Nextpower (NXT) 2027财年第二季度业绩电话会议：营收创新高并上调业绩指引

核心要点

• Nextpower (NXT)公布2027财年第二季度创纪录营收，突破11亿美元，同比增长23%。调整后EBITDA增长12%至约2.5亿美元，利润率为23%。
• 季度新接订单额远超10亿美元，订单出货比（book-to-bill ratio）远高于1。在手订单从超55亿美元增至创纪录的60亿美元以上。
• 非跟踪支架产品贡献了约22%的营收和超过20%的新接订单。储能业务贡献了约1亿美元的营收和超过2000万美元的调整后EBITDA。
• 管理层上调了2027财年业绩指引，预计营收为42亿至44.5亿美元，调整后EBITDA为8.9亿至9.4亿美元，调整后稀释每股收益（EPS）为4.61至4.87美元。
• 本季度调整后自由现金流约为1.35亿美元，年初至今达2.4亿美元。公司将全年自由现金流预期从4.5亿美元上调至5亿美元以上。
• 管理层预计财年下半年的营收将集中在第四季度。第三季度营收预计较第二季度的历史新高有所回落，但同比增长约10%。

核心财务数据

业务与运营表现

Nextpower表示，美国及部分国际市场的跟踪支架需求依然强劲。美国市场贡献了季度营收的约82%，同时国际业务营收环比增长25%，而美国市场环比增长为17%。

电气平衡系统（eBOS）业务获得超过1亿美元的新接订单。其中，获得专利的NX PowerMerge解决方案占很大比例，确定订单量超2吉瓦（GW）。基础（foundations）业务也创下了季度新接订单的历史新高。

Nextpower签署了一份涵盖五个项目、规模达1.1吉瓦的逆变器框架协议，并在本季度交付了首批Nextpower品牌的电力转换系统（PCS）。管理层表示，该协议已酝酿一段时间，反映出客户对具备可融资性（bankable）且可靠的逆变器供应商的需求。

储能业务贡献了约1亿美元的营收和超过2000万美元的调整后EBITDA。尽管本季度服务了多家客户，但某大型第一梯队超大规模客户的项目是主要贡献者。管理层强调，市场对能够稳定AI数据中心快速电力负荷变化的电池系统需求旺盛。

季度结束后，Nextpower以2.3亿欧元现金完成了对Zimmermann PV Steel Group的收购。Zimmermann带来了固定倾角支架、农光互补、结构件和线缆管理产品，累积了超过20吉瓦的项目经验，并延伸至15个新国家。Nextpower的全球业务版图现已覆盖68个国家。

管理层业绩指引

更新后的业绩指引已包含Zimmermann。管理层预计，在2027财年剩余时间内，该项收购将贡献约1亿美元的营收和1000万美元的调整后EBITDA，并从一开始就能增厚业绩。

针对NX电力转换业务扩张，Nextpower预计未来12个月的资本支出约为4000万美元。随着业务规模扩大，管理层还预计损益表（P&L）将受到约5000万美元的影响，主要来自研发和销售成本。公司预计将在明年夏末前从其美国工厂出货产品，并在2027日历年底前实现超过10吉瓦的产能。

风险与关注事项

管理层提到了柴油、钢材、货运及物流成本的显著上升。其中柴油成本年初至今上涨了约80%，而美国卡车运输运力的减少进一步加剧了压力。Nextpower的分布式制造网络提供了部分对冲，但管理层预计高昂的货运和物流成本将在2027财年剩余时间内持续存在。

公司预计将根据长期合同承担部分物流成本，同时与客户分摊执行中项目产生的部分新增成本。钢材成本分担机制适用于部分合同，但并未覆盖所有零部件。

较新的产品品类和增长性投资预计也将拖累下半年的利润率。管理层表示，基础（foundations）和eBOS业务初始利润率较低，随着技术、生产和规模的成熟，未来有改善空间。

美国232条款措施和关税正在影响组件定价，预计12月将产生进一步影响。不过，管理层表示客户已基本锁定近期组件供应，目前未发现对第四季度项目执行构成重大风险的迹象。部分项目面临许可审批延迟，但业务组合中的其他项目正在加速推进。

