaker #3: We're doubling down on ramp plan for these essential products and services with the goal of having the highest availability operating inverters for solar and storage power plant owners.

Speaker #3: The current market environment represents a structural tailwind for our business. Global electricity demand continues to accelerate. Driven by electrification, industrial growth, artificial intelligence, data centers, and the need for more reliable and resilient power infrastructure.

Speaker #3: We believe Next Power is uniquely positioned to meet that demand. We will be hosting our second capital markets day on November 16 at RE+ in Las Vegas, where we will provide an update to our 2030 outlook that will reflect a material acceleration due to our strong market momentum, recent strategic acquisitions, and exemplary operational execution.

Dan Shugar: We will be hosting our second Capital Markets Day on 16 November at RE+ in Las Vegas, where we will provide an update to our 2030 outlook that will reflect a material acceleration due to our strong market momentum, recent strategic acquisitions, and exemplary operational execution. We look forward to seeing many of you there. With that, I'll turn it over to Howard.

Speaker #3: We look forward to seeing many of you there. With that, I'll turn it over to Howard.

Speaker #1: Thank you, Dan. Q1 was another great quarter for Next Power. Marked by record revenue, strong customer bookings, and backlog growth, and operational execution, we continue to see a flight to quality in the market and increasing validation of our platform and bundling strategy.

Howard Wenger: Thank you, Dan. Q1 was another great quarter for Nextpower, marked by record revenue, strong customer bookings and backlog growth, and operational execution. We continue to see a flight to quality in the market and increasing validation of our platform and bundling strategy. Customers are choosing Nextpower because of our technology, execution, supply chain, bankability, and customer service. We believe these factors are propelling company growth and show up in our sales backlog and market share. We had another excellent bookings quarter, with strong demand both in the US and international markets. Tracker sales drove sequential backlog growth to a new record high. We are now also benefiting from meaningful sales and revenue contributions from non-tracker products, starting with EBOS, which serves as a proof point of how we are efficiently integrating and operationalizing acquisitions.

Speaker #1: Customers are choosing Next Power because of our technology, execution, supply chain, bankability, and customer service. We believe these factors are propelling company growth and show up in our sales, backlog, and market share.

Speaker #3: We look forward to seeing many of you there. With that, I'll turn it over to Howard.

Speaker #1: We had another excellent bookings quarter, with strong demand both in the U.S. and international markets. Tracker sales drove sequential backlog growth to a new record high.

Speaker #1: Thank you, Dan. Q1 was another great quarter for Next Power, marked by record revenue, strong customer bookings and backlog growth, and solid operational execution. We continue to see a flight to quality in the market and increasing validation of our platform and bundling strategy.

Speaker #1: We are now also benefiting from meaningful sales and revenue contributions from non-tracker products, starting with eBOSS, which serves as a proof point of how we are efficiently integrating and operationalizing acquisitions.

Speaker #1: Customers are choosing Next Power because of our technology execution, supply chain, bankability, and customer service. We believe these factors are propelling company growth and show up in our sales, backlog, and market share.

Speaker #1: We had record eBOSS bookings in the quarter, and the product segment is on track to contribute well over $100 million of revenue for the year.

Howard Wenger: We had record EBOS bookings in the quarter, and the product segment is on track to contribute well over $100 million of revenue for the year. Our EBOS offering has strengthened further with the recent UL certification of our unique and differentiated NX PowerMerge solution. We have currently booked 850 MW of PowerMerge, with deliveries expected to begin in the current quarter. Secondly, our foundations business is also growing with a 50% year-over-year increase in the quarter. Thirdly, our TrueCapture control system delivered record revenue and backlog in the quarter, reinforcing Nextpower's industry-leading position. We are also pleased to announce in the non-tracker category that the Apex inverter is now UL certified and is applicable for both solar and storage markets.

Speaker #1: We had another excellent bookings quarter, with strong demand both in the U.S. and international markets. Tracker sales drove sequential backlog growth to a new record high.

Speaker #1: Our eBOSS offering has strengthened further with the recent UL certification of our unique and differentiated NX Power Merged Solution. We have currently booked 850 megawatts of power merged with deliveries expected to begin in the current quarter.

Speaker #1: We are now also benefiting from meaningful sales and revenue contributions from non-tracker products. Starting with E-BOSS, which serves as a proof point of how we are efficiently integrating and operationalizing acquisitions.

Speaker #1: Secondly, our foundations business is also growing, with a 50% year-over-year increase in the quarter. Thirdly, our true capture control system delivered record revenue and backlog in the quarter, reinforcing Next Power's industry-leading position.

Speaker #1: We had record E-BOSS bookings in the quarter, and the product segment is on track to contribute well over $100 million of revenue for the year.

Speaker #1: Our E-BOSS offering has strengthened further with the recent UL certification of our unique and differentiated NX Power MERG solution. We have currently booked 850 megawatts of power MERG with deliveries expected to begin in the current quarter.

Speaker #1: We are also pleased to announce in the non-tracker category that the Apex Inverter is now UL-certified and is applicable for both solar and storage markets.

Speaker #1: This certification paves the way for broad commercialization in the U.S. market, and we are highly focused on rapidly building out a scalable and flexible supply chain for these products.

Howard Wenger: This certification paves the way for broad commercialization in the US market. We are highly focused on rapidly building out a scalable and flexible supply chain for these products. Finally, we are very excited to add energy storage to the Nextpower platform. With the launch of Nextpower Energy Storage, we expand our ability to serve our solar customers with a broader set of integrated solutions while expanding our customer base to include hyperscalers, standalone storage developers, and a large range of utility customers. Now, moving to markets and the demand picture. The US remains our best market globally. We are seeing continued positive demand signals as project pipelines are growing, getting permitted, and reaching construction. We have very strong and trusted customer relationships in the US. This is helping us accelerate growth in our non-tracker business and puts us in great position for addressing the storage segment.

Speaker #1: Secondly, our Foundations business is also growing, with a 50% year-over-year increase in the quarter. Thirdly, our TrueCapture control system delivered record revenue and backlog in the Power segment, reinforcing its industry-leading position.

Speaker #1: Finally, we are very excited to add Energy Storage to the Next Power platform, with the launch of Next Power Energy Storage, we expand our ability to serve our solar customers with a broader set of integrated solutions while expanding our customer base to include hyperscalers, standalone storage developers, and a large range of utility customers.

Speaker #1: We are also pleased to announce in the non-tracker category that the APEX inverter is now UL-certified and is applicable for both solar and storage markets.

Speaker #1: This certification paves the way for broad commercialization in the US market, and we are highly focused on rapidly building out a scalable and flexible supply chain for these products.

Speaker #1: Now, moving to markets and demand picture, the U.S. remains our best market globally. We are seeing continued positive demand signals as project pipelines are growing, getting permitted, and reaching construction.

Speaker #1: Finally, we are very excited to add Energy Storage to the Next Power platform. With the launch of Next Power Energy Storage, we expand our ability to serve our solar customers with a broader set of integrated solutions while expanding our customer base to include hyperscalers, standalone storage developers, and a large range of utility customers.

Speaker #1: We have very strong and trusted customer relationships in the U.S., and this is helping us accelerate growth in our non-tracker business and puts us in great position for addressing the storage segment.

Howard Wenger: Internationally, we secured a tracker order for the largest solar plus storage project to date in Australia, a 721 MW project incorporating significant locally made steel content. We also continue to expand our global customer footprint in the quarter, taking our customer reach to over 50 countries. The acquisition of Zimmermann PV, when closed, will extend our reach further with 15 additional countries. Zimmermann is a very well-respected brand with a fantastic team, with more than 20 GW of cumulative projects and well-established customer relationships across Europe. Importantly, the acquisition of Zimmermann will expand our ability to serve a much broader set of ground mount solar applications with their product portfolio. For example, roughly half of Europe's ground mount PV installations are fixed tilt at about 25 GW per year. Zimmermann brings deep expertise in fixed tilt and other structural solutions that we expect will significantly increase our addressable market.

Speaker #1: Internationally, we secured a tracker order for the largest solar plus storage project to date in Australia, a $721 megawatt project incorporating significant locally made steel content.

Speaker #1: Now, moving to markets and the demand picture, the US remains our best market globally. We are seeing continued positive demand signals as project pipelines are growing, getting permitted, and reaching construction.

Speaker #1: We also continue to expand our global customer footprint in the quarter, taking our customer reach to over 50 countries. The acquisition of Zimmermann PV, when closed, will extend our reach further with 15 additional countries.

Speaker #1: We have very strong and trusted customer relationships in the US, and this is helping us accelerate growth in our non-tracker business and puts us in great position for addressing the storage segment.

Speaker #1: Zimmermann is a very well-respected brand with a fantastic team. With more than 20 gigawatts of cumulative projects, and well-established customer relationships across Europe, importantly, the acquisition of Zimmermann will expand our ability to serve a much broader set of ground-mount solar applications with their product portfolio.

Speaker #1: For example, roughly half of Europe's ground-mount PV installations are fixed tilt at about 25 gigawatts per year, and Zimmermann brings deep expertise in fixed tilt and other structural solutions that we expect will significantly increase our addressable market.

Speaker #1: Zimmermann is a very well-respected brand with a fantastic team. With more than 20 gigawatts of cumulative projects and well-established customer relationships across Europe, importantly, the acquisition of Zimmermann will expand our ability to serve a much broader set of ground-mount solar applications with their product portfolio.

Speaker #1: Zimmermann's German headquarters and strong market position there are key strategic elements for us, as Germany is projected by S&P to become Europe's largest solar market by 2030.

Howard Wenger: Zimmermann's German headquarters and strong market position there are key strategic elements for us as Germany is projected by S&P to become Europe's largest solar market by 2030. Germany currently represents approximately 20% of Europe's ground mount solar market, mostly deployed as fixed tilt systems. We also see meaningful energy storage opportunities across Europe, where installations are expected to grow rapidly. Over time, we believe that Zimmermann's sales channels and customer base, especially across Europe, can facilitate sell-through for Nextpower's product portfolio, including trackers, EBOS, power conversion, storage, and software. Turning to project timing and pricing globally. Project timing generally remains manageable. As is typical in utility scale solar, we continue to see some projects accelerate and others move to the right. We manage those movements across a large and diverse portfolio of customers and geographies.

Speaker #1: Germany currently represents approximately 20% of Europe's ground-mount solar market, mostly deployed as fixed tilt systems. We also see meaningful Energy Storage opportunities across Europe, where installations are expected to grow rapidly.

Speaker #1: Over time, we believe that Zimmermann's sales channels, and customer base, especially across Europe, can facilitate sell-through for Next Power's product portfolio, including trackers, eBOSS, power conversion, storage, and software.

Speaker #1: Zimmermann's German headquarters and strong market position there are key strategic elements for us, as Germany is projected by S&P to become Europe's largest solar market by 2030.

Speaker #1: Turning to project timing and pricing globally, project timing generally remains manageable. As is typical in utility-scale solar, we continue to see some projects accelerate and others move to the right.

Speaker #1: Germany currently represents approximately 20% of Europe's ground-mount solar market, mostly deployed as fixed-tilt systems. We also see meaningful energy storage opportunities across Europe, where installations are expected to grow rapidly.

Speaker #1: And we manage those movements across a large and diverse portfolio of customers and geographies. Overall, pricing continues to track the broader solar cost curve, and we continue to invest in R&D and scalable infrastructure to reduce costs while improving system performance.

Speaker #1: Over time, we believe that Zimmermann's sales channels and customer base especially across Europe can facilitate sell-through for Next Power's product portfolio, including trackers, E-BOSS, power conversion, storage, and software.

Howard Wenger: Overall, pricing continues to track the broader solar cost curve. We continue to invest in R&D and scalable infrastructure to reduce costs while improving system performance. Our culture is to relentlessly serve customers and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals are strong. We are excited by the revenue and growth vectors we added with power conversion, energy storage, and EBOS solutions now in the mix. Demand is healthy. Our backlog is large and continues to grow. Execution visibility is solid. We continue to strengthen our competitive position through innovation, customer focus, and operational excellence. With that, I'll pass it on to Chuck.

Speaker #1: Our culture is to relentlessly serve customers, and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals are strong, and we are excited by the revenue and growth vectors we added with power conversion, Energy Storage, and eBOSS solutions now in the mix.

Speaker #1: And we manage those movements across a large and diverse portfolio of customers and geographies. Overall, pricing continues to track the broader solar cost curve and we continue to invest in R&D and scalable infrastructure to reduce costs while improving system performance.

Speaker #1: Demand is healthy, our backlog is large, and continues to grow. Execution visibility is solid, and we continue to strengthen our competitive position through innovation, customer focus, and operational excellence.

Speaker #1: Our culture is to relentlessly serve customers and deliver maximum value at competitive cost and pricing. In summary, our business fundamentals are strong, and we are excited by the revenue and growth vectors we added with power conversion, energy storage, and E-BOSS solutions now in the mix.

