Core Viewpoint - Array Technologies, Inc. is experiencing a decline in stock price and is set to report earnings that show significant year-over-year growth in both EPS and revenue [1][2]. Company Performance - The stock closed at $5.69, reflecting a -0.18% change from the previous day, underperforming the S&P 500 which gained 0.08% [1]. - Over the past month, shares have decreased by 17.39%, while the Oils-Energy sector and S&P 500 have lost 1.36% and 7.33%, respectively [1]. Upcoming Earnings - The company is expected to report an EPS of $0.08, representing a 33.33% increase from the same quarter last year [2]. - Quarterly revenue is forecasted at $262.86 million, which is a 71.36% increase compared to the previous year [2]. Full Year Estimates - For the full year, analysts predict earnings of $0.62 per share and revenue of $1.09 billion, indicating changes of +3.33% and +19.17% from last year [3]. Analyst Sentiment - Recent modifications to analyst estimates indicate short-term business trends, with positive changes reflecting optimism about the company's profitability [4]. - The Zacks Rank system, which assesses these estimate changes, currently ranks Array Technologies, Inc. as 3 (Hold) [6]. Valuation Metrics - The company has a Forward P/E ratio of 9.25, which is lower than the industry average of 10.67 [7]. - The PEG ratio stands at 1.17, compared to the Solar industry's average PEG ratio of 0.54 [7]. Industry Context - The Solar industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8].

In the latest trading session, Array Technologies, Inc. (ARRY) closed at $6.08, marking a +0.33% move from the previous day. This change lagged the S&P 500's 2.13% gain on the day. At the same time, the Dow added 1.65%, and the tech-heavy Nasdaq gained 2.61%.Shares of the company have depreciated by 8.32% over the course of the past month, underperforming the Oils-Energy sector's loss of 5.54% and outperforming the S&P 500's loss of 9.57%.Investors will be eagerly watching for the performance of Array Techn ...

ALBUQUERQUE, N.M., March 14, 2025 (GLOBE NEWSWIRE) -- ARRAY Technologies (NASDAQ: ARRY) (“ARRAY” or the “Company”), a global leader in utility-scale solar tracking, today announced that the Company will participate in the 37th Annual ROTH Conference in Dana Point, CA on March 17, 2025. President and Chief Operating Officer, Neil Manning and Chief Financial Officer, H. Keith Jennings, will be available for one-on-one meetings on Monday, March 17, 2025. If you would like to schedule a meeting with management, ...

