Financial Data and Key Metrics Changes - The company generated $153 million in revenue for Q1 2024, slightly above the high end of the guidance range provided in February [7] - Adjusted gross margins were reported at 38.3%, including a one-time $4 million benefit from a supplier quality issue; excluding this, the adjusted gross margin was 35.7%, up 10 percentage points sequentially and nearly 9 percentage points year-over-year [7][27] - Adjusted EBITDA was $26.2 million, representing 17.1% of revenue, which included the $4 million benefit; this compares to adjusted EBITDA of $67 million in Q1 2023 [8][29] - Free cash flow for the quarter was $45.1 million, compared to $41.9 million in the same period last year [29] Business Line Data and Key Metrics Changes - The company booked approximately $400 million in new business during Q1, resulting in a book-to-bill ratio greater than 2.5 times, ending the quarter with an order book of $2.1 billion [9] - Approximately 80% of Q1 activity came from Tier 1 customers, indicating strong demand across various market segments [9][10] - The core adjusted gross margin, excluding benefits from 45X, was in the mid-20s range, consistent with long-term targets [8] Market Data and Key Metrics Changes - Sales in North America accounted for 70% of revenue, with the remainder from international markets [25] - The company noted broad demand across all market segments, including EPCs, developers, independent power producers, and utilities [9] - The pipeline of high-quality opportunities continues to grow, aligning with expectations of robust industry-wide growth for utility-scale solar [11] Company Strategy and Development Direction - The company is focused on operational improvements and product portfolio enhancements, including the launch of new features for severe weather mitigation [33] - A new state-of-the-art manufacturing facility is being established in Albuquerque, expected to come online in early 2026, aimed at strengthening the domestic supply chain [18] - The company is actively engaging with customers to ensure alignment with market needs and to showcase technological advancements [15][68] Management's Comments on Operating Environment and Future Outlook - Management indicated a softer first half of 2024, with expectations of growth in the second half, consistent with prior communications [12] - Ongoing issues include permitting, interconnection, and supply chain delays, but some customers are progressing normally [13] - The company is monitoring developments related to AD/CVD petitions, expressing concerns that new duties could lead to project delays [13][31] Other Important Information - The company successfully launched the Hail Alert Response system, which protects solar assets from hail damage, demonstrating its effectiveness during a recent hailstorm [19][20] - The company highlighted its competitive advantage in Brazil, where its tracking technology has been shown to enhance energy production compared to competitors [16][17] Q&A Session Summary Question: Pricing strategy and margin guidance for 2025 - Management reiterated that pricing reductions are not sacrificing margins but are a result of structural cost reductions, maintaining confidence in achieving mid-20s margins over time [36][37] Question: Impact of AD/CVD on market share - Management noted that they benefited from AD/CVD in 2022, gaining market share due to their flexible product design; however, the impact of the current AD/CVD filing remains uncertain [39] Question: Gross margin trends and future expectations - Management indicated that the $4 million one-time benefit significantly impacted Q1 margins, and they expect gross margins to trend towards the low 30s for the remainder of the year [42][44] Question: Customer reaction to pricing changes - Management reported that the DuraTrack is winning in the U.S. market due to its value proposition, while the H250 is gaining traction internationally [58][60] Question: Update on clamp and 45X qualification - Management stated that it is too early to determine the outcome of the clamp qualification under the 45X program, but they continue to lobby for its inclusion [52][53] Question: Customer engagement and market share - Management emphasized the importance of analytical approaches and personal engagement with customers to drive market share growth, without entering a pricing war [66][68]

Company Performance - Array Technologies, Inc. reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of a loss of $0.04 per share, but down from $0.25 per share a year ago, representing an earnings surprise of 250% [1] - The company posted revenues of $153.4 million for the quarter ended March 2024, missing the Zacks Consensus Estimate by 2.57%, and down from $376.77 million year-over-year [1] - Over the last four quarters, Array Technologies has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [1] Stock Performance - Array Technologies shares have declined approximately 25.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.8% [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.21 on revenues of $304.99 million, and for the current fiscal year, it is $1.08 on revenues of $1.33 billion [4] - The estimate revisions trend for Array Technologies is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [4] Industry Context - The solar industry, to which Array Technologies belongs, is currently ranked in the bottom 29% of over 250 Zacks industries, which may negatively impact stock performance [5] - Nextracker, another company in the solar industry, is expected to report quarterly earnings of $0.59 per share, reflecting a year-over-year change of +181%, with revenues anticipated to be $681.03 million, up 31.4% from the previous year [5][6]

[PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q1 2024, detailing balance sheets, operations, and cash flows, with total assets at $1.63 billion, revenue at $153.4 million, and a net loss of $11.3 million [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets decreased to $1.63 billion, total liabilities to $1.03 billion, and stockholders' equity to $231.2 million Balance Sheet Highlights (in thousands) | Balance Sheet Highlights | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $774,423 | $832,281 | | **Total Assets** | $1,629,283 | $1,706,741 | | **Total Current Liabilities** | $283,662 | $335,691 | | **Total Liabilities** | $1,033,297 | $1,096,233 | | **Total Stockholders' Equity** | $231,224 | $259,248 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2024 revenue significantly decreased to $153.4 million, resulting in a net loss attributable to common shareholders of $11.3 million, or ($0.07) per share Statements of Operations Highlights (in thousands) | Statement of Operations | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenue** | $153,403 | $376,773 | | **Gross Profit** | $55,090 | $97,540 | | **Income from Operations** | $8,414 | $47,458 | | **Net Income** | $2,165 | $29,635 | | **Net (Loss) Income to Common Shareholders** | $(11,337) | $17,151 | | **Diluted (Loss) Income Per Share** | $(0.07) | $0.11 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) In Q1 2024, the company generated $47.5 million in operating cash flow, ending the quarter with $287.6 million in cash and cash equivalents Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $47,502 | $45,816 | | Net cash used in investing activities | $(2,386) | $(3,883) | | Net cash used in financing activities | $(4,575) | $(23,762) | | **Net change in cash and cash equivalents** | **$38,540** | **$13,855** | | **Cash and cash equivalents, end of period** | **$287,620** | **$147,756** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, IRA impact with $57.1 million in vendor rebates, $396.9 million in remaining performance obligations, debt structure, segment revenue declines, and legal proceedings - The company had outstanding **Vendor Rebates of $57.1 million** as of March 31, 2024, related to the Inflation Reduction Act's 45X Advanced Manufacturing Production Tax Credit[47](index=47&type=chunk)[48](index=48&type=chunk) Revenue Disaggregation (in thousands) | Revenue Disaggregation (Q1 2024 vs Q1 2023) | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | Over-time revenue | $124,336 | $248,219 | | Point in time revenue | $29,067 | $128,554 | | **Total revenue** | **$153,403** | **$376,773** | - As of March 31, 2024, the company had **$396.9 million of remaining performance obligations**, all expected to be recognized as revenue within the next twelve months[107](index=107&type=chunk) Segment Performance (in thousands) | Segment Performance (Q1 2024 vs Q1 2023) | Three Months Ended Mar 31, 2024 (in thousands) | Three Months Ended Mar 31, 2023 (in thousands) | | :--- | :--- | :--- | | **Revenue** | | | | Array Legacy Operations | $114,381 | $305,204 | | STI Operations | $39,022 | $71,569 | | **Gross Profit** | | | | Array Legacy Operations | $49,086 | $79,835 | | STI Operations | $6,004 | $17,705 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 59% Q1 2024 revenue decline to lower volumes and prices, while gross margin improved to 36% due to cost enhancements and 45X tax credits, maintaining a strong liquidity position [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Q1 2024 consolidated revenue declined 59% to $153.4 million, driven by lower volumes in both segments, though gross profit margin improved to 36% due to cost enhancements and 45X benefits Key Financial Metrics (in thousands) | Key Metrics | Q1 2024 (in thousands) | Q1 2023 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | **Revenue** | $153,403 | $376,773 | (59)% | | Array Legacy Ops | $114,381 | $305,204 | (63)% | | STI Ops | $39,022 | $71,569 | (45)% | | **Gross Profit** | $55,090 | $97,540 | (44)% | | **Gross Margin** | 36.0% | 25.9% | +10.1 p.p. | | **Net Income** | $2,165 | $29,635 | (93)% | - The increase in gross profit as a percentage of revenue was driven by structural cost enhancements, 45X benefits, and a **one-time $4.0 million vendor settlement**[197](index=197&type=chunk)[198](index=198&type=chunk) [Liquidity and Capital Resources](index=44&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2024, the company maintained strong liquidity with **$287.6 million in cash** and **$490.8 million in net working capital**, generating **$47.5 million in operating cash flow** Liquidity Metrics (in thousands) | Liquidity Metrics | As of March 31, 2024 (in thousands) | | :--- | :--- | | Cash and cash equivalents | $287,620 | | Net working capital | $490,800 | | Availability on Revolving Credit Facility | $179,000 | Cash Flow Summary (in thousands) | Cash Flow Summary | Three Months Ended Mar 31, 2024 (in thousands) | | :--- | :--- | | Net cash provided by operating activities | $47,502 | | Net cash used in investing activities | $(2,386) | | Net cash used in financing activities | $(4,575) | [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include steel and aluminum price fluctuations and customer concentrations, with no material changes since the 2023 Annual Report - The company's main market risk exposures are from fluctuations in **steel and aluminum prices** and **customer concentrations**[217](index=217&type=chunk) - There have been **no material changes** to the company's market risk disclosures since its 2023 Annual Report[219](index=219&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2024, disclosure controls were deemed ineffective due to material weaknesses in personnel and IT/accounting controls at the STI subsidiary, with remediation efforts underway - Disclosure controls and procedures were deemed **ineffective** as of March 31, 2024, due to previously reported material weaknesses[221](index=221&type=chunk) - The material weaknesses relate to a lack of sufficient qualified personnel and inadequate IT and accounting controls at the **STI subsidiary**[221](index=221&type=chunk)[222](index=222&type=chunk) - Remediation efforts include hiring additional qualified resources and implementing a **new ERP system for Brazil operations** in Q2 2024[224](index=224&type=chunk)[226](index=226&type=chunk) [PART II - OTHER INFORMATION](index=48&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in class action and derivative lawsuits, but management assesses the likelihood of any material loss as remote - The company is a defendant in putative class action and derivative lawsuits alleging securities law violations, with one motion to dismiss granted and now under appeal[112](index=112&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk) - Management believes the likelihood of any material loss related to these legal matters is **remote** and has not recorded any material loss contingency as of March 31, 2024[118](index=118&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - There were **no material changes** to the risk factors disclosed in the 2023 Annual Report[230](index=230&type=chunk) [Other Information (Items 2-6)](index=48&type=section&id=Other%20Information%20%28Items%202-6%29) This section confirms no unregistered equity sales or senior security defaults, notes the CEO's Rule 10b5-1 trading arrangement termination, and lists exhibits - The company reported **no unregistered sales of equity securities** or defaults upon senior securities[230](index=230&type=chunk)[231](index=231&type=chunk) - On March 21, 2024, CEO Kevin Hostetler **terminated his Rule 10b5-1 trading arrangement**[232](index=232&type=chunk)

