Nextpower Inc.

Fundsmith Equity Fund has added Nextpower Inc. to its portfolio in the second quarter of 2026. The London-based investment management firm highlighted Nextpower, an energy technology company providing solar tracking systems and software, in its latest investor letter. Fundsmith noted that Nextpower's technology increases solar installation energy yield by 20% to 30% compared to fixed panels, and its growth is tied to rising demand for clean energy adjacent to data centers. The company acquired battery maker Prevalon Energy for $365 million in May 2026 to further expand into data centers. Nextpower closed at $89.87 per share on July 31, 2026, with a market capitalization of $13.80 billion, and its shares gained 59.61% over the past 52 weeks.

Nextpower Inc. raised its fiscal 2027 guidance and authorized a US$500 million share repurchase program. The company now projects revenue of US$4.10 billion to US$4.40 billion and GAAP net income of US$540 million to US$573 million for fiscal 2027. It reported record first-quarter revenue of US$935.17 million and a backlog exceeding US$5.50 billion, supported by acquisitions in energy storage and power conversion. The raised guidance and buyback signal a dual focus on growth investments and capital returns.

Nextpower fell short of revenue expectations for the second quarter of fiscal 2026, reporting sales of $935.2 million against analyst estimates of $943.7 million, though revenue still rose 8.2% year on year. The solar tracker company posted adjusted earnings per share of $1.20, beating the consensus estimate of $1.04 by 14.9%, and adjusted EBITDA of $233 million, exceeding the $206 million forecast. Nextpower raised its full-year revenue guidance to $4.25 billion at the midpoint, up from $3.95 billion, but that figure came in 2.3% below analyst projections. The company also lifted its full-year adjusted EPS guidance to $4.58 at the midpoint, a 4% increase, while its full-year EBITDA guidance of $900 million at the midpoint missed analyst estimates of $923.2 million. The stock traded up 2.2% to $97.87 immediately after the report.

Nextpower has completed its acquisition of complementary assets from Zigor Corporation's power conversion business and its U.S.-based subsidiary, Apex Power. The deal adds UL-certified central inverters for utility-scale solar and energy storage projects in the United States, IEC-certified products for Europe and the rest of the world, proprietary inverter technology, established supply chain capabilities, and global engineering talent in the U.S. and Spain. Nextpower's modular central inverter platform, designed for field serviceability, is now commercially available in the U.S. with full UL certification. The company is accelerating its U.S. manufacturing buildout across multiple locations, with deliveries ramping in early 2027 and over 10 GW of capacity expected to be online within twelve months.

Nextpower has completed its acquisition of Prevalon Energy, a US-based large-scale battery energy storage specialist, in a deal valued at up to $365 million in cash and stock. Prevalon, originally a joint venture between Mitsubishi Power Americas and EES, has deployed more than 6 gigawatt-hours of energy storage systems worldwide. The acquisition extends Nextpower beyond solar into advanced energy storage, adding battery systems, power control technologies, energy management software, and long-term services targeting grid-connected storage, AI data center infrastructure, hybrid power plants, and critical power operations. Nextpower has raised its fiscal year 2027 revenue outlook to $4 billion to $4.4 billion, up from a prior forecast of $3.8 billion to $4.1 billion, with adjusted EBITDA now expected between $845 million and $930 million. The Prevalon team will continue to be led by CEO Tom Cornell.

Nextpower announced a definitive agreement to acquire Germany-based Zimmermann PV-Steel Group for up to €330 million. The deal adds four new product lines, including fixed-tilt, carport, and agriPV solutions, and expands Nextpower's reach across 15 additional countries. The transaction is expected to close in the second half of fiscal 2027 and is projected to contribute approximately €300 million in annual revenue and €45 million in adjusted EBITDA. The business will operate as "Zimmermann PV, a Nextpower Company," maintaining its local engineering focus while leveraging Nextpower's global scale.

Nextpower announced the global launch of its NX Gemini two-in-portrait solar tracker system and the NX Anchor integrated foundation system. The NX Gemini leverages five years of operational experience to deliver improved performance, constructability, and cost-effectiveness, integrating advanced tracker controls and software for row-level control, network communications, weather response, and centralized site intelligence. The NX Anchor foundation system is designed for variable geotechnical conditions, offering multiple pile types compatible with standard installation equipment, and when used with the NX Horizon 1P tracker, it supports higher clearances and faster installation while TrueCapture technology and specialized agriPV operating modes further enhance energy production.