分析师问答环节要点

• 新接订单与业务结构：管理层拒绝确认分析师关于新接订单超过16亿美元的估计，仅表示新接订单远超10亿美元。非跟踪支架产品占季度新接订单的20%以上。
• 跟踪支架需求：公司表示，非跟踪支架占比上升并不意味着跟踪支架增长放缓。即便没有收购储能业务，在手订单也依然会突破60亿美元。
• 储能业务经济效益：管理层表示，本季度储能业务的利润率超出了宣布收购时讨论的15%左右（mid-teens）的EBITDA利润率框架。未来利润率将因应用场景和客户结构而波动。第二季度长期服务协议营收并不重大。
• Zimmermann展望：在Nextpower将Zimmermann的非上市公司预测方法调整为其自身的统计方法后，对价和近期业绩贡献有所下调。管理层表示，该交易的战略逻辑和底层基本面保持不变。
• 国际市场扩张：管理层预计2027财年的营收结构约为美国市场占80%、国际市场占20%。下半年预计美国市场占比趋向70%高段，国际市场占比趋向20%低段。
• 欧洲交叉销售：Nextpower计划利用Zimmermann的渠道交叉销售基础、电气平衡系统（eBOS）、电力转换和储能产品。管理层预计欧洲潜在的储能营收（包括德国和西班牙的机遇）将在2028财年而非2027财年开始贡献。

业绩电话会议完整文字记录

---

完整财报电话会议逐字稿

管理层陈述

Operator

Good afternoon, everyone, and thank you for standing by. My name is Hilary, 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. [Operator Instructions]

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 the opening remarks.

Sarah Lee

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 seek only as of the current date.

For more information on those risks and uncertainties, please review our earnings press release, shareholder letter in our SEC filings, including our most recently filed quarterly report Form 10-Q and annual report on Form 10-K, which are available on our website at investors.nextpower.com. This information is subject to change, and we undertake no obligation to update any forward-looking statements as a result of new information, future events or changes in our expectations. Please note, we will provide GAAP and non-GAAP measures on today's call. The full non-GAAP to GAAP 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.

Daniel Shugar

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 Ares Plus on November 16. 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. Nextpower 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 eBOS businesses with EBOS bookings over $100 million in the quarter. Additionally, we secured a 1.1 gigawatt inverter framework agreement covering 5 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 life cycle solving important customer problems and growing profit dollars while maintaining attractive margins.

Electricity demand continues to accelerate driven by end users 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.

Howard Wenger

Thank you, Dan. Q2 was another great quarter as we saw strong demand in both the U.S. and rest of world markets with bookings well over $1 billion in the quarter. Tracker sales drove sequential backlog growth to a new record, exceeding $6 billion, while our non-tracker businesses continue to gain momentum. Customers choose Nextpower because of our technology, execution, supply chain, bankability and customer focus. We believe these attributes are reflected in our growing backlog and leading market position.

Our eBOS business delivered record bookings of over $100 million for the quarter, a clear proof point of our ability to integrate and scale acquired businesses. Our patented NX PowerMerge solution was a material portion of these bookings, and we are off to a great start, having secured over 2 gigawatts of firm orders. Further, we have now deployed PowerMerge at commercial scale and achieved an important milestone with a 100% pass rate in post-installation, functional and quality testing at the project site.

Our foundations business also achieved record quarterly bookings, reflecting growing traction for Nextpower solutions addressing all soil conditions. Finally, on the new product line front, we are pleased to announce a 1.1 gigawatt inverter contract, which marks a major milestone in the build-out of the Nextpower technology platform. Regionally, the U.S. remained our largest market, accounting for approximately 82% of quarterly revenue. As a complement to our very strong U.S. market position, we continue to expand our international business.

After quarter end, we completed the acquisition of Zimmermann PV Steel Group, which will significantly increase our European market footprint as well as adding structural solutions to our product portfolio with products such as fixed tilt agri voltaics and wire management. Zimmermann brings more than 20 gigawatts of cumulative project experience and established customer relationships and extends our reach into 15 additional countries growing our global footprint to 68 total countries. This acquisition broadens the range of ground mount solar applications we can serve and creates an opportunity to attach products across our platform through an extended European channel.

Turning to project timing. Our projects are large scale and typically span multiple quarters and years. It is normal for our projects to accelerate or push out based on things like weather, project schedules and permits project timing for this quarter follows this pattern with manageable movements across a large and diverse portfolio of customers and geographies. As Chuck will explain, we expect that our second half revenue will be weighted more towards Q4 deliveries due to project timing factors.

Average project sizes for both solar and storage are expanding in key regions with increasing attention to bankability and quality. This dynamic further plays to our strengths. We believe we are positioned well for the future with our technology, track record, customer relationships and expanding product portfolio. We are excited by the multiple new growth vectors we have added in the past 18 months including eBOS, power conversion and storage, and we look forward to sharing more with you at our Capital Markets Day in Las Vegas.

