管理層發言
Good afternoon, everyone, and thank you for standing by. My name is Jason, and I will be your conference operator today. Today's call is being recorded. I would like to welcome everyone to Nextracker's First Quarter Fiscal Year 2026 Earnings Call. After the speaker's remarks, there will be a Q&A session. At this time, for opening remarks, I'd like to pass the call over to Ms. Sarah Lee, Head of Investor Relations. Sarah, you may begin.
Thank you, and good afternoon, everyone. Welcome to Nextracker's First Quarter Fiscal Year 2026 Earnings Call. I'm Sarah Lee, Nextracker'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. Following brief prepared remarks, we will transition to a Q&A session. 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 speak only as of the current date. For more information on those risks and uncertainties, please review our earnings press release, shareholder letter and our SEC filings including our most recently filed quarterly report on Form 10-Q and annual report on Form 10-K, which are available on our IR website at investors.nextracker.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 IR website. Now I will turn the call over to our CEO and founder. Dan?
Good afternoon, everyone, and thank you for joining us. I'm pleased to report our strong start to fiscal year '26, building on the momentum we established last year. Nextracker continues to deliver consistent growth and strong financial performance, driven by technological leadership, operational excellence and a relentless focus on customer value. We delivered robust financial results across all key metrics. Q1 revenue grew 20% year-over-year to $864 million, and adjusted EBITDA increased 23% to $215 million. Our backlog hit a new record of over $4.75 billion, reflecting healthy global demand and an increasingly strong competitive position. We also continued to generate solid cash flow and strengthen our balance sheet. We're particularly pleased with our strong Q1 performance, considering the evolving U.S. policy environment. Our ability to consistently execute in challenging conditions speaks to the strength of our team, differentiated products and the quality of our customer relationships. One of the most impactful developments in the quarter was the passage of the OBBBA reconciliation bill, which addressed a significant portion of the uncertainty surrounding solar manufacturing and investment tax credits. While further clarification is expected, particularly around treasury cuts and safe harbor provisions, we believe Nextracker is well positioned by virtue of our deep backlog and highly flexible U.S. supply chain. We've worked tirelessly with our suppliers to open and expand over 25 manufacturing facilities across the United States. The Federal Energy Regulatory Commission reported that solar accounted for more than 80% of new U.S. generation capacity in 2024. Globally, solar contributed more than twice as much incremental electricity as the next largest energy source. And looking forward, the International Energy Agency predicts that solar will become the largest source of global electricity supply within the next decade. These powerful trends reinforce our conviction that solar and Nextracker, in particular, will play a central role in the future of energy. We're scaling our platform to address this rapidly expanding opportunity and announced this morning's three strategic acquisitions in the fields of robotics and AI. These technologies, from autonomous inspection and robotic cleaning to 3D site mapping, integrate directly with our control and monitoring systems to help customers optimize performance, reduce O&M costs and lower risk. This initiative exemplifies our strategy of combining breakthrough engineering with digital innovation to deliver more value across the full life cycle of the project. As we move beyond being the global leader in solar trackers and evolve into a broader technology platform for utility scale solar, we're excited to provide a more detailed look into our strategy at our upcoming Capital Markets Day on November 12 at our headquarters. With that, I'll turn it over to our President, Howard Wenger, to go deeper into our Q1 performance and the exciting developments across our technology portfolio.
