展示物99.1
Nextrackerは、Q2 FY25の財務結果を報告しています
2025年の売上高見通しを再確認し、2025年の利益見通しを引き上げます
2024年10月30日、カリフォルニア州フリーモント - 太陽光エネルギーの知的なトラッカーおよびソフトウェアソリューションのグローバル市場リーダーであるネクストラッカー（ナスダック：NXT）は、2025会計年度第2四半期（2024年9月27日終了）の財務結果を発表しました。
財務概要
(百万ドル、1株あたり)
| Q2 FY25* | FY25 Q1* | 第二四半期FY24 | |||||||||
| 売上高 | $636 | $720 | $573 | ||||||||
| GAAP粗利益 | $225 | $237 | $149 | ||||||||
| GAAP粗利率 | 35.4 | % | 33.0 | % | 26.0 | % | |||||
| 米国会計原則に基づく当期純利益 | $117 | $125 | $81 | ||||||||
| GAAPの当期純利益率 | 18.5 | % | 17.3 | % | 14.2 | % | |||||
| GAAP希薄化後EPS | $0.79 | $0.84 | $0.55 | ||||||||
| 調整後の粗利益 | $228 | $241 | $152 | ||||||||
| 調整後の粗利率 | 35.9 | % | 33.5 | % | 26.6 | % | |||||
| 調整後のEBITDA | $173 | $175 | $110 | ||||||||
| 調整後のEBITDA Margin | 27.2 | % | 24.3 | % | 19.2 | % | |||||
| 調整後当期純利益 | $145 | $139 | $96 | ||||||||
| 調整後の希薄化後EPS | $0.97 | $0.93 | $0.65 | ||||||||
Q2 FY25とQ1 FY25のGAAPおよび調整後の結果には、それぞれ、IRA 45X先進製造業税額控除ベンダーリベート（45Xクレジット）が約5100万ドルおよび4700万ドル含まれています。Q2 FY24の結果には45Xクレジットが含まれていません。
Nextrackerの最新の10-Qフォームおよび10-Kフォームについては、このプレスリリースに添付された45XクレジットおよびスケジュールIVおよびVの詳細について、非GAAPからGAAP財務措置への調整をご参照ください。詳細な情報は当社ウェブサイトの投資家向け情報に掲載されています。
ビジネスハイライト
•2024年RE+北米でカリフォルニア州アナハイムでNXファウンデーションソリューションを発表しました
•計画されていた ship の終了日を CY24 年末に前倒しし、100% の米国国内コンテンツプロジェクト契約に署名しました。
•パートナー製造拠点を85以上に拡大しました。
•インドは、インドの初の太陽光エネルギー卓越センターをハイデラバードで開設し、ブラジルと米国に次ぐ3番目のグローバル研究開発センターを設立しました。
会社の実行力に非常に満足しており、2025年の上半期にはQ2で強い需要を伴う過去最高の成績を収めました。 Nextrackerの創設者兼CEOであるダン・シュガーはこう述べています。今四半期、新しいNX Foundation Solutionsポートフォリオのローンチに成功しました。昨年に発売した全製品、NX Horizon-XTR™ 1.5オールテレイン・トラッカー、NX Horizon™ ローカーボントラッカー、NX Hail Pro-75、NX Foundation Solutionsに顧客からの注文があり、100％のアメリカ国内コンテンツプロジェクトの出荷予定日をCY25年初から今年の暦年末までに前倒ししました。
「第2四半期は強力な実行と運営の規律により、マージンの意義ある改善を達成し、これによりFY25の利益見通しを引き上げることができました」と述べました。 ネクストラッカーのCFOであるチャック・ボイントン氏は述べました。「FY25の前半には、調整後フリーキャッシュフローで26000万ドルを生み出し、現金及び現金同等物が56000万ドル以上で財務状況を強化し、総流動性を15億ドル以上に引き上げました。」
FY2025年見通し
2025年の売上高見通しを再確認し、2025年の利益見通しを引き上げました
更新された見通し | 以前の見解 | |||||||
| 売上高 | 28億ドルから29億ドル | 28億ドルから29億ドル | ||||||
| 米国会計原則に基づく当期純利益 | 3億7800万ドルから4億8000万ドル | 3億6300万ドルから3億9300万ドル | ||||||
| GAAP希薄化後EPS | $2.50から$2.70 | $2.37から$2.57 | ||||||
| 調整後のEBITDA | $625から$66500万 | $600から$65000万 | ||||||
| 調整後の希薄化後EPS | $3.10から$3.30 | $2.89〜$3.09 | ||||||
調整後のEBITDAおよび希薄化後epsは、株式報酬、取得関連費用、および純無形投資減価償却に関してそれぞれ約11900万ドルと0.60ドルを除外しています。