With that, I will now turn the call over to our Chief Financial Officer, Chuck Boynton.

Charles Boynton

Thank you, Howard. As Dan mentioned, Q2 was the strongest quarter in the history of Nextpower with revenue of over $1.1 billion, up 23% year-over-year and adjusted EBITDA of approximately $250 million, up 12% year-over-year and driving a 23% adjusted EBITDA margin. Adjusted free cash flow was approximately $135 million for the quarter and $240 million year-to-date, which helped to fund our acquisitions and stock repurchases in the quarter. We ended the quarter with over $1 billion of cash and no debt.

As our platform expands, we are managing the business for the long term with a focus on cash generation and driving adjusted EBITDA dollars while investing in future growth. The quarter included for the first time contribution from Nextpower energy storage. Our storage business delivered a very strong quarter with approximately $100 million of revenue and more than $20 million of EBITDA. The sales pipeline is strong, and we are on track for a solid second half of the year.

We also closed the acquisition of Zimmermann last week. We expect this acquisition to be accretive out of the gate. The total deal consideration of EUR 230 million is lower than we previously announced and was changed to an all-cash deal. We are also reducing our expectations for this business to approximately $100 million of revenue and $10 million of adjusted EBITDA for the balance of the fiscal year. This transaction, while small, is strategic as it expands and diversifies our TAM with new products and new markets leverages fixed costs and allows us to drive attachment of our new suite of products such as eBOS power conversion, foundations and storage.

Driven by strong execution and bookings across all our businesses, we are increasing our fiscal year 2027 outlook. We expect revenue of $4.2 billion to $4.45 billion adjusted EBITDA of $890 million to $940 million and adjusted diluted EPS of $4.61 to $4.87 per share. We are also increasing our free cash flow estimates from $450 million to over $500 million. We will expand on our financial outlook at our Capital Markets Day on November 16.

Based on current customer delivery schedules, we expect second half revenues to be more heavily weighted towards Q4, with Q3 revenue down sequentially from our record Q2 and but up approximately 10% year-over-year. This dynamic sets us up for a very strong finish to the fiscal year with potential record revenue and adjusted EBITDA in Q4. Now some details on what we see for second half of the year and first part of fiscal '28. We are building out the NX power conversion product line for both solar and storage. Over the next 12 months, we expect to invest approximately $40 million of CapEx to build out our U.S. manufacturing plant and as previously disclosed, expect a P&L impact of approximately $50 million primarily R&D and COGS as we ramp and scale this business.

This ramp recently started and is accelerating since we closed the transaction in Q2. We expect to ship products by the end of next summer and achieve over 10 gigawatts of capacity by the end of calendar '27. On the supply chain side of our business, we are seeing significant cost increases in diesel, steel, freight and logistics. Our globally distributed supply chain allows us to partially mitigate the impact of these cost increases and helps protect Nextpower and our customers. We treat our customers as partners and are working with them to share the increased costs where appropriate.

These dynamics are not new to our industry at times there are headwinds and other times, they are tailwinds. We expect logistics and freight costs to eventually revert back to a more normal baseline but likely beyond our fiscal year 2027. For full year 2027, we continue to expect adjusted gross margins in the low 30s and adjusted EBITDA margins in the low 20s and while in the back half of the year, we expect adjusted gross margin and adjusted EBITDA margin to be in the high 20s and high teens, respectively. We are investing for the future in both R&D and M&A, but also buying back stock to offset dilution. We remain focused on long-term growth of both free cash flow and EBITDA dollars.

With that, I'll pass it back to the operator for Q&A.

Operator

[Operator Instructions] Your first question comes from the line of Philip Shen from ROTH Capital.

分析师问答

Philip Shen

Can you hear me okay?

Daniel Shugar

Yes.

Philip Shen

Great. Okay. On bookings, congrats on the very strong bookings quarter. Just want to make sure we got our math right. We have greater than $1.6 billion in bookings. Are we close? And then if you can give us a sense for what the non-tracker contributions were to the bookings number, eBOS was $100 million, but were there dollar contributions from best and inverters. And then going forward, would you expect the strength to continue in Q3?

Howard Wenger

Phil, this is Howard. So we -- as we noted in our letter and in our remarks, over $1 billion in bookings. And I will say that it was well over a book-to-bill of 1 well over that. non-tracker bookings in the quarter were greater than 20%. So we're very pleased with the performance there and adoption of other elements of our platform. And as far as the outlook, we have a lot of momentum there, both on the tracker front, a lot of demand for that as well as our nontractor elements.