HSBC identified 10 Buy-rated stocks it believes are well positioned ahead of the second-quarter earnings season, citing favorable trends across technology, financial, consumer and industrial sectors. The firm named Amazon, Microsoft, Meta Platforms, Alphabet, AbbVie, Caterpillar, Marriott International, Vertiv, NextPower and Wells Fargo as its preferred earnings-season ideas, reflecting company-specific growth drivers rather than a single sector theme. HSBC expects Amazon to benefit from continued cloud computing demand and AI infrastructure investments, while Microsoft could see further momentum from Azure AI services. The brokerage also pointed to Meta's AI-powered advertising tools, Alphabet's cloud and search businesses, and Vertiv's exposure to expanding data center spending. Outside technology, HSBC said AbbVie's immunology portfolio, Caterpillar's exposure to AI-related power demand, Marriott's asset-light business model and Wells Fargo's improving earnings outlook could support results, and highlighted NextPower's project backlog and expansion efforts as potential growth catalysts.

Jim Cramer admitted on Mad Money that he sold Nextpower Inc. too early, calling CEO Dan Shugar a 'miracle worker' and a 'moneymaker.' Responding to a caller's question about the solar tracker and energy management software company, Cramer said he lost the right to comment because the trust sold its position at a low price. He nonetheless urged the caller to buy the stock, stating 'Just go buy it. That's how good he is.' Nextpower provides hardware for difficult terrain and digital tools to optimize power production.

StockStory highlights Workiva and Nextpower as growth stocks poised to flourish, while cautioning against Artivion. Workiva, a cloud-based financial reporting platform, saw annual recurring revenue grow 22.1% and boasts a 79.4% gross margin. Nextpower, a solar tracker provider, achieved 19.3% annual revenue growth over two years and significantly improved its free cash flow margin. In contrast, Artivion faces challenges including a small revenue base of $458.7 million, negative free cash flow margin, and low returns on capital. Workiva trades at 2.6 times forward price-to-sales, Nextpower at 25.6 times forward price-to-earnings, and Artivion at 44.2 times forward price-to-earnings.

Nextpower announced a definitive agreement to acquire battery energy storage systems provider Prevalon Energy for up to $365 million. The deal expands Nextpower beyond solar tracking into energy storage, energy management software, and critical power infrastructure for utility grids, AI data centers, and industrial power systems. Prevalon has deployed more than 6 GWh of BESS systems globally and holds 1.3 GW of firm supply contracts supporting AI and hyperscaler data-center infrastructure. Nextpower also raised its fiscal 2027 revenue outlook to a range of $4.0 billion to $4.4 billion, up from the prior $3.8 billion to $4.1 billion. RBC Capital maintained an Outperform rating on Nextpower and increased its price target to $149 from $146, citing the acquisition's fit with the company's inverter business.

StockStory recommends buying Nextpower and TD SYNNEX while advising investors to sell AMN Healthcare Services. Nextpower, a solar tracker provider, posted 19.3% annual revenue growth over two years and expanded its free cash flow margin by 25.3 percentage points over five years. TD SYNNEX, a global technology distributor, achieved 25.7% annual revenue growth over five years on a massive $69.77 billion revenue base, with earnings per share boosted by share buybacks. AMN Healthcare Services faces declining travelers on assignment, a 7.1% annual drop in earnings per share over five years, and waning returns on capital, with its stock trading at 37.7 times forward earnings.

StockStory has identified Nextpower as a Russell 2000 stock to buy, while advising caution on Quanex and Valley National Bank. Nextpower, a solar tracker provider with a market cap of $17.98 billion, is backed for its exceptional 19.3% annual revenue growth over two years and expanding free cash flow margin. Quanex, a building products manufacturer valued at $768.7 million, faces concerns over declining operating margins and a 20.1% annual drop in earnings per share. Valley National Bank, with a $7.99 billion market cap, is flagged for its below-peer net interest margin of 3% and sluggish 1.5% annual earnings per share growth.