Speaker #1: With that, I'll pass it on to Chuck.

Speaker #2: Thank you, Howard, and good afternoon, everyone. Overall Q1 was another quarter of strong execution, with results that reflected healthy end-market demand, disciplined execution, and continued investment in long-term growth.

Chuck Boynton: Thank you, Howard, and good afternoon, everyone. Overall, Q1 was another quarter of strong execution with results that reflected healthy end market demand, disciplined execution, and continued investment in long-term growth. For the first quarter of fiscal 2027, revenue was $935 million, representing 8% year-over-year and 6% sequential growth. Q1 adjusted gross profit was $342 million, adjusted gross margin was 37%, and adjusted EBITDA was $233 million, representing an adjusted EBITDA margin of 25%. Q1 geographic revenue mix was approximately 83% US and 17% rest of world. Our revenue mix remains predominantly solar tracker systems, but non-tracker products are becoming a more meaningful part of the business. In Q1, we recognized revenue from TrueCapture, EBOS, foundations, robotic solutions, and other platform offerings. Non-tracker products represented approximately 14% of total revenue, reflecting continued customer adoption.

Speaker #2: For the first quarter of fiscal 2027, revenue was $935 million, representing 8% year-over-year and 6% sequential growth. Q1 adjusted gross profit was $342 million, adjusted gross margin was $37%, and adjusted EBITDA was $233 million, representing an adjusted EBITDA margin of 25%.

Speaker #1: With that, I'll pass it on to Chuck.

Speaker #2: Q1 geographic revenue mix was approximately $83% US and 17% rest of world. Our revenue mix remains predominantly solar tracker systems, but non-tracker products are becoming a more meaningful part of the business.

Speaker #2: In Q1, we recognized revenue from true capture, eBOSS, foundations, robotics solutions, and other platform offerings. Non-tracker products represented approximately 14% of total revenue, reflecting continued customer adoption.

Speaker #2: Q1 saw solid execution that exceeded our gross margin targets, of the low 30s, benefiting from Maheep tariff recoveries, higher relative US revenue contribution, strong true capture revenue, partially offset by higher logistics costs.

Chuck Boynton: Q1 saw solid execution that exceeded our gross margin targets of the low 30s, benefiting from IEEPA tariff recoveries, higher relative US revenue contribution, strong TrueCapture revenue, partially offset by higher logistics costs. Adjusted operating expenses increased year-over-year as we expanded our platform and increased investment in research and development. This is consistent with the strategy we have discussed previously. Turning to cash flow and the balance sheet. Our strong balance sheet, cash flow generation, and ample liquidity remain competitive advantages. We closed the quarter with over $1.2 billion of total cash and cash equivalents with no debt. We generated $121 million of operating cash flow and $105 million of adjusted free cash flow in the quarter.

Speaker #2: Q1 geographic revenue mix was approximately 83% US and 17% rest of world. Our revenue mix remains predominantly solar tracker systems, but non-tracker products are becoming a more meaningful part of the business.

Speaker #2: In Q1, we recognized revenue from true capture, E-BOSS, foundations, robotics solutions, and other platform offerings. Non-tracker products represented approximately 14% of total revenue, reflecting continued customer adoption.

Speaker #2: Adjusted operating expenses increased year-over-year as we expanded our platform and increased investment in research and development. This is consistent with the strategy we have discussed previously.

Speaker #2: Turning to cash flow and the balance sheet, our strong balance sheet cash flow generation and ample liquidity remain competitive advantages. We closed the quarter with over $1.2 billion of total cash and cash equivalents, with no debt.

Speaker #2: Q1 saw solid execution that exceeded our gross margin targets, which were in the low 30s, benefiting from IEPA, tariff recoveries, higher relative U.S. revenue contribution, and strong true capture revenue, partially offset by higher logistics costs.

Speaker #2: We generated $121 million of operating cash flow and $105 million of adjusted free cash flow in the quarter. We operate a capital-efficient business and remain focused on maintaining and improving our cash conversion cycle.

Chuck Boynton: We operate a capital efficient business and remain focused on maintaining and improving our cash conversion cycle. Our investment-grade credit rating speaks to the strength of our balance sheet and capital structure, and it remains important to customers, suppliers, and project financing partners. Based on our Q1 performance, the strength and quality of our backlog, and continued demand across our core and emerging product categories, we are updating our fiscal 2027 outlook. We now expect revenue in the range of $4.1 to 4.4 billion, adjusted EBITDA in the range of $870 to 930 million, and adjusted diluted EPS in the range of $4.42 to $4.73. As previously communicated, our outlook includes planned investments of approximately $50 million related to growth initiatives, primarily the acceleration of our entry into the power conversion market. I want to spend a minute on margins and returns. Our structural margin framework has not changed.

Speaker #2: Our investment-grade credit rating speaks to the strength of our balance sheet and capital structure, and it remains important to customers' suppliers and project financing partners.

Speaker #2: Based on our Q1 performance, the strength and quality of our backlog, and continued demand across our core and emerging product categories, we are updating our fiscal 2027 outlook.

Speaker #2: We now expect revenue in the range of $4.1 to $4.4 billion, adjusted EBITDA in the range of $870 to $930 million, and adjusted diluted EPS in the range of $4.42 to $4.73.

Speaker #2: Our investment-grade credit rating speaks to the strength of our balance sheet and capital structure, and it remains important to customers, suppliers, and project financing partners.

Speaker #2: As previously communicated, our outlook includes planned investments of approximately $50 million related to growth initiatives, primarily the acceleration of our entry into the power conversion market.

Speaker #2: Based on our Q1 performance, the strength and quality of our backlog, and continued demand across our core and emerging product categories, we are updating our fiscal 2027 outlook.

Speaker #2: I want to spend a minute on margins and returns. Our structural margin framework has not changed. We continue to expect gross margins in the low 30s and operating margins in the low 20s.

Speaker #2: We now expect revenue in the range of $4.1 to $4.4 billion, adjusted EBITDA in the range of $870 to $930 million, and adjusted diluted EPS in the range of $4.42 to $4.73.

Chuck Boynton: We continue to expect gross margins in the low 30s and operating margins in the low 20s. Quarterly margins will fluctuate based on mix, tariff recoveries, ramping of new businesses, and the policy environment. The long-term framework remains intact. As we integrate recent acquisitions and scale new product categories, we will see an impact to EBITDA and margin percentages. In many organic initiatives or acquisitions, certain costs will come ahead of revenue as we build engineering, manufacturing, go-to-market, and service capabilities. We are making these investments where we see strong customer pull, clear strategic fit, and attractive financial returns. EBOS is an early proof point.

Speaker #2: Quarterly margins will fluctuate based on mix, tariff recoveries, ramping of new businesses, and the policy environment, but the long-term framework remains intact. As we integrate recent acquisitions and scale new product categories, we will see an impact to EBITDA and margin percentages.

Speaker #2: In many organic initiatives or acquisitions, certain costs will come ahead of revenue as we build engineering, manufacturing, go-to-market, and service capabilities. We are making these investments where we see strong customer pull, clear strategic fit, and attractive financial returns.

Speaker #2: eBOSS is an early proof point. A little over a year after acquiring and launching that product line, we have delivered multiple quarters of record bookings and revenue, and seeing strong attach rates, and as Howard pointed out earlier, remain on track to generate well over $100 million of revenue this year.

Chuck Boynton: A little over a year after acquiring and launching that product line, we have delivered multiple quarters of record bookings and revenue and seeing strong attach rates, and as Howard pointed out earlier, remain on track to generate well over $100 million of revenue this year. Prevalon is another example of our approach. A meaningful portion of the consideration is tied to future profit targets and management incentives that are aligned with cumulative profit. We are not relying on speculative upside or large unproven cost synergies to justify the transaction. We acquired proven deployments, real customer relationships, backlog, life cycle service capabilities, and a platform we believe can scale through Nextpower's customer relationships, engineering, supply chain discipline, and execution model. As Nextpower scales, we believe investors should evaluate us on both absolute profit dollars as well as margin percentages. The objective is not to dilute returns to buy revenue.

Speaker #2: Prevalon is another example of our approach. A meaningful portion of the consideration is tied to future profit targets and management incentives that are aligned with cumulative profit.

Speaker #2: We are not relying on speculative upside or large unproven cost synergies to justify the transaction. We acquired proven deployments, real customer relationships, backlog, lifecycle service capabilities, and a platform we believe can scale through next power's customer relationships, engineering, supply chain discipline, and execution model.

Speaker #2: E-BOSS is an early proof point. A little over a year after acquiring and launching that product line, we have delivered multiple quarters of record bookings and revenue, and seeing strong attach rates, and as Howard pointed out earlier, remain on track to generate well over $100 million of revenue this year.

Speaker #2: As next power scales, we believe investors should evaluate us on both absolute profit dollars as well as margin percentages. The objective is not to dilute returns to buy revenue.

Speaker #2: We are focused on sustaining structural margins on a larger revenue base while growing adjusted EBITDA dollars, free cash flow, and return on invested capital over time.

Speaker #2: We are not relying on speculative upside or large unproven cost synergies to justify the transaction. We acquired proven deployments, real customer relationships, backlog, lifecycle service capabilities, and a platform we customer relationships, engineering, supply chain discipline, and execution model.

Chuck Boynton: We are focused on sustaining structural margins on a larger revenue base while growing adjusted EBITDA dollars, free cash flow, and return on invested capital over time. Finally, on capital allocation, our priorities remain consistent. First, we continue to prioritize organic investment in new products and services. Second, we pursue disciplined M&A that strengthens our technology platform and creates customer value. Returning capital to shareholders remains the third pillar of our capital allocation framework with our board-approved $500 million share repurchase authorization. We have increased confidence in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation. With that, we will take your questions. Operator?

Speaker #2: Finally, on capital allocation, our priorities remain consistent. First, we continue to prioritize organic investment and new products and services. Second, we pursue disciplined M&A that strengthens our technology platform and creates customer value.

Speaker #2: As next power scales, we believe investors should evaluate us on both absolute profit dollars as well as margin percentages. The objective is not to dilute returns to buy revenue.

Speaker #2: Returning capital to shareholders remains the third pillar of our capital allocation framework, with our board-approved $500 million share repurchase authorization. We have increased confidence in our ability to deliver sustained growth and profitability while continuing to invest in innovation and long-term value creation.

Speaker #2: We are focused on sustaining structural margins on a larger revenue base while growing adjusted EBITDA dollars, free cash flow, and return on invested capital over time.

Speaker #2: And with that, we'll take your questions. Operator?

Speaker #1: We will now begin the question-and-answer session. If you would like to ask a question, please raise your hand now. If you have dialed into today's call, a reminder to press star 9 to raise your hand, and star 6 to unmute.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, a reminder to 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 Jon Windham with UBS. Your line is open. Please go ahead.

Speaker #2: Returning capital to shareholders remains the third pillar of our capital allocation framework, with our board-approved $500 million share repurchase authorization. We have increased confidence in our ability to deliver sustained growth and profitability, while continuing to invest in innovation and long-term value creation.

Speaker #1: Please stand by as we compile the Q&A roster. Your first question comes from the line of Jon Windham with UBS. Your line is open.

Speaker #1: Please go ahead.

Speaker #3: Hey, this is David Cho on for Jon Windham. Thanks for taking my question and congrats on the quarter. I know you mentioned the FCC inverter band briefly.

David Cho: Hey, this is David Cho on for Jon Windham. Thanks for taking my question and congrats on the quarter. I know you mentioned the SEC inverter ban briefly, I was just wondering, assuming you made the decision to accelerate investment in the inverter segment prior to that announcement, just wondering how do you view, or how do you kind of view the change in the scale of the opportunity for you in that product segment post the announcement? How incremental is that to kind of your long-term outlook for market share in inverters? Thank you.

David Chow: Hey, this is David Cho on for Jon Windham. Thanks for taking my question and congrats on the quarter. I know you mentioned the SEC inverter ban briefly, I was just wondering, assuming you made the decision to accelerate investment in the inverter segment prior to that announcement, just wondering how do you view, or how do you kind of view the change in the scale of the opportunity for you in that product segment post the announcement? How incremental is that to kind of your long-term outlook for market share in inverters? Thank you.

Speaker #2: And with that, we'll take your questions. Operator?

Speaker #3: But I was just wondering, assuming you made the decision to accelerate investment in the inverter segment, prior to that announcement, just wondering how do you view or how do you kind of view the change in the scale of the opportunity for you in that product segment post the announcement?

Speaker #1: Please stand by as we compile the Q&A roster. Your first question comes from the line of John Wyndham with UBS. Your line is open.

Speaker #3: Or how incremental is that to kind of your long-term outlook for market share in inverters? Thank you.

Speaker #1: Please go ahead.