So we're feeling very good about the quarter overall, the demand environment, both in the U.S. in select markets internationally. And overall, just a very strong bookings and sales quarter across the board.

Philip Shen

Great. Second question here is on margins and the margin trend here. Clearly, back half is weaker. Can you give us a sense for the drivers? Is it the other kind of new businesses that's bringing margin down? We wrote a little bit about the shortage of truck drivers causing maybe an increase in freight rates by 20%. Is that a headwind? And you have Q2, 3 or 4 kind of period? And if so, when can that resolve? And then if you can give us maybe a little bit of a peak. Chuck, you talked about in your prepared remarks, into FY '28. Can you give us a feel for do margins improve from the Q3 for levels? Or do you think they stay kind of in that range for FY '28?

Charles Boynton

Yes. Thanks, Bill. We'll address '28 at Capital Markets Day in a couple of weeks. So we're going to keep this call limited to talking about this current fiscal year. The back half, it's going to be quite a strong back half. If you look at the overall margin profile, it's a little bit lower than where we were in the first half. But for the year, the structural margins are intact. And it's important to think of our business on an annual or multiyear basis. So you can't look at 1 quarter in isolation or even 2 and draw a conclusion.

Having said that, we've seen significant inflation in things like diesel and freight, logistics and steel. That's not a surprise to people. And what we're seeing is effectively the margin impact kind of quarter-over-quarter, Q2 to Q3 is really a story of those cost increases. But I think beyond '27 should stabilize. It's hard to predict when that will happen. Our assumption is they stay elevated in the back half of the year. The other part of the margin impact as we've talked about, are really investments for the future.

Think about that as mix of new products to our older products and ramping these new product categories. And what's really exciting. If I look at something like foundations or eBOS, those margins initially out of the gates are low. But as you perfect the technology, you ramp in scale, margins improve. And we've seen that over and over again with the various deals that we've done going back years and years. And so this is really an exciting time for us because we're injecting hard core engineering into these new products. That creates durable advantage and durable advantage manifests in terms of higher gross margins.

Operator

Your next question comes from the line of Dimple Gosei from Piper Sandler.

Unknown Analyst

Just coming back to the cadence of new orders here, project time lines, whether so forth, is any of the delay today tied to module supply or commerce Section 232 and people waiting customers waiting for some type of clarity before December. Or permitting interconnection? And how do you feel about confidence on 4Q execution versus slippage into '28? And then I have a follow-up.

Howard Wenger

So Deb, this is Howard. So we are seeing continued demand strength. And when you talk about 232 and modules, we're talking about the U.S. here now, we're seeing continued demand strength in the U.S., both on the bookings and we're managing to customer schedules when it comes to the P&L. And so we can have some movement across quarters, and we've talked about that before. As far as the modules go, we're not seeing significant pain there in terms of near-term projects, and there's nothing to indicate to us right now that there are concerns for Q4 execution.

But suffice it to say that the 232 and the tariff is having an impact on module pricing. There's -- and that's going to kick in further in December. But a lot of what we're hearing when we talk with owners is they've secured largely secured supply for safe harboring and also on the panel side, and we're not hearing that there are breaks in contracts or anything like that. So it's the business is very predictable at the moment. So I think -- and on the permitting side, that was another thing that you asked about. There are some projects that are impacted with permit delays, but there are other projects that are accelerating.

So for us, for our company overall, we're saying across a broad portfolio of projects, we're able to manage our outlook in a way that we're able to provide predictable results, just like we did this quarter where we, again, be planned and had a great quarter. So it's -- we're not seeing permitting being a material impact to our outlook.

Unknown Analyst

Very good. And then the follow-up is just non-tracker mix is up from 14% to 22%, which you spoke about. Does that mean that there is more acquisitions or slower tracker growth? And how should I be thinking about that on like a '27 basis? It was a lot bigger than I had anticipated, which is great. But just how to think about it on a go-forward?

Howard Wenger

No. We're seeing strong tracker growth. In fact, our record backlog of over $6 billion would have been over $6 billion without the storage acquisition. And so we're feeling very good about the core business. It's really the backbone of our overall solution, and that's driving attach. So we're -- we feel confident about the growth in tracker. Clearly, the new acquisitions are going to grow much, much faster because you're starting with a small base.