Revenue Sources - The company generated 70% of its revenues from U.S. customers and 30% from international customers as of December 31, 2024, having shipped approximately 83 gigawatts of trackers worldwide[251]. - As of December 31, 2024, the largest customer accounted for 9.0% of total accounts receivable, while the top five customers represented 31.0%[271]. - Two customers accounted for 15.6% and 11.9% of total revenue for the year ended December 31, 2024[272]. - The largest customer accounted for 9.0% of total accounts receivable as of December 31, 2024, up from 2.7% in 2023, while the top five customers represented 31.0% of total accounts receivable, compared to 29.6% in the previous year[341]. - Two customers contributed 15.6% and 11.9% of total revenue for the year ended December 31, 2024, compared to one customer accounting for 13.4% in 2023[342]. Financial Performance - Consolidated revenue for the year ended December 31, 2024 decreased by $660.7 million, or 42%, compared to 2023, primarily driven by lower revenue from Array Legacy Operations of 44% and STI Operations of 37%[295]. - Array Legacy Operations revenue decreased by $511.2 million, or 44%, primarily due to a 39% decrease in volume shipped and an 8% decrease in average selling prices[296]. - STI Operations revenue decreased by $149.5 million, or 37%, primarily due to a 12% decrease in volume shipped and a 24% decrease in average selling prices[297]. - Consolidated gross profit decreased by $117.9 million, or 28%, but gross margin increased to 33% for the year ended December 31, 2024, compared to 26% in the prior year[299]. - Array Legacy Operations gross margin increased to 41% from 27%, driven by the realization of 45X benefits associated with torque tubes and structural fasteners, totaling $137.8 million for 2024[300]. - STI Operations gross margin decreased to 11% from 24%, impacted by a 24% decline in average selling prices and a 12% reduction in volume[301]. - Consolidated interest income increased by $8.4 million, or 101%, due to higher cash balances and yields on the cash management program[306]. - Consolidated interest expense decreased by $9.4 million, or 21%, in 2024 compared to the prior year, due to principal pay downs on the Term Loan Facility[310]. - Consolidated income tax benefit of $10.2 million was recorded in 2024, a decrease of $50.1 million, or (126)%, from the previous year[311]. - Cash provided by operating activities was $154.0 million in 2024, with a net loss of $240.4 million[320]. Expenses and Costs - Total engineering expenses were $17.0 million, $16.7 million, and $11.8 million for the years ended December 31, 2024, 2023, and 2022, respectively, with R&D costs of $6.7 million, $8.5 million, and $4.2 million during the same periods[257]. - Consolidated general and administrative expenses increased by $1.0 million, primarily due to higher legal and professional fees of $6.3 million[302]. - Consolidated cost of revenue decreased by $542.9 million, or 47%, in line with lower revenue, partially offset by lower input costs per watt[298]. Impairments and Losses - The company identified impairment indicators, resulting in a total impairment of goodwill and long-lived assets of $327.9 million[304]. - Goodwill impairment of $236.0 million was recorded in 2024 due to a decline in market capitalization and updated long-term projections[332]. - The company recorded an impairment loss of $91.9 million for the asset group as of December 31, 2024, based on a DCF analysis and market EBITDA multiples[336]. Market and Economic Factors - The Inflation Reduction Act (IRA) raised the Investment Tax Credit (ITC) to 30% with no step-downs before 2032, positively influencing customer orders[258]. - The ongoing Russian-Ukraine war has increased logistics costs and affected material availability, impacting the company's operations[263]. - Inflationary pressures are expected to negatively impact results in the near term, prompting the company to accelerate productivity initiatives[265]. - The company is exposed to commodity price risk, particularly from fluctuations in steel and aluminum prices, which could adversely affect operating margins if costs cannot be passed on to customers[344]. - The company does not enter into hedging arrangements to mitigate commodity risk, exposing it to potential significant price changes for raw materials[344]. - The company is indirectly exposed to interest rate risk as many customers rely on debt financing, which could impact demand and pricing for its products[346]. - The company is subject to foreign currency exchange rate fluctuations due to operations in various countries with different functional currencies[347]. Cash Flow and Financing - Cash used in investing activities was $9.6 million in 2024, primarily for property, plant, and equipment purchases[321]. - Net cash used in financing activities was $11.8 million in 2024, driven by debt reduction and payments on the Term Loan Facility[322]. - As of December 31, 2024, cash balance was $363.0 million, with $172.0 million available under the Revolving Credit Facility[318]. - Total contractual obligations as of December 31, 2024, amounted to $801.5 million, including debt obligations and lease commitments[325]. - As of December 31, 2024, the company's long-term debt was $646.6 million, with $249.1 million subject to variable-rate interest agreements, indicating a potential annual interest expense increase of approximately $1.2 million for a 50 basis point rise in interest rates[345]. Strategic Initiatives - The company completed the acquisition of STI on January 11, 2022, enhancing its product portfolio and accelerating international expansion[252][254]. - The company is negotiating agreements with suppliers to share economic benefits from the Section 45X manufacturing tax credit, which applies to certain components[259]. - The company is actively managing risks associated with multi-year contracts that require fixed pricing to maintain consistent margins[261].