Thank you, Dan. Q1 was another great quarter for Nextracker, marked by strong customer bookings and backlog and excellent operational delivery. This forward momentum continues to be driven by a flight to quality in the market. As Dan noted, our performance is especially encouraging given the ongoing U.S. policy dynamics and further underscores the strength of our global leadership position. According to Wood Mackenzie, Nextracker is now the #1 tracker provider worldwide for the tenth consecutive year, increasing our market share to 26% during 2024. We're in the leading market position in North America, Latin America, and Oceania, which includes Australia. We are pleased to report we are also the top provider in Europe, highlighted by flagship projects like the 550-megawatt Oricheio solar power plant in Greece, one of the largest in the region. Moving to pricing, cost and project timing. In Q1, pricing for Nextracker was generally stable, and the company continued to manage costs well. Project timing was also stable and manageable on a portfolio basis with some projects accelerating and some pushing out consistent with previous quarters. Our backlog and large project portfolio provided excellent visibility and helped reduce uncertainty. On the product side, we've continued to experience strong demand for our core NX Horizon tracker systems and TrueCapture technology. Our recently introduced Hail Pro system and expanded XTR tracker series have seen rapid adoption with quarter-over-quarter sales up 43% and 22%, respectively. Hail Pro is winning in the market due to its ability to mitigate both hail damage risk and insurance costs. This is yet another example of innovation driven by customer feedback and, in this case, the insurance industry. We are pleased by the positive traction we are seeing as our technology platform expands to a more complete solution, including the addition of foundations and eBOS to our industry-leading tracker systems. Our foundation products and services continue to gain momentum with cumulative sales of NX Earth Truss now over 1 gigawatt. We are also excited by customer reaction to our new eBOS solutions which we began selling during the quarter. We are optimistic about our ability to significantly scale our eBOS production. As Dan mentioned, we recently executed a series of strategic technology acquisitions that extend our platform and capabilities in robotics, automation, and AI. This includes acquiring the companies OnSight Technology and Amir Robotics, as well as the IP from SenseHawk. These acquisitions complement our own internal efforts by incorporating ground-based robots and drones to provide incremental customer value across the full project life cycle. OnSight's autonomous inspection robots and field-based detection technologies are already in use and available for immediate sale to U.S. customers. We will be providing detailed global rollout plans for these new products at a later date. To lead us in this rapidly emerging area, we have appointed Dr. Francesco Borrelli as our new Chief AI and Robotics Officer. Dr. Borrelli is a globally recognized leader in AI and predictive model-based control systems. He brings decades of experience in autonomous technologies and played a key role in developing our TrueCapture program. We're very excited about the potential of AI, robotics, and automation to further enhance the full customer experience and help drive project life cycle value. With that, I will now turn it over to our Chief Financial Officer, Chuck Boynton, to go over our financial results in more detail.
Thank you, Howard, and good afternoon, everyone. I'm pleased to share our financial results for our first quarter of fiscal year 2026. Q1 revenue was $864 million, representing year-over-year growth of 20%. Q1 adjusted EBITDA expanded to $215 million, a 23% increase year-over-year. This translates to an adjusted EBITDA margin of 25%, which was an increase of approximately 100 basis points compared to the previous year. Our adjusted gross margin was 33%. We recognized a 150 basis point benefit in Q1 for 45X related to historical shipments. We continue to believe that our gross margins should be in the low 30s with OpEx in the 9% to 10% range, yielding operating margins in the low 20s. On the cash side, we generated $70 million in adjusted free cash flow during the quarter, down from the same period last year, primarily driven by growth investments in capital expenditures and working capital. We see strong cash generation throughout the year with over $450 million of free cash flow. We exited the quarter with $743 million in total cash with no debt. Our strong balance sheet and cash flow generation remain competitive advantages. Moving on to our outlook. Looking ahead, our outlook assumes the current U.S. policy environment remains in effect and, in addition, that permitting processes and timelines will remain consistent with historical levels. As Dan mentioned, we are closely monitoring potential updates to safe harbor provisions and other regulatory actions, which could impact project timing, customer investment behavior, and our financial results. For the full year fiscal 2026, we expect revenue to be in the range of $3.2 billion to $3.45 billion, with relatively balanced quarterly revenue for the remainder of the year. Adjusted EBITDA is expected to be in the range of $750 million to $810 million and adjusted diluted EPS to be in the range of $3.96 to $4.27 per share. Our increased outlook is grounded in several key factors, including the strength and diversity of our backlog, a continued flight to quality among solar developers, and the deep capability and commitment of our global team. With that, we're happy to answer any questions you may have.
分析師問答
Our first question is from Dimple Gosai with Bank of America. Your line is now open.
Can you please discuss what conversations have looked like with developers post the OBBB? Are they kind of in wait-and-see mode? And maybe you can also just expand on bookings momentum. I know you've grown from what you previously described as significantly higher than $4.5 billion to $4.7 billion this quarter. But is that pace of bookings picking up? Or any commentary there would really be helpful.
