Core Insights - Array Technologies, Inc. reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.21 per share, and showing an increase from $0.17 per share a year ago, resulting in an earnings surprise of +42.86% [1] - The company achieved revenues of $393.49 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 25.60%, compared to $231.41 million in the same quarter last year [2] - Array Technologies has outperformed the S&P 500, gaining approximately 28% year-to-date compared to the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $224.47 million, and for the current fiscal year, it is $0.67 on revenues of $1.2 billion [7] - The estimate revisions trend for Array Technologies was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Solar industry, to which Array Technologies belongs, is currently ranked in the top 29% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8] - Canadian Solar, a competitor in the same industry, is expected to report a quarterly loss of $1.08 per share, reflecting a year-over-year change of -248.4%, with revenues anticipated to be $1.37 billion, down 9.1% from the previous year [9][10]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $393 million, representing a 70% year-over-year growth driven by a 56% increase in volume [4][23] - Year-to-date revenue surpassed $1 billion, exceeding the total annual revenue of 2024, with a 74% year-over-year volume growth [5][23] - Adjusted EBITDA for the quarter was $72 million, marking a 55% increase compared to the previous year [27] - GAAP net income attributable to common stockholders was $18 million, compared to a net loss of $155 million in the prior year [28] Business Line Data and Key Metrics Changes - The APA acquisition contributed approximately $17 million in revenues for the quarter [4][23] - Adjusted gross profit increased by 35% year-over-year to $111 million, with an adjusted gross margin of 28.1% [24] - The adjusted SGA was $39 million, just under 10% of revenues, compared to 15.5% in the same quarter of 2024 [27] Market Data and Key Metrics Changes - The order book at the end of the quarter was $1.9 billion, with over 95% of the business being domestic [6][7] - The company noted strong demand in the early-stage project pipeline, which has achieved double-digit expansion year-to-date [10] Company Strategy and Development Direction - The company is focused on integrating APA and enhancing its competitive advantage through a strategic product roadmap, including co-development of integrated tracker and foundation solutions expected in the second half of 2026 [9] - The company aims to maintain seamless operations while realizing synergies from the APA acquisition [8] - A unified sales strategy has been introduced to enhance customer engagement and quoting processes [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment for 2026, anticipating both organic growth within the core business and inorganic growth from the APA integration [14] - The company is committed to providing flexibility to customers amid regulatory uncertainties and is focused on enhancing customer engagement [10][11] - Management highlighted the importance of maintaining a strong order book and improving gross margins despite inflationary pressures [31] Other Important Information - The company has taken a conservative approach to adding international orders to its order book to mitigate potential risks [7] - The supply chain strategy has been adapted to navigate the evolving tariff landscape, with a focus on domestic sourcing to minimize exposure [16][20] Q&A Session Summary Question: Outlook for growth in 2026 post Safe Harbor - Management indicated a return to normalized business flow, with a strong order book primarily from Tier 1 customers who have already secured Safe Harbor through 2029 and 2030 [37][38] Question: EBITDA margin expectations for Q4 and beyond - Management noted that Q4 is expected to be a drop quarter primarily due to lower revenue volumes, but they remain confident in maintaining margins in the 27%-28% range [39][43] Question: Revenue contributions from APA and future growth - APA is expected to have slight growth in 2025, with strong outlooks for future partnerships and utility-scale customer introductions [140] Question: International business opportunities - Management expressed satisfaction with year-to-date progress in international markets, particularly in Brazil and Australia, and emphasized a project-specific approach to supply chain decisions [99][100]

