Core Viewpoint - ARRAY Technologies has announced the acquisition of APA Solar, enhancing its capabilities in engineered foundation solutions and fixed-tilt mounting systems for solar projects, which is expected to be accretive to its Adjusted EPS in the first year before synergies [1][4]. Acquisition Details - The acquisition transaction values APA at approximately $179 million, representing a multiple of 7.6x trailing 12 months EBITDA, excluding 45X credits [3][4]. - APA generated approximately $129 million in revenue and $25 million in EBITDA in 2024, excluding 45X credits [1]. - The deal includes $168 million in upfront cash consideration and $42 million in deferred consideration, with $31 million of net present value of tax benefits factored in [3][4]. Strategic Benefits - The acquisition allows ARRAY to offer an integrated tracker and foundation system, addressing challenging soil conditions without the need for specialized installation equipment [2][4]. - The addition of domestically manufactured engineered foundations and fixed-tilt solutions expands ARRAY's addressable market by nearly 40% [4]. - The partnership is expected to enhance operational excellence and provide expanded resources and expertise for both companies [3][6]. Management and Operations - Following the acquisition, APA's senior management team will remain in place and lead the new "Foundation Solutions Business" within ARRAY [6]. - The headquarters and principal manufacturing operations of APA will continue to be located in Ridgeville Corners, Ohio [6]. Timeline and Conditions - The transaction is expected to close in the third quarter of 2025, pending regulatory approvals and customary closing conditions [4][7].

Core Insights - The recent GOP tax bill has significant negative implications for the clean energy sector, particularly affecting solar companies and their business models [1][2][3] Group 1: Impact on Solar Stocks - Solar stocks experienced a sharp decline, with Sunrun falling over 35% due to the termination of key clean energy credits [1] - Enphase and SolarEdge saw a drop of approximately 18% as demand for rooftop solar is expected to decrease [2] - Array and Nextracker, which produce devices for solar panel tracking, fell by 14% and 5% respectively, reflecting the adverse impact on utility-scale solar projects [3] Group 2: Legislative Changes - The GOP bill ends investment and electricity production credits for clean energy facilities that begin construction after the legislation is enacted or enter service after December 31, 2028 [3] - Analysts describe the bill as a "sledgehammer" to the Inflation Reduction Act, indicating a severe setback for the rooftop solar industry, where 70% of installations use lease arrangements [2] Group 3: Company-Specific Outcomes - First Solar's stock only decreased by 1% as the manufacturing tax credit remains intact, which is seen as a positive outcome for the company [4] - First Solar is noted as the largest producer of solar panels in the U.S., benefiting from a strong domestic manufacturing presence [4]

Group 1: Market Performance - Solar stocks generally rose, with Array up 7.64%, Canadian Solar ADR up 5.62%, Sunrun up 4.96%, First Solar up 4.32%, SolarEdge up 3.23%, and JinkoSolar ADR up 2.72% [1][2] - The S&P 500 index is currently down 0.45%, the Dow Jones is down 104 points (0.49%), while the Nasdaq is up 13 points (0.31%) [1] Group 2: Regulatory Environment - The U.S. believes that imports of solar products from Southeast Asia harm the domestic industry, laying the groundwork for tariffs on these imports [1]

Core Insights - ARRAY Technologies has launched DuraTrack Hail XP™, an advanced solar tracker designed to withstand extreme hail and wind events, enhancing the reliability of solar assets in hail-prone regions [1][3] - The development of Hail XP involved direct input from customers, insurers, and industry partners, addressing severe weather risks that solar projects face today [2][3] - Hail XP features industry-leading protective stow angles and strong stow reliability, aiming to reduce downtime and damage to solar installations [3][6] Product Features - Hail XP operates without relying on batteries, ensuring maximum readiness when hail approaches [6] - It has a 77-degree stow capability, allowing modules to be positioned at a high tilt to mitigate hail impact regardless of wind conditions [6] - The product integrates seamlessly with ARRAY's SmarTrack® Hail Alert Response and patented Passive Wind Stow technologies, enhancing its protective features [6] - Enhanced durability is achieved through a reinforced bearing housing, larger gear rack, and upgraded damper, ensuring performance in harsh conditions [6] - Hail XP is expected to be available for first shipments in early 2026 [6] Company Overview - ARRAY Technologies is a leading global provider of solar tracking technology, focusing on utility-scale and distributed generation customers [4] - The company emphasizes its commitment to manufacturing and technology, leveraging a diversified global supply chain and a customer-centric approach [4]