Financial Data and Key Metrics Changes - The company achieved $275 million in revenue for Q4 2024 and $916 million for the full year, exceeding the midpoint of previously communicated guidance [12][52] - Q4 adjusted gross margin improved by 410 basis points year-on-year to 29.8%, while full year adjusted gross margin reached 34.1%, an increase of 680 basis points compared to 2023 [12][53] - Adjusted EBITDA for Q4 was $45.2 million, with a full year total of $173.6 million, down from $288.1 million in the prior year [12][54] - The net loss attributable to common shareholders for Q4 was $141.2 million, compared to a net income of $6 million in the prior year [51][54] - Free cash flow for the year was $135 million, ending with a cash balance of $364 million [12][55] Business Line Data and Key Metrics Changes - The order book ended the year at $2 billion, up 10% from 2023, with over 20% growth in the domestic portion [17] - The OmniTrack terrain following tracker contributed almost 10% of 2024 revenue, reflecting strong market traction [18] Market Data and Key Metrics Changes - Utility scale solar remains the cheapest and fastest-growing energy source, with solar and solar plus battery storage representing 64% of new electricity deployment in the U.S. [21] - The U.S. market stabilized towards the end of 2024, with expectations for continued momentum in 2025 despite previous headwinds [22][29] Company Strategy and Development Direction - The company is focused on supply chain resiliency, with a new manufacturing facility in Albuquerque aimed at reducing costs and risks [13] - Continued investment in innovation, including partnerships with companies like SWAP Robotics, to enhance operational efficiency and project cycle times [37][38] - The company aims to provide 100% domestic content trackers in the U.S. by the first half of 2025 [26][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the utility scale solar industry's value proposition and demand, expecting 20% top-line growth in 2025 [29][66] - The company is taking a conservative approach to forecasting for 2025, with expectations for revenue between $1.05 billion and $1.15 billion [59] Other Important Information - The company experienced significant impairment charges related to the 2022 STI acquisition, impacting operating expenses [49] - The company is actively monitoring developments regarding the Inflation Reduction Act and its implications for the solar industry [24][26] Q&A Session Summary Question: Can you discuss the EBITDA margin in Q1 compared to the rest of the year? - Management indicated that Q1 EBITDA margins are expected to be lower due to the continuation of large shipments from Q4 and the roll-off of some amortization [70] Question: What initiatives are being taken to grow the backlog? - Management noted a strong win rate for new orders, with a book-to-bill ratio of 1.5 in North America, despite some debookings in Brazil [78] Question: What pricing dynamics are expected in 2025? - Management stated that pricing remains disciplined, with commodity prices impacting ASPs rather than aggressive pricing strategies [82] Question: How does the competitive environment look after Soltec's exit in Europe? - Management acknowledged gaining market share in Brazil but noted legal constraints in Spain preventing immediate project takeovers [108] Question: Are there plans to sell off any 45X credits? - Management indicated that selling credits is not a near-term plan, as most credits are filed by vendors, but they would evaluate selling excess credits in the future [113]

Financial Data and Key Metrics Changes - The company achieved $275 million in revenue for Q4 2024 and $916 million for the full year 2024, exceeding the midpoint of previously communicated guidance [12][52] - Q4 adjusted gross margin improved by 410 basis points year-on-year to 29.8%, while full year adjusted gross margin reached 34.1%, an increase of 680 basis points compared to 2023 [12][53] - Adjusted EBITDA for Q4 was $45.2 million, with a margin of 16.4%, compared to $48.2 million and a margin of 14.1% in Q4 2023 [50] - The net loss attributable to common shareholders in Q4 was $141.2 million, compared to a net income of $6 million in the prior year [51] Business Line Data and Key Metrics Changes - The order book ended the year at $2 billion, up 10% from 2023, with over 20% growth in the domestic portion [17] - The OmniTrack terrain following tracker contributed almost 10% of 2024 revenue, reflecting strong market traction [18] Market Data and Key Metrics Changes - Utility scale solar remains the cheapest and fastest-growing energy source, with a projected 50% increase in annual electricity production needed by 2035 [20] - Solar and solar plus battery storage accounted for 64% of all new electricity deployment in the U.S. [21] - The Brazilian market is experiencing slow growth due to currency devaluation and tariffs, expected to continue for 3 to 4 more quarters [27] Company Strategy and Development Direction - The company is focused on supply chain resiliency, with a new manufacturing facility in Albuquerque, New Mexico, aimed at reducing costs and risks [13] - Continued investment in innovation, including a significant investment in SWAP robotics to enhance operational efficiency [37] - The company aims to provide 100% domestic content trackers in the U.S. by the first half of 2025 [26][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stabilization of the market towards the end of 2024 and expects continued momentum in 2025 [22][29] - The company anticipates a 20% top-line growth in 2025, driven by a recovery in market share and shipments from delayed projects [29][59] - Management noted that the competitive environment remains disciplined, particularly in North America, despite challenges in other regions [82] Other Important Information - The company ended 2024 with a strong cash balance of $364 million, an increase of $115 million from the previous year [55] - Total operating expenses for Q4 were $220.7 million, significantly impacted by noncash impairment charges related to the 2022 STI acquisition [49] Q&A Session Summary Question: Can you discuss the EBITDA margin in Q1 compared to the rest of the year? - Management indicated that Q1 EBITDA margins are forecasted to be lower due to the continuation of large shipments from Q4 and the roll-off of some amortization [70] Question: Were there any safe harbor orders received in Q4 or into Q1? - Management noted that less than 10% of the order book consists of safe harbor orders, with no new orders currently in the book but ongoing discussions with customers [72][74] Question: Why did the new orders backlog lag behind despite a growing pipeline? - Management explained that while the win rate for new orders is improving, there were debookings in Brazil that masked strength in the North American order book [78][80] Question: What pricing dynamics are expected in 2025? - Management stated that pricing remains disciplined, with ASP declines primarily driven by commodity prices rather than market competition [82] Question: How does the company view the competitive environment following Soltec's exit in Europe? - Management acknowledged a change in competition in Brazil, with opportunities to pick up projects, but noted legal constraints in Spain [108][110]