Speaker #3: Hey, this is David Cho on for John Wyndham. Thanks for taking my question, and congrats on the quarter. I know you mentioned the FCC inverter band briefly.

Chuck Boynton: Hi, David. Dan Shugar. Thanks for the question. We keep saying this, and it's just very basic and so true. We ask customers, "What are your greatest pain points? What do you need help with?" It comes back often, inverter, power conditioning unit, those things. We actually made a decision over 2 years ago to really launch a family of products in the inverter business to serve solar and power conditioning business to serve energy storage. We have a tremendous amount of momentum on organic internal product families. We also wanted to double down on that, and we did the acquisition of the Apex product line, and we couldn't be more pleased with that. Let me be clear about what our objective is. Nextpower will deliver to the market the most available

Dan Shugar: Hi, David. Dan Shugar. Thanks for the question. We keep saying this, and it's just very basic and so true. We ask customers, "What are your greatest pain points? What do you need help with?" It comes back often, inverter, power conditioning unit, those things. We actually made a decision over 2 years ago to really launch a family of products in the inverter business to serve solar and power conditioning business to serve energy storage. We have a tremendous amount of momentum on organic internal product families. We also wanted to double down on that, and we did the acquisition of the Apex product line, and we couldn't be more pleased with that. Let me be clear about what our objective is. Nextpower will deliver to the market the most available

Speaker #2: Hi, David. Dan Shuger. Thanks for the question. So we keep saying this, and it's just very basic and so true. We ask customers, what are your greatest pain points?

Speaker #3: But I was just wondering, assuming you made the decision to accelerate investment in the inverter segment prior to that announcement, I'm just wondering how you view, or how you kind of view, the change in the scale of the opportunity for you in that product segment post the announcement?

Speaker #2: What do you need help with? And it comes back often inverter, power conditioning unit, those things. And so we actually made a decision over two years ago to really launch a family of products in the inverter business to serve solar and power conditioning business, to serve energy storage.

Speaker #3: Or how incremental is that to kind of your long-term outlook for market share in inverters? Thank you.

Speaker #2: Hi, David. Dan Shugar. Thanks for the question. So we keep saying this, and it's just very basic and so true. We ask customers, what are your greatest pain points?

Speaker #2: So we have a tremendous amount of momentum on organic internal product families. And then we also wanted to double down on that, and we did the acquisition of the Apex product line.

Speaker #2: What do you need help with? And it comes back often—inverter, power conditioning unit, those things. And so we actually made a decision over two years ago to really launch a family of products in the inverter business to serve solar and power conditioning business, to serve energy storage.

Speaker #2: And we couldn't be more pleased with that. Let me be clear about what our objective is. Next Power will deliver to the market the most available inverter and power conditioning products in the industry.

Dan Shugar: Inverter and power conditioning products in the industry. That's our objective, and we will get that done. What that means is, from an owner standpoint, these systems are online, okay? When you look back after a year, or 5 years, what have you. It's not rocket science. I could take you to systems we did 20 years ago with early inverters, IGBTs inverters, that are still operational. In order to do this, you need to have a great product, a great service model, spare parts, operational excellence, and the right kind of service culture, and we're going to do that. In response to, as we've been rolling this out and preconditioning the market, we've seen very strong demand and feedback from our customer, which is why at our last earnings call, we announced we're putting this incremental $50 million in, which is real money.

Speaker #2: That's our objective. And we will get that done. What that means is, from an owner standpoint, these systems are online. Okay? When you look back after a year, five years, what have you.

Speaker #2: So we have a tremendous amount of momentum on organic internal product families, and then we also wanted to double down on that. And we did the acquisition of the Apex product line.

Speaker #2: And it's not rocket science. I could take you to systems we did 20 years ago with really inverters, IGBTs inverters that are still operational.

Speaker #2: And we couldn't be more pleased with that. Let me be clear about what our objective is: NextPower will deliver to the market the most available inverter and power conditioning products in the industry.

Speaker #2: So in order to do this, you need to have a great product, a great service model, spare parts, operational excellence, and the right kind of service culture.

Speaker #2: That's our objective, and we will get that done. What that means is, from an owner's standpoint, these systems are online, okay? When you look back after a year, five years, what have you.

Speaker #2: And we're going to do that. So in response to, as we've been rolling this out, the and preconditioning the market, we've seen very strong demand and feedback from our customer, which is why at our last earnings call, we announced we're putting this incremental $50 million in, which is real money.

Speaker #2: And it's not rocket science. I could take you to systems we did 20 years ago with really inverters, IGBTs, inverters that were still operational.

Speaker #2: So, in order to do this, you need to have a great product, a great service model, spare parts, operational excellence, and the right kind of service culture.

Speaker #2: And we've hired some of the best and the brightest organically, and then we're extremely pleased to bring the Apex and legacy Zigger technology team led by Antonio Poveda and Jacob Marshall in the United States to the team.

Dan Shugar: We've hired some of the best and the brightest organically, and then we're extremely pleased to bring the Apex and Legacy Zigor technology team led by Antonio Poveda and Jacob Marshall in the United States to the team. What we're seeing is customers are also really valuing domestic production. They're valuing cybersecurity. This also addresses FISA concerns. We're going to have a portfolio of product and supply options for these segments or these applications available to the market. It's also synergistic with the storage business that we announced completion of the acquisition last week.

Speaker #2: And we're going to do that. So in response to, as we've been rolling this out, the and pre-conditioning the market, we've seen very strong demand and feedback from our customer which is why at our last earnings call, we announced we're putting this incremental $50 million in, which is real money.

Speaker #2: And so what we're seeing is customers are also really valuing domestic production, they're valuing cybersecurity, this also addresses fiat concerns. We're going to have a portfolio of product and supply options for these segments, or these applications.

Speaker #2: And we've hired some of the best and the brightest organically, and we're extremely pleased to bring the Apex and legacy Zigger technology team, led by Antonio Poveda and Jacob Marshall in the United States, to the team.

Speaker #2: Available to the market. And it's also synergistic with the storage business that we announced completion of the acquisition last week.

Speaker #2: And so what we're seeing is customers are also really valuing domestic production, they're valuing cybersecurity, this also addresses VL concerns. We're going to have a portfolio of product and supply options for these segments, or these applications.

Speaker #3: Understood. Very clear. Thank you. I'll pass it on.

David Cho: Understood. Very clear. Thank you, Abbas Dan.

David Chow: Understood. Very clear. Thank you, Abbas Dan.

Speaker #1: And your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Speaker #4: Hey, guys. Good afternoon. Thanks for taking the questions. I have two, so I'll just try to fit them both in here. One, there's been a number of M&A deals here, obviously, so would be curious, Dan, Howard, if you guys have any comments you can make or any read on integration efforts, realization of synergy potential, anything you can quantify.

Brian Lee: Hey, guys. Good afternoon. Thanks for taking the questions. I have two, so I'll just try to fit them both in here. One, there's been a number of M&A deals here, obviously. Would be curious, Dan, Howard, if you guys have any comments you can make or any read on integration efforts, realization of synergy potential, anything you can quantify. It does sound like margins may be impacted negatively near term, but then should be back to normal by end of fiscal year-end. Related to that, just curious how your direct access visibility discussions, however you would characterize it with hyperscaler and data center customers has evolved here with the more robust portfolio and maybe how quickly you expect to realize some of the opportunities across that customer segment, and then maybe in what product category specifically. Thanks, guys.

[Analyst] (Goldman Sachs): Hey, guys. Good afternoon. Thanks for taking the questions. I have two, so I'll just try to fit them both in here. One, there's been a number of M&A deals here, obviously. Would be curious, Dan, Howard, if you guys have any comments you can make or any read on integration efforts, realization of synergy potential, anything you can quantify. It does sound like margins may be impacted negatively near term, but then should be back to normal by end of fiscal year-end. Related to that, just curious how your direct access visibility discussions, however you would characterize it with hyperscaler and data center customers has evolved here with the more robust portfolio and maybe how quickly you expect to realize some of the opportunities across that customer segment, and then maybe in what product category specifically. Thanks, guys.

Speaker #2: Available to the market. And it's also synergistic with the storage business that we announced completion of the acquisition last week.

Speaker #4: I mean, it does sound like margins may be impacted negatively near term, but then should be back to normal by end of fiscal year end.

Speaker #3: Understood. Very clear. Thank you. I'll pass it on.

Speaker #1: And your next question comes from the line of Brian Lee with Goldman Sachs. Your line is open. Please go ahead.

Speaker #4: And then related to that, just curious how you're direct access, visibility, discussions, however you would characterize it with hyperscaler and data center customers have evolved here with the more robust portfolio and maybe how quickly you expect to realize some of the opportunities across that customer segment.

Speaker #4: Hey, guys. Good afternoon. Thanks for taking the questions. I have two, so I'll just try to fit them both in here. One, there's been a number of M&A deals here, obviously, so we'd be curious, Dan, Howard, if you guys have any comments you can make or any read on integration efforts, realization of synergy potential, anything you can quantify.

Speaker #4: And then maybe in what product category specifically? Thanks, guys.

Speaker #2: Sure. I'll take the first part, Brian, related to the acquisitions and how the integration's going. Howard, I'll take the second part related to the hyperscalers and that market segment.

Dan Shugar: Sure. I'll take the first part, Brian, related to the acquisitions and how the integration's going. Howard will take the second part, related to the hyperscalers in that market segment. First, we have a history of success with M&A. We did the BrightBox machine learning acquisition 10 or 11 years ago. That really helped us developed our TrueCapture and NX Navigator suite of products, which has been an overwhelming success in use on many hundreds of power plants, extremely material to our financial results, but importantly to the customer projects. Starting about three years ago, we did a number of smaller acquisitions. Those have been fully integrated. Those are more tuck-in technology acquisitions. We did Ojjo on the foundation. We have many gigawatts of that under fulfillment. That's grown great. We have complementary technology on the foundation business that customers are really valuing.

Speaker #4: I mean, it does sound like margins may be impacted negatively in the near term, but then should be back to normal by the end of the fiscal year.

Speaker #2: So first, we have a history of success with M&A. We did the BrightBox machine learning acquisition 10 or 11 years ago. That really helped us develop our true capture and NX Navigator suite of products, which has been an overwhelming success in use on many hundreds of power plants extremely material to our financial results, but importantly to the customer projects.

Speaker #4: And then related to that, just curious how you're direct access, visibility, discussions, however you would characterize it with hyperscaler and data center customers has evolved here with the more robust portfolio and maybe how quickly you expect to realize some of the opportunities across that customer segment.

Speaker #4: And then maybe in what product category specifically? Thanks, guys.

Speaker #2: Starting about three years ago, we did a number of smaller acquisitions of those have been fully integrated. Those are more tuck-in technology acquisitions. We did Ojo on the foundation.

Speaker #2: So first, we have a history of success with M&A. We did the Bright Box machine learning acquisition 10 or 11 years ago. That really helped us develop our TrueCapture and NX Navigator suite of products, which has been an overwhelming success and is in use on many hundreds of power plants—extremely material to our financial results, but importantly, to the customer projects.

Speaker #2: We have many gigawatts of that. Under fulfillment, that's grown great. Complementary technology on the foundation business. The customers are really valuing. And some of the stuff's hard.

Dan Shugar: Some of this stuff's hard. You have to invest. It takes a few years to operationalize and be able to really get to both volumetric scale, but also tune these businesses up where they're actually hitting the financial metrics you want. That's going great. We've done a number of additional earlier stage businesses, and Chuck in his earlier remarks mentioned, for example, our EBOS business. We closed that just about five quarters ago. We're at sort of a 50 or $100 million annualized run rate, which is double what that company did in the 30-year history. We just announced our new UL-listed product, PowerMerge, which brings the best of both schools of thought to electrical balance system to the market, and we've seen great results there.

Speaker #2: You have to invest. It takes a few years to operationalize and be able to really get to both volumetric scale, but also tuning these businesses up where they're actually hitting the financial metrics you want.

Speaker #2: So I mean, that's going great. We've done a number of additional earlier stage businesses, and Chuck and his earlier remarks mentioned are, for example, our eBOSS business.

Speaker #2: We have many gigawatts of that. Under fulfillment, that’s grown great. Complementary technology on the foundation business—the customers are really valuing it. And some of the stuff’s hard.

Speaker #2: We close that just about five quarters ago. We're at sort of a 50 or 100 million dollar annualized run rate, which is double what that company did in the 30-year history.

Speaker #2: You have to invest. It takes a few years to operationalize and be able to really get to both volumetric scale, but also tuning these businesses up, where they're actually hitting the financial metrics you want.

Speaker #2: And we just announced our new UL listed product Power Merge, which brings the best of both schools of thought to electrical balance systems to the market.

Speaker #2: So I mean, that's going great. We've done a number of additional earlier stage businesses, and Chuck and his earlier remarks mentioned are, for example, our EVOS business.

