Solar Tracker Company Nextracker Files for IPO

January 25th, 2023

EV Maker VinFast Announces US IPO

Photo: Nextracker

Nextracker IPO S-1 Filing

Parent Company – Flex Ltd.

  • Flex provides design, manufacturing and supply chain services through a network of over 100 locations in approximately 30 countries across five continents
  • Nextracker credits Flex’s expertise in global supply chains and its strong financial backing for helping to accelerate penetration of  end markets and run an optimized supply chain
  • Flex sold Preferred Units representing 16.7% of Nextracker
  • Flex will continue to control the company following the IPO, with the exact ownership % to be determined

Nextracker IPO Overview

Company Overview

  • A leading provider of solar tracker and software solutions used in utility-scale and ground-mounted distributed generation solar projects
  • Its products enable solar panels in utility-scale power plants to follow the sun’s movement across the sky and optimize plant performance
  • Has led the solar tracker industry based on GW shipped both globally and in the United States from 2016 to 2021 according to research from Wood McKenzie

Sources of Revenue

  • The most significant source of revenue is the sale of solar tracking products
  • Generally enters into different contracts for each individual solar project
  • Contract values range from a few hundred thousand dollars for smallest to over $100 million for the largest
  • Solar services provider SOLV energy accounted for 18.7% of total revenue for the 6 months ended Sept 30, 2022
  • The top 5 largest customers in total accounted for  40.9% of revenue in the same period
  • Sales from outside the United States are increasing as a % of total sales

Solar Tracker Industry

  • The solar tracker market plays a key part in driving the global energy transition by increasing energy production and improving the levelized cost of energy
  • According to Wood Mackenzie, the global solar tracking market is estimated to be a $71 billion cumulative opportunity from 2020 to 2030
  • The majority of utility-scale projects installed today in mature markets such as the United States, Latin America and Australia use solar trackers
  • Adoption of solar tracker technology is growing in developing solar markets such as the Middle East and Africa

Listed Solar Tracker Peers (1Y Performance)

Primary Risk Factors

  • Commodity Prices – Fluctuations in the cost of steel or other commodities critial to manufacturing their products
  • Supply Chain Constraints – In fiscal year 2022 the company logged an addition $152 million in freight costs due to container shortages and other logistics challenges, triggering a decline in fiscal year net income
  • Financing for Solar Projects – The availability of financing could constrain growth in solar projects and in turn demand for solar tracking products

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