Download PDF

1. Company Snapshot

1.a. Company Description

Array Technologies, Inc.manufactures and supplies solar tracking systems and related products in the United States and internationally.Its products include DuraTrack HZ v3, a single-axis solar tracking system; and SmarTrack, a machine learning software that is used to identify the optimal position for a solar array in real time to increase energy production.


The company was founded in 1989 and is headquartered in Albuquerque, New Mexico.

Show Full description

1.b. Last Insights on ARRY

Array Technologies, Inc.'s recent performance was driven by strong cash flow generation, record gross margin on the full year, and exceeding the mid-point of fourth quarter revenue guidance. The company's Q4 earnings call highlighted a resilient gross margin, despite potential challenges in adjusted EBITDA and cash flow generation. Additionally, the appointment of Darin Green as Chief Revenue Officer for North America in January 2025 indicates a proactive approach to revenue growth.

1.c. Company Highlights

2. Array Technologies' Q3 2025 Earnings: A Strong Performance

Array Technologies reported a revenue of $393 million for Q3 2025, marking a 70% year-over-year growth, driven by a 56% increase in volume. The adjusted gross margin improved sequentially, with an adjusted EBITDA of $72 million, representing 55% earnings growth from Q3 2024. GAAP net income attributable to common stockholders was $18 million, and adjusted net income was $46 million, representing 73% growth from Q3 2024. Diluted income per share was $0.12, and adjusted diluted net income per share was $0.30, beating analyst estimates of $0.21.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth & APA Impact:: Q3 2025 revenue reached $393M (+70% YoY), driven by 56% volume increase; APA contributed $17M, with year-to-date revenue exceeding $1B (+9% vs. 2024’s $916M).
  • Margin Expansion & EBITDA Growth:: Adjusted EBITDA hit $72M (+55% YoY), supported by sequential gross margin improvement and cost efficiencies.
  • Order Book Strength:: $1.9B backlog with book-to-bill >1; new products (OmniTrack, Skylink, Hail XP) accounted for 40% of orders, with APA backlog to be added by year-end.
  • Revised Guidance & Earnings:: Full-year 2025 revenue raised to $1.25–$1.28B (midpoint +$60M vs. prior), with adjusted net income at $46M (+73% YoY) and $0.30/share diluted earnings.
  • Supply Chain & Cost Mitigation:: Tariff exposure reduced to <14% of bill of materials; 70–75% of contracts allow tariff pass-through, preserving margin resilience amid 22% steel price hikes.

Revenue and Order Book Growth

The company's order book grew to $1.9 billion, with a book-to-bill ratio of over 1, and new products (OmniTrack, Skylink, and Hail XP) accounting for nearly 40% of the order book. Array expects to add APA's backlog to its order book by year-end, further strengthening its revenue prospects. The acquisition of APA contributed $17 million to revenue, and the company raised its full-year 2025 revenue guidance, with expectations for both organic growth within its core business and inorganic growth from APA's integration.

Operational Efficiency and Cost Management

Array's supply chain strategy focuses on resiliency, adaptability, and cost optimization, with efforts to minimize tariff exposure and maximize scale to drive cost and lead time optimization. The company expects less than 14% of its bill of materials to be exposed to tariff impacts by year-end. With 70-75% of contracts allowing for pass-through of tariffs to customers, the company is well-positioned to mitigate the impact on margins.

Valuation and Outlook

With a P/E Ratio of -5.5 and an EV/EBITDA of -9.85, the company's valuation metrics indicate a complex picture. However, the Free Cash Flow Yield of 9.61% suggests that the company is generating strong cash flows. Analysts estimate next year's revenue growth at 13.8%, and Array's order book is expected to grow, with a potential increase in backlog visibility entering 2026. The company's commitment to maintaining gross margins in the current range and its focus on innovative products position it well for future growth.

International Business and Future Prospects

Array has made progress in its international business, with a 10% year-over-year increase in its STI segment despite challenges in Brazil. The company expects revenue growth in 2026, driven by the strength of its order book, the addition of APA, and the outlook for innovative products. With a "flight to quality" in the market driven by the company's strength in the front end of the business, Array is well-positioned for continued success.