Dimple, this is Howard Wenger. So we are in touch with our owner developers closely. And let me just start out by saying we're really happy with the company's performance and pleased with the quarter and the outlook for the year. And what we're hearing is that they're feeling good about their portfolios. And as you know, we team up with Tier 1 developers who are quite sophisticated. They're able to safe harbor their projects and perfect their projects. And we feel what we're hearing and what we're seeing is that our backlog is solid. No projects are dropping out. And we're looking forward to continuing to execute. And the sales team did a great job in the quarter. We had another sequential growth in our backlog quarter-over-quarter, 15th quarter in a row. And so we're seeing a good set of demand signals across the globe. So feeling very good about where we're at this moment.
Our next question is from Praneeth Satish with Wells Fargo.
Maybe I'll touch on the new business here, the venture into AI and robotics. I know you'll probably offer more details at the Analyst Day. But just generally, are you planning to offer these solutions as a service with the recurring revenue stream? Or will this be primarily an equipment sale model? And then how do these robotic acquisitions integrate with your existing TrueCapture software? Are there any synergies here given that you'll have all these extra data points? And can this all be wrapped up as one service?
Praneeth, Dan Shugar here. We're very excited about the new suite of robotic technologies we’ve just launched. Regarding our go-to-market strategy, we introduced a range of solutions today, including drones. We completed the acquisition of this technology several quarters ago, and it's already in use. It is integrated into our existing TrueCapture technology, utilizing the technology from SenseHawk that we acquired to create a complete as-built digital twin of the sites using TrueCapture, which has been implemented for a long time. We also have robotic cleaning technologies and OnSight Technologies, which includes a ground-based robot and a stationary camera that detects fires and other parameters on site. We'll provide more details about the integration later, but these technologies are well advanced and are either currently being offered commercially or are in an advanced stage of development.
Our next question is from Brian Lee with Goldman Sachs.
Just had two questions. One, Howard, going back to the comment around backlog. You said it did grow quarter-on-quarter. I know you changed kind of the language semantics a bit. So I wanted to confirm that it did grow. And I guess that implies bookings were $900 million, maybe close to $1 billion again. And curious if anything in the quarter you saw pauses from customers due to policy uncertainty or vice versa, any pull for forwards to try to get ahead of the bill passage? And I had a follow-up.
Yes, I want to confirm that our backlog grew compared to the previous quarter. While we don’t disclose the specific numbers, our backlog has seen growth for the 15th consecutive quarter, which we are pleased about. The pipeline is also expanding for the company. As you know, we operate globally, and we are still roughly maintaining the balance of one-third from the rest of the world and two-thirds from North America. We're not observing significant pull-ins on projects generally, particularly in North America and the U.S. Some projects may come in early while others may be delayed, but this is typical given our diverse portfolio. We'll also have more clarity regarding treasury guidance in the coming weeks, which might influence customer behavior. We're currently noting a limited interest in safe harbor, and we're ready to manage that with our strong supply chain and flexible capacity.
No, that's great. I appreciate all that color. Very helpful. And if you could bear with me just one more math question, and then I'll get out of here. On the IRA credit impact or the vendor rebate, I think it was 11 percentage points on gross margin this quarter. That was up significantly, like 300 to 400 basis points incremental versus what you've seen in prior quarters. What's kind of driving that? Because I did see international revenue growth was better than the U.S. this quarter. So curious how that worked out this quarter to be such a higher impact and then how we should think about that number in relation to gross margin, maybe going forward? Is it going to stay at that level? Is it flat line? Does it go down?
Yes. Thanks, Brian. This is Chuck. So we did have a really strong quarter; 45X was a little higher than normal. I mentioned in the prepared remarks about 150 basis points. That's a little more than $10 million incremental benefit. And that's really relating back to kind of vendor reconciliations going back the last couple of years. Looking forward, we expect it to be, call it, 9% to 10% of total revenue. That's a little higher than it's been. That's partially driven by U.S. demand for U.S.-made products. So we're actually delivering more U.S. product to our customers. And with that, the costs are a little higher, but the 45X credit helps to offset that. So I do want to call out and say thank you to our operations team. They have just done a phenomenal job. Our on-time delivery is incredible, and we're delivering locally around the world in the U.S., a real hallmark working with our manufacturing partners to deliver really compelling U.S.-made content that does generate a 45X credit benefit offsetting higher costs.
Our next question is from Philip Shen with ROTH Capital Partners.
First one is on your backlog. What percentage of the backlog is safe harbor? Can you also discuss the level of risk associated with the Trump executive order anticipated for release on August 18? Lastly, regarding the interior memo, which requires the Secretary to review all project permits affecting federal land, what potential impact could this have on your backlog depending on how it is enforced?
