Nextpower Inc.

Good afternoon, everyone, and thank you for standing by. My name is Hillary, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to NextPower's second quarter fiscal year 2027 earnings call. After the speaker's remarks, there will be a Q&A session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star 9 to raise your hand and star 6 to unmute. At this time for opening remarks, I would like to pass the call over to Ms. Sarah Lee, Head of Investor Relations. Sarah, you may begin. Thank you for standing by. We will just pause this broadcast momentarily before proceeding with opening remarks.

Thank you and good afternoon, everyone. Welcome to NextPower's second quarter fiscal year 2027 earnings call. I'm Sarah Lee, NextPower's head of investor relations, and I'm joined by Dan Shugar, our CEO and founder, Howard Wenger, our president, and Chuck Boynton, our CFO. As a reminder, there will be a replay of this call posted on the IR website along with the earnings press release and shareholder letter. Today's call contains statements regarding our business, financial performance and operations, including our business and our industry that may be considered forward-looking statements. And such statements involve risks and uncertainties that may cause actual results to differ materially from our expectations. Those statements are based on current beliefs, assumptions and expectations and speak only as of the current date. Thank you for watching. Please note we will provide gap and non-gap measures on today's call. The full non-gap to gap reconciliations can be found in the appendix to the press release and the shareholder letter, as well as the financial section of the website. And now I'll turn the call over to our CEO and founder, Dan.

Good afternoon and thank you for joining us. We're very pleased to report another quarter of strong execution and record financial results. Before discussing the company's performance, I'd like to remind everyone we will be hosting our Capital Markets Day in Las Vegas at REplus on November 16th. We look forward to sharing our progress on our 2030 outlook and the long-term strategy we unveiled last year, both of which have accelerated meaningfully. Given that upcoming event, we'll keep our prepared remarks brief today. Now turning to our Q2 performance. Next Power delivered record financial results in the second quarter. Revenue was over $1.1 billion. Adjusted EBITDA was approximately $250 million. And we had record quarterly bookings growing our backlog to over $6 billion. Our core tracker business strengthened further, extending the momentum from the first quarter of fiscal 2027. We continue to see strong customer demand for our tracker products and solid execution across our global operations. At the same time, demand for our non-tracker products is ramping fast and accounted for approximately 22% of revenue this quarter. Energy Storage contributed approximately $100 million of revenue and more than $20 million of adjusted EBITDA, including revenue from a behind-the-meter storage project for a Tier 1 hyperscalers AI data center. We also achieved record bookings in our Foundation and eBoss businesses. with eBoss bookings over 100 million in the quarter. Additionally, we secured a 1.1 gigawatt inverter framework agreement covering five projects, and we shipped our first NEXT POWER branded power conversion system to customers in the quarter. These results reflect the value of our customer relationships, differentiated technology, and execution discipline. customers are looking for partners who can help them accelerate project schedules, reduce risk, improve economic outcomes and execute at scale. Our strategy remains grounded in that customer led approach, expanding our participation across the project lifecycle, solving important customer problems and growing profit dollars while maintaining attractive margins. Electricity demand continues to accelerate, driven by end uses such as electric mobility, industrial growth, and reindustrialization, and the rapid build-out of AI data centers. Solar and storage are the fastest, lowest cost, and most scalable ways to add new capacity. We believe NextPower is well-positioned to help customers meet these needs as the market moves toward terawatt-scale deployment. Finally, before turning the call over to Howard to discuss customer demand and commercial developments from the quarter, I want to thank our customers for their continued partnership and trust in our employees for their passion in driving innovation and customer satisfaction.