So the 22% is a solid number, and that's -- and hats off to our storage team for delivering a fantastic quarter as well.

Operator

Your next question comes from the line of Ben Kallo from Baird.

Ben Kallo

Maybe first, just with Zimmermann closed, can you just could loop that in with the international opportunity that you see and what that acquisition helps with on that front? And how we should think about that? I know you're going to do the Analyst Day coming up here. But I think any way we should think about that kind of mix on a go-forward basis and where that Zimmermann helps you out? And then I have a follow-up.

Howard Wenger

Okay. Thanks for the question, Ben. Howard here. So we're really excited about this acquisition and very pleased that it's closed. It had to go through some government approvals, and we got all those and we're off to the races now. We have a great team there. We've really got to tell them well, and that's the first thing we look at with every acquisition that we do is will that team perform, do they fit into our culture, do they have the same ethics and we've got that in the Zimmermann team. That's foundational.

They have a really excellent footprint in Europe that's complementary to ours. They're very strong in Germany, for example, a very material part of their business is in Germany. They have a strong brand, Zimmermann brand in Germany is very well known. They're a leader in structures in Germany for solar both in DG and groundmount and utility scale, both in fixed tilt and tracker. So that's very complementary. In fact, they're adding 15 countries to our country active country list. So we're now in 68 countries. So they brought 15 countries, very complementary on the market footprint.

And then they've got products that our complementary ours. We don't have a fixed till product in Nextpower they do. They have some AgriPV products that are very interesting and complementary. They have wire management system. We have a number of things that they're doing that we can cross-sell on and then their team can cross-sell on our product. So we're going to extract a lot of synergies there on the sales side, market side, cost side with our supply chain. We have a much bigger supply chain footprint than they do. And unlock synergies across the board in products, market and cost and winning. So we're very excited about that. Thanks for the question.

Ben Kallo

Just as a quick follow-up, maybe, Chuck, on the fuel cost and maybe Dan and Howard too, just how is it possible to negotiate a pass-through of fuel costs? Are they similar to other raw material costs are pass-throughs or just kind of any kind of appetite for that from customers on a go-forward basis, obviously, with old contracts as per possible.

Daniel Shugar

Ben, this is Dan. Great question. First off, let's like pull back and contextualize. We've seen large increases in logistics costs, and steel similar to the early days of the pandemic. What's different now is that we strategically build out our domestic supply chain to provide a natural hedge to that because we're manufacturing finished goods much closer to the project sites.

So our total logistics spend on a per unit basis is way down from what it was protecting our customers and Nextpower from the lion's share of what would have been a really huge spike in logistics. When we -- diesel year-to-date is up roughly 80% as a result of the goal for, okay? What -- the -- so we've massively reduced it, but we still have to get finished goods from a factory to a job site. As mentioned earlier on this call, by Phil Shen, the -- it was a bit of a double hit because you had reported over 15,000 truckers that were disqualified from driving in the United States due to English language speaking requirements, combined with this massive increase in diesel.

And so it does have an impact. It typically is a -- would be a relatively minor impact on the overall cost of the system. In this case, with that combined impact, it was pretty significant. We're considering ways to work with customers. It's unlike other things like steel, there's not readily available logistics commodity indices that 1 could easily apply without overly complicating things. But we're taking a look at that. But I think the main thing is when this happened before, we suffered -- we still make money, but we suffered 5 or 6 years ago, disproportionately higher impact.

We made strategic moves to reposition our supply chain closer to our customers, both in the United States as well as other major markets. We protected customers. We think our strategic footprint provides us an advantage. Customers are better served by working with us. And that generally is delivering a lot of value for customers. As evidenced by our record bookings last quarter and continued growth of our backlog, which went up from over $5.5 billion to over $6 billion in a single quarter.

Operator

Your next question comes from the line of Christine Cho from Barclays.

Christine Cho

I just wanted to start on this energy storage comment of $100 million of revenue and $20 million of adjusted EBITDA. Are these the sort of economics that we should assume for this business? If you could just maybe talk about how you expect the cadence to go. Is it going to move around depending on customer delivery? And can you also talk about the opportunity for LTSAs with this business? And if so, does the $100 million include any LTSAs? And I have a follow-up.

Charles Boynton

This is Chuck, Christine. Thank you. Yes, the $100 million is a number of customers, but primarily 1 larger customer, Tier 1 data center hyperscaler customer. Depending on the application, you'll see different margin ranges at the initial announcement of the acquisition, we did outline a model where the operating margins or EBITDA margins would be in kind of the mid-teens. So this is a bit higher, and you'll see some fluctuations over time depending on the applications and where we're selling.