2025年度第2四半期決算説明会
2024年10月30日
2:00 p.m. PT / 5:00 p.m. ET
ライブウェブキャストはこちらでご覧いただけます investors.nextracker.com
株主には、Nextracker Investor Relationsウェブサイトで入手可能なこのプレスリリースとともに、Q2 FY25株主向けレターをご確認いただくことをお勧めします。このレターには、このプレスリリースの情報を補足して拡充するNextracker株主向けの重要な情報が含まれています。
当イベント終了後、Nextracker Investor Relations のウェブサイトで、Web キャストの再生が可能です。
近日開催予定のイベント
Nextrackerのリーダーシップ幹部が今後の投資家会議でプレゼンテーションを行います:
ベアード・グローバル産業会議 - シカゴ、イリノイ州
ファイサイド・チャット
2024年11月13日
午前8時50分 Pt / 午前11時50分 Et
UBSテック西部 - スコッツデール、アリゾナ
ファイサイド・チャット
2024年12月4日
午前10時35分 PT / 午後1時35分 ET
investors.nextracker.comでライブウェブキャストをご覧いただけます
Nextrackerについて:
Nextrackerは、世界中のユーティリティスケールおよび地上設置型分散型太陽光発電プロジェクトで使用される知能化された、統合型の太陽光エネルギーのトラッカー、基礎、およびソフトウェアソリューションのリーディングプロバイダーです。当社の製品は、太陽光発電所が空を横断して太陽の動きに従い、プラントのパフォーマンスを最適化できるようにします。Nextrackerの発電所は世界中で40カ国以上で運用されており、太陽光発電所のプラントROIを大幅に向上させるエネルギー生産量を増やし、コストを削減するソーラートラッカーテクノロジーを提供しています。詳細は、www.nextracker.comをご覧ください。
前向きな声明について
このプレスリリースには、1995年の民事訴訟改革法に基づく前向きな見通しに関する記述が含まれており、将来の太陽光エネルギーの普及のトレンド、Ojjo, Inc.およびSolar Pile Internationalの買収の予想される利点、NX Foundation Solutionsポートフォリオの立ち上げと他の新製品の立ち上げに関する予想される利益、国内コンテンツの能力、およびNextrackerの2025会計年度およびその他の期間に対する見通しについての記述が含まれています。これらの前向きな見通しには、さまざまな仮定とNextrackerの経営陣の現在の期待に基づいています。これらの記述には、Nextrackerが10-Qフォームに記載されている、「リスクファクター」と「財務状況および業績に関する経営陣の議論」という報告書、フォーム10-kに記載されている他のドキュメントで説明されているリスクや不確実性が含まれており、これらの前向きな見通しとは異なる実際の結果が発生する可能性があります。Nextrackerが把握していないリスクや、Nextrackerが現在のところ重要でないと考えているリスクもあり、これらが前向きな見通しからの実際の結果と異なる原因となる可能性があります。読者はこれらの前向きな見通しに過度な依存を置かないように注意を喚起されます。Nextrackerは、これらの前向きな見通しを更新する義務を負わないものと想定されます。
調整された財務情報の使用
このプレスリリースに添付されているスケジュールIII、IV、Vには非GAAP財務指標とGAAP財務指標との説明および調整が示されており、その他の財務情報、Earnings Presentationを含む情報は、当社ウェブサイトの投資家関係セクション（investors.nextracker.com）でご覧いただけます。
情報の開示手段
Nextrackerは、Nextracker Investor Relationsのウェブサイトinvestors.nextracker.com、SECのファイリング、プレスリリース、公開会議通話、および公開ウェブキャストを通じて一般に重要な情報を公表する意向があります。Nextrackerはこれらのチャンネルを使用して、投資家、顧客、および一般に対して企業、提供商品、およびその他の問題についてコミュニケートしています。そのため、Nextrackerは投資家、メディア、その他の方々に、上記のチャンネルをフォローし、そのようなチャンネルを通じて開示される情報を参照するよう推奨しています。
投資家、金融メディア
メアリー・ライ
VP、IR＆ファイナンシャルコミュニケーション
Investor@nextracker.com
メディア
クリスタン・キルシュ
SVP,グローバルマーケティング
Media@nextracker.com
スケジュールI
ネクストラッカー株式会社
未確認の簡略化された連結損益計算書
（単位：千ドル）
| 3 か月の期間が終了しました | |||||||||||
| 2024年9月27日 | 2023年9月29日 | ||||||||||
