The solar-power company is working to diversify its business.
It has no debt, a substantial cash position, and a record backlog.
Growth will depend greatly on the success of its diversification plan.
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Solar power company Nextpower (NASDAQ: NXT) is in a great business position these days. However, management recognizes that its next stage of growth will require broadening its business scope — and the company is moving to do just that, which is both an opportunity and a risk.
Here’s what you need to know if you are thinking about buying Nextpower.
The company appears to be on rock-solid ground. Its balance sheet contains no long-term debt and has roughly $845 million worth of cash on it. So, not only are there no material creditors to worry about, but the company also has money to back up its plans.
And that’s not the only good news. Besides having a substantial amount of cash on hand, the company also reported a record backlog of work in the third quarter of 2025. At roughly $5 billion, that is more than a year of revenue to work through.
The business’ strength lies in its well-respected solar power technology. But what it makes is fairly mundane sounding. Nextpower creates tools that help solar panels track the Sun, increasing the amount of electricity a panel generates. Right now, this technology makes up roughly 87% of revenue.
The stock’s valuation appears fairly reasonable given its financial and industry positions. The price-to-earnings ratio (P/E) is around 23, which is actually lower than the 28 average P/E of the S&P 500 index. Investors would be wise to do a deep dive into Nextpower’s story.
Nextpower’s growth should come from two fronts. Between 2025 and 2030, the company expects revenue from its tracking technology to rise about 20%. That’s not bad, but it is hardly exciting. Sales from this division are expected to increase from just under $3 billion to roughly $3.5 billion. At that point, that will account for 68% of the top line.
The real growth is projected to come from the rest of the company, which currently accounts for about 13% of revenue. These business lines are expected to make up 32% of the top line by 2030.
Those segments are all in the same general business space, including products such as frames for solar panels and inverters. For the most part, Nextpower is staying within its comfort zone and can tap into the same customer base. However, the revenue contributed by these businesses is projected to triple in size.