Daniel Shugar

Yes. And I'll pile on there. building on Chuck's comment. We just couldn't be more pleased with the performance of the energy storage unit, our first quarter after closing this transaction. It's really a testament to the outstanding team that we have the legacy Prevalon team that's in domiciled in Florida predominantly. The other thing that this team has a lot to know how I would also point out that, as Chuck mentioned on a previous call, the overhead structure, they're very efficient. They know what they're doing. They're very efficient. The overhead structure is in the mid-single-digit areas for that unit.

And we're really excited. We've had a lot of customer engagement on the battery offering. And there's -- seems to be a tremendous appetite for what we can bring to that market. The margin profile is a function of the use cases and the end customer profile, and the market is definitely ramping strongly, and we're fielding many, many inquiries from qualified customers that really appreciate our investment-grade status.

Howard Wenger

And then Christine, your part -- the other part of your question on the LTSA side, immaterial for the quarter. What I would say is we're very excited about the long-term opportunity for LTSA for both power conversion and for storage. We think that as an American company that will provide a significant value to our customers long term by providing those services agreements across the portfolio.

Christine Cho

Okay. Great. And then just as a follow-up, a clarification question. I think you guys set the Zimmermann deal closed after the quarter. So does the backlog and updated guidance incorporates them? Or does it exclude it? I think you said $100 million of revenue and $10 million of adjusted EBITDA for the balance of the year, if we could get a backlog number. And then -- I'm sorry, was the Prevalon backlog included last quarter? Or was it out of this quarter?

Howard Wenger

Yes. So on the backlog Prevalon, Nextpower energy storage was not in the opening numbers for Q2 because that deal closed in Q2. We've added it to our end of Q2. But as I mentioned before, even without their backlog, we'd be over $6 billion in backlog. So over $6 billion, but with or without still over $6 billion. And then Zimmerman is included in our outlook, but their backlog is not included in our backlog.

They're more of a turns business, so I don't expect that to be a very material impact to our backlog when we report Q3.

Operator

Your next question comes from the line of Mark Strouse from JPMorgan.

Mark W. Strouse

Maybe just following up on Christine's question there on Zimmermann. Chuck, I think you mentioned that you lowered the consideration. You also are lowering the financial impact from what you talked about back in June. Can you just give a bit more color on what's going on there?

Howard Wenger

Yes. This is Howard and then Chuck can follow up. So we announced the deal in June, and we just closed it a week or 2 ago, a couple of weeks ago. So a few months went by. And during that interval, we look very closely at their backlog, their forecast, their pipeline, and we conformed it to the way we look at things and how we put forecast together. The fundamentals. And so as a result of that, we had -- we're -- we've updated our outlook for them, and we updated the deal consideration accordingly.

The deal is still accretive to the company the fundamentals of the deal are intact, nothing fundamental has changed. The pipeline is there, et cetera. It's just a different way of forecasting. So they had a very strong first half, and the outlook looks very good for Zimmermann. And we just want to reiterate that their business has been around for quite some time, very mature leadership. They make money. They're very much like us. But they're a private company. And now they're part of a public company. Chuck, do you want to add anything?

Charles Boynton

You said it well, Howard. Thank you.

Mark W. Strouse

Okay. That makes sense. Howard. And then can I ask the 1.1 gig inverter contract that you got, has that been in the works for a while? Or did that potentially come about because of the FCC band or the bulk power executive work? Or just trying to get a sense if you're starting to see some traction because of the political environment.

Daniel Shugar

Mark, this is Dan. That opportunity has been in works for a while. We try to ask customers in every meeting. What are your biggest pain points. That particular customer told us inverter, inverter, inverter a while back. And that request from that customer and a few others that we hold in highest regard really motivated us to move forward with an inverter offering, which we take very, very seriously. And so the -- we're really focused on delivering products that when you look back at the performance on an annualized basis, they do to inverter what our tracker system does to trucker and some of our other products do in their areas, which is deliver unrivaled top-tier global performance that helps customers realize more energy from their solar power plant.

Now the FCC ban that came out and some of the cybersecurity and [indiscernible] we've seen coming after a tremendous tailwind to our decision, and that decision was made several years ago to launch in this space. We went through quite a diligence process. We looked at, I think the entire industry. We are also incubating our next-generation product to continue working on that. And that -- but we really see now a tremendous need in the U.S. market and potentially the European market and other places.

