I've talked about Nextpower $NXT a while ago but it's worth highlighting again.

Traditional solar panels are fixed, which limits the amount of sunlight they can capture.

That’s where Nextpower comes in.

They build solar tracking systems with intelligent motors and software that make panels follow the sun throughout the day. Each tracker uses sensors, algorithms, and cloud software to adjust in real time for wind, terrain, and sunlight.

The result is up to 25% more energy output from the same panels.

Until now they’ve deployed systems on more than 90 gigawatts of solar projects across over 30 countries. And Nextracker works with many of the world’s largest renewable energy developers and utilities

They are profitable, growing steadily 25% year after year, and trade at a PE of 32.

All of this comes at a time when valuations across the solar industry have pulled back after four challenging years. The sector’s fundamentals are now starting to stabilize. As global electricity demand accelerates, driven mostly by data centers to power AI.

NXT’s earnings were pretty strong overall. They beat expectations on both revenue and earnings, with Q4 revenue around $881M and adjusted EPS of $1.05. More importantly, FY26 revenue reached a record $3.56B, up 20% year over year, and backlog hit a record $5.25B+ and management reaised FY27 revenue guidance to $3.8B to $4.1B.

The Setup:

- Energy is a huge bottleneck

- Solar demand is growing

- NXT expanding beyond basic tracker

- Breakout to new highs after basing for 5 months