Revenue rose 22.5% to $1.11B, but gross margin fell 1.2 points to 31.1% and net income grew only 12.7% 8-K. Management raised FY27 revenue guidance to $4.2 to $4.45 billion and guides Q3 revenue growth to about 10% 8-K.
Nextpower Inc. · Fiscal Q2 2027 (quarter ended 2 Oct 2026) · Reported 28 Oct 2026 · US
Key figures
Million USD | Q2 2027 | Q2 2026 | Change |
|---|---|---|---|
Revenue | 1,109.28 | 905.27 | +22.5 % |
Gross profit | 345.32 | 292.86 | +17.9 % |
Operating income | 207.55 | 181.34 | +14.4 % |
Net income | 165.45 | 146.86 | +12.7 % |
Diluted EPS | 1.08 USD/share | 0.97 USD/share | +11.3 % |
Gross margin | 31.1 % | 32.4 % | -1.2 pp |
Operating margin | 18.7 % | 20.0 % | -1.3 pp |
Net margin | 14.9 % | 16.2 % | -1.3 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Revenue growth outran every profit line
Revenue reached $1,109 million in the quarter ended October 2, 2026, against $905 million a year earlier 8-K. Operating income rose 14.4%, net income 12.7% and diluted EPS 11.3% to $1.08, so profit grew at roughly half the pace of sales 8-K. Operating margin fell 1.3 points to 18.7% 8-K.
EPS grew more slowly than net income because diluted shares rose to 153,909 thousand from 152,018 thousand a year earlier 8-K. Research and development expense was $45.6 million against $26.9 million a year earlier, while SG&A rose to $92.2 million from $84.6 million 8-K.
Gross margin fell even with a larger 45X credit benefit
Gross margin was 31.1%, against 32.4% a year earlier and 35.9% in the prior quarter 8-K. Cost of sales was $763,960 thousand against $612,408 thousand a year earlier 8-K. Results include about $99 million of IRA 45X tax credit vendor rebates and tariffs, net, against about $67 million a year earlier 8-K. The margin fell despite a larger benefit.
My reading is that the product mix is shifting: energy storage and other complementary offerings were about 22% of Q2 revenue, and the CEO describes accelerating demand for products beyond trackers 8-K. Whether those lines carry lower margins is an inference, not a company statement. On the company-defined adjusted basis, gross margin was 32.0% against 33.1% a year earlier, and adjusted EBITDA margin was 22.5% against 24.7% 8-K.
Cash flow was close to net income while buybacks and M&A used cash
Cash flow from operations was $158 million in the quarter, against GAAP net income of $165 million 8-K. For the six months, operating cash flow was $279.2 million against $268.2 million a year earlier, and adjusted free cash flow (company-defined) was $240.1 million against $241.5 million 8-K. Working capital and other changes were a $75.3 million use of cash in the six months, against $49.0 million a year earlier 8-K. Receivables from the Section 45X credit were $359.7 million at quarter-end against $352.6 million at March 31, 2026 8-K.
Cash and equivalents were $1,029.9 million at quarter-end against $1,095.0 million at March 31, 2026, with no debt 8-K. The company returned about $162 million through share repurchases and completed the Zimmermann PV-Steel acquisition for approximately 230 million 8-K.
Record bookings and a $6 billion backlog underpin the raised outlook
Management reports record quarterly bookings and backlog above $6 billion. eBOS bookings exceeded $100 million and a 1.1 GW inverter framework agreement was signed 8-K. Backlog is the best support in the excerpts for the raised revenue range.
What to watch next
Management's FY27 outlook: revenue $4.2 to $4.45 billion (previously $4.1 to $4.4 billion), GAAP EPS $3.62 to $3.87 (previously $3.42 to $3.64) and adjusted EBITDA $890 to $940 million 8-K.
Q3 revenue is guided to about 10% year-over-year growth, against 22.5% in Q2, with Q3 adjusted EBITDA margin roughly 1 to 2 percentage points below Q4 8-K.
Whether gross margin recovers from 31.1%, given 35.9% in the prior quarter; the Capital Markets Day on November 16 may address the long-term framework 8-K.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.