| 収入 | $ | 635,571 | $ | 573,357 | |||||||
| 売上原価 | 410,776 | 424,247 | |||||||||
| 売上総利益 | 224,795 | 149,110 | |||||||||
| 販売費、一般管理費 | 72,127 | 47,872 | |||||||||
| 研究開発 | 19,193 | 7,146 | |||||||||
| 営業利益 | 133,475 | 94,092 | |||||||||
| 支払利息 | 3,665 | 3,646 | |||||||||
| その他（収入）費用、純額 | (7,382) | 5,038 | |||||||||
| 税引前利益 | 137,192 | 85,408 | |||||||||
| 所得税の引当金 | 19,928 | 3,999 | |||||||||
| 純利益と包括利益 | 117,264 | 81,409 | |||||||||
| 少ない：非支配持分および償還可能な非支配持分に帰属する純利益 | 1,873 | 42,156 | |||||||||
| ネクストラッカー株式会社に帰属する純利益 | $ | 115,391 | $ | 39,253 | |||||||
| Nextracker Inc. の普通株主に帰属する1株当たり利益 | |||||||||||
| ベーシック | $ | 0.80 | $ | 0.64 | |||||||
| 希釈しました | $ | 0.79 | $ | 0.55 | |||||||
| 1株当たりの金額の計算に使用される加重平均株式数： | |||||||||||
| ベーシック | 143,479 | 61,722 | |||||||||
| 希釈しました | 149,079 | 147,141 | |||||||||
Nextracker Inc.
Unaudited condensed consolidated statements of operations and comprehensive income (continued)
(In thousands, except per share data)
| Six-month periods ended | |||||||||||
| September 27, 2024 | September 29, 2023 | ||||||||||
| Revenue | $ | 1,355,492 | $ | 1,052,900 | |||||||
| Cost of sales | 893,257 | 790,046 | |||||||||
| Gross profit | 462,235 | 262,854 | |||||||||
| Selling, general and administrative expenses | 132,954 | 82,107 | |||||||||
| Research and development | 35,712 | 12,775 | |||||||||
| Operating income | 293,569 | 167,972 | |||||||||
| Interest expense | 6,945 | 6,748 | |||||||||
| Other (income) expense, net | (2,514) | 3,070 | |||||||||
| Income before income taxes | 289,138 | 158,154 | |||||||||
| Provision for income taxes | 47,080 | 13,100 | |||||||||
| Net income and comprehensive income | 242,058 | 145,054 | |||||||||
| Less: Net income attributable to non-controlling interests and redeemable non-controlling interests | 4,967 | 85,372 | |||||||||
| Net income attributable to Nextracker Inc. | $ | 237,091 | $ | 59,682 | |||||||
| Earnings per share attributable to Nextracker Inc. common stockholders | |||||||||||
| Basic | $ | 1.66 | $ | 1.10 | |||||||
| Diluted | $ | 1.62 | $ | 0.99 | |||||||
| Weighted-average shares used in computing per share amounts: | |||||||||||
| Basic | 142,785 | 54,070 | |||||||||
| Diluted | 149,151 | 147,008 | |||||||||
Schedule II
Nextracker Inc.