Financial Performance - Revenue decreased to $153.4 million in 1Q24 from $376.8 million in 1Q23, a decrease of $223.4 million[8, 50] - Gross margin increased to 35.9% in 1Q24 from 25.9% in 1Q23, an increase of 1000 bps[8, 50] - Adjusted gross margin increased to 38.3% in 1Q24 from 26.9% in 1Q23, an increase of 1140 bps[50, 56] - Net loss to common shareholders was $11.3 million in 1Q24, compared to net income of $17.2 million in 1Q23, a decrease of $28.5 million[8, 50] - Adjusted EBITDA was $26.2 million in 1Q24, compared to $67.0 million in 1Q23, a decrease of $40.8 million[8, 50, 57] - Free cash flow increased to $45.1 million in 1Q24 from $41.9 million in 1Q23, an increase of $3.2 million[8, 50, 62] Guidance - The company expects second quarter revenue of $225 million to $235 million[52] - The company reaffirms full year 2024 revenue guidance of $1.25 billion to $1.40 billion[52] - The company anticipates adjusted EBITDA for full year 2024 to be between $285 million and $315 million[52] - The company expects adjusted net income per common share for full year 2024 to be between $1.00 and $1.15[52] Business Updates - Cumulative bookings of $1.8 billion over the last four quarters[10] - Array Technologies is building a $50 million solar manufacturing campus in New Mexico[13]