Core Insights - ARRAY Technologies has launched DuraTrack Hail XP™, an advanced solar tracker designed to withstand extreme hail and wind events, enhancing the reliability of solar assets in hail-prone regions [1][3] - The development of Hail XP involved direct input from customers, insurers, and industry partners, addressing severe weather risks that solar projects face today [2][3] - Hail XP sets a new benchmark for tracker reliability, featuring industry-leading protective stow angles and strong stow reliability to reduce downtime and damage [3] Product Features - Hail XP operates without batteries, ensuring maximum readiness when hail approaches [6] - It has a 77-degree stow capability, allowing modules to be positioned at a high tilt to mitigate hail impact regardless of wind conditions [6] - The product integrates seamlessly with ARRAY's SmarTrack® Hail Alert Response and patented Passive Wind Stow technologies, enhancing its protective features [6] - Enhanced durability is achieved through a reinforced bearing housing, larger gear rack, and upgraded damper, ensuring performance in harsh conditions [6] - Hail XP is expected to be available for first shipments in early 2026 [6] Company Overview - ARRAY Technologies is a leading global provider of solar tracking technology, focusing on utility-scale and distributed generation customers [4] - The company emphasizes its commitment to manufacturing and technology, leveraging a diversified global supply chain and a customer-centric approach [4]

Company Overview - Array Technologies, Inc. was founded in 1989 and is based in Albuquerque, NM, specializing in solar tracking equipment and technology for the solar power industry, primarily for utility-scale installations [1] Industry Insights - The company provides solar trackers, which are systems that position solar panels to maximize sunlight exposure, thereby enhancing energy production [1] Investment Philosophy - The investment approach emphasizes the slow accumulation of high-quality assets, blending steady investment with high-risk, high-reward opportunities, and transformative technologies [1]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission File Number: 001-39613 ARRAY TECHNOLOGIES, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 83-2747826 (State or Ot ...

Company Overview - Array Technologies, Inc. (NASDAQ: ARRY) specializes in manufacturing and selling solar tracking technology across various markets including the United States, Spain, Brazil, and Australia [1] Market Focus - The company primarily serves customers involved in the development of solar energy sites, indicating a strong alignment with the growing renewable energy sector [1] Investment Philosophy - The investment approach emphasizes identifying mispriced securities by analyzing the underlying drivers of a company's financials, often utilizing a Discounted Cash Flow (DCF) model for valuation [1]

Core Viewpoint - Array Technologies, Inc. reported quarterly earnings of $0.13 per share, exceeding the Zacks Consensus Estimate of $0.09 per share, and showing an increase from $0.06 per share a year ago, indicating a 44.44% earnings surprise [1] Financial Performance - The company posted revenues of $302.36 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 14.92%, compared to $153.4 million in the same quarter last year [2] - Over the last four quarters, Array Technologies has exceeded consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Array Technologies shares have declined approximately 18.4% since the beginning of the year, while the S&P 500 has decreased by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $285.86 million, and for the current fiscal year, it is $0.61 on revenues of $1.09 billion [7] Industry Outlook - The solar industry, to which Array Technologies belongs, is currently ranked in the bottom 18% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Array Technologies may be influenced by the overall outlook of the solar industry, as research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - The company reported revenue of $302.4 million for Q1 2025, a 97% increase year-over-year and a 10% increase sequentially from Q4 2024 [29][30] - Adjusted gross margin for Q1 2025 was 26.5%, reflecting a decline due to the roll-off of prior year benefits and commodity-driven compression [32][34] - Net income attributable to common stockholders was $2.3 million, compared to a net loss of $11.3 million in the prior year [34] Business Line Data and Key Metrics Changes - The delivered volume increased by 143% year-over-year, achieving the second-largest quarter of volume shipped since Q2 2023 [31] - Domestic order book grew over 9% in Q1 2025, with over 40% of the order book set to be delivered in the remaining quarters of 2025 [9][10] Market Data and Key Metrics Changes - Sales in North America represented approximately 65% of total revenue, with a mix shift impacting gross margins [31] - The order book remained resilient at $2 billion despite near-term policy-related headwinds [8][40] Company Strategy and Development Direction - The company is focused on maintaining operational agility and delivering long-term value amidst a rapidly evolving policy environment [7] - Continued emphasis on solar energy as a major component of energy strategy, with expectations for growth to meet increasing electricity demand [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of fundamentals and resilience of the company despite near-term volatility [7] - The company reaffirmed its full-year 2025 guidance, expecting revenue between $1.05 billion and $1.15 billion [39][40] Other Important Information - The company has a strong cash position with $348 million in cash and total liquidity of approximately $510 million [35][37] - The company is actively engaging with policymakers regarding energy tax credits and tariffs [15][17] Q&A Session Summary Question: Can you provide more color on the growing interest in VCAs? - Management is in active discussions with customers about longer-term commitments and will announce VCAs as they are finalized [48] Question: What is the guidance for Q2 revenue? - Specific guidance for Q2 was not provided, but the first half is expected to account for about 55% of total revenue [51] Question: Can you discuss the size of orders and lead times? - Lead times remain industry-leading at 14 weeks, with ongoing discussions about potential early pull-ins for 2025 [55] Question: How is the company managing cash use and term loans? - The company is looking at all options for managing term loans and is pleased with its balance sheet and liquidity position [66] Question: What is the impact of steel pricing on the business? - Steel prices are expected to increase by 25% to 28% for the year, which will translate into higher ASPs for future bookings [92] Question: What is the outlook for bookings momentum? - While demand momentum remains strong, uncertainty around tariffs and IRA impacts may affect the ability to convert bookings into orders [99]