Nextpower Laying Groundwork for Growth, RBC Says

12:42 PM EDT, 10/29/2026 (MT Newswires) -- Nextpower (NXT) reported record Q2 earnings and very strong backlog growth amid some offsets including more acute margin pressure, RBC Capital Markets said in a note Wednesday. The note said inflationary costs and acquisition investment in H2 weighed on the performance. "NXT is working to share in these inflation costs but is stuck bearing the brunt near-term," the report said. The company raised its outlook across all key metrics though the updated guidance now included $100 million from the recently closed Zimmermann acquisition, the note said. The report also said the firm included the Zigor and Prevalon acquisitions that closed in the quarter to backlog that now stood at over $6 billion, compared with over $5.5 billion last quarter. "Overall, we believe the focus should be on the LT and NXT is already seeing strong traction for its new products," the note said. RBC kept its outperform rating and $116 price target. Price: 81.00, Change: -1.08, Percent Change: -1.32