May 9, 2024 Array Technologies, Inc. Reports Financial Results for the First Quarter 2024 – Achieves record gross margin and $2.1 billion of executed contracts and awarded orders First Quarter 2024 Highlights • Revenue of $153.4 million • Gross Margin of 35.9% • Adjusted gross margin of 38.3% • Net loss to common shareholders of $11.3 million • Adjusted EBITDA of $26.2 million • Basic and diluted net loss per share of $0.07 • Adjusted diluted net income per share of $0.06 (1) (1) (1) ALBUQUERQUE, NM — (GLOB ...

First Quarter 2024 Highlights Revenue of $153.4 millionGross Margin of 35.9%Adjusted gross margin of 38.3%(1)Net loss to common shareholders of $11.3 millionAdjusted EBITDA(1) of $26.2 millionBasic and diluted net loss per share of $0.07Adjusted diluted net income per share(1) of $0.06 ALBUQUERQUE, N.M., May 09, 2024 (GLOBE NEWSWIRE) -- Array Technologies (NASDAQ:ARRY) ("Array" or "the Company"), a leading provider of tracker solutions and services for utility-scale solar energy projects, today announced fi ...

ALBUQUERQUE, N.M., May 06, 2024 (GLOBE NEWSWIRE) -- Array Technologies (NASDAQ:ARRY), a leading provider of solar tracking solutions, confirmed in a new study that its safe, passive wind stow solution can significantly optimize energy production. Array collaborated with DNV Energy USA (DNV) to publish a comprehensive report titled "Energy Impact of Different Solar Tracker Wind Stow Strategies," outlining the benefits of safe, passive wind stow technology in solar farms. The analysis focused on evaluating th ...

Investors with an interest in Solar stocks have likely encountered both Array Technologies, Inc. (ARRY) and Enphase Energy (ENPH) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision tr ...

ALBUQUERQUE, N.M., April 26, 2024 (GLOBE NEWSWIRE) -- U.S. Secretary of Energy Jennifer Granholm, U.S. Senators Martin Heinrich and Ben Ray Luján, Albuquerque Mayor Tim Keller, and Bernalillo County Commission Chair Barbara Baca joined today with Array Technologies (NASDAQ:ARRY) to announce the groundbreaking of a new $50+ million manufacturing campus in Bernalillo County, New Mexico. The facility marks a significant investment in the region's clean energy future and underscores Array's commitment to foster ...

Group 1: Tesla's Layoffs - Tesla announced layoffs of about 10% of its workforce as part of a major restructuring, aimed at increasing efficiency amid declining vehicle demand [2] - Tesla delivered 386,810 vehicles in Q1 2024, a decrease from 422,875 in the same period last year, indicating a drop in demand [2] Group 2: Impact on EV and Renewable Stocks - The electric vehicle and renewable energy market experienced a significant decline, with Polestar Automotive's shares dropping 10.3%, ChargePoint down 13.7%, and Array Technologies falling 13.3% [1] - The overall sentiment in the market suggests that it may be overvalued due to expectations of sustained high interest rates [1] Group 3: Interest Rates and Economic Impact - Interest rates have risen, with investors no longer anticipating multiple rate cuts by the Federal Reserve this year, leading to speculation that rates may remain elevated [3] - Higher interest rates negatively affect EV sales and renewable energy projects, as financing costs increase [3][4] Group 4: Financing Challenges - Vehicles are often financed through loans or leases, and higher interest rates make these purchases more expensive, impacting consumer affordability [4] - Automakers may respond by lowering vehicle prices or offering financing incentives, which can erode profit margins [4] Group 5: Industry Outlook for 2024 - The EV and renewable industries are facing significant challenges in 2024, with demand for EVs hitting a ceiling while supply increases [5] - Renewables continue to face difficulties due to rising interest rates, which affect project valuations and demand [5] - Earnings season is expected to reflect these headwinds, with negative outcomes anticipated for companies in the energy and auto sectors [5]