Speaker #2: And we've seen great results there. So what you're really comes to putting your shoulder into these things, sweating the details. Getting the best people to run these businesses.

Dan Shugar: It really comes to putting your shoulder into these things, sweating the details, getting the best people to run these businesses, empowering them, and then bringing those forward to customers where we are adding value. I think our program is going extremely well. What is different about the Prevalon acquisition is that we had a very mature team that had done about 38 projects, with very good references from customers. I was just out at a large utility scale site last week with the team, a 200 MW, 800 MWh site that was brought online in under 1 year. The very sophisticated utility customer was extremely pleased with the performance. We do not need to integrate those as much because that product line can run.

Speaker #2: We close that just about five-quarters ago. We're at sort of a 50 or 100 million dollar annualized run rate, which is double what that company did in the 30-year history.

Speaker #2: Empowering them. And then bringing those forth to customers where we're adding value. And the I think our program's going extremely well. What's different about the Prevalon acquisition is that we had a very mature team that had done about 38 projects with very good references from customers.

Speaker #2: And we just announced our new UL-listed product, Power Merge, which brings the best of both schools of thought to electrical valve systems to the market.

Speaker #2: And we've seen great results there. So it really comes down to putting your shoulder into these things and sweating the details—getting the best people to run these businesses.

Speaker #2: I was just out at a large utility sales site last week with the team, a 200-megawatt, 800-megawatt-hour site. That was brought online in under a year.

Speaker #2: Empowering them, and then bringing those forth to customers where we're adding value. And I think our program's going extremely well. What's different about the Prevalon acquisition is that we had a very mature team that had done about 38 projects, with very good references from customers.

Speaker #2: The very Ciscad utility customer was extremely pleased with the performance. So we don't need to integrate those as much because that product line can run.

Speaker #2: And the last one in that M&A family the large one that we announced last quarter was a definitive agreement to acquire Zimmerman in Germany, which is a very well-established, respected, stable revenue cash flow-generating company in Germany.

Dan Shugar: The last one in that M&A family, the large one that we announced last quarter was a definitive agreement to acquire Zimmermann in Germany, which is a very well-established, respected, stable, revenue, cash flow-generating company in Germany that we do not need to do the level of integration we have with the other businesses. That is how we thought about that program. Howard, can you address the hyperscaler question?

Speaker #2: I was just out at a large utility-scale site last week with the team, a 200-megawatt, 800-megawatt-hour site. That was brought online in under a year.

Speaker #2: That we don't need to do the level of integration we have with the other businesses. So that's how we've thought about that program. Howard, can you address the hyperscaler question?

Speaker #2: The very sophisticated utility customer was extremely pleased with the performance. So we don't need to integrate those as much, because that product line can run.

Speaker #3: Sure. So hey, Brian. So we are serving a hyperscalers both indirectly and directly. And by indirectly, I mean we're working with IPP owner-developers who have contracts with hyperscalers and we're supplying equipment to them.

Howard Wenger: Sure. Hey, Brian. We are serving hyperscalers both indirectly and directly. By indirectly, I mean we are working with IPP owner developers who have contracts with hyperscalers, and we are supplying equipment to them. Now that we have a full platform of solar and storage, we can offer much more value for both hyperscalers and our IPP developer partners. That is indirectly. Directly, we are working with hyperscalers directly. One product that Prevalon, now Nextpower Storage, has is Hybrid Power Stabilizer. It is a power stabilizer that provides continuous power, can respond to data center demand fluctuations that are less than 10 milliseconds. Really fast response. Working directly with hyperscalers and what they are doing on their side of the meter on those kinds of applications. People ask, is hyperscaler market and data center market and demand market for electricity real? It is very real.

Speaker #2: And the last one in that M&A family the large one that we announced last quarter was a definitive agreement to acquire Zimmerman in Germany, which is a very well-established, respected, ed, stable revenue cash flow-generating company in Germany that we don't need to do the level of integration we have with the other businesses.

Speaker #3: Now that we have a full platform of solar and storage, we can offer much more value for both hyperscalers and the IPP developer partners.

Speaker #2: So that's how we've thought about that program. Howard, can you address the hyperscaler question?

Speaker #3: We also that's indirectly and then directly, we are working with hyperscalers directly. One product that Prevalon now Next Power Storage has is hybrid OS.

Speaker #3: Sure. So, hey Brian. We are serving hyperscalers both indirectly and directly. By indirectly, I mean we're working with IPP owner-developers who have contracts with hyperscalers, and we're supplying equipment to them.

Speaker #3: It's a power stabilizer. That provides continuous power, can respond to data center demand fluctuations that are less than 10 milliseconds. Really fast response. And working directly with hyperscalers and what they're doing on their side of the meter on those kinds of applications.

Speaker #3: Now that we have a full platform of solar and storage, we can offer much more value for both hyperscalers and our IPP developer partners.

Speaker #3: So people ask, is hyperscaler market and data center market and demand market for electricity real? It's very real. We're seeing expanding pipelines to serve this market segment.

Speaker #3: We also, that's indirectly, and then directly, we are working with hyperscalers directly. One product that Prevalon—now Next Power Storage—has is Hybrid OS.

Howard Wenger: We are seeing expanding pipelines to serve this market segment and closing business on that basis. We are really excited about that. I just wanted to add that today we announced the closing of the inverter acquisition we made and power conditioning system acquisition. Dan noted that that acquisition serves both solar and storage, there is some synergy there. You asked about synergies, Brian, and that is one of them. Taking that inverter power conversion technology from one company and porting it through our Nextpower Storage acquisition and Prevalon. Quite excited about that. Thank you.

Speaker #3: And closing business on that basis. So we're really excited about that. I just wanted to add that today we announced the closing of the inverter acquisition we made in power conditioning system acquisition.

Speaker #3: Dan noted that that acquisition serves both solar and storage. So there's some synergy there. You asked about synergy, Brian, and that's one of them.

Speaker #3: So people ask, is the hyperscaler market, data center market, and demand for electricity real? It's very real. We're seeing expanding pipelines to serve this market segment.

Speaker #3: Taking that inverter power conversion technology from one company and porting it through our Next Power Storage acquisition and Prevalon. So quite excited about that.

Speaker #3: Thank you.

Speaker #1: And your next question comes from Mark Strouse with JP Morgan. Your line is open. Please go ahead.

Operator: Your next question comes from Mark Strouse with J.P. Morgan. Your line is open. Please go ahead.

Speaker #4: Great. Good afternoon. Thank you very much for taking our questions. I appreciate you guys are giving us the percentage that your revenue is coming from the non-tracker business.

Mark Strouse: Great. Good afternoon. Thanks very much for taking our questions. I appreciate you guys are giving us the percentage of your revenue that's coming from the non-tracker business. Is there any other color that you can provide us, though, as far as the percentage of your tracker projects that are coming with other technologies? Maybe kind of the average number of offerings or solutions per project, kind of what that looks in your bookings, and maybe how that's trended over the last couple of quarters? Then just a quick follow-up, if I can get it out there. Chuck, I just want to make sure, the $50 million incremental investment in power conversion, is that in line with what you were talking about back in May when you announced the deal, or is this incremental on top of that, and so we should be thinking about $100 million now?

Speaker #3: Dan noted that that acquisition serves both solar and storage. So there's some synergy there. You ask about synergy, Brian, and that's one of them.

Speaker #4: Is there any other color that you can provide us, though, as far as the percentage of your tracker projects that are coming with other technologies?

Speaker #3: Taking that inverter power conversion technology from one company and porting it through our Next Power Storage acquisition in Prevalon, so we're quite excited about that.

Speaker #4: Maybe kind of the average number of offerings or solutions per project. Kind of what that looks in your bookings and maybe how that's trended over the last couple of quarters.

Speaker #3: Thank you.

Speaker #1: And your next question comes from Mark Strauss with JP Morgan. Your line is open. Please go ahead.

Speaker #4: And then just a quick follow-up, if I can get it out there. Chuck, I just want to make sure the 50 million dollar incremental investment in power conversion, is that in line with what you were talking about back in May when you announced the deal?

Speaker #4: Great, good afternoon. Thank you very much for taking our questions. I appreciate you giving us the percentage that your revenue is coming from the non-tracker business.

Speaker #4: Or is this incremental on top of that? And so we should be thinking about 100 million now. Thank you.

Speaker #4: Is there any other color that you can provide us, though, as far as the percentage of your tracker projects that are coming with other technologies?

Mark Strouse: Thank you.

Speaker #3: Thanks, Mark. I'll go first. This is Chuck. Yeah, it's the same 50 million. We're excited that the power conversion business closed today. And so that investment really started a little bit last quarter, but for the most part, it's kind of over the next four quarters.

Chuck Boynton: Thanks, Mark. I'll go first. This is Chuck. No, it's the same $50 million. We're excited that the power conversion business closed today, and so that investment really started a little bit last quarter, but for the most part is kind of over the next four quarters. It's the same numbers, though, not incremental to what we announced in May.

Speaker #4: Maybe kind of the average number of offerings or solutions per project. Kind of what that looks in your bookings and maybe how that's trended over the last couple of quarters.

Speaker #3: It's the same numbers, though, not incremental to what we announced in May.

Speaker #4: And then, just a quick follow-up so I can get it out there. Chuck, I just want to make sure—the $50 million incremental investment in power conversion, is that in line with what you were talking about back in May when you announced the deal?

Speaker #2: Okay. This is Howard. Really pleased with the progress in porting in more products alongside our tracker platform. Including foundations, which grew 50% year over year in revenue for the quarter.

Howard Wenger: Okay. This is Howard. Really pleased with the progress in porting in more products alongside our tracker platform, including foundations, which grew 50% year over year in revenue for the quarter. Our EBOS business, Dan mentioned it in his previous answer, that that's really going extremely well. $100 million plus revenue run rate for the year, which is Well, it's a meaningful contribution to our annual revenue and growing. The attach rate on EBOS, I think, is particularly striking for us, it's exceeding the overall attach rate that we noted in our remarks of 14%. We're really happy with the progress on EBOS. Everything so far points to an affirmation of our strategy, which is to offer a fully engineered solution, an entire bundle, where we're wringing out costs and increasing yield.

Speaker #4: Or is this incremental on top of that? And so we should be thinking about $100 million now. Thank you.

Speaker #3: Thanks, Mark. I'll go first. This is Chuck. Yeah, it's the same $50 million. We're excited that the Power Conversion business closed today, and so that investment really started a little bit last quarter, but for the most part, it's kind of over the next four quarters.

Speaker #2: And then our EBOS business, Dan mentioned it, in his previous answer, that that's really going extremely well. 100 million plus revenue run rate for the year, which is beginning to become well, it's a meaningful contribution to our annual revenue.

Speaker #3: It's the same numbers, though, not incremental to what we announced in May.

Speaker #2: Okay. This is Howard, really pleased with the progress in porting in more products alongside our tracker platform. Including foundations, which grew 50% year over year in revenue for the quarter.

Speaker #2: And growing. The attached rate on EBOS, I think, is particularly striking for us. And it's exceeding the overall attached rate that we noted in our remarks of 14%.

Speaker #2: And then our eBOSS business, Dan mentioned it in his previous answer, that's really going extremely well. Over $100 million revenue run rate for the year, which is beginning to become a meaningful contribution to our annual revenue.

Speaker #2: So we're really happy with the progress on EBOS. And everything so far points to an affirmation of our strategy, which is to offer a fully engineered solution entire bundle where we're ringing out cost and increasing yield just integrating our foundations with our trackers.

Speaker #2: And growing. The attach rate on EBOSS, I think, is particularly striking for us. And it's exceeding the overall attach rate that we noted in our remarks of 14%.

Howard Wenger: Just integrating our foundations with our trackers, we were able to reduce install time by 20%. Part of that, we eliminated all the fasteners between the foundation and the tracker. That's another proof point of what we can do to optimize system cost and performance and provide a better solution for our customers. Thanks, Mark.

Speaker #2: We're able to reduce install time by 20%. Part of that, we eliminated all the fasteners between the foundation and the tracker. So that's another proof point of what we can do to optimize system cost and performance and provide a better solution for our customers.

Speaker #2: So we're really happy with the progress on EBOSS. And everything so far points to an affirmation of our strategy, which is to offer a fully engineered solution entire bundle where we're ringing out cost and increasing yield just integrating our foundations with our trackers.

Speaker #2: Thanks, Mark.

Speaker #4: Thank you.

Mark Strouse: Thank you.

Speaker #1: And your next question comes from Phil Shen with Roth Capital Partners. Your line is open. Please go ahead.

Operator: Your next question comes from Phil Shen with Roth Capital Partners. Your line is open. Please go ahead.

Speaker #5: Hey, guys. Thanks for taking my questions. First one here is on your margin expansion. You highlighted in your quarter or in the shareholder letter that this was driven in part by true capture and tariff recoveries.