Unaudited condensed consolidated balance sheets
(In thousands)
| As of September 27, 2024 | As of March 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 561,884 | $ | 474,054 | |||||||
| Accounts receivable, net of allowance of $4,825 and $3,872, respectively | 357,586 | 382,687 | |||||||||
| Contract assets | 360,013 | 397,123 | |||||||||
| Inventories | 179,251 | 201,736 | |||||||||
| Other current assets | 326,000 | 312,635 | |||||||||
| Total current assets | 1,784,734 | 1,768,235 | |||||||||
| Property and equipment, net | 47,158 | 9,236 | |||||||||
| Goodwill | 370,613 | 265,153 | |||||||||
| Other intangible assets, net | 49,283 | 1,546 | |||||||||
| Deferred tax assets | 472,400 | 438,272 | |||||||||
| Other assets | 44,471 | 36,340 | |||||||||
| Total assets | $ | 2,768,659 | $ | 2,518,782 | |||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 406,546 | $ | 456,639 | |||||||
| Accrued expenses | 77,139 | 82,410 | |||||||||
| Deferred revenue | 236,882 | 225,539 | |||||||||
| Current portion of long-term debt | 5,625 | 3,750 | |||||||||
| Other current liabilities | 80,086 | 123,148 | |||||||||
| Total current liabilities | 806,278 | 891,486 | |||||||||
| Long-term debt, net of current portion | 140,503 | 143,967 | |||||||||
| Tax receivable agreement (TRA) liability | 399,054 | 391,568 | |||||||||
| Other liabilities | 140,506 | 99,733 | |||||||||
| Total liabilities | 1,486,341 | 1,526,754 | |||||||||
| Total stockholders’ equity | 1,282,318 | 992,028 | |||||||||
| Total liabilities and stockholders’ equity | $ | 2,768,659 | $ | 2,518,782 | |||||||
Schedule III
Nextracker Inc.
Unaudited condensed consolidated statements of cash flows
(In thousands)
| Six-month periods ended | |||||||||||
| September 27, 2024 | September 29, 2023 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net income | $ | 242,058 | $ | 145,054 | |||||||
| Depreciation and amortization | 3,883 | 2,020 | |||||||||
| Changes in working capital and other, net | 28,686 | 105,603 | |||||||||
| Net cash provided by operating activities | 274,627 | 252,677 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property and equipment | (14,900) | (1,406) | |||||||||
| Payment for business acquisitions, net of cash acquired | (144,675) | — | |||||||||
| Net cash used in investing activities | (159,575) | (1,406) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Repayment of bank borrowings | (1,875) | — | |||||||||
| Net proceeds from issuance of Class A shares | — | 552,009 | |||||||||
| Purchase of LLC common units from Yuma, Inc. | — | (552,009) | |||||||||
| Payment of revolver issuance cost | (3,715) | — | |||||||||
| TRA payment | (15,520) | — | |||||||||
| Distribution to non-controlling interest holders | (6,112) | — | |||||||||
| Net transfers to Flex | — | (8,335) | |||||||||
| Other financing activities | — | (26) | |||||||||
| Net cash used in financing activities | (27,222) | (8,361) | |||||||||
| Net increase in cash and cash equivalents | 87,830 | 242,910 | |||||||||
| Cash and cash equivalents beginning of period | 474,054 | 130,008 | |||||||||
| Cash and cash equivalents end of period | $ | 561,884 | $ | 372,918 | |||||||
| Six-month periods ended | |||||||||||
| Adjusted free cash flow | September 27, 2024 | September 29, 2023 | |||||||||
| Net cash provided by operating activities | $ | 274,627 | $ | 252,677 | |||||||
| Purchases of property and equipment | (14,900) | (1,406) | |||||||||
| Adjusted free cash flow | $ | 259,727 | $ | 251,271 | |||||||
Schedule IV
Nextracker Inc.