I want to underscore that the technology we acquired, it's a skid. We have a 4.6-megawatt PV inverter skid with a parallel architecture that we and customers really like. And we have a 5.2 megawatt battery power conditioning skid that has a similar architecture. We have both UL listing on that inverter. We shipped our first UL-listed units to the United States with Nextpower brand recently. And we've shipped i.e listed units to the global sees market. So we're in the market. We're building out double digit capacity in the United States for a new factory, a greenfield factory, but not greenfield, but at a factory that will be operating next summer, as we've discussed.

And we're seeing tremendous interest from our customers for that product line, the timing. The timing is really perfect. But the fundamental need was for bankable, reliable suppliers that delivered very, very high reliability. And so that drove it. And then all these other tailwinds are complementary to the decision we were in the process of to make.

Operator

Your next question comes from the line of Brian Lee from Goldman Sachs.

Brian Lee

Maybe just going back to some of the questions around the energy storage segment. I know the shareholder letter mentioned the BTM project. So be curious if you guys had any additional commentary you can provide around kind of the outlook in terms of traction for data center hyperscaler wins, maybe color around customer engagement there specifically?

Daniel Shugar

Yes. Well, I'll -- first off, Brian, as I mentioned on the prior call, this is such an exciting category. And something at least I didn't anticipate a few years ago that a battery inverter system could do something to help new customers come online to the grid, that the grid can't do and a rote machine can do. If you have these loads like a data center with learning models, the building can go from 0 to 100% in fractions of the second. We measure these in tens of milliseconds these huge swings in power.

But for this type of technology, the -- it cannot support without massive reinforcement, some of these particular loads and rotating machines, you can't put a rotating generator out there, be it a [indiscernible] and to support those loads, it will physically damage the machine. And so it's a very, very exciting new category because it's kind of like a new pie, customers, you have the situation where customers want to get connected, okay? Number one. Number two, it's really hard to build new transmission and distribution, electric transmission distribution substations. Okay?

And point three, this technology is available and can deliver quick. And so that helps these customers get on. And there's a bigger macro here, which not only helps those customers get up, but now you have typically a couple of hours of battery switch. So now you can -- actually, they can use more solar as part of their overall energy mix. We're very pleased. This particular -- I spoke with the hyperscaler and diligence of this when we were considering acquiring the former Prevalon unit down Nextpower energy storage. They were very complementary on the technology date and have witnessed some factory acceptance testing and recently our Nextpower energy storage with the product is called the hybrid power stabilizer. And you can see that on our homepage.

We just recently passed full-scale testing at a major national laboratory, which is really exciting. And so the tech works, it's -- you all listed. And we have both a DC block and an AC block, you all listed to be able to support a variety of use cases and configurations for customers. And have a team of very experienced battery storage professionals that successfully delivered 38 projects over the last 8 years. Now with this new data center segment growing quickly, we provide a solution to help them come online, which also then provides help or additional renewables to deal with the intermittency issue. So yes, we just couldn't be more excited about that.

Operator

Your next question comes from the line of Julien Dumoulin-Smith from Jefferies.

Unknown Analyst

Sorry about that. This is Carter Goldman on for Julien. Just a follow-up on the inverter business. The 1.1 gigawatt framework agreement over what time period would that deliver and that if we think that a little bit the 10 gigawatts you talk about for next summer, how should we think about the ramp in volumes there? Obviously, there's a lot of demand coming with the inverter band, but does that show up in '27? Or is that a little bit longer dated. So just on the ramp there would be helpful.

Daniel Shugar

We'll be providing more color on the ramp at Capital Markets Day in 3 weeks from now. We are going to start delivering units this summer from the -- they'll be shipping new job sites. And I think that's as far as I'm prepared to go right now on that. But very exciting stuff, timing is perfect, and we're really focused on product quality, reliability and making sure our customers' needs are met.

Operator

Your next question comes from the line of Corinne Blanchard from Deutsche Bank.

Corinne Blanchard

Maybe 2 distinctive question. The first 1 on the upcoming midterm election. Do you have any view on maybe what can be the outcome there, 45x maybe tax credit being extended, I think those are the kind of talks that we have been hearing from the Congress. And then maybe the second question, coming back on the international revenue, maybe can you comment? What are you -- what's your view or expectation as a percentage of total revenue maybe for the rest of '27 and '28 and the margin impact from having that international diversification.