Phil Shen: Hey, guys. Thanks for taking my questions. First one here is on your margin expansion. You highlighted in your quarter or in the shareholder letter that this was driven in part by TrueCapture and tariff recoveries. Was wondering if you could split that out and specifically call out how much TrueCapture benefited you guys there. Can you give us a more detailed update on TrueCapture? I know at the IPO you guys were a little bit hesitant on that, you've had some time now, a couple few years here to ramp up that volume. I was wondering what percentage of your install base has TrueCapture, and then as you book new business, what's the attach rate of TrueCapture there? Given the strong margins, it'd be great to understand what kind of impact TrueCapture is having. Thanks.

Speaker #5: I was wondering if you could split that out and specifically call out how much true capture benefited you guys there. And then ultimately, can you give us a more detailed update on true capture?

Speaker #2: Thanks, Mark.

Speaker #4: Thank you.

Speaker #5: I know at the IPO, you guys were a little bit hesitant on that, but you've had some time now, a couple few years here to ramp up that volume.

Speaker #1: And your next question comes from Phil Shen with Roth Capital Partners. Your line is open. Please go ahead.

Speaker #5: Hey guys, thanks for taking my questions. My first one is on your margin expansion. You highlighted in your quarter, or in the shareholder letter, that this was driven in part by true capture and tariff recoveries.

Speaker #5: So I was wondering what percentage of your install base has true capture? And then as you book new business, what's the attached rate of true capture there, given the strong margins?

Speaker #5: It'd be great to understand what kind of impact true capture is having. Thanks.

Speaker #5: Was wondering if you could split that out and specifically call out how much true capture benefited you guys there. And then ultimately, can you give us a more detailed update on true capture?

Speaker #3: Yeah. Phil, it's Chuck. I'll go first on the some of the details and Howard can fill in an attached rates. So true capture historically was 2% of revenue.

Chuck Boynton: Yeah. Phil, it's Chuck. I'll go first on some of the details, Howard can fill in on attach rates. TrueCapture historically was 2% of revenue. We're not giving the exact number, it's gone higher. The overall revenue from TrueCapture has accelerated. We had a great quarter, it's tied to commissioning, you'll see some quarters it goes up, some it may be in line. We expect a very strong year for TrueCapture. Q1 was strong. The real kind of overall beat on margins was we had pretty significant IEEPA recoveries. There's still more that we'll get in Q2 and some beyond possibly, that was a real benefit. There was a bit of a headwind on freight that kind of offset that a bit.

Speaker #5: I know at the IPO, you guys were a little bit hesitant on that, but you've had some time now—a couple, a few years here—to ramp up that volume.

Speaker #3: We're not giving the exact number, but it's gone higher. So the overall revenue from true capture has accelerated. We had a great quarter. And it's tied to commissioning.

Speaker #5: So I was wondering: what percentage of your install base has TrueCapture? And then, as you book new business, what's the attach rate of TrueCapture there, given the strong margins?

Speaker #3: So you'll see some quarters it goes up, some it may be in line. But we're expecting a very strong year for true capture Q1 was strong.

Speaker #3: But the real kind of overall beat on margins was we had pretty significant IEPA recoveries. And there's still more that we'll get in Q2 and some beyond possibly.

Speaker #5: It'd be great to understand what kind of impact true capture is having. Thanks.

Speaker #3: Yeah. Phil is Chuck. I'll go first on the some of the details and Howard can fill in an attached rates. So true capture historically was 2% of revenue.

Speaker #3: But that was a real benefit and there was a bit of a headwind on freight that kind of offset that a bit. But I would look at our guide overall was kind of low 20s operating margins.

Speaker #3: We're not giving the exact number, but it's gone higher. So the overall revenue from TrueCapture has accelerated. We had a great quarter, and it's tied to commissioning.

Chuck Boynton: I would look, our guide overall was kind of low 20s operating margins, we delivered 25%, that overachievement was primarily tariff recoveries, offset a little bit by freight and logistics. Howard, do you want to talk about the attach rates?

Speaker #3: And we delivered 25%. And that overachievement was primarily tariff recoveries then offset a little bit by freight and logistics. Howard, do you want to talk about the attached rates?

Speaker #3: So you'll see some quarters it goes up, some it may be in line. But we're expecting a very strong year for TrueCapture. Q1 was strong.

Speaker #3: But the real kind of overall beat on margins was we had pretty significant IEPA recoveries. And there's still more that we'll get in Q2 and some beyond possibly.

Speaker #2: Sure. First, I want to hum a few bars on true capture, which we love. And adore because it represents the best of what we do as a company.

Howard Wenger: Sure. First I want to hum a few bars on TrueCapture, which we love and adore because it represents the best of what we do as a company. We've been working on it for about 10 years. It's really hard thing to do, which is to optimize the performance of every single row of trackers in a field. There are thousands of tracker rows in every field, typically, for the larger fields. We operate each one independently to maximize yield, that's what TrueCapture does. It does it in several different ways. We've proven it, third-party engineers have proven it, that it works. It's validated, we have many tens of gigawatts of TrueCapture installed with validated performance.

Speaker #2: We've been working on it for about 10 years. It's really hard thing to do, which is to optimize the performance of every single row of trackers in a field.

Speaker #3: But that was a real benefit and there was a bit of a headwind on freight that kind of offset that a bit. But I would look at our guide overall was kind of low 20s operating margins.

Speaker #2: And there are thousands of tracker rows in every field. Typically, for the larger fields. And we operate each one independently to maximize yield. And that's what true capture does.

Speaker #3: And we delivered 25%. That overachievement was primarily tariff recoveries, then offset a little bit by freight and logistics. Howard, do you want to talk about the attached rates?

Speaker #2: Sure. First, I want to hum a few bars on TrueCapture, which we love and adore because it represents the best of what we do as a company.

Speaker #2: And it does it as several different ways. And we've proven it. Third-party engineers have proven it that it works. It's validated. And we have many tens of gigawatts of true capture installed with validated performance.

Speaker #2: We've been working on it for about 10 years. It's really hard thing to do, which is to optimize the performance of every single row of trackers in a field.

Speaker #2: And we are seeing increasing attached rate for it because over time, the it becomes even more valuable the more you have uneven terrain and more difficult locations to install the power plant.

Howard Wenger: We are seeing increasing attach rate for it, because over time, it becomes even more valuable the more you have uneven terrain and more difficult locations to install the power plant. Operating the power plant in a reliable way that maximizes yield is becoming more challenging, but our TrueCapture control system does that. We're not publishing attach rates, but I can tell you that it's going up. When we did the IPO, and did the roadshow, we said it was about 1% of revenue. We've given indication that it's 2% of revenue. Well, I can tell you in the quarter it was higher than that. The attach rates are going up for that, and it is important, Phil. It's a very insightful question, and much appreciated.

Speaker #2: And there are thousands of tracker rows in every field, typically for the larger fields. And we operate each one independently to maximize yield. And that's what TrueCapture does.

Speaker #2: And it does it in several different ways. And we've proven it—third-party engineers have proven that it works. It's validated. And we have many tens of gigawatts of TrueCapture installed with validated performance.

Speaker #2: And so operating the power plant in a reliable way that maximizes yield is becoming more challenging, but our true capture control system does that.

Speaker #2: And so we're not publishing attached rates, but I can tell you that it's going up. When we did the IPO, we and did the roadshow, we said it was about 1% of revenue.

Speaker #2: And we are seeing increasing attach rate for it because, over time, it becomes even more valuable the more you have uneven terrain and more difficult locations to install the power plant.

Speaker #2: Then we've given indication that it's 2% of revenue. Well, I can tell you in the quarter it was higher than that. And so the attached rates are going up for that.

Speaker #2: And it is important, Phil, it's very insightful question. And much appreciated.

Speaker #2: And so operating the power plant in a reliable way that maximizes yield is becoming more challenging, but our true capture control system does that.

Speaker #5: Thanks, Howard. Quick follow-up here on bookings. In the quarter, can you guys share what the mix was between the different products? I know the revenue guys talked about non-tracker was 14%.

Phil Shen: Thanks, Howard. A quick follow-up here. On bookings in the quarter, can you guys share what the mix was between the different products? I know the revenue you guys talked about non-tracker was 14%. On the bookings, can you do the same? Also on a go-forward basis, you guys have been pretty steady in this $1 billion per quarter kind of bookings level. Do you see potential for that to accelerate, or should we continue to expect this billion-dollar cadence? Thanks.

Speaker #2: And so we're not publishing attached rates, but I can tell you that it's going up. When we did the IPO, we and did the roadshow.

Speaker #5: On the bookings, can you do the same? And then also, on the go forward basis, you guys have been pretty steady in this $1 billion per quarter kind of bookings level.

Speaker #2: We said it was about 1% of revenue. Then we've given an indication that it's 2% of revenue. Well, I can tell you, in the quarter, it was higher than that.

Speaker #5: Do you see potential for that to accelerate or should we continue to expect this billion dollar cadence? Thanks.

Speaker #2: And so the attached rates are going up for that. And it is important, Phil. That's a very insightful question, and much appreciated.

Speaker #3: I'll take the first part, Phil, and the numbers and Howard can fill in more color. We raised our backlog number from 5.25 to 5.5 billion over 5.5 billion.

Chuck Boynton: I'll take the first part, Phil, on the numbers, and Howard can fill in more color. We raised our backlog number from $5.25 to 5.5 billion, over $5.5 billion. We also want to be clear that our energy storage business, which just closed in July, adds significantly more than $300 million on top of that backlog. We don't break out the details of the over $5.5 billion, but Howard, do you want to add some color?

Speaker #5: Thanks, Howard. Quick follow-up here. On bookings, in the quarter, can you guys share what the mix was between the different products? I know the revenue you guys talked about non-tracker was 14%.

Speaker #3: We also want to be clear that our energy storage business, which just closed in July, adds significantly more than 300 million on top of that backlog.

Speaker #5: On the bookings, can you do the same? And then also, on a go-forward basis, you guys have been pretty steady in this $1 billion-per-quarter kind of bookings level.

Speaker #3: We don't break out the details of the over 5.5 billion, but Howard, do you want to add some color?

Speaker #5: Do you see potential for that to accelerate, or should we continue to expect this billion-dollar cadence? Thanks.

Speaker #2: Well, I'll just say that I like how you framed the question, Phil, and I'm going to affirm that we did book more than $1 billion well over for the quarter.

Howard Wenger: Well, I'll just say that I like how you framed the question, Phil, and I'm going to affirm that we did book more than $1 billion, well over, for the quarter. We had a great bookings quarter, and it was supported both by strong US and strong international sales and strong sales coming from non-tracker business. We're not breaking out precisely what the mix is, but directionally, very meaningful contributions from the non-tracker part of the business.

Speaker #3: I'll take the first part, Phil, and the numbers and Howard can fill in more color. We raised our backlog number from 5.25 to 5.5 billion over 5.5 billion.

Speaker #2: We had a great bookings quarter. And it is was supported both by strong US and strong international sales and strong sales coming from non-tracker business.

Speaker #3: We also want to be clear that our energy storage business, which just closed in July, adds significantly more than $300 million on top of that backlog.

Speaker #2: But we're not breaking out precisely what the mix is. But directionally, meaningful, very meaningful contributions from the non-tracker part of the business.

Speaker #3: We don't break out the details of the over $5.5 billion, but Howard, do you want to add some color?

Speaker #2: Well, I'll just say that I like how you frame the question, Phil, and I'm going to affirm that we did book more than $1 billion.

Speaker #1: And your next question comes from the line of Moses Sutton with BMP Perry Bach. Your line is open. Please go ahead. A reminder that you may need to hit star six to unmute.

Operator: Your next question comes from the line of Moses Sutton with BNP Paribas. Your line is open. Please go ahead. A reminder that you may need to hit star six to unmute.

Speaker #2: Well over for the quarter, we had a great bookings quarter, and it was supported both by strong U.S. and strong international sales, as well as strong sales coming from non-tracker business.

Speaker #5: Thanks for taking the question. And congrats on beating well, every quarter. So the 10 gigawatts of US inverter capacity could push, I don't know, to 8% of 2028 revenue if you start selling that out.

Moses Sutton: Thanks for taking my question, and congrats on beating, well, every quarter. At the 10 GW of US inverter capacity, could push, I don't know, to 8% of 2028 revenue if you start selling that out. Is that the case? Is that sort of the directional view here? Similar to trackers, would you actually expect to have extra capacity in inverters on hand for surge shipment needs? I guess my second question, what other areas are you guys looking to conquer next? You're getting into power conversion. There could be medium voltage transformers. There could be commercial solar battery kits or integrators, just other areas that are on your mind. Thanks for taking my questions.

Speaker #2: But we're not breaking out precisely what the mix is. But directionally, there are meaningful, very meaningful contributions from the non-tracker part of the business.

Speaker #5: Is that the case? Is that sort of the directional view here? And similar to trackers, would you actually expect to have extra capacity in inverters on hand for surge shipment needs?