Investment Rating - The report maintains a neutral investment rating for Array Technologies, indicating that the stock's total return over the next 12-18 months is expected to be in line with the return of its relevant broad market benchmark [14]. Core Insights - Array Technologies reported adjusted EBITDA slightly below market expectations for the fourth quarter, leading to a negative market reaction. The company also reported a net loss due to impairment related to its STI acquisition [1][2]. - For the fiscal year 2025, Array provided revenue guidance of $1.05 to $1.15 billion, representing a year-over-year growth of 15-26%, while adjusted EBITDA guidance is set at $180 to $200 million, which is below the market expectation of $233 million [2][3]. - The company acknowledged ongoing headwinds in the utility-scale solar market but remains optimistic about moderate growth in Europe, despite challenges in Brazil due to currency depreciation and new tariffs on solar components [1][2]. Financial Performance Summary - In Q4 2024, Array reported net revenue of $275 million, a 19% decrease quarter-over-quarter and a 7% decrease year-over-year, with a gross profit margin of 28% [3][6]. - The adjusted net income for Q4 2024 was a loss of $141 million, primarily due to a $74 million non-cash goodwill impairment and a $92 million non-cash long-term intangible asset write-down related to the STI acquisition [3][6]. - The company reaffirmed a strong order backlog of $2 billion, consistent with previous quarters, indicating stable demand despite market challenges [2][3].

Core Insights - Array Technologies, Inc. reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.21 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $275.23 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.15%, but down from $341.62 million year-over-year [2] - Array Technologies has outperformed the S&P 500, gaining approximately 13.6% since the beginning of the year compared to the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.08 on revenues of $210.05 million, and for the current fiscal year, it is $0.77 on revenues of $1.12 billion [7] - 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 [6] Industry Context - The Solar industry, to which Array Technologies belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another company in the same industry, FTC Solar, is expected to report a quarterly loss of $0.83 per share, reflecting a year-over-year change of -3.8%, with revenues projected to decline by 50.3% from the previous year [9]

