What Happened?
Shares of solar tracker company Nextracker (NASDAQ:NXT) jumped 3.6% in the morning session after it was selected by one of Brazil's largest renewable energy companies, Casa dos Ventos, to supply 1.5 gigawatts (GW) of its solar tracker systems for a portfolio of four new projects. The deal involves supplying Nextracker's NX Horizon-XTR all-terrain and NX Horizon solar tracker systems for a portfolio of four new utility-scale solar and solar-and-wind hybrid projects. The client, Casa dos Ventos, is one of Brazil's largest renewable energy companies, known for its leadership in wind energy. This move into solar is part of a growing trend among Brazilian developers to diversify their renewable portfolios. This significant contract win highlights Nextracker's ability to secure large-scale projects in key international markets, bolstering its position as a leading solar technology provider.
After the initial pop the shares cooled down to $55.82, up 2.5% from previous close.
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What Is The Market Telling Us
Nextracker’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 9.4% as investors appeared to focus on potential headwinds and policy uncertainty, even as the company posted strong earnings and received positive analyst ratings. The company reported strong first-quarter fiscal 2026 results, with revenue growing 20% year-over-year to $864 million and an adjusted earnings per share of $1.16 that beat expectations. This performance prompted several firms, including TD Cowen and B of A Securities, to raise their price targets. However, investors appeared to look past these positive headlines. The earnings report also highlighted a sequential decrease in revenue and operating cash flow compared to the prior quarter. Furthermore, Nextracker noted that increased operating expenses to support recent acquisitions were expected to be dilutive to near-term margins. Broader uncertainty surrounding U.S. policy for the solar sector also likely contributed to investor concerns, overshadowing the otherwise strong top-line growth.
Nextracker is up 41.3% since the beginning of the year, but at $55.82 per share, it is still trading 16% below its 52-week high of $66.45 from July 2025. Investors who bought $1,000 worth of Nextracker’s shares at the IPO in February 2023 would now be looking at an investment worth $1,833.
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