Speaker #1: And your next question comes from the line of Moses Sutton with BNP Paribas. Your line is open. Please go ahead. A reminder that you may need to hit star six to unmute.

Speaker #5: And I guess my second question, what other areas are you guys looking to conquer next? You're getting into power conversion. There could be medium voltage transformers.

Speaker #5: There could be commercial solar battery kits or integrators, just other areas that are on your mind. Thanks for taking my questions.

Speaker #5: Thanks for taking the question, and congrats on beating well every quarter. So, 10 gigawatts of U.S. inverter capacity could push, I don't know, up to 8% of 2028 revenue if you start selling that out.

Speaker #3: Yeah, thanks, Moses. I think what you've seen in the past is we don't screw around when it comes to supply chain. From a capacity, from an operational execution, from having raw materials and our balance sheets certainly supports being able to accomplish all the above.

Dan Shugar: Yeah. Thanks, Moses. I think what you've seen in the past is we don't screw around when it comes to supply chain. From a capacity, from an operational execution, from having raw materials and our balance sheet certainly supports being able to accomplish all the above. We're going to size the domestic production capacity in response to what the market needs are. I also want to just highlight that the energy storage business, the Prevalon business, they do work with third-party power conditioning manufacturers, have great relationships there. We're going to keep respecting those relationships. On the power conditioning side with storage, the business unit can either use an inverter that we would make at the company or a third-party inverter, as long as it's a high-quality product that's supported with on-time delivery and great service.

Speaker #5: Is that the case? Is that sort of the directional view here? And similar to trackers, would you actually expect to have extra capacity in inverters on hand for surge shipment needs?

Speaker #5: And I guess my second question: what other areas are you guys looking to conquer next? You're getting into power conversion. There could be medium-voltage transformers.

Speaker #3: So we're going to size the domestic production capacity in response to what the market needs are. I'd also want to just highlight that the energy storage business, the prevalent business, they do work with third-party power conditioning manufacturers, have great relationships there.

Speaker #5: There could be commercial solar battery kits or integrators—just other areas that are on your mind. Thanks for taking my questions.

Speaker #3: Yeah. Thanks, Moses. I think what you've seen in the past is we don't screw around when it comes to supply chain—from a capacity standpoint, from an operational execution standpoint, from having raw materials—and our balance sheet certainly supports being able to accomplish all of the above.

Speaker #3: We're going to keep respecting those relationships. On the power conditioning side, with storage, the business unit can either use inverter that we would make at the company or a third-party inverter as long as it's a high-quality product that's supported with on-time delivery and great service.

Speaker #3: So that particular business unit will be free to find the best solution for the customer. But for our internal program to build US inverter capacity, we are very pleased.

Dan Shugar: That particular business unit will be free to find the best solution for the customer. For our internal program to build US inverter capacity, we are very pleased. We announced we brought Rob Dingee in as our Chief Operating Officer. His top priority is that. We have a long experience with Rob. I first met him 20 years ago with Howard. We were on the roof of the SunPower solar power cell line in Manila, in the Philippines. Rob scaled thousands of buildings with Amazon. Well, he is the top operating person we know in the industry, period. We're very pleased to have him join the team in the last few months. He's working with our existing team with some of the new folks that we've brought on through the acquisitions, and we're adding some additional team members.

Speaker #3: We're going to keep respecting those relationships. On the power conditioning side, with storage, the business unit can either use an inverter that we would make at the company or a third-party inverter, as long as it's a high-quality product that's supported with on-time delivery and great service.

Speaker #3: We announced we brought Rob Vingi in as our chief operating officer. We have a long and he is his top priority is that. We have a long experience with Rob.

Speaker #3: I first met him 20 years ago with Howard. We were on the roof of the Sun Power solar power cell line in Manila in the Philippines.

Speaker #3: So that particular business unit will be free to find the best solution for the customer. But for our internal program to build U.S. inverter capacity, we are very pleased.

Speaker #3: Rob scaled thousands of buildings with Amazon and is one of the top operational well, he is the top operating person we know in the industry, period.

Speaker #3: And so we're very pleased to have him join the team in the last few months. And he's working with our existing team with some of the new folks that we've brought on through the acquisitions.

Speaker #3: We announced we brought Rob Vingi in as our chief operating officer. We have a long and he is his top priority is that. We have a long experience with Rob.

Speaker #3: And we're adding some additional team members. So we have the resources. We have the strategy. We have the capital. And we've listened to our customers.

Dan Shugar: We have the resources, we have the strategy, we have the capital, and we've listened to our customers. These inverters and power conditioners have been the Achilles heel of solar and battery, and those days are going to be over. We are going to address that issue and deliver the most reliable and available set of products, period. Our customers are begging us for this, and we're going to fulfill that. I think it's hard, but I don't think it's rocket science. We're going to get it done. In terms of, we're not really thinking about what percentage of the revenue is it exactly. We're just focused on the business case. Ultimately, that product family is actually a higher margin business than our tracker business.

Speaker #3: I first met him 20 years ago with Howard. We were on the roof of the SunPower solar power cell line in Manila, in the Philippines.

Speaker #3: These inverters and power conditioners have been the Achilles heel of solar and battery and those days are going to be over. We are going to address that issue.

Speaker #3: Rob scaled thousands of buildings with Amazon and is one of the top operational well, he is the top operating person we know in the industry, period.

Speaker #3: And deliver the most reliable and available set of products period. And we our customers are begging us for this. And we're going to fulfill that.

Speaker #3: And so we're very pleased to have him join the team in the last few months. He's working with our existing team, with some of the new folks we've brought on through the acquisitions, and we're adding some additional team members.

Speaker #3: And I think it's hard, but I don't think it's rocket science. We're going to get it done. So in terms of we're not really thinking about what percentage of the revenue is it exactly.

Speaker #3: So we have the resources. We have the strategy. We have the capital. And we've listened to our customers. These inverters and power conditioners have been the Achilles' heel of solar and battery, and those days are going to be over.

Speaker #3: We're just focused on the business case, ultimately that product family is actually a higher margin business than the our tracker business. And it will if we deliver operational excellence there, which we will, we hope that it lands and performs at a higher margin part of our overall portfolio of products and services we're bringing to the market.

Speaker #3: We are going to address that issue and deliver the most reliable and available set of products, period. And our customers are begging us for this.

Dan Shugar: If we deliver operational excellence there, which we will, we hope that it lands and performs at a higher margin part of our overall portfolio of products and services we're bringing to market. What we're most focused on is meeting customer expectations with schedule, with product performance, commissioning, reconstruction, design, support, getting through the utility process and so forth, and then having both a very strong quality and very strong reliability program at the company to be able to support that operational performance. If we do all the above, the sales, the profitability of those units will then be a byproduct of us doing our job. We think not only is this an important thing for our customers and Nextpower, but we think it's an important thing for the industry. We're going to really lean in on this and provide this portfolio to our customers.

Speaker #3: And we're going to fulfill that. And I think it's hard, but I don't think it's rocket science. We're going to get it done. So, in terms of, we're not really thinking about what percentage of the revenue it is, exactly.

Speaker #3: But what we're most focused on is meeting customer expectations with schedule, with product performance, commissioning, reconstruction, design, support getting through the utility process, and so forth, and then having both a very strong quality and a very strong reliability program at the company to be able to support that operational performance.

Speaker #3: If we do all the above, the sales the profitability of those units will then be a byproduct of us doing our job. And we think not only is this an important thing for our customers, and next power, but we think it's an important thing for the industry.

Speaker #3: But what we're most focused on is meeting customer expectations with schedule, product performance, commissioning, reconstruction, design, support—getting through the utility process, and so forth—and then having both a very strong quality and a very strong reliability program at the company in order to support that operational performance.

Speaker #3: And so we're going to really lean in on this. And provide this portfolio to our customers.

Speaker #2: And on part B, I'll just start, and Dan, if you want to fill in. You were asking about other M&A. As Dan noted, I believe formulated our platform strategy more than two years ago.

Howard Wenger: On part B, I'll just start and Dan, if you want to fill in. You were asking about other M&A. As Dan noted, we formulated our platform strategy more than 2 years ago. We've really executed on it, to evolve beyond the tracker to provide a full turnkey solution for both solar and storage. We have the major pieces in place now with the closing of the Prevalon deal for storage and the Apex Zigor acquisition. There is more to do. There is more to do and more possibilities there, as you noted, Moses. Dan, do you want to add to that?

Speaker #3: If we do all of the above, the sales and profitability of those units will then be a byproduct of us doing our job. And we think not only is this an important thing for our customers and Nextracker, but we think it's an important thing for the industry.

Speaker #2: We've really executed on it to evolve beyond the tracker to provide a full turnkey solution for both solar and storage. We have the major pieces in place now with the closing of the Prevalon deal for storage and the Apex Tigger acquisition.

Speaker #3: And so, we're going to really lean in on this and provide this portfolio to our customers.

Speaker #2: So but there's more to do. There is more to do and more possibilities there as you noted, Moses. But Dan, do you want to add to that?

Speaker #2: In part B, I'll just start, and Dan, if you want to fill in. You were asking about other M&A. As Dan noted, I believe we formulated our platform strategy more than two years ago.

Speaker #3: Yeah. I mean, look, we're continuing to invest well over $100 million a year organically in our R&D. And develop a suite of products there.

Dan Shugar: Yeah. Look, we're continuing to invest well over $100 million a year organically in our R&D and develop a suite of products there. Again, we're listening what are opportunities to the customers have to help them with their IRR on their power plant investments. If there's something we need to do, we'll take it on. If we can develop it organically, that's usually the best thing to do. If we need to do an M&A to accelerate time to market and bring additional experience into our company that we don't have, as we did on the energy storage business, we'll do that. The only thing we are committed to is a fully informed decision, and that is objective and delivers value to the customer and also shareholder value. Thanks, Moses. Next question.

Speaker #2: We've really executed on it to evolve beyond the tracker, to provide a full turnkey solution for both solar and storage. We have the major pieces in place now with the closing of the Prevalon deal for storage and the Apex Tigger acquisition.

Speaker #3: The again, we're listening where what are opportunities to that customers have to help them with their IRR on their power plant investments. If there's something we need to do, we'll take it on.

Speaker #2: So, but there's more to do. There is more to do and more possibilities there, as you noted, Moses. But Dan, do you want to add to that?

Speaker #3: If we can develop it organically, that's usually the best thing to do. If we need to do an M&A to accelerate time to market and bring additional experience into our company, that we don't have, as we did on the energy storage business, we'll do that.

Speaker #3: Yeah. I mean, look, we're continuing to invest well over $100 million a year organically in our R&D and develop a suite of products there.

Speaker #3: The only thing we are committed to is a fully informed decision. And that is objective and delivers value to the customer and also shareholder value.

Speaker #3: Again, we're listening for what opportunities our customers have and how we can help them with their IRR on their power plant investments. If there's something we need to do, we'll take it on.

Speaker #2: Thanks, Moses. Next question.

Chuck Boynton: Preble, thanks.

Moses Sutton: Preble, thanks.

Speaker #1: Preval, thanks.

Speaker #2: And your next question comes from the line of Dylan Nassano with Wolf Research. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Dylan Nassano with Wolfe Research. Your line is open. Please go ahead.

Speaker #3: If we can develop it organically, that's usually the best thing to do. If we need to do an M&A to accelerate time to market and bring additional experience into our company that we don't have, as we did on the energy storage business, we'll do that.

Speaker #1: Yeah. Hi. Thanks for taking my question. So now that Prevalon is closed, I just was hoping we could get an update on, I guess, the cell procurement strategy there and specifically I guess just the appetite around offering a US domestic product.

Dylan Nassano: Yeah. Hi. Thanks for taking my question. Now that Prevalon is closed, I just was hoping we could get an update on, I guess, the cell procurement strategy there, and specifically, I guess, just the appetite around offering a US domestic product. If I could just sneak one more in just on the guidance. I mean, I see the bottom end of the range was raised. I'm assuming visibility improved since our last update. Just any color on why not raise the top end here. Is there anything specifically that you're kind of being cautious on?

Speaker #3: The only thing we are committed to is a fully informed decision, and that is objective and delivers value to the customer and also shareholder value.

Speaker #1: And then if I could just speak one more in just on the guidance. I mean, I see the bottom end of the range was raised.

Speaker #1: I'm assuming visibility improved since our last update. Just any color on why not raise the top end here. Is there anything specifically that you're kind of being cautious on?

Speaker #2: Thanks, Moses. Next question.

Speaker #1: Preval, thanks.

Speaker #2: And your next question comes from the line of Dylan Massano with Wolfe Research. Your line is open. Please go ahead.

Speaker #3: Yeah. Okay. I'll do the first half. So the former Prevalon team, now next power energy storage team, has as I mentioned, delivered approximately 38 projects.