Phil, Dan Shugar here. Howard and I will tag team on this. We were thinking about this in the preparation for this call; we were thinking as a run-up over the last, let's say, a year or even longer, what percentage was safe harbor. When we ask our Tier 1 customers how they feel about the integrity of their pipeline, their projects, they feel good about it because they safe harbor under the rules that exist. So I'd say a lot of projects in the United States benefit from that, but that's taking the longer view on the safe harbor. Howard, do you want to pick it up from there?
Sure. We heard from Nextracker that they are optimistic about their portfolio through 2029. This is significant as they are one of the top developers in the country, and we collaborate with them and other Tier 1 customers who share similar sentiments. They have a positive outlook on their pipelines and can manage them under the safe harbor provisions. We believe that a very high percentage of our backlog in the U.S. falls under safe harbor, which is the majority, based on the information we possess. Regarding risk, I would again reference Nextracker; it’s still early to fully understand the interior department guidelines and what the treasury will announce in a few weeks. The industry is still processing this, but initial feedback suggests that it is manageable going forward. They seem to have moved past the OBBB, the bill that was passed, which has resulted in a favorable outcome for us due to our close relationships with customers. This is providing the necessary bridge beyond the incentive platform we've been operating on for the past couple of years. I hope that addresses your questions, Phil.
Our next question is from Julien Dumoulin-Smith with Jefferies.
Let me continue on that same line of thinking. First, I have a high-level question. How do you assess the overall industry's cadence? Considering both safe harbor dynamics related to pull-ins and the possibility of some safe harbor material diminishing in 2029 and 2030, how do you view this in relation to the timing of orders and the potential recovery in backlog activity? Clearly, this is not a significant concern in the near term, but how does it align with your expectations for 2025 and the subsequent four years, timing-wise?
So the connection was a bit shaky, but I believe we understood the main points, Julien. Thank you. Under Dan's leadership and with the operations team working closely together over the past few years, we've successfully developed the U.S. domestic supply chain. We are the first company to launch a completely domestic tracker, and since then, we've expanded our capacity significantly. We now have over 25 facilities supporting our U.S. operations, which puts us in a strong position with considerable flexible capacity. We highlight this because if the safe harbor requirement were to increase from 5% to hypothetically 10%, we would be well-equipped to meet our customers' needs with the additional safe harbor capability. There might also be some extra shipments from Nextracker depending on the guidance we receive.
Yes. I'll just pile on to Howard's comments that the Federal Energy Regulatory Commission has math that shows last year, over 80% of the power capacity you saw in the United States was solar. Lawrence Berkeley Lab, which is funded by the U.S. Department of Energy, calculated almost 7,000 projects are solar and solar plus storage. There's this incredible need for power in the United States, period. You see it dominating the news, and people are talking about other ways to make power, and there's limited availability of gas turbines, nuclear is way out there in terms of timeframe. Solar is available, affordable, and has no fuel risk. We also see now storage in ERCOT and California at incredible scale, keeping the lights on. You can look at the demand today and from last week online and see that with batteries, solar power is available until 10, 11:00 p.m., when folks are going to sleep and the power drops. We think that this is going to be an enduring story. We have a very compelling manufacturing and jobs made in the U.S.A., energy dominance, facts on the ground situation. We see policymakers responding to that. So we see the U.S. market, despite a lot of fluidity, being up and to the right. Our backlog reflects that, our bookings reflect that, and our revenues reflect that. Meanwhile, we're continuing to expand overseas. As Howard mentioned, we achieved leadership in Europe as the #1 provider in Europe. We saw our total market share globally increase from 23% in 2023 to 26% in 2024. That's a double-digit increase globally. So we're really focused on serving the global market. Being a global manufacturer provides tremendous strength.
Can I follow up on micro here just with respect to the diversification comment from last quarter, about 1/3 over 5 years? Obviously, you guys have an Analyst Day target out in November here. Can you speak a little bit more greatly to the different pieces that you're expecting on diversification? I know you kind of said there are a couple of them out there in the market this point, etc. But any broader or more specific sense you can start to feather into that 1/3 here as a preview?
