systems

According to Wood Mackenzie, global solar capacity is projected to triple by 2033 due to increasing demand for renewable energy solutions. NEXTracker (NASDAQ: NXT), a provider of innovative solar tracking technologies integral to the success of large-scale solar initiatives, is well positioned to participate in the industry’s continued growth.

By enabling solar panels to move in the direction of the sun, these technologies significantly optimize energy production, providing utilities and power generation projects with a significant return on investment (ROI). Notably, NEXTracker reported revenue growth of 42% to $737 million in the most recent quarter (4QFY24) and expected revenue growth of at least 12% in FY2025. The company’s shares have risen nearly 43% in the past year. Nevertheless, the shares are still attractively valued, cementing Nextracker’s position as an attractive growth fund in the renewable energy sector.

NEXTracker Enjoys Strong Demand

NEXTracker has firmly established itself as a leader in the development of effective solar tracking technologies and software. It is dedicated to making renewable energy accessible and affordable for all. Its integrated solar tracker and software solutions are used in utility-scale and globally distributed solar projects, enabling solar panels to track the sun’s path for optimal plant performance. The durability of Nextracker systems is reflected in their ability to adapt to uneven terrain and survive harsh weather conditions, thus increasing their durability and reliability.

The company recently acquired U.S. renewable energy company Ojjo, which specializes in infrastructure technology and services used for utility-scale ground-source solar power generation applications. Combined with NEXTracker’s intelligent solar tracker system, the acquisition provides a more comprehensive solution for engineering procurement companies and solar power plant developers, increasing project development, design and installation capabilities in a variety of soil conditions.

Since 2021, NEXTracker has expanded or established 20 new partner manufacturing facilities in the US, demonstrating its strong growth. The company’s global annual supply capacity currently exceeds 50 GW, including more than 30 GW in the United States.

NEXTracker ended fiscal year 2024 on a high note, achieving the milestone of 100 GW of shipments globally since inception. This significant achievement was accompanied by a record backlog of more than $4 billion, highlighting strong demand from both the US and international markets and underscoring the company’s strong growth trajectory.

Analysis of NEXTracker’s Recent Financial Statements

NEXTracker recently announced financial results for the fourth quarter ended March 31, 2024 and fiscal year 2024. Fourth-quarter revenue of $737 million was up 42% year-over-year and easily beat consensus expectations of $52.53 million. GAAP net income was $223 million, while adjusted EBITDA was up 120% year-over-year to $160 million. Adjusted EPS of $0.96 beat estimates by $0.31.

In fiscal 2024, the company posted an impressive 31% year-over-year revenue of $2.5 billion. Adjusted net income for the year was $451 million and adjusted diluted EPS was $3.06. The year witnessed operating cash flow of $429 million and adjusted free cash flow of $427 million.

Management issued full-year guidance for fiscal 2025, forecasting revenue of $2.8 billion to $2.9 billion. Adjusted EBITDA is estimated at $600 million to $650 million, and adjusted diluted EPS estimates range from $2.89 to $3.09.

What is the Price Target for NXT Shares?

Analysts following NEXTracker are cautiously optimistic about the stock. For example, HSBC analyst Sean McLoughlin recently cut his price target on the stock from $65 to $60, while maintaining a buy rating. He cited “strong” Q4 results and fiscal 2025 guidance, highlighting NEXTracker’s growth prospects in the US and international markets.

NEXTracker, Inc. rated a Strong Buy based on 16 buys and five holds in the past three months. NXT stock has an average price target of $60.68, suggesting a potential upside of 7.02% from current levels.

The stock has been somewhat volatile, with a beta of 1.94, although it has been in an overall uptrend for some time, having climbed over 86% over the past three years. It is trading at the high end of its 52-week price range of $32.14 to $62.31, while trading above its 20-day (55.67) and 50-day (52.67) moving averages, demonstrating continued positive price momentum. It trades at an attractive valuation relative to its industry peers, with a P/E (price-to-earnings) ratio of 18.12x, compared to the Solar industry average of 26.10x.

Final thoughts on NXT

NEXTracker’s presence in the rapidly growing renewable energy market makes it an attractive investment. Its unique solar tracking technologies and software solutions provide attractive ROI for utility and power generation projects. The company’s strong financial performance in the last quarter, expected growth of at least 12% for fiscal 2025 and an attractive current valuation further strengthen its investment appeal.

Disclosure

Philipp Furler, co-founder and CEO of Synhelion, says that electrification is often presented as the main green alternative to fossil fuels, but there are currently some sectors – maritime and aviation – where this has not been possible.

“These sectors are difficult to decarbonize because they require very high energy density,” he explains. Energy density refers to the amount of energy that can be provided in a given volume.

For example, an egg has a higher energy density than a piece of lettuce of the same size. Likewise, kerosene has 50 times the energy density of state-of-the-art lithium-ion technology—which is why, Furler says, “you’re not flying from Europe to the U.S. on a battery.”

Introducing the Nat Geo Children’s Book Bundle!

That’s why, he says, there are some areas where liquid fuel “stays here. And the mission is basically to replace fossil fuels with sustainable fuels.”

How is solar fuel made?

When jet fuel is burned, it releases water and carbon dioxide – in large quantities. Shipping and aviation account for about eight percent of global greenhouse gas emissions. Synhelion aims to reverse the combustion process, says Furler.

(La Porte, IN) – Plans to produce a lot of energy from the sun on more than 3,300 acres of farmland were given final approval Tuesday night by the LaPorte County Board of Zoning Appeals.