Revenue Performance - Fourth quarter 2024 revenue reached $275.2 million, exceeding the mid-point of guidance[4] - Full year 2024 revenue totaled $915.8 million, with a gross margin of 32.5%[4] - Total revenue for the year ended December 31, 2024, was $915.8 million, a decrease of 42% compared to $1.58 billion in 2023[24] - Revenue for the three months ended December 31, 2024, was $275,232 thousand, a decrease from $341,615 thousand in the same period of 2023, representing a decline of approximately 19.4%[29] - ARRAY expects over 20% year-over-year revenue growth for 2025 at the midpoint of guidance[5] - The company anticipates first quarter 2025 revenue in the range of $260 million to $270 million[7] Profitability and Loss - The company reported a net loss to common shareholders of $(296.1) million for the full year, including a $236.0 million non-cash goodwill impairment charge[4] - Adjusted EBITDA for the fourth quarter was $45.2 million, while the full year adjusted EBITDA was $173.6 million[4] - Gross profit for the year ended December 31, 2024, was $297.7 million, down from $415.6 million in 2023, reflecting a gross margin of approximately 32.5%[24] - The company reported a net loss of $240.4 million for the year ended December 31, 2024, compared to a net income of $137.2 million in 2023[24] - Net loss for the three months ended December 31, 2024, was $(126,903) thousand, compared to a net income of $19,342 thousand in the same period of 2023[30] - Adjusted net income for the three months ended December 31, 2024, was $25,117 thousand, slightly down from $26,415 thousand in the same period of 2023[30] Cash and Liabilities - Cash and cash equivalents increased to $363.0 million as of December 31, 2024, from $249.1 million in 2023[22] - Total current liabilities rose to $437.8 million in 2024, up from $335.7 million in 2023, indicating a 30% increase[24] - The company experienced a significant increase in accounts payable, which rose to $172.4 million in 2024 from $119.5 million in 2023[24] - Cash paid for interest in the year ended December 31, 2024, was $38,655 thousand, down from $43,949 thousand in 2023[28] - Cash and cash equivalents at the end of the period were $364,141 thousand, an increase from $249,080 thousand at the end of the previous year[28] Operating Expenses - Operating expenses for the year ended December 31, 2024, totaled $524.7 million, significantly higher than $201.4 million in 2023[24] - General and administrative expenses for the three months ended December 31, 2024, were $45,663 thousand, an increase of 4.5% from $43,710 thousand in 2023[31] - Adjusted general and administrative expenses for the three months ended December 31, 2024, were $25,299 thousand, a decrease of 40.7% compared to $42,581 thousand in 2023[31] Shareholder Information - The weighted average common shares outstanding for the year ended December 31, 2024, was 151.8 million, compared to 150.9 million in 2023[24] - The weighted average number of common shares outstanding for the three months ended December 31, 2024, was 151,944 thousand, compared to 151,175 thousand in the same period of 2023[30] - The company reported a basic loss per common share of $1.95 for the year ended December 31, 2024, compared to earnings of $0.57 per share in 2023[24] Goodwill and Impairment - The company recorded a goodwill impairment of $236.0 million for the year ended December 31, 2024[24] - The company reported a goodwill impairment of $74,000 thousand for the three months ended December 31, 2024[30] Future Outlook - The OmniTrack™ product now accounts for over 20% of the company's order book[4] - ARRAY is on track to deliver 100% domestic content solar trackers by the first half of 2025[4] - Adjusted net income per share for 2025 is projected to be between $0.60 and $0.70[7] Cash Flow - For the three months ended December 31, 2024, net cash provided by operating activities was $57,586 thousand, a decrease of 38.6% compared to $93,981 thousand for the same period in 2023[32] - Free cash flow for the three months ended December 31, 2024, was $44,609 thousand, down 49.6% from $88,607 thousand in the prior year[32] Legal and Other Costs - The company incurred $2,240 thousand in certain legal expenses for the three months ended December 31, 2024, compared to $244 thousand in the same period of 2023[31] - Other costs for the three months ended December 31, 2024, included $2,586 thousand related to Capped-Call accounting treatment evaluation[31] - The total estimated tax impact of all Adjusted Net Income add-backs for the year ended December 31, 2024, was $(42,596) thousand, compared to $(20,863) thousand for 2023[31] Capital Expenditures - The purchase of property, plant, and equipment for the year ended December 31, 2024, was $7,305 thousand, down from $16,989 thousand in 2023[32] Litigation - The company is awaiting a decision on an appeal related to litigation dismissed with prejudice on May 19, 2023[31]

Financial Performance - ARRAY Technologies reported fourth quarter revenue of $275.2 million, exceeding the mid-point of guidance, with a gross margin of 28.5% and an adjusted gross margin of 29.8% [7][4] - For the full year 2024, the company achieved revenue of $915.8 million, a gross margin of 32.5%, and an adjusted gross margin of 34.1% [7][4] - The net loss to common shareholders for the fourth quarter was $(141.2) million, which included a non-cash goodwill impairment charge of $74.0 million and a long-lived intangible asset write-down of $91.9 million related to the 2022 STI acquisition [7][4] Operational Highlights - ARRAY finished 2024 with an order book of $2 billion, reflecting a 10% year-on-year growth [4] - The company's OmniTrack™ product now represents over 20% of the order book, indicating strong market traction [4] - ARRAY is on track to deliver 100% domestic content solar trackers by the first half of 2025 [4] Market Outlook - The company anticipates over 20% year-over-year revenue growth for 2025, despite facing headwinds such as permitting delays and labor constraints [5] - In Europe, modest growth is expected in 2025, while Brazil's growth is impacted by macroeconomic factors like currency devaluation and tariffs [5] - ARRAY remains optimistic about future demand for utility-scale solar energy both domestically and internationally [5] Cash Flow and Financial Position - Free cash flow for the year was reported at $135.4 million, indicating strong cash generation capabilities [7] - Total executed contracts and awarded orders as of December 31, 2024, stood at $2.0 billion [7] Guidance - For the first quarter of 2025, ARRAY expects revenue in the range of $260 million to $270 million, with an adjusted EBITDA margin between 11% to 13% [11] - For the full year 2025, revenue is projected to be between $1.05 billion and $1.15 billion, with adjusted EBITDA expected to range from $180 million to $200 million [11]