Revenue and Financial Performance - For the nine months ended September 30, 2025, the company derived 79% of its revenues from U.S. customers and 21% from international customers, having shipped approximately 95 gigawatts of trackers worldwide [197]. - Total revenue for the nine months ended September 30, 2025, was $1,058.1 million, a 65% increase from $640.6 million in the same period in 2024 [248]. - Revenue for the three months ended September 30, 2025, increased by $162.1 million, or 70%, compared to the same period in 2024, primarily driven by a 120% increase in revenue from Array Legacy Operations [251]. - Revenue from Array Legacy Operations increased by $193.1 million, or 120%, for the three months ended September 30, 2025, primarily due to a 122% increase in volume [252]. - Revenue from STI Operations decreased by $31.0 million, or 44%, for the three months ended September 30, 2025, driven by a 61% decrease in volume despite a 39% increase in ASPs [253]. - Consolidated revenue increased by $417.5 million, or 65%, for the nine months ended September 30, 2025, compared to the same period in 2024, driven by Array Legacy Operations' revenue growth of 87% and STI Operations' growth of 10% [254]. - Revenue from Array Legacy Operations increased by $398.7 million, or 87%, for the nine months ended September 30, 2025, primarily due to a 104% increase in volume, despite a 19% decrease in average selling prices (ASPs) due to commodity price declines [255]. - STI Operations revenue increased by $18.9 million, or 10%, for the nine months ended September 30, 2025, mainly driven by a 12% increase in volume [256]. - Gross profit for the three months ended September 30, 2025, was $105.7 million, a 35% increase from $78.3 million in the same period in 2024 [250]. - Consolidated gross profit increased by $59.9 million, or 27%, for the nine months ended September 30, 2025, but gross margin decreased to 26.4% from 34.2% in the prior year [261]. - Array Legacy Operations gross profit increased by $59.7 million, or 31%, for the nine months ended September 30, 2025, with gross margin decreasing to 29.3% from 41.8% due to a 19% decrease in ASPs and an 11% increase in cost per watt [262]. - Net income for the three months ended September 30, 2025, was $33.5 million, compared to a net loss of $141.4 million in the same period in 2024, representing a turnaround of $174.9 million [248]. Expenses and Investments - Research and development expenses for the three months ended September 30, 2025, were $2.3 million, compared to $1.6 million for the same period in 2024, reflecting an increase in investment in product development [204]. - Total engineering expenses for the nine months ended September 30, 2025, were $13.7 million, up from $12.7 million in the same period in 2024, with R&D activities accounting for $7.2 million and $5.3 million respectively [204]. - Operating expenses for the three months ended September 30, 2025, decreased by 71% to $60.2 million from $210.99 million in the same period in 2024, primarily due to the absence of goodwill impairment [249]. - Consolidated operating expenses increased by $12.1 million, or 30%, for the three months ended September 30, 2025, primarily due to higher personnel-related and acquisition-related expenses [264]. - Cash provided by operating activities was $58.1 million for the nine months ended September 30, 2025, compared to $96.4 million in the same period of 2024 [284]. - Net cash used in investing activities was $179.4 million for the nine months ended September 30, 2025, primarily due to acquisition-related expenses and capital expenditures [286]. Acquisitions and Business Development - The company completed the acquisition of APA Solar for a total purchase consideration of approximately $186.1 million, including an earnout provision estimated at $20.0 million [198]. - The acquisition of APA Solar expands the company's product portfolio to include solar racking, mounting, and foundation systems, addressing evolving industry needs [201]. - The company completed a business combination for a purchase consideration of $186.1 million during the nine months ended September 30, 2025 [298]. - The Purchase Agreement includes Earnout Consideration and Deferred Consideration totaling approximately $40 million [291]. - The maximum Earnout Consideration is 4,686,530 shares of common stock, contingent on APA achieving specific financial performance targets by September 30, 2028 [292]. - Deferred Consideration will be paid in three installments, with the first installment equal to 50% of the Deferred Consideration due within five business days after the first anniversary of the Closing Date [293]. - The company issued 400,000 shares of Series A Redeemable Perpetual Preferred Stock and 9,000,000 shares of common stock for approximately $395.4 million [294]. Market and Regulatory Environment - The One Big Beautiful Bill Act (OBBB) changes the solar Investment Tax Credit (ITC), terminating it for facilities placed in service after December 31, 2027, unless construction begins before July 4, 2026 [208]. - The OBBB imposes foreign entity limitations on claiming the ITC, affecting entities from covered nations like China and Russia, which could impact solar facility claims [208]. - The Section 45X manufacturing production tax credit applies to eligible components, with the company negotiating agreements to share economic benefits with suppliers [212]. - The OBBB did not modify the phase-out of the Section 45X credit but imposed foreign entity limitations, affecting future claims [213]. - The IRS issued guidance on domestic content bonus tax credits, which may cause project delays as customers navigate the requirements [214]. - The OBBB increased the domestic content threshold for solar facilities starting construction after June 16, 2025, impacting business evaluations [215]. - The U.S. Department of Commerce issued AD/CVD orders affecting certain solar photovoltaic cells and modules, with potential cash deposit rates exceeding 250% for imports from specific countries [220][221]. - The ongoing Russian-Ukraine war has increased logistics costs and material availability issues, prompting a reevaluation of procurement strategies [217]. - Disruptions in shipping lanes have led to increased transit times and costs, with the company increasing local sourcing efforts to mitigate delays [218]. - The company faces risks related to project timing, including potential delays due to weather, interest rate fluctuations, and local permitting challenges [205]. - The company has experienced competitive pressures and uncertainties related to tariffs and trade policies that could impact sourcing and pricing of components [207]. Financial Position and Liquidity - As of September 30, 2025, the company had a cash balance of $221.5 million, with $145.3 million available under its $166 million Revolving Credit Facility [277]. - The company completed a private placement of $345 million in aggregate principal amount of 2031 Convertible Notes, resulting in net proceeds of $334.6 million, which were used to repay debt and repurchase Convertible Notes [280]. - The company has contractual obligations and commitments as of September 30, 2025, with no material changes reported [290]. - As of September 30, 2025, the company posted surety bonds totaling approximately $227.4 million, which do not adversely impact liquidity [296]. - The Earnout Consideration was estimated to have a fair value of $20.4 million as of September 30, 2025, using a Monte-Carlo simulation method [301]. - The company is exposed to market risks primarily due to fluctuations in steel and aluminum prices and customer concentrations [303]. - There have been no material changes to the information previously provided under Item 7A of the 2024 Annual Report [304].