Reconciliation of GAAP to Non-GAAP financial measures
(In thousands, except percentages and per share data)
| Three-month periods ended | |||||||||||||||||||||||
| September 27, 2024 | September 29, 2023 | ||||||||||||||||||||||
| GAAP gross profit & margin | $ | 224,795 | 35.4% | $ | 149,110 | 26.0% | |||||||||||||||||
| Stock-based compensation expense | 2,481 | 3,245 | |||||||||||||||||||||
| Intangible amortization | 896 | 62 | |||||||||||||||||||||
| Adjusted gross profit & margin | $ | 228,172 | 35.9% | $ | 152,417 | 26.6% | |||||||||||||||||
| GAAP operating income & margin | $ | 133,475 | 21.0% | $ | 94,092 | 16.4% | |||||||||||||||||
| Stock-based compensation expense | 29,885 | 18,216 | |||||||||||||||||||||
| Intangible amortization | 1,875 | 62 | |||||||||||||||||||||
Acquisition related costs | 2,177 | — | |||||||||||||||||||||
| Adjusted operating income & margin | $ | 167,412 | 26.3% | $ | 112,370 | 19.6% | |||||||||||||||||
| GAAP net income & margin | $ | 117,264 | 18.5% | $ | 81,409 | 14.2% | |||||||||||||||||
| Stock-based compensation expense | 29,885 | 18,216 | |||||||||||||||||||||
| Intangible amortization | 1,875 | 62 | |||||||||||||||||||||
| Adjustment for taxes | (6,274) | (3,656) | |||||||||||||||||||||
| Acquisition related costs | 2,177 | — | |||||||||||||||||||||
| Adjusted net income & margin | $ | 144,927 | 22.8% | $ | 96,031 | 16.7% | |||||||||||||||||
| GAAP net income & margin | $ | 117,264 | 18.5% | $ | 81,409 | 14.2% | |||||||||||||||||
| Interest, net | 455 | (86) | |||||||||||||||||||||
| Provision for income taxes | 19,928 | 3,999 | |||||||||||||||||||||
| Depreciation expense | 1,067 | 912 | |||||||||||||||||||||
| Intangible amortization | 1,875 | 62 | |||||||||||||||||||||
| Stock-based compensation expense | 29,885 | 18,216 | |||||||||||||||||||||
| Acquisition related costs | 2,177 | — | |||||||||||||||||||||
| Other tax related income, net | — | 5,686 | |||||||||||||||||||||
| Adjusted EBITDA & margin | $ | 172,651 | 27.2% | $ | 110,198 | 19.2% | |||||||||||||||||
| Diluted earnings per share | |||||||||||||||||||||||
| GAAP | $ | 0.79 | $ | 0.55 | |||||||||||||||||||
| Earnings per share attributable to Non-GAAP adjustments | 0.18 | 0.10 | |||||||||||||||||||||
| Adjusted | $ | 0.97 | $ | 0.65 | |||||||||||||||||||
| Diluted shares used in computing per share amounts | 149,079 | 147,141 | |||||||||||||||||||||
Nextracker Inc.