Your connection is quite spotty, but we'll speak to the growth in non-tracker technologies. So let's do a quick review. We acquired a machine learning company about 10 years ago called BrightBox. We built a fantastic software business that created tremendous value for customers, helped with stickiness with our tracker overall value proposition, and improves the yield of trackers. It demonstrated that Nextracker knows how to work with companies that we acquire and get the technology integrated in a way that's accretive. Then last summer, we acquired two foundation companies, and we've introduced those products in a major launch. That suite of products is going very well with incredible customer uptake. We're ahead of plan from a sales standpoint, and we're integrating the ops; we're very pleased with how that's going. So far, those technologies have been focused in the United States. We do plan on launching the foundation technologies in selected international markets next year. The TrueCapture software suite I mentioned a moment ago has been offered globally for many years and, in fact, is on the uptake internationally. Now the last quarter, we mentioned products. We're really focused initially in the United States, but we'll be at the correct time ramping that internationally as well. The acquisitions and new businesses we announced today in robotics, both the on-site evaluation and owner asset management class, we're going to be rolling that out both geographically and from a product diversification standpoint over time. We'll definitely be unpacking that further at the Capital Markets Day in November.
Our next question is from Ben Kallo with Baird.
Could you provide insights on what you foresee beyond the ITC expiration regarding product development? Although it's still some time away, how do you anticipate that purchase agreements will adapt to ensure projects progress and become viable? Additionally, regarding the robotics and AI acquisitions you've mentioned, do you see this as enhancing the customer wallet? Or how should we consider pricing—will it reflect costs, or will it represent an extra expense on top of an existing project?
Thanks, Ben. This is Howard. Let's take a moment to reflect on the evolution of solar energy over the past 30 to 40 years. Initially, we had to establish its reliability and technical soundness, which we have successfully achieved as an industry. Next, we needed to demonstrate its ability to compete economically, and we’ve accomplished that as well. For example, in the Middle East, solar power now costs $15 per megawatt hour, or $0.015 per kilowatt hour, in an unsubsidized free market. Nextracker was the pioneer in that region, and we have established a presence there with an office. We are well-positioned to compete in this market, bolstered by a unique value proposition that we continue to enhance through acquisitions and internal development. As Dan pointed out, solar power is the fastest-growing and most impactful new energy technology both in the United States and globally. Beyond the ITC, the industry is capable of competing on a level playing field. When storage is incorporated, it creates an unbeatable combination of firm power and dispatchable power. Our interactions with major owner-developers reveal that their companies and investors are investing billions because they recognize a robust value proposition for supplying energy to the rapidly expanding electricity markets in the U.S. and just needed some support. We are currently positioned at that pivotal point. We believe we are in a strong position with the OBBB and anticipate receiving more guidelines. Overall, our outlook is positive and enduring for the solar power sector. Regarding AI and pricing, particularly with OnSight, which operates robots and serves customers in seven states across numerous sites, we view this as a tangible technology being implemented and compensated for. We are transitioning towards a robot-as-a-service model, generating recurring revenue from these services along with our existing offerings. This aligns with our overall platform development. Dan mentioned the tracker, which is fundamental to our operations, and we have significantly increased our R&D investments in that area over the last three years, primarily focusing on our core tracker technology, while also expanding our capabilities through additional acquisitions, including robotics.
Our next question is from Dylan Nassano with Wolfe Research.
Just on backlog, can you give us an update on how much of the current backlog you expect to ship over, call it, the coming 6 to 8 quarters? I think that's a metric you've shared before. And then, a quick follow-up on Bentek. When you're talking about building out the eBOS capacity, are you looking to actually expand the current product offering beyond the products you currently make to potentially compete more directly with some of the leading eBOS players?
Dylan, this is Chuck. It really hasn't changed much. It was a metric we used to publish. We stopped because it kind of was the same each quarter, call it, high 80s, low 90s would be shipped over the next 8-ish quarters. Not much movement there, and we stopped disclosing that because it just wasn't that meaningful. And the second question on Bentek products, I'll have Howard answer that.
Okay. We offer two product lines through Bentek. They cover 100% of the use cases currently in the solar industry. One is based on a combiner box approach and one's based on a truck plus approach with load break disconnects. One of the reasons why we really like Bentek was that they had a robust product development effort. They have new products in their pipeline. We're helping them bring those to the market, and we expect to be adding to the products, point A, to what is offered today. Point B, we're working with them to scale so that we can better match the volume that Nextracker has. We have an incredible footprint in the U.S. and then first in the U.S. and then the rest of the world. So there's a lot of upside to the eBOS business for Nextracker.
