Core Thesis - Array Technologies, Inc. presents a compelling investment opportunity in the utility-scale solar tracker market, supported by strong fundamentals and a sizable backlog [2][3]. Financial Performance - As of February 17th, ARRY's share price was $11.29, with trailing and forward P/E ratios of 63.59 and 13.55 respectively [1]. - The company raised its 2025 revenue guidance to $1.25–$1.28 billion, reflecting a strong Q3 2025 revenue of approximately $393 million, which is a 70% year-over-year increase [3]. - ARRY has a visible backlog of $1.9 billion, indicating a robust medium-term revenue engine [3]. Competitive Advantage - The company's scale and installed base create a durable operational moat, providing a competitive edge over peers who may face regional supply issues [4]. - ARRY's size, reliability, and logistics capabilities contribute to customer retention, while management practices pragmatic capital allocation and transparency regarding tariff impacts [4]. Market Conditions - Macro conditions present both opportunities and challenges, with strong renewable mandates supporting multi-year demand, but potential slowdowns and tariff escalations posing risks [5]. - Tariff pressures have affected margins, which currently stand at 28–29%, leading to analyst downgrades and highlighting the fragility of near-term profitability [5]. Valuation and Investment Strategy - Valuation appears reasonable if ARRY achieves adjusted EBITDA of $185–195 million, but a 15–25% tariff-driven margin hit could lead to significant downside [6]. - Investors are advised to size their allocations based on confidence in tariff mitigation and backlog convertibility, with conservative allocations of 0.5–1.5% for risk-managed exposure and higher conviction allocations of 2–4% if execution remains strong [6]. Monitoring Points - Key monitoring points include backlog conversion cadence, gross margin versus guidance, cash and working capital trends, tariff developments, and signals from major customers [7].