Nextracker Stock Climbs After Securing 1.5 GW Solar Deal in Brazil.
The solar tech giant partners with Casa dos Ventos, signaling strong international growth, yet the market's reaction highlights ongoing investor caution and stock volatility.
Shares of solar tracker manufacturer Nextracker (NXT) saw a significant boost in morning trading, jumping 3.6% after the company announced a major contract win in Brazil. The deal, which later settled to a 2.5% gain for the stock at $55.82, involves supplying 1.5 gigawatts (GW) of its advanced solar tracker systems to Casa dos Ventos, one of Brazil’s largest renewable energy companies.
The agreement will see Nextracker provide its NX Horizon-XTR all-terrain and NX Horizon solar trackers for a portfolio of four new utility-scale projects. This partnership is particularly noteworthy as Casa dos Ventos, a leader in wind energy, is making a strategic push to diversify its portfolio into solar power—a growing trend among developers in the Brazilian market. For Nextracker, this landmark contract underscores its capacity to secure large-scale international projects and solidifies its position as a leading global solar technology provider.
What the Market Is Telling Us
Despite the positive news, the market’s reaction provides a more nuanced picture. Nextracker’s stock is known for its extreme volatility, having experienced 32 price swings greater than 5% over the last year. In this context, the modest gain suggests that while investors view the Brazil deal as meaningful, it was not significant enough to fundamentally alter their overall perception of the company’s value.
This cautious optimism follows a recent period of turbulence. Just two weeks ago, Nextracker’s stock fell 9.4% despite the company posting strong quarterly results and receiving positive analyst ratings. In its first-quarter report, Nextracker revealed a 20% year-over-year revenue increase to $864 million and an adjusted earnings per share of $1.16, which surpassed expectations. This strong performance led firms like TD Cowen and B of A Securities to raise their price targets.
However, investors appeared to focus on potential headwinds. Concerns included a sequential decrease in revenue and operating cash flow from the prior quarter, increased operating expenses tied to recent acquisitions expected to dilute near-term margins, and broader uncertainty surrounding U.S. solar energy policy.
A Look at the Bigger Picture
Zooming out, Nextracker has delivered impressive returns for shareholders. The stock is up 41.3% since the beginning of the year. Investors who purchased $1,000 worth of shares during its IPO in February 2023 would see their investment valued at approximately $1,833 today.
Even with this strong performance, the stock, at $55.82, remains about 16% below its 52-week high of $66.45. The current situation presents a classic conflict for investors: a company demonstrating robust growth and securing major international deals, while simultaneously navigating market volatility and investor sensitivity to near-term challenges and policy risks.