Our next question is from Ameet Thakkar with BMO.
I just wanted to ask you, maybe pivoting away from the executive order, but on Section 232 tariff specification. I was just wondering what sort of feedback you've got from your customers on that and kind of given your ability to work with a greater array of different solar modules that might be better positioned to respond to that? Have you seen any additional interest as a result of that?
Yes, we are adaptable in our collaboration with various types of solar panels. Nextracker has made significant efforts to ensure these panels work well with our tracker. If you examine the specifications of solar panels, you'll notice that nearly every panel features a 400-millimeter hole in the frame, a design pioneered by Nextracker about 12 years ago. Our product management team maintains strong communication with their counterparts at the module companies. It's encouraging to witness the growth of the solar panel manufacturing sector in the United States, where over 30 companies are producing and shipping solar panels, a remarkable increase compared to five years ago. We are thrilled to see this expansion among both established and new players in the market.
Our next question is from Joseph Osha with Guggenheim.
Two questions for you. First, looking at Bentek, I'm wondering if we might see you start to use that platform to do completely custom harnesses without insulation piercing connectors, what your thought might be there? And then, secondly, looking at some of these acquisitions you've just completed, we do see some companies out there like Terabase. They're really seeking to sort of automate the whole assembly process and all of that. Do I sense that you're maybe moving that direction with these acquisitions that you're making?
I'll do Part A and Dan will do Part B. This is Howard. So for Bentek, we're not, as I mentioned before, we're able to provide both platforms predominantly used in the U.S., large-scale solar industry for wiring systems. And we're not prepared to talk about some of the developments that we're doing, including the area that you discussed, which is on the custom harnesses. But thank you for the question. Dan, do you want to talk about?
Yes. You inquired about Terabase, which is an impressive company known for its field factory assembly and installation process. We are fully supporting Terabase in every possible way. Additionally, there are several other companies also focused on field factory and installation automation, and we are providing assistance to most of them. They are coming to us with specific requests to enhance efficiency and safety in field factory installations, which we believe is beneficial. It's a challenging issue with various solutions available, and we are backing all the leaders involved in these efforts because we think this is the right strategy. We have observed progress and see substantial opportunities for further advancement. In our announced robotic programs, we are pursuing initiatives that assist EPCs in validating installation quality and identifying discrepancies to enhance efficiency in punch list items. Our goal is to create a digital 3D representation of the job site to enable adaptive tracking. We believe our approach is distinctive, and our TrueCapture technology meets the expectations we have set. We possess unique robotic technology, including the acquisition of Amir Robotics for cleaning solutions. Nextracker was among the pioneers in robotic cleaning, and for the last seven years, we have been assisting our customers in the Middle East in evaluating the effectiveness of robotic cleaning technologies. We have collaborated with multiple companies and have developed a strong understanding of the technology, which has resulted in increased yield gains. The acquisition of Onsight Technologies has enhanced the durability and reliability of solar power assets by enabling inspections of connectors and electrical valve systems, while also minimizing risks. Taking a step back, our robotic cleaning and related acquisitions were primarily driven by customer needs, which is true for much of our technology development. Initially, we were skeptical about robotic cleaning's cost-effectiveness. However, feedback from our customers operating in dry regions with frequent dust storms highlighted the necessity for these solutions. We recognized the impact of dust storms on array performance and realized the need for robotic cleaning. Consequently, we sought out the best teams in this field. The Amir Robotics team, with its strong background in robotic cleaning and expertise, was a perfect fit. Similarly, the team at OnSight Technologies has extensive operations and maintenance experience in solar power, and we appreciated their thoughtful approach. They presented challenges that could be effectively addressed by robotic technology, significantly reducing costs, enhancing reliability, and minimizing job site risks. These principles are fundamental to Nextracker. Our solutions are driven by customer demand to lower the levelized cost of energy and improve system durability. With that, we conclude our call today. Thank you very much. As Howard mentioned, we are very excited about our overall progress and are pleased with our impressive start in Q1. We look forward to seeing you all at our Capital Markets Day in November.
That concludes the conference call. Thank you for your participation. Enjoy the rest of your day.