Reconciliation of GAAP to Non-GAAP financial measures (continued)
(In thousands, except percentages and per share data)
| Six-month periods ended | |||||||||||||||||||||||
| September 27, 2024 | September 29, 2023 | ||||||||||||||||||||||
| GAAP gross profit & margin | $ | 462,235 | 34.1% | $ | 262,854 | 25.0% | |||||||||||||||||
| Stock-based compensation expense | 6,261 | 5,171 | |||||||||||||||||||||
| Intangible amortization | 984 | 125 | |||||||||||||||||||||
| Adjusted gross profit & margin | $ | 469,480 | 34.6% | $ | 268,150 | 25.5% | |||||||||||||||||
| GAAP operating income & margin | $ | 293,569 | 21.7% | $ | 167,972 | 16.0% | |||||||||||||||||
| Stock-based compensation expense | 51,786 | 26,857 | |||||||||||||||||||||
| Intangible amortization | 1,963 | 125 | |||||||||||||||||||||
| Acquisition related costs | 3,657 | — | |||||||||||||||||||||
| Adjusted operating income & margin | $ | 350,975 | 25.9% | $ | 194,954 | 18.5% | |||||||||||||||||
| GAAP net income & margin | $ | 242,058 | 17.9% | $ | 145,054 | 13.8% | |||||||||||||||||
| Stock-based compensation expense | 51,786 | 26,857 | |||||||||||||||||||||
| Intangible amortization | 1,963 | 125 | |||||||||||||||||||||
| Adjustment for taxes | (15,918) | (4,881) | |||||||||||||||||||||
| Acquisition related costs | 3,657 | — | |||||||||||||||||||||
| Adjusted net income & margin | $ | 283,546 | 20.9% | $ | 167,155 | 15.9% | |||||||||||||||||
| GAAP net income & margin | $ | 242,058 | 17.9% | $ | 145,054 | 13.8% | |||||||||||||||||
| Interest, net | (837) | 1,334 | |||||||||||||||||||||
| Provision for income taxes | 47,080 | 13,100 | |||||||||||||||||||||
| Depreciation expense | 1,920 | 1,895 | |||||||||||||||||||||
| Intangible amortization | 1,963 | 125 | |||||||||||||||||||||
| Stock-based compensation expense | 51,786 | 26,857 | |||||||||||||||||||||
| Acquisition related costs | 3,657 | — | |||||||||||||||||||||
| Other tax related income, net | — | 5,686 | |||||||||||||||||||||
| Adjusted EBITDA & margin | $ | 347,627 | 25.6% | $ | 194,051 | 18.4% | |||||||||||||||||
| Diluted earnings per share | |||||||||||||||||||||||
| GAAP | $ | 1.62 | $ | 0.99 | |||||||||||||||||||
| Earnings per share attributable to Non-GAAP adjustments | 0.28 | 0.15 | |||||||||||||||||||||
| Adjusted | $ | 1.90 | $ | 1.14 | |||||||||||||||||||
| Diluted shares used in computing per share amounts | 149,151 | 147,008 | |||||||||||||||||||||
See the accompanying notes on Schedule V attached to this press release
Schedule V
Nextracker Inc.
Notes
To supplement Nextracker’s unaudited selected financial data presented consistent with U.S. Generally Accepted Accounting Principles (“GAAP”), the Company discloses certain non-GAAP financial measures that exclude certain charges and gains, including adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”), adjusted gross profit, adjusted operating income, adjusted net income, adjusted diluted earnings per share, and adjusted free cash flow. These supplemental measures exclude certain legal and other charges, stock-based compensation expense and intangible amortization, other discrete events as applicable and the related tax effects. These non-GAAP measures are not in accordance with or an alternative for GAAP and may be different from non-GAAP measures used by other companies. We believe that these non-GAAP measures have limitations in that they do not reflect all the amounts associated with Nextracker’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Nextracker’s results of operations in conjunction with the corresponding GAAP measures. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the most directly comparable GAAP measures. We compensate for the limitations of non-GAAP financial measures by relying upon GAAP results to gain a complete picture of the Company’s performance.