Dan Shugar: Yeah. Okay. I'll do the first half. The former Prevalon team, now the Nextpower Energy Storage team, has, as I mentioned, delivered approximately 38 projects to the market. I personally spoke to eight of the legacy customers, including a very large hyperscaler that the team is currently fulfilling a project over one gigawatt with, and that's going really well. They have a, I'll say, a portfolio of supply options available to meet the customer's domestic content requirements, just as we do on the tracker side and our other product side with our other products at Nextpower. Actually, last week, we met with over 10 customers, speaking a lot about energy storage. Well, with every customer, we spoke about energy storage. We didn't hear any requirements from them that we can't meet.

Speaker #3: To the market, I personally spoke to eight of the legacy customers, including a very large hyperscaler that the team is currently fulfilling a project over one gigawatt with.

Speaker #1: And then if I could just speak one more time, just on the guidance. I mean, I see the bottom end of the range was raised.

Speaker #1: I'm assuming visibility improved since our last update. Just any color on why not raise the top end here? Is there anything specifically that you're kind of being cautious on?

Speaker #3: And that's going really well. They have a I'll say a portfolio of supply options available to meet the customer's domestic content requirements. Just as we do on the tracker side and our other product side, with our other products at Next Power.

Speaker #3: Yeah. Okay. I'll do the first half. So the former Prevailon team, now Next Power Energy Storage team, has, as I mentioned, delivered approximately 38 projects to the market.

Speaker #3: I personally spoke to eight of the legacy customers, including a very large hyperscaler that the team is currently fulfilling a project of over one gigawatt with.

Speaker #3: I haven't heard any customers actually, last week, we met with over 10 customers. Speaking a lot about energy storage. Well, with every customer, we spoke about energy storage.

Speaker #3: And they're we didn't hear any requirements from them that we can't meet. And so it's exciting that just as in solar with solar panel factories being built out in the US, we're also seeing additional battery factories being built out in the US.

Dan Shugar: It's exciting that, just as in solar with solar panel factories being built out in the US, we're also seeing additional battery factories being built out in the US. We have a good position today, and we expect that to grow as the capacity grows and customer needs grow. Chuck, can you take the second part?

Speaker #3: And so we have a good position today, and we expect that to grow as the capacity grows and customer needs grow. Chuck, can you take a second part?

Speaker #3: I haven't heard any customers. Actually, last week we met with over ten customers, speaking a lot about energy storage. With every customer, we spoke about energy storage.

Speaker #2: Certainly. Dylan, we had a really strong Q1 and feel like we've got the wind at our backs. And our setup for a great year.

Chuck Boynton: Certainly. Dylan, we had a really strong Q1 and feel like we've got the wind at our backs and are set up for a great year. We did our Q4 earnings call in mid-May, where we outlined our annual guidance. A month or so later, we announced the Prevalon transaction and materially raised top and bottom. Here we are, a month and a half or so later, raising the bottom end of the range. We come in there with strong conviction. Why? Well, we see revenue increasing throughout the year. We noted in the shareholder letter that we'll see modest sequential increases in revenue throughout the year. Importantly, we did not add an outlook for Zimmermann, the company in Germany that has a very strong business and strong profitability, strong cash flow.

Speaker #3: And we didn't hear any requirements from them that we can't meet. And so it's exciting that, just as in solar with solar panel factories being built out in the US, we're also seeing additional battery factories being built out in the US.

Speaker #2: We did our Q4 earnings call in mid-May where we outlined our annual guidance. A month or so later, we announced the Prevalon transaction and materially raised top and bottom.

Speaker #2: And then here we are a month and a half or so later, raising the bottom end of the range. But we come in there with strong conviction.

Speaker #3: And so we have a good position today, and we expect that to grow as capacity grows and customer needs grow. Chuck, can you take the second part?

Speaker #2: Why? Well, we see revenue increasing throughout the year. We noted in the shareholder letter that we'll see modest sequential increases in revenue, throughout the year.

Speaker #2: Certainly. Dylan, we had a really strong Q1 and feel like we've got the wind at our backs. And we’re set up for a great year.

Speaker #2: But importantly, we did not add an Outlook for Zimmerman. The company in Germany that has a very strong business and strong profitability, strong cash flow.

Speaker #2: We did our Q4 earnings call in mid-May, where we outlined our annual guidance. A month or so later, we announced the Prevalon transaction and materially raised top and bottom.

Speaker #2: That's not in our Outlook because we're not exactly sure in the timing of when that will close. Prevalon, we did because we had strong conviction on when that would close and it was basically right on target.

Chuck Boynton: That's not in our outlook because we're not exactly sure on the timing of when that will close. Prevalon we did because we had strong conviction on when that would close, and it was basically right on target. We are set up for the back half of the year to have an increase likely tied to Zimmermann being closed. I would say it's just Q1. We just finished our Q1. We still have three quarters to go, so we want to be prudent with our overall outlook. Thank you, Dylan.

Speaker #2: And then here we are, a month and a half or so later, raising the bottom end of the range. But we come in there with strong conviction.

Speaker #2: And so we are set up for their back half of the year to have an increase likely tied to Zimmerman being closed. But I would say it's just Q1.

Speaker #2: Why? Well, we see revenue increasing throughout the year. We noted in the shareholder letter that we'll see modest, sequential increases in revenue throughout the year.

Speaker #2: We just finished our first quarter. We still have three quarters to go. So we want to be prudent with our overall Outlook. Thank you, Dylan.

Speaker #2: But importantly, we did not add an outlook for Zimmermann, the company in Germany that has a very strong business, strong profitability, and strong cash flow.

Speaker #1: And your next question comes from the line of Christopher Selder with Truist. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Christopher Souther with Truist. Your line is open. Please go ahead.

Speaker #2: That's not in our outlook because we're not exactly sure on the timing of when that will close. Prevalon we did, because we had strong conviction on when that would close, and it was basically right on target.

Speaker #4: Hey. Thanks so much for taking my question here. I'm curious it was really helpful you guys framing the inverter opportunity set. As we're looking at storage, are there any concrete numbers you can give around the gating factors there, be it cell supply, be it some of the module capacity or containers that you could kind of talk through?

Christopher Souther: Hey, thanks so much for taking my question here. I'm curious. It was really helpful, you guys framing the inverter opportunity set. As we're looking at storage, are there any concrete numbers you can give around the gating factors there, be it cell supply, be it some of the module capacity or containers that you could kind of talk through?

Speaker #2: And so we are set up for the back half of the year to have an increase, likely tied to Zimmermann just finishing our first quarter.

Speaker #2: We still have three quarters to go, so we want to be prudent with our overall outlook. Thank you, Dylan.

Speaker #1: And your next question comes from the line of Christopher Selder with Truist. Your line is open. Please go ahead.

Speaker #3: Yeah. Thanks, Chris, for first, I want to just pull back and compliment the team that Next Power Energy Storage team the CEO of that, Tom Cornell, and Ben Hunnel, the CFO, and the Chief Technology Officer Alejandro for how they've really brought together a great set of products to the market.

Dan Shugar: Yeah. Thanks, Christopher Souther. First, I want to just pull back and compliment the team, the Nextpower Energy Storage team, the CEO of that, Tom Cornell, and Ben Huddle, the CFO, and the Chief Technology Officer, Alejandro, for how they've really brought together a great set of products to the market. They have both a DC Block and an AC Block solution in the market. There's 10 use cases in battery energy storage, and they address eight of them. We spoke about this Power Stabilizer application for data centers, something none of us were talking about a few years ago. Here they are fulfilling one of the largest projects in the country with that. We just closed this week, and we're out speaking with customers now. We'll certainly unpack this in much greater depth at our Capital Markets Day on 16 November.

Speaker #4: Hey, thanks so much for taking my question here. I'm curious—it was really helpful, you guys, framing the inverter opportunity set. As we're looking at storage, are there any concrete numbers you can give around the gating factors there, be it cell supply, some of the module capacity, or containers, that you could kind of talk through?

Speaker #3: They have both a DC block and an AC block solution in the market. And so it really addresses there's 10 use cases in battery energy storage.

Speaker #3: Yeah. Thanks, Chris. First, I want to just pull back and compliment the team at the Next Power Energy Storage team—the CEO of that, Tom Cornell, and Ben Hunnel, the CFO, and the Chief Technology Officer, Alejandro—for how they've really brought together a great set of products to the market.

Speaker #3: And they address eight of them. And there's we spoke about this power stabilizer application for data centers, something none of us were talking about a few years ago.

Speaker #3: And here they are fulfilling one of the largest projects in the country with that. So we just closed last week. And we're out speaking with customers now.

Speaker #3: So we'll certainly unpack this in much greater depth at our capital markets day on November 16th. But what I'll tell you is that I see no impediments to being on the company from either a supply design, financing, standpoint, to be able to satisfy customer needs.

Speaker #3: They have both a DC block and an AC block solution in the market, and so it really addresses... There's ten use cases in battery energy storage, and they address eight of them.

Dan Shugar: What I'll tell you is that I see no impediments to being the company from either a supply, design, financing standpoint to be able to satisfy customer needs. The battery segment we put in the shareholder letter, latest data that we have is it's growing at a 33% CAGR through 2030 based on the latest forecast. We're seeing it. Firstly, all our legacy customers on the solar side are doing storage. We're seeing a lot of pure play storage companies. We're seeing utilities go out for bid because it's a way to not only arbitrage power from the middle of the day to later in the evening or in the morning, but also it's a way to deal with limited transmission capacity on the electric transmission side.

Speaker #3: And we spoke about this power stabilizer application for data centers, something none of us were talking about a few years ago. And here they are, fulfilling one of the largest projects in the country with that.

Speaker #3: The battery segment, we put in the shareholder letter latest data that we have is it's growing at a 33% CAGR through 2030, based on the latest forecast.

Speaker #3: So we just closed last week, and we're out speaking with customers now. We'll certainly unpack this in much greater depth at our Capital Markets Day on November 16th.

Speaker #3: And we're seeing it. A lot of our legacy virtually all our legacy customers on the solar side are doing storage. We're seeing a lot of pure plate storage companies.

Speaker #3: But what I'll tell you is that I see no impediments to being on the company from either a supply, design, or financing standpoint to be able to satisfy customer needs.

Speaker #3: We're seeing utilities go out for bid. Because it's a way to not only arbitrage power from the middle of the day to later in the evening or in the morning, but also it's a way to deal with limited transmission capacity on the electric transmission side.

Speaker #3: The battery segment—we put in the shareholder letter the latest data that we have—is growing at a 33% CAGR through 2030, based on the latest forecast.

Speaker #3: If you analyze how little transmission is being built in the United States, I'm talking about electric transmission and subtransmission from 115,000 volts through 500 kilovolts, typically.

Dan Shugar: If you analyze how little transmission is being built in the US, I'm talking about electric transmission and sub-transmission from 115,000 volts through 500 kilovolts, typically. There's very few circuit models being built. There's a lot of load being added. What the battery does is it addresses both the need, the ability to arbitrage power and supply local T&D support. Howard and I wrote several, actually technical papers on this in 1990, 1991, using photovoltaics and energy storage for grid support. I wrote a paper with a former colleague called "The Distributed Utility" in 1991 that basically outlined a model for how distributed renewables, but also storage would help support the grid. Now that battery is available at huge scale, extremely affordable, what we're seeing is also batteries transitioning from five years ago, these batteries were one hour typically.

Speaker #3: And we're seeing it. A lot of our legacy, virtually all our legacy customers on the solar side are doing storage. We're seeing a lot of pure play storage companies.

Speaker #3: We're seeing utilities go out for bid because it's a way to not only arbitrage power from the middle of the day to later in the evening or in the morning, but also it's a way to deal with limited transmission capacity on the electric transmission side.

Speaker #3: There's very few circuit miles being built. There's a lot of load being added. And with the battery does is it addresses both the ability to arbitrage power and supply local T&D support.

Speaker #3: If you analyze how little transmission is being built in the United States—I'm talking about electric transmission and subtransmission from 115,000 volts through 500 kilovolts, typically.

Speaker #3: And Howard and I wrote several actually technical papers on this in 1990, 1991. Using photovoltaics and energy storage for grid support, I wrote a paper with a former colleague called The Distributed Utility.

Speaker #3: There are very few circuit models being built. There's a lot of load being added. And what the battery does is it addresses both the ability to arbitrage power and supply local P&D support.

Speaker #3: In 1991, that basically outlined a model for how distributed renewables, but also storage would help support the grid. And now that battery is available at huge scale, extremely affordable, what we're seeing is also batteries transitioning from five years ago, these batteries were one hour, typically, a few years later, they were two hours.

Speaker #3: Howard and I wrote several technical papers on this. In 1990 and 1991, using photovoltaics and energy storage for grid support, I wrote a paper with a former colleague called 'The Distributed Utility.'