By a 3 to 2 vote, the BZA granted a special exception to the current agricultural zoning for RWE Clean Energy, LLC. to build a solar farm projected to produce enough electricity to power 68,000 homes annually.

The Chicago-based firm has 130 solar projects operating in the US

Construction of solar panels and other infrastructure to serve the operation will begin early in 2025, according to the plans.

The $500 million dollar facility will stretch from Kankakee to Wills and Pleasant townships.

The BZA voted without any discussion from its members or accepting public comment after listening extensively to both sides during its May 21 meeting and workshop sessions in previous weeks.,

“We already heard evidence and remonstrance,” said BZA president Melissa Mischke.

The BZA voted to table the plans last month to give them a final review before deciding the request.

Farmers like Mike Ekovich, whose dairy is just 400 feet away from the site, was among the opponents at the jam packed meeting.

“It borders us on all three sides,” he said.

One of his concerns is the site becoming an eyesore particularly for him and other nearby farmers.

“You got the farm landscape your whole life and then you got to deal with this,” he said.

The company has agreed to provide setbacks of at least 250 feet from other properties, vegetative screening from homes and bury cables three and four feet below the ground within and away from the site. Other requirements include doing things to control glare from the solar panels and design the facility to control storm water drainage.

“I have two and a half pages of conditions set for the solar project and many of them mirror what I believe will be additions to our solar ordinance,” said BZA attorney Craig Biege.

Ekovich said one of his concerns has not been addressed, though. He’s worried about the possibility of low volumes of electricity straying from the site and coming into contact with some of his 1,000 cows.

Ekovich said electricity can jump from things like bad grounding of the solar panels and loose wiring.

He said cows drinking water on wet concrete surfaces, for example, would feel a tingling sensation and could produce less milk from contact with any stray voltage.

“That’s a very big concern of ours,” he said.

According to Emily McDuff, an engineer and project manager with RWE Clean Energy, said the power from the solar farm would help replace the electricity to be lost when coal fired generating plants in Indiana, such as the NIPSCO generating station in Michigan City, shutdown in the next couple of years.

She also said about a dozen farm land owners would no longer have to worry about selling their properties for future financial security with the supplemental income they’ll be paid for using their land under lease agreements.

McDuff said the solar farm would also mean about $100 million in property tax revenue for local governments over the lifetime of the operation.

After 35 years, McDuff said the solar farm would be decommissioned and the property restored to farmland.

BZA member John Carr said he saw no downsides to the project, calling some of the concerns “myths” after doing extensive research about solar farms.

He said the remainder of the concerns were addressed to his satisfaction by the company.

“With the amount of tax revenue this project is going to generate and the amount of jobs that it’s going to generate to build the solar farm, it’s a win, win,” he said.

Carr also said local governments shouldn’t tell people what they can do with their land as long as neighbors aren’t going to be harmed.

“At the end of the day, I think it comes down to personal property rights,” he said.

Farmer Steve Holifield, who lives a few miles from where the solar farm is planned, said he is concerned about the loss of farm land and even more if the decision attracts other solar farm projects.

His other fears include the soil will not be as productive once the site is restored to farm land along with loss of property value and quality of life.

Holifield said he respects the rights of property owners as long as nearby land owners are not negatively impacted.

“We’ve never argued they don’t have the right to do what they want but you don’t have the right to devalue or take away the enjoyment of another person’s rights on their private property. That whole thing was ignored,” he said.

Biege said construction expected to begin early next year is projected to be completed in 12 to 18 months.

The International Finance Corporation on Monday committed $105 million, or about Rs 870 crore, to Brookfield’s Bikaner solar power project through long-term non-convertible debentures. The private sector financing arm of the World Bank Group said in a statement that these loans were earmarked for the project’s special purpose vehicles.

A 550-megawatt solar project in Rajasthan will help boost India’s renewable energy potential and support climate goals, the IFC said in a statement.

Through long-term power purchase agreements, Brookfield will provide solar power to commercial and industrial consumers in India at more competitive rates, contributing to the country’s decarbonization goals, it said.

According to the statement, this is IFC’s first investment in the Asia-Pacific region using an innovative hybrid offtake structure, where the project trades power generated to C&I consumers through long-term corporate PPAs and trade markets.

The project will be connected to the interstate transmission system section of India’s green energy corridor. Solar plants are expected to reduce greenhouse gas emissions by 8.04 lakh tonnes of CO2 every year, which is equivalent to removing about 1.74 lakh cars from the road every year.

India is leading the green transition in the power sector by committing to 500 gigawatts of non-fossil fuel capacity by 2030. The country’s renewable energy sector has attracted approximately $10 billion in annual investments between 2017 and 2022. It is expected to bring 25 billion dollars in annual investment by 2030.

It is estimated that about 20% of this is directed towards the C&I and merchant market.

“Through our partnership with Brookfield, IFC aims to facilitate the wider adoption of clean energy by demonstrating the viability of large-scale renewable energy generation and sale to pan-India corporate and industrial customers through the interstate transmission system,” Imad N Fakhoury on IFC South regional director for Asia said.

“With a portfolio of more than 25 GW of renewable energy assets in operation or under development across the country’s leading platforms, we look forward to taking advantage of the scale transition opportunities offered in the country,” said Nawal Saini, managing director of renewables and power and transition at Brookfield. he said.

Brookfield Asset Management Ltd. is a leading global alternative asset manager with over $925 billion in assets under management across renewable energy and transition, infrastructure, private equity, real estate and credit.

(Text inputs from PTI)