Financial Results and Corporate Overview Second Quarter 2025 Financial Highlights ARRAY Technologies reported strong Q2 2025 financial results, with significant year-over-year growth in revenue, profitability, and volume - Year-to-date volume growth increased by 84% compared to the same period in 20241 Q2 2025 Financial Performance | Metric | Q2 2025 | | :--- | :--- | | Revenue | $362.2 million | | Gross Margin | 26.8% | | Adjusted Gross Margin | 27.8% | | Net Income to Common Shareholders | $28.5 million | | Adjusted EBITDA | $63.6 million | | Net Income per Diluted Share | $0.19 | | Adjusted Net Income per Diluted Share | $0.25 | CEO Commentary and Strategic Developments The CEO highlighted strong commercial execution, an improved order book, and strategic initiatives including the APA Solar acquisition and capital structure improvements - Announced a definitive agreement to acquire APA Solar to enhance product offerings35 - Launched a new product, Hail XP™, to strengthen customer-focused solutions3 - Improved capital structure by issuing $345 million in new convertible notes, repaying the term loan in full, and repurchasing $100 million of 2028 convertible notes at a discount35 - Total executed contracts and awarded orders stood at over $1.8 billion as of June 30, 20255 Full Year 2025 Guidance The company raised its full-year 2025 guidance, reflecting strong year-to-date performance and anticipated benefits from the Inflation Reduction Act Updated Full Year 2025 Guidance | Metric | New Guidance Range | | :--- | :--- | | Revenue | $1.180 billion to $1.215 billion | | Adjusted EBITDA | $185 million to $200 million | | Adjusted Net Income per Share | $0.63 to $0.70 | - Guidance includes benefits from the Inflation Reduction Act Section 45X for manufacturing torque tubes and structural fasteners7 Financial Statements Condensed Consolidated Balance Sheets As of June 30, 2025, ARRAY's balance sheet shows total assets of $1.54 billion, with liabilities increasing due to debt restructuring Balance Sheet Summary (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $377,271 | $362,992 | | Total current assets | $1,038,454 | $998,724 | | Total assets | $1,542,158 | $1,425,999 | | Total current liabilities | $468,335 | $437,814 | | Long-term debt, net | $657,591 | $646,570 | | Total liabilities | $1,176,863 | $1,137,164 | | Total stockholders' equity | ($70,867) | ($118,096) | Condensed Consolidated Statements of Operations For Q2 2025, revenue grew 41.6% to $362.2 million, with net income significantly increasing, aided by a $14.2 million gain on debt extinguishment Statement of Operations Summary - Three Months Ended June 30 (in thousands) | Metric | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Revenue | $362,243 | $255,766 | +41.6% | | Gross Profit | $97,124 | $85,953 | +13.0% | | Income from Operations | $46,376 | $39,602 | +17.1% | | Net Income | $43,262 | $25,698 | +68.4% | | Net Income to Common Shareholders | $28,474 | $11,949 | +138.3% | | Diluted EPS | $0.19 | $0.08 | +137.5% | - The company recorded a $14.2 million gain on the extinguishment of debts in Q2 2025, which significantly contributed to net income28 Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash from operating activities was $30.8 million, with financing activities dominated by debt restructuring and new convertible note issuance Cash Flow Summary - Six Months Ended June 30 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $30,782 | $51,459 | | Net cash used in investing activities | ($8,983) | ($4,488) | | Net cash used in financing activities | ($12,776) | ($4,144) | | Net change in cash | $14,629 | $33,240 | - Major financing activities in the first six months of 2025 included: issuing $345 million of convertible notes, repaying $233.9 million of the term loan facility, and repurchasing $78.4 million of other convertible notes3031 Non-GAAP Financial Measures and Reconciliations Definition and Use of Non-GAAP Measures The company uses non-GAAP measures like Adjusted Gross Profit, Adjusted EBITDA, and Adjusted Net Income to clarify core operational performance - The company uses non-GAAP measures including Adjusted Gross Profit, Adjusted Gross Margin, Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow15 - Adjustments to GAAP figures typically remove the impact of non-cash items and other costs not considered indicative of ongoing operations, such as amortization of intangibles, equity-based compensation, and acquisition-related expenses16 Reconciliation of GAAP to Non-GAAP Results For Q2 2025, Adjusted EBITDA was $63.6 million and Adjusted Net Income was $38.8 million, reconciled from GAAP by adjusting for non-cash and non-operating items Q2 2025 GAAP to Non-GAAP Reconciliation (in thousands) | Metric | GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Gross Profit | $97,124 | $3,640 | $100,764 (Adjusted) | | Net Income | $43,262 | $20,294 | $63,556 (Adjusted EBITDA) | | Net Income to Common Shareholders | $28,474 | $10,277 | $38,751 (Adjusted Net Income) | - Key adjustments to reconcile Net Income to Adjusted EBITDA for Q2 2025 included $13.6 million in income tax, $8.8 million in interest expense, $9.9 million in D&A, and $3.9 million in equity-based compensation, offset by a $14.2 million gain on debt extinguishment32 - Free cash flow for Q2 2025 was $37.2 million, calculated from $43.8 million in net cash from operating activities less $6.6 million in capital expenditures35 Company Information and Disclosures About ARRAY Technologies, Inc. ARRAY Technologies, Inc. is a leading global provider of solar tracking technology for utility-scale and distributed generation projects, highlighting U.S. manufacturing and a global supply chain - ARRAY is a global provider of solar tracking technology for utility-scale and distributed generation customers9 - The company highlights its U.S. manufacturing base and diversified global supply chain as key strengths9 Forward-Looking Statements This section contains cautionary language regarding forward-looking statements, warning that actual results may differ due to risks like industry demand, regulatory changes, and supply chain disruptions - The report includes forward-looking statements concerning future operations, business strategies, and financial plans11 - Key risks identified include changes in demand for solar energy, regulatory shifts (such as the 'One Big Beautiful Bill'), supply chain interruptions, and interest rate fluctuations12
Array Technologies(ARRY) - 2025 Q2 - Quarterly Results