Dan Shugar: A few years later, they were 2 hours. Now with this stuff coming out on the grid, it's 4 hours. Well, the customers we were speaking to last week, we're seeing a lot of 6 and 8-hour applications. We think the batteries are really important for customers to connect close to the grid, but also highly synergistic with solar, which is why we're bullish on the long-term forecast for solar because solar, the costs have come down so much. The only impediment is basically more duration and dispatch ability, and the storage is solving that. We just saw also an analysis that the Arizona Public Service put forward in, I believe a regulatory proceeding, look at what's called the ELCC, it's the effective load carrying capability. Solar by itself was pretty low.

Speaker #3: Now, this stuff coming on the grid or it's four hours. Well, the customers we were speaking to last week, we're seeing a lot of six and eight-hour applications.

Speaker #3: In 1991, that basically outlined a model for how distributed renewables, but also storage, would help support the grid. And now that battery is available at huge scale and is extremely affordable, what we're seeing is also batteries transitioning. Five years ago, these batteries were typically one hour. A few years later, they were two hours.

Speaker #3: And so we think the batteries are really important for customers to connect loads to the grid, but also highly synergistic with solar, which is why we're bullish on the long term.

Speaker #3: Forecast for solar because solar is the costs have come down so much. The only impediment is basically more duration and dispatchability and the storage is solving that.

Speaker #3: Now, is this stuff coming on the grid, or is it four hours? Well, the customers we were speaking to last week were seeing a lot of six- and eight-hour applications.

Speaker #3: And actually, we just saw also an analysis that the Arizona Public Service put forward in a I believe a regulatory proceeding look at the what's called the ELCC.

Speaker #3: And so, we think the batteries are really important for customers to connect close to the grid, but also highly synergistic with solar, which is why we're bullish on the long term.

Speaker #3: It's the effective load carrying capability. And Solar by itself was pretty low. Solar was stored through very high, kind of right up there with gas and so forth.

Dan Shugar: Solar with storage was very high, kind of right up there with gas and so forth. The storage is essential as we go forward and we see previously unimagined use cases for it as we go forward. They really portend solar. The final thing I'll note is the first 6 months of this year to date, 90% or 91% of the power generation brought online in the United States, even in this regulatory environment, 91% was solar and storage. We could speak to you all day long about why solar is going to keep coming down in cost and keep improving in availability and similarly with storage. We're very bullish on the prospects of these technologies to continue growing. Next question.

Speaker #3: And so the storage is essential as we go forward. And we see previously unimagined use cases for it as we go forward. And they really portential solar.

Speaker #3: Forecast for solar, because solar—the costs have come down so much. The only impediment is basically more duration and dispatchability, and storage is solving that.

Speaker #3: And actually, we just saw also an analysis that Arizona Public Service put forward in, I believe, a regulatory proceeding looking at what's called the ELCC.

Speaker #3: And I'll just the final thing I'll note is the first six months of this year to date, 90% or 91% of the power generation brought online in the United States even in this regulatory environment.

Speaker #3: It's the effective load-carrying capability. And solar by itself was pretty low. Solar was sort of very high, kind of right up there with gas and so forth.

Speaker #3: 91% was solar and storage. And we could speak to all day long about why solar is going to keep coming down in cost and keep improving in availability and similarly with storage.

Speaker #3: And so the storage is essential as we go forward and we see previously unimagined use cases for it as we go forward. And it really portends well to solar.

Speaker #3: So we're very bullish on the prospects of these technologies to continue growing.

Speaker #1: Next question.

Speaker #2: And your next question comes from the line of Ben Callow with Baird. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Ben Kallo with Baird. Your line is open. Please go ahead.

Speaker #3: And I'll just define—a thing I'll note is that in the first six months of this year to date, 90% or 91% of the power generation brought online in the United States, even in this regulatory environment—91% was solar and storage.

Speaker #1: Hey, guys. Thanks for fitting me in. And I'll try to keep it to time here. I know we focus a lot on the US, maybe could you talk internationally tracker or non-tracker the Saudi JV.

Ben Kallo: Hey guys. Thanks for fitting me in. I'll try to keep the time here. I know we focused a lot on the US. Maybe could you talk internationally, tracker, non-tracker, the Saudi JV, and then, because inverter has been such a focus of the call, could you just talk about the non-US strategy? I know you're going to produce in the US but how you go to market there outside of Spain, I'm thinking more Asia there. A couple different questions there, but thanks for your time, guys.

Speaker #3: And we could speak all day long about why solar is going to keep coming down in cost and keep improving in availability, and similarly with storage.

Speaker #1: And then because inverse has been such a focus of the call, could you just talk about the non-US strategy? I know you're going to produce in the US, but how you go to market there.

Speaker #3: So, we're very bullish on the prospects of these technologies to continue growing.

Speaker #1: Outside of Spain, I'm thinking more Asia there. So a couple of different questions there, but thanks for your time, guys.

Speaker #2: Next question.

Speaker #1: And your next question comes from the line of Ben Callow with Baird. Your line is open. Please go ahead.

Speaker #3: Yeah, sure. First, I'll talk about NX Arabia, which we banged the gong in January of this year. They're off to a great start. We booked business there through the JV.

Dan Shugar: Yeah, sure. First I'll talk about NX Arabia, which we banged the gong in January of this year. They're off to a great start. We've booked business there through the JV. It's a structural change in how we report the financials there. We're not recognizing the revenue. We are recognizing the profitability of the venture, and we do have a license there. It's good for the company and it allows us to get our technology there and be very competitive in that low-cost region. That's been very good. We're very happy with the leadership there and our partner in Abunayyan Holding Company is just an excellent partner for us in NX Arabia. They're addressing many countries in the region, not just Saudi Arabia, but in MENA, Middle East, North Africa. We're working closely with them there.

Howard Wenger: Yeah, sure. First I'll talk about NX Arabia, which we banged the gong in January of this year. They're off to a great start. We've booked business there through the JV. It's a structural change in how we report the financials there. We're not recognizing the revenue. We are recognizing the profitability of the venture, and we do have a license there. It's good for the company and it allows us to get our technology there and be very competitive in that low-cost region. That's been very good. We're very happy with the leadership there and our partner in Abunayyan Holding Company is just an excellent partner for us in NX Arabia. They're addressing many countries in the region, not just Saudi Arabia, but in MENA, Middle East, North Africa. We're working closely with them there.

Speaker #2: Hey guys, thanks for fitting me in. I'll try to keep to the time here. I know we focus a lot on the US, but maybe could you talk internationally, tracker or non-tracker, the Saudi JV?

Speaker #3: It's a structural change in how we report the financials there. We're not recognizing the revenue. So but it's but we are recognizing the profitability of the venture.

Speaker #2: And then, because Inverse has been such a focus of the call, could you just talk about the non-U.S. strategy? I know you're going to produce in the U.S., but how do you go to market there?

Speaker #3: And we do have a license there. So it's good for the company. And it allows us to get our technology there and be very competitive in that low-cost region.

Speaker #2: Outside of Spain, I'm thinking more Asia there. So, a couple of different questions there, but thanks for your time, guys.

Speaker #3: Yeah, sure. First, I'll talk about NX Arabia, which we celebrated with the gong in January of this year. They're off to a great start. We booked business there through the JV.

Speaker #3: And so that's been a very good we're very happy with the leadership there and our partner in Abu Nayan holding company. It's just an excellent partner for us in NX Arabia.

Speaker #3: It's a structural change in how we report the financials there. We're not recognizing the revenue, but we are recognizing the profitability of the venture, and we do have a license there.

Speaker #3: And they're addressing many countries in the region, not just Saudi Arabia, but in Mina, Middle East, North Africa. We're working closely with them there.

Speaker #3: So it's good for the company, and it allows us to get our technology there and be very competitive in that low-cost region. And so that's been very good. We're very happy with the leadership there and our partner in Abu Nayan Holding Company.

Speaker #3: And then as far as the international business, we talked about Zimmermann, which is this very well-respected German company. They've been around for about 15 years.

Dan Shugar: As far as the international business, we talked about Zimmermann, which is this very well-respected German company. They've been around for about 15 years. Very well-respected brand, great team, headquartered in Germany. To be honest, Nextpower doesn't have much footprint in Germany. Historically, it's been a very strong market in Europe. It's one or two over the last 10 years. We don't have a lot of footprint there because it's largely a fixed tilt market.

Howard Wenger: As far as the international business, we talked about Zimmermann, which is this very well-respected German company. They've been around for about 15 years. Very well-respected brand, great team, headquartered in Germany. To be honest, Nextpower doesn't have much footprint in Germany. Historically, it's been a very strong market in Europe. It's one or two over the last 10 years. We don't have a lot of footprint there because it's largely a fixed tilt market.

Speaker #3: Very well-respected brand. Great team. Headquartered in Germany. To be honest, Next Power doesn't have much footprint in Germany historically has been a very strong market.

Speaker #3: It's just an excellent partner for us in NX Arabia, and they're addressing many countries in the region—not just Saudi Arabia, but in MENA, Middle East, North Africa—we're working closely with them there.

Speaker #3: In Europe, it's one or two over the last 10 years. We don't have a lot of footprint there because it's largely a fixed-tilt market.

Speaker #3: And Zimmermann has a very clever, excellent fixed-tilt system. And a significant market share in Germany and they're adding 15 countries to our 50-country market footprint.

Howard Wenger: Zimmermann has a very clever, excellent fixed-tilt system and a significant market share in Germany, and they're adding 15 countries to our 50-country market footprint. We're expanding our market, much of that in Europe, which in totality is as big as the US business in terms of or as much as the US generating capacity. That's what we see in Europe. In totality, it's a very significant, important market there. With Zimmermann and our expanded team in Madrid, and then we have others from the Zigor/Apex acquisition for the inverter there in Spain. We've just greatly expanded our footprint in Europe and internationally. Thanks for the questions, Ben.

Speaker #3: And then, as far as the international business, we talked about Zimmermann, which is this very well-respected German company. They've been around for about 15 years.

Speaker #3: So we're expanding our market. Much of that in Europe, which in totality is as big as the US business in terms of or as much as the US generating capacity.

Speaker #3: Very well-respected brand, great team, headquartered in Germany. To be honest, Next Power doesn't have much footprint in Germany. Historically, it has been a very strong market in Europe.

Speaker #3: It's one or two over the last 10 years. We don't have a lot of footprint there because it's largely a fixed-tilt market, and Zimmermann has a very clever, excellent fixed-tilt system.

Speaker #3: That's what we see in Europe. So in totality, it's a very significant important market there. So with Zimmermann and our expanded team in Madrid, and then we have others from the Zigger Apex acquisition for the inverter, they're in Spain.

Speaker #3: And a significant market share in Germany, and they're adding 15 countries to our 50-country market footprint. So we're expanding our market, much of that in Europe, which, in totality, is as big as the U.S. business in terms of, or as much as, the U.S. generating capacity.

Speaker #3: So we've just greatly expanded our footprint in Europe and internationally. Thanks for the questions, Ben.

Speaker #1: Great. So this brings our call to a close. For those of you that didn't get a chance to answer a question, please join us on the callbacks, and we'll unpack those.

Dan Shugar: Great. This brings our call to a close. For those of you that didn't get a chance to answer a question, please join us on the callbacks and we'll unpack those. We'd like to thank our customers and partners for their continued trust, our employees around the world for their incredible work, and our shareholders for your confidence and support. We're really excited about these opportunities ahead and believe our market leadership, expanding technology platform, and outstanding team position us well for the future, and look forward to sharing more with you at our capital markets day in November. Thanks for joining our call, and have a great day.

Speaker #1: We'd like to thank our customers and partners for their continued trust. Our employees around the world for their incredible work and our shareholders for your confidence and support.

Speaker #3: That's what we see in Europe. So, in totality, it's a very significant, important market there. So, with Zimmermann and our expanded team in Madrid—and then we have others from the Zigger Apex acquisition for the inverter—they're in Spain.

Speaker #1: We're really excited about these opportunities ahead. And believe our market leadership expanding technology platform and outstanding team position us well for the future. And look forward to sharing more with you at our capital markets day in November.

Speaker #3: So we've just greatly expanded our footprint in Europe and internationally. Thanks for the questions, Ben.

Speaker #1: Thanks for joining our call and have a great day.

Speaker #2: Great. So this brings our call to a close. For those of you that didn't get a chance to answer a question, please join us on the callbacks and we'll unpack those.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Speaker #2: We'd like to thank our customers and partners for their continued trust, our employees around the world for their incredible work, and our shareholders for your confidence and support.

Speaker #2: We're really excited about these opportunities ahead, and believe our market leadership, expanding technology platform, and outstanding team position us well for the future. We look forward to sharing more with you at our Capital Markets Day in November.

Speaker #2: Thanks for joining our call, and have a great day.

Q1 2027 Nextpower Inc Earnings Call

Request DemoDemo

Nextpower

Earnings