3. NewsRoom

Card image cap

AST SpaceMobile Announces BlueBird 6 Launch Date, the Largest Commercial Communications Array Ever Deployed in Low Earth Orbit

Nov -21

Source: businesswire.com

Card image cap

3 Speculative Stocks to Sell Before the Bottom Drops Out

Nov -20

Source: marketbeat.com

Card image cap

ARRAY Technologies, Inc. to Participate in Upcoming Events for the Investor Community

Nov -14

Source: globenewswire.com

Card image cap

Array to attend Wells Fargo TMT Summit

Nov -10

Source: prnewswire.com

Card image cap

Array Digital Infrastructure (AD) Q3 Earnings and Revenues Surpass Estimates

Nov -07

Source: zacks.com

Card image cap

Array Appoints Anthony Carlson President and CEO

Nov -07

Source: prnewswire.com

Card image cap

Array reports third quarter 2025 results

Nov -07

Source: prnewswire.com

Card image cap

Array Technologies, Inc. (ARRY) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.49%)

6. Segments

Array Legacy

Expected Growth: 6%

Array Legacy's 6% growth is driven by increasing adoption of solar energy, rising demand for renewable energy solutions, and Array Technologies' strong market position. Additionally, the company's focus on innovation, expanding product offerings, and strategic partnerships contribute to its growth momentum.

STI

Expected Growth: 4%

Array Technologies, Inc.'s STI growth is driven by increasing adoption of solar trackers, rising demand for renewable energy, and expansion into new markets. The company's innovative products, strong partnerships, and efficient manufacturing processes also contribute to its growth. Additionally, government incentives and declining solar panel costs further boost the demand for STI, driving Array Technologies' revenue growth.

7. Detailed Products

DuraTrack HZ v3

A single-axis solar tracker designed for utility-scale solar projects, providing maximum energy output and reduced installation costs.

DuraTrack HZ v3 Single-Axis Tracker

A single-axis solar tracker designed for commercial and industrial solar projects, providing optimal energy output and reduced installation costs.

SmarTrack

A machine learning-based monitoring and control system for solar trackers, providing real-time monitoring and predictive maintenance.

Array Technologies' Solar Runner

A single-axis solar tracker designed for residential and small commercial solar projects, providing optimal energy output and reduced installation costs.

8. Array Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Array Technologies, Inc. faces moderate threat from substitutes due to the availability of alternative technologies and products in the market.

Bargaining Power Of Customers

Array Technologies, Inc. has a high bargaining power of customers due to the presence of large and established customers who can negotiate prices and terms.

Bargaining Power Of Suppliers

Array Technologies, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's ability to negotiate prices and terms.

Threat Of New Entrants

Array Technologies, Inc. faces a moderate threat of new entrants due to the presence of barriers to entry and the company's established market position.

Intensity Of Rivalry

Array Technologies, Inc. operates in a highly competitive industry with intense rivalry among existing competitors, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 52.99%
Debt Cost 8.07%
Equity Weight 47.01%
Equity Cost 12.41%
WACC 10.11%
Leverage 112.72%

11. Quality Control: Array Technologies, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SunPower

A-Score: 4.5/10

Value: 9.6

Growth: 0.9

Quality: 6.8

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Shoals Technologies

A-Score: 3.9/10

Value: 1.2

Growth: 7.9

Quality: 5.0

Yield: 0.0

Momentum: 8.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
SPI Energy Co

A-Score: 3.8/10

Value: 9.0

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 7.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Array Technologies

A-Score: 3.8/10

Value: 6.9

Growth: 3.7

Quality: 2.9

Yield: 0.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Beam

A-Score: 3.6/10

Value: 8.4

Growth: 6.8

Quality: 4.0

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Sunnova Energy

A-Score: 2.6/10

Value: 8.0

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.94$

Current Price

7.95$

Potential

-0.00%

Expected Cash-Flows