In calculating non-GAAP financial measures, we exclude certain items to facilitate a review of the comparability of the Company’s operating performance on a period-to-period basis because such items are not, in our view, related to the Company’s ongoing operational performance. We use non-GAAP measures to evaluate the operating performance of our business, for comparison with forecasts and strategic plans, for calculating return on investment, and for benchmarking performance externally against competitors. In addition, management’s incentive compensation is determined using certain non-GAAP measures. Since we find these measures to be useful, we believe that investors benefit from seeing results “through the eyes” of management in addition to seeing GAAP results. We believe that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
•the ability to make more meaningful period-to-period comparisons of the Company’s ongoing operating results;
•the ability to better identify trends in the Company’s underlying business and perform related trend analysis;
•a better understanding of how management plans and measures the Company’s underlying business; and
•an easier way to compare the Company’s operating results against analyst financial models and operating results of competitors that supplement their GAAP results with non-GAAP financial measures.
The following are explanations of each of the adjustments that we incorporate into non-GAAP measures, as well as the reasons for excluding each of these individual items in the reconciliations of these non-GAAP financial measures:
Stock-based compensation expense consists of non-cash charges for the estimated fair value of unvested restricted share unit and stock option awards granted to employees. The Company believes that the exclusion of these charges provides for more accurate comparisons of its operating results to peer companies due to the varying available valuation methodologies, subjective assumptions, and the variety of award types. In addition, the Company believes it is useful to investors to understand the specific impact stock-based compensation expense has on its operating results.
Intangible amortization consists primarily of non-cash charges that can be impacted by, among other things, the timing and magnitude of acquisitions. The Company considers its operating results without these charges when evaluating its ongoing performance and forecasting its earnings trends, and therefore excludes such charges when presenting non-GAAP financial measures. The Company believes that the assessment of its operations excluding these costs is relevant to its assessment of internal operations and comparisons to the performance of its competitors.
The 45X Advanced Manufacturing Production Tax Credit (“45X Credit”) which was established as part of the Inflation Reduction Act (IRA), is a per-unit tax credit earned over time for each clean energy component domestically produced and sold by a manufacturer. The 45X Credit was eligible for domestic parts manufactured after January 1, 2023. The Company has executed agreements with certain suppliers to ramp up its U.S. manufacturing footprint. These suppliers produce 45X Credit eligible parts, including torque tubes, and structural fasteners, that will then be incorporated into a solar tracker. The Company has contractually agreed with these suppliers to share a portion of the credit related to Nextracker’s purchases. The Company accounts for these credits as a reduction of the purchase price of the parts acquired from the vendor and therefore a reduction of inventory until the part is sold, at which point the Company recognizes such credit as a reduction of cost of sales on the unaudited condensed consolidated statements of operations and comprehensive income. During the fourth quarter of fiscal 2024, the Company determined the amount of the 45X vendor rebates it expects to receive in accordance with the vendor contracts and recognized a cumulative reduction to cost of sales of $121.4 million related to 45X Credit vendor rebates earned on production of eligible components shipped to projects starting on January 1, 2023 through March 31, 2024. The Company believes that the assessment of its operations excluding the benefit from the vendor credits provides a more consistent comparison of its performance given the cumulative nature of the amount recorded in the fiscal fourth quarter. Beginning in the first quarter of fiscal year 2025, these 45X credit vendor rebates are not excluded from our non-GAAP financial measures.
Acquisition costs consist primarily of nonrecurring transaction costs for business acquisitions.
Adjustment for taxes relates to the tax effects of the various adjustments that we incorporate into non-GAAP measures to provide a more meaningful measure on non-GAAP net income and certain adjustments related to non-recurring settlements of tax contingencies or other non-recurring tax charges, when applicable.