NextPower Inc. (NXT) shares climbed Thursday after the company laid out a strategic pivot that's getting analysts excited. Instead of staying laser-focused on solar trackers, NextPower is building out a broader platform that spans structural components, electrical systems, and digital tools. Think of it as going from selling one specialized product to offering a full suite of interconnected solutions.

Bank of America Securities analyst Dimple Gosai responded by bumping the price target to $102 from $94, maintaining a Buy rating. The thesis? This isn't just expansion for expansion's sake—it's a move toward higher-quality, more predictable earnings.

The Numbers Behind the Optimism

Last month, NextPower delivered second-quarter fiscal 2026 results that beat expectations on both revenue and earnings. The performance was fueled by solid demand across U.S. and international markets, plus momentum from recently acquired businesses that are already contributing to the bottom line.

Management raised fiscal 2026 revenue guidance to $3.275-$3.475 billion, up from the prior range of $3.20-$3.45 billion. That implies roughly 14% year-over-year growth at the midpoint. Adjusted EBITDA is now expected between $775 million and $815 million, while earnings per share guidance increased to $4.04-$4.25.

Why This Transformation Matters

Here's where it gets interesting. Gosai notes that NextPower is evolving from a pure tracker company into something with more moving parts and better long-term economics. The company's fiscal 2030 revenue outlook of $4.8 billion to $5.6 billion isn't based on pie-in-the-sky projections—it's backed by products that are already commercialized and selling.

As these newer businesses scale up, they're expected to create a notably different revenue mix and margin profile than what Wall Street currently models. The analyst's confidence stems from systems already deployed in the field, rising attachment rates for new products, and tangible customer demand rather than hopeful forecasts.

Updated Financial Projections

Gosai raised the fiscal 2026 EPS estimate to $4.11 from $4.05, reflecting the strong near-term momentum. However, the analyst lowered fiscal 2027 EPS estimates to $4.69 from $5.25 and fiscal 2028 estimates to $5.85 from $6.79, likely accounting for investment spend and the transition period as the new platform scales.

Looking further out, the analyst projects a 12% revenue compound annual growth rate reaching $5.52 billion by fiscal 2030. Gross margins are expected to expand by 110 basis points from fiscal 2026 to fiscal 2030, with adjusted EBITDA hitting $1.36 billion—above management's guidance range of $1.1 billion to $1.3 billion.

The expectation is that growth in the electrical and software segments will offset any dilution from the structural side, while operating expenses should decline to roughly 8% of sales as the company gains scale.

Price Action: NXT shares were trading higher by 6.42% to $93.74 at last check Friday.