Financial Performance - Revenue for 3Q 2025 was $393.5 million, including $16.9 million from APA, a 70% increase compared to 3Q 2024[18] - Net income for 3Q 2025 was $18.4 million, with an adjusted net income of $45.8 million, a 73% increase year-over-year[18] - Gross profit for 3Q 2025 was $105.7 million, representing a gross profit margin of 26.9%[18] - Adjusted EBITDA for 3Q 2025 was $72.2 million, a 55% increase year-over-year[18] - Adjusted gross profit for 3Q 2025 was $110.5 million, resulting in an adjusted gross margin of 28.1%[19, 20] Order Book and Business Update - The order book stands at $1.9 billion, with over 95% being domestic[20] - OmniTrack, SkyLink, and Hail XP now represent approximately 40% of the order book[20] Supply Chain - Less than 20% of a typical Bill of Materials (BOM) is currently exposed to tariffs, with expectations of less than 14% by year-end[35] Full Year Guidance - The company updated its full-year 2025 revenue guidance to $1.25 billion - $1.28 billion, including APA[53] - The adjusted gross margin guidance is 27% - 28%[53] - Adjusted EBITDA guidance is $185 million - $195 million[53]

Revenue Growth - Year-to-date revenue increased by 65% and volume by 74% compared to the previous year[1] - Third quarter revenue growth year-over-year was 70%, with volume growth of 56%[3] - Revenue for the third quarter was $393.5 million, with APA contributing $16.9 million[5] - Total revenue for the three months ended September 30, 2025, was $393,491 thousand, representing a 70.4% increase from $231,406 thousand in the same period of 2024[28] - Revenue for the three months ended September 30, 2025, was $393,491,000, a significant increase from $231,406,000 in the same period of 2024, representing a growth of 70%[32] - Full-year revenue guidance is projected to be between $1.25 billion and $1.28 billion, including approximately $50 million from APA[6] Profitability Metrics - Adjusted EBITDA for the full year is expected to range from $185 million to $195 million[6] - Adjusted EBITDA for the nine months ended September 30, 2025, was $176,336,000, up from $128,353,000 in 2024, indicating a growth of 37.4%[34] - Adjusted net income per share is projected to be between $0.64 and $0.70[6] - Adjusted net income for the nine months ended September 30, 2025, was $104,235,000, an increase from $66,080,000 in 2024, representing a growth of 57.8%[34] - Net income for the three months ended September 30, 2025, was $33,503 thousand, compared to a net loss of $141,354 thousand in the same period of 2024[28] - The company reported a basic income per common share of $0.12 for the three months ended September 30, 2025, recovering from a loss of $1.02 in the same quarter of 2024[34] Expenses and Cash Flow - The company incurred total operating expenses of $160,112 thousand for the nine months ended September 30, 2025, compared to $304,017 thousand in 2024, a decrease of 47.4%[28] - Operating cash flow for the nine months ended September 30, 2025, was $58,145 thousand, down from $96,394 thousand in the same period of 2024[30] - Free cash flow for the three months ended September 30, 2025, was $21,850,000, compared to $43,858,000 in the same period of 2024[36] - General and administrative expenses for the three months ended September 30, 2025, totaled $52,248,000, compared to $40,149,000 in 2024, reflecting an increase of 30.1%[36] Balance Sheet Highlights - Total assets increased to $1,611,161 thousand as of September 30, 2025, from $1,425,999 thousand as of December 31, 2024, reflecting a growth of 13.0%[26] - Total liabilities rose to $1,206,572 thousand as of September 30, 2025, compared to $1,137,164 thousand as of December 31, 2024, marking a 6.1% increase[26] - Cash and cash equivalents decreased to $221,516 thousand as of September 30, 2025, down from $362,992 thousand as of December 31, 2024[26] Strategic Initiatives - The acquisition of APA is expected to enhance top-line expansion and profitability[4] - The company anticipates continued growth in 2026 with the launch of new integrated tracker and software solutions[4] Other Notable Events - The company reported a significant goodwill impairment of $162,000 thousand in the three months ended September 30, 2024[28] - The company is awaiting a decision on an appeal related to legal costs associated with litigation dismissed in May 2023, which may impact future financials[35]