Daniel Shugar

Okay. Thanks, Corinne. I'll speak at a high level about the 45x and then Howard will jump in on the international markets. Look, I think with respect to the manufacturing credits, they're really strongly supported across the aisle. We've seen incredible job growth here as in the U.S. with new manufacturing build-out. Nextpower has catalyzed new or expanding existing facilities over 35 factory shipping finished goods. It's a huge thing just what we've done. And we've seen on the solar panel manufacturing side, just very exciting activity.

And we think over time, we'll see the U.S. again enjoy a robust module manufacturing environment over time that will help costs come down for domestically made product. And we see it as sort of a supply security, national security issue that's being supported for solar, for storage and for critical power infrastructure. We're doing our part, obviously, with the inverter. We expect our inverter program to participate in the 45x. And yes, we've seen strong support for it. We're not calling the outcome of the election.

I will say we gave a presentation at the BNP conference a few weeks ago, 1 of our customers spoke there, and he said, generally, the market tends to overreact to both on the positive and the negative side of what's happening federally. Most of the action is at the state level and then. So I'll just leave that there. Howard international?

Charles Boynton

I'll take it. So Corinne, yes. International is, quite frankly, having a really nice kind of run here. we saw in Q2 international was up 25% quarter-over-quarter, whereas the U.S. business was 17%, both impressive numbers, but we're excited to see acceleration of international. And then when we add in Zimmermann, we'll see yet even more international we're real cited about that. It's part of an intentional diversification play.

For the full year, it looks to be about 80-20, but the back half it will be more high 70s for U.S. and kind of low 20s for international. So we're really pleased with the team for executing and accelerating international.

Howard Wenger

The only thing -- this is Howard. I might add is with storage, it's mainly focused right now in the U.S. So that could skew the percentages and somewhat.

Operator

Your next question comes from the line of Chris Dendrinos from RBC.

Christopher Dendrinos

1 for me, and I think your last comment there is a good segue into this. Can you maybe just talk about the cross-sell opportunities here over in Europe right now? And what kind of products are positioned to go to market and sort of leverage that Zimmerman relationship today?

Daniel Shugar

Yes. So on the -- just generally speaking, both for the Nextpower legacy and Zimmerman teams in Europe, and we have significant teams there. We see a lot of opportunity to extend beyond the tracker. And we're doing that with foundations first to kind of go from the tracker our to the inverter and the storage, and that's been the sequence. So we're also looking at bringing eBOS. And then one of the things that we're quite interested and excited about, we're getting a lot of demand pull for are in specific countries that have excess solar generation during the day, they're looking at increasing storage.

And so places like Germany and Spain, as examples, are quite interesting for storage, and that's part of our go-to-market plan. that's not something that will hit revenue in our fiscal year '27, but we would expect to see that fiscal year '28, and we'll have more color at our Capital Markets Day in Vegas in just a few weeks.

Operator

Your next question comes from the line of Sean McLoughlin from HSBC.

Sean McLoughlin

I just wanted to come back to the cost inflation part. Just understanding, first of all, what level of cost sharing, you think you have with your customers? Secondly, thinking about commodity side, what is your level of indexation. What has changed effectively in terms of your ability to protect yourselves against things like steel price volatility if we think back to 2022. And lastly, has anything changed in your discussions with customers when factoring in higher costs?

Howard Wenger

Certainly. So first on the freight and logistics, as Dan mentioned, we have an advantage with our model, which protects us and our customers given the 100-plus factories we have around the world with our partners. Those are costs that basically we build into projects and quotes and those quotes could be a year old or 6 months old, and they typically have not fluctuated that much.

We could do some sort of hybrid derivative contracts, but I think that's -- it would be too difficult and too risky. And so those are just costs that, in general, for long-term contracts that we will absorb. And for ones that are in flight, we would share with our customers. In terms of steel, we do have cost sharing arrangements that are structured and we've talked about this before on our BCA contracts, but it depends on the timing. And there are other components that are not part of the BCA contract.

Operator

There are no further questions at this time. I will now turn the call back to Dan for closing remarks.

Daniel Shugar

Thank you all for thoughtful questions and your continued interest in Nextpower. We're focused on executing against the opportunities in front of us. And basically strengthening demand in our core tracker business, bringing our expanded inverter power conversion product to market. And helping customers meet growing needs about solar storage and power conversion.

We'll continue to invest thoughtfully, scale with discipline and keep our focus for delivering for customers and creating long-term value for shareholders. And we hope to see you all at our upcoming Capital Markets Day. Thanks for dialing in.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.