NXT is up 24% after Q3 earnings release.
Revenue
Q3FY25 $610M vs Q3FY24 $710M
Adj. Net Income:
Q3FY25 $154M vs Q3FY24 $142M
So while top line is down the margins are better.
Revenue Outlook of $2.85B would represent 14% growth. EBITDA outlook was upgraded to $720M which represents a growth of 33% YoY.
All of this is nice, but the reason why they jumped by 24% is this:
Record backlog increased to significantly greater than $4.5 billion.
For one, this is the reason for their rising margins, the demand for their products is through the roof.
But then they’ve announced the following bomb in the call:
Thanks, Phil. Yeah, on the 87% of our backlog realized over the next 8 quarters, yes, the majority of that is slated for being recognized over the next four quarters.
So if they convert 80% of their backlog in the FY2026 and continue on the trajectory we are looking at growth numbers between 20% and 30% YoY despite growing margin. I’d say this is the main reason for the stock rally today.