Core Insights - ARRAY Technologies, Inc. reported a significant year-to-date revenue increase of 65% and volume growth of 74% as of the third quarter of 2025 [1][2] - The company achieved a revenue of $393.5 million for the third quarter, reflecting a year-over-year growth of 70% [3][7] - The acquisition of APA Solar is expected to enhance ARRAY's product offerings and profitability, contributing approximately $50 million in revenue for the full year 2025 [4][8] Financial Performance - The company recorded an Adjusted EBITDA of $72.2 million for the third quarter, marking its second highest quarter on record [3][7] - The gross margin for the third quarter was reported at 26.9%, with an adjusted gross margin of 28.1% [7][28] - Net income attributable to common shareholders was $18.4 million, translating to earnings of $0.12 per share [7][29] Guidance and Future Outlook - ARRAY updated its full-year 2025 revenue guidance to a range of $1.25 billion to $1.28 billion, including APA's contribution [4][8] - The company anticipates continued growth into 2026, driven by new product launches and strategic initiatives [4][8] - The guidance reflects benefits from the Inflation Reduction Act, particularly in advanced manufacturing production credits [6][8] Market Position and Strategy - ARRAY's strong bookings indicate growing trust and partnerships with key players in the solar industry, including developers and utilities [3][4] - The integration of APA Solar is seen as a pivotal moment for ARRAY, enhancing its competitive advantage and ability to meet evolving market needs [3][4] - The company emphasizes its commitment to operational reliability and performance, which are valued by its customer base [3][4]

Core Insights - Actively managed ETFs, especially in the fixed income category, are experiencing rapid growth in the ETF market [1] - This growth is driven by advisors shifting from higher-fee mutual funds to ETFs and the conversion of popular mutual funds into ETF structures [1]

Core Viewpoint - Array Technologies, Inc. is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for quarterly earnings is $0.21 per share, reflecting a year-over-year increase of 23.5% [3]. - Expected revenues are projected at $313.3 million, which is a 35.4% increase compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 14.2% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Array Technologies is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -23.29%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - Array Technologies currently holds a Zacks Rank of 2, but the negative Earnings ESP complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Array Technologies was expected to post earnings of $0.21 per share but exceeded expectations with earnings of $0.25, resulting in a surprise of 19.05% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While Array Technologies does not appear to be a compelling earnings-beat candidate, investors should consider other factors when making investment decisions ahead of the earnings release [17].

Core Points - ARRAY Technologies, Inc. will release its third quarter 2025 results on November 5, 2025, after market close, followed by a conference call at 5:00 p.m. Eastern Time [1] - The conference call can be accessed via phone or webcast, with a telephonic replay available for a limited time after the call [2] - ARRAY Technologies is a leading provider of solar tracking technology and fixed-tilt systems, focusing on utility-scale and distributed generation customers [3] Company Overview - ARRAY Technologies specializes in solar tracking technology and fixed-tilt systems designed for harsh weather conditions, maximizing energy production for solar PV projects [3] - The company is headquartered in the United States and emphasizes domestic manufacturing, a diversified global supply chain, and a customer-centric approach [3] - ARRAY's offerings include high-quality solar trackers, software platforms, foundation solutions, and field services, supporting the entire lifecycle of solar energy projects [3]

Core Viewpoint - Array Technologies (NASDAQ: ARRY) is given a hold rating due to a challenging and uncertain external environment, despite strong internal execution and product adoption [1]. Company Performance - Array Technologies is successfully executing its strategy with new products such as OmniTrack, SkyLink, and Hail XP driving tangible adoption [1]. Investment Strategy - The investment approach encompasses fundamental investing, technical investing, and momentum investing, leveraging the strengths of each to refine the investment process [1].