Nextpower Inc. (NXT) shares rose 3.32% to $82.08 at the market close before gaining another 2.14% to $83.84 in after-hours trading. The moves followed the company’s fiscal third-quarter results, which showed revenue increasing 34% year over year to $909 million. Nextpower also raised its fiscal 2026 outlook and authorized a share repurchase program of up to $500 million.

Revenue Increases as Margins Narrow

Nextpower reported fiscal third-quarter 2026 revenue of $909 million, compared with $679 million in the same period last year. Revenue also increased slightly from $905 million in the previous quarter, reflecting continued demand for the company’s solar technology products.

GAAP gross profit rose 20% year over year to $288 million. However, GAAP gross margin declined to 31.7% from 35.5% a year earlier. GAAP net income reached $131 million, compared with $117 million in the prior-year quarter. Diluted earnings per share increased to $0.85 from $0.79, although the figure declined from $0.97 in the previous quarter.

Adjusted results also showed year-over-year growth. Adjusted gross profit reached $295 million, while adjusted EBITDA increased to $214 million. Adjusted diluted earnings per share rose to $1.10 from $1.03 in the year-ago quarter. At the same time, adjusted EBITDA margin fell to 23.5% from 27.4%, indicating lower margins despite higher revenue. The company’s revised guidance, detailed below, sets the benchmarks against which that balance between top-line growth and margin compression can be measured in coming quarters.

Board Authorizes $500 Million Share Repurchase Program

Nextpower’s board authorized a program to repurchase up to $500 million of the company’s outstanding Class A common stock. The program is scheduled to run for three years, although Nextpower may modify, suspend, or terminate it at any time. An authorization of this kind permits buybacks but does not commit the company to making them; once shares are repurchased, the count of outstanding shares declines.

Management will determine the timing and volume of repurchases based on share prices, trading activity, business requirements, and market conditions. The company generated $391 million in operating cash flow during the first nine months of fiscal 2026. It ended the third quarter with $953 million in cash and cash equivalents and no outstanding debt. For scale, the $500 million authorization is equivalent to just over half of that quarter-end cash balance.

Fitch also awarded Nextpower an investment-grade credit rating, citing the company’s financial position and cash generation.

During the quarter, Nextpower expanded its operations and product portfolio. It increased domestic tracker manufacturing capacity and opened a Southeast operations hub that includes a Remote Monitoring Center. Trackers are mounting systems that rotate solar panels to follow the sun, a segment of solar hardware the company manufactures domestically. The company’s acquisition of Fracsun added panel-soiling measurement software and monitoring capabilities to its solar technology platform; panel soiling is the accumulation of dust and debris on modules that reduces their output.

Nextpower Raises Fiscal 2026 Guidance

Nextpower raised its fiscal 2026 revenue outlook to a range of $3.425 billion to $3.500 billion. Its previous projection was $3.275 billion to $3.475 billion. The revised forecast reflects stronger bookings, operating execution, and demand across the company’s business lines.

The company also increased its GAAP net income forecast to $525 million–$540 million from the previous range of $499 million–$529 million. Its GAAP diluted earnings-per-share outlook rose to 3.43–3.53 from 3.26–3.46.

Adjusted EBITDA guidance now stands at $810 million–$830 million, compared with the earlier range of $775 million–$815 million. Nextpower expects adjusted diluted earnings per share to reach 4.26–4.36 in fiscal 2026, versus its previous forecast of $4.04 to $4.25 per share.

The company is also expanding internationally. Nextpower Arabia secured a 2.25-gigawatt supply commitment for Saudi Arabia’s Bisha Solar Project.

The updated outlook assumes that the current U.S. policy environment remains intact and that permitting timelines follow historical patterns — assumptions that tie the forecast to policy and permitting developments outside the company’s direct control. Those conditions, along with execution on the Bisha supply commitment and any actual repurchases under the new authorization, are the concrete checkpoints for the raised outlook as fiscal 2026 progresses.

Nextpower plans to expand its integrated offerings across solar tracking, electrical balance-of-system products, and power conversion solutions.

The company’s original report is available from Blockonomi.