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Array Technologies Inc (ARRY)
NASDAQ:ARRY
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Array Technologies
(NASDAQ:ARRY)
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Rating:52Neutral
Price Target:
$11.00
▲(54.06% Upside)
Action:ReiteratedDate:02/26/26
The score is held back primarily by weak recent financial performance—ongoing losses and a sharp deterioration in 2025 cash flow—despite balance-sheet improvement. Offsetting this, the latest earnings call provided constructive 2026 guidance backed by a record order book and stronger liquidity, while technicals are moderately supportive but not strongly bullish and valuation is difficult to assess due to negative earnings.
Positive Factors
Record Order Book
A record $2.2B backlog materially improves revenue visibility and reduces short‑term demand risk for utility‑scale projects. Durable orderbook depth supports multi‑quarter execution, smoother factory utilization and higher predictability of cash receipts over the next 2–6 months.
Improved Liquidity & Capital Structure
Substantially larger, longer‑dated revolver and >$380M liquidity bolster financial flexibility to fund working capital, absorb seasonality, and invest in growth. A stronger balance sheet reduces refinancing risk and supports execution of large utility projects and integration needs.
Product & Tech Roadmap / APA Integration
Successful APA integration and a clear product pipeline (DuraTrack, terrain‑following OmniTrack, integrated tracker+foundation) expand the addressable market and cross‑sell opportunities. Broader product set and SmartTrack software increase structural competitiveness and recurring service potential.
Negative Factors
Weakened Cash Generation
A collapse in cash generation to zero in 2025 undermines self‑funding of operations and capital expenditures. Persistently weak conversion raises dependence on external liquidity, increases execution risk for large project builds and limits ability to absorb shocks over coming quarters.
GAAP Net Loss & One‑Time Charges
Material impairment and inventory write‑downs signal overpayment or integration friction from prior M&A and crystallize economic losses. These non‑recurring charges indicate past allocation missteps and can pressure capital allocation, investor confidence, and covenants if earnings recovery lags.
Margin & Pricing Headwinds
Sustained commodity cost inflation and competitive pricing can structurally compress gross and operating margins. Even with product improvements, prolonged input cost and ASP pressure could limit long‑term margin recovery and weaken returns on new contracts and invested capital.
Array Technologies (ARRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.09B
Dividend YieldN/A
Average Volume (3M)6.86M
Price to Earnings (P/E)―
Beta (1Y)1.24
Revenue Growth35.75%
EPS Growth37.97%
CountryUS
Employees1,021
SectorTechnology
Sector Strength88
IndustrySolar
Share Statistics
EPS (TTM)-0.01
Shares Outstanding152,849,000
10 Day Avg. Volume10,525,515
30 Day Avg. Volume6,862,459
Financial Highlights & Ratios
PEG Ratio0.43
Price to Book (P/B)5.40
Price to Sales (P/S)1.10
P/FCF Ratio17.62
Enterprise Value/Market Cap0.83
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit3.19
Enterprise Value/Ebitda22.83
Forecast
1Y Price Target
$10.34Price Target Upside44.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)0.71
Revenue Forecast (FY)$1.46B
Array Technologies Business Overview & Revenue Model
Company DescriptionArray 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.
How the Company Makes MoneyArray Technologies generates revenue primarily through the sale of its solar tracking systems and related services. The company's core revenue streams include the direct sale of its proprietary tracking technology to renewable energy developers and utility companies, as well as installation and maintenance services that accompany these systems. Additionally, Array benefits from long-term contracts and partnerships with major energy firms, which provide a steady stream of income. The increasing global demand for renewable energy solutions, particularly in solar power, further enhances its revenue potential. The company also engages in research and development to innovate its product offerings, positioning itself competitively in the rapidly evolving clean energy market.
Array Technologies Key Performance Indicators (KPIs)
Any
Revenue by Type
Shows how revenue is distributed across different product or service types, highlighting which areas are driving sales and where there might be opportunities or challenges.
Shows how revenue is distributed across different product or service types, highlighting which areas are driving sales and where there might be opportunities or challenges.
Data provided by:
The Fly
The FlyArray Technologies Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Positive
The call conveyed strong commercial momentum and clear progress: exceptional top-line growth (40% YoY), a record $2.2 billion order book, successful APA integration and improved liquidity and adjusted profitability. Management acknowledged margin headwinds driven largely by the falloff of a prior-year 45X amortization benefit, one-time STI-related charges, rising commodity costs and international market softness. Guidance for 2026 shows continued revenue growth and stable adjusted margins (26%–27%) with improving operational leverage over time. Overall, the positives (robust growth, bookings, product roadmap, APA synergies and stronger balance sheet) outweigh the near-term accounting-driven and cyclical challenges, supporting a constructive outlook.Q4-2025 Updates
Positive Updates
Record Revenue and Strong Volume Growth
Full year 2025 revenue of nearly $1.3 billion, up 40% year-over-year, supported by a 35% increase in tracker volume.
Record Order Book and Booking Momentum
Closed 2025 with a record $2.2 billion order book, ~2x book-to-bill for both Array and APA, and highest quarterly new bookings since 2023; APA contributes approximately $100 million to the order book.
APA Acquisition Integration and Contribution
APA acquisition completed and integrated; APA contributed $50 million to full-year revenue ($33 million in Q4), delivered EBITDA accretion (immediately accretive to EBITDA in 2025) and expanded product portfolio (foundations / fixed tilt).
Profitability on an Adjusted Basis
Adjusted gross profit of $347 million and adjusted gross margin of 27%; adjusted EBITDA of $188 million (15% margin); adjusted net income of $103 million, representing 13% year-over-year growth; adjusted diluted EPS $0.67, up 12%.
Improved Liquidity and Capital Structure
Ended year with over $380 million available liquidity and net debt leverage of 2.3x trailing 12-month adjusted EBITDA; revolver upsized to $370 million (from $166 million) on Feb 18, bringing pro forma total available liquidity near $600 million.
Clear 2026 Financial Guidance and Growth Outlook
2026 guidance: revenue $1.4B–$1.5B, adjusted gross margin 26%–27%, adjusted EBITDA $200M–$230M, adjusted diluted EPS $0.65–$0.75; management states margins roughly flat at midpoint excluding prior year 45X amortization effect.
Product and Technology Development
Multiple innovation initiatives: global rollout of DuraTrack, next-generation terrain-following for OmniTrack, new U.S. tracker version, planned integrated tracker-plus-foundation product in H2 2026, and accelerating SmartTrack software/service subscription adoption and retrofit opportunities.
Commercial and Customer Quality Improvements
Order book composition improved: ~95% domestic, over 50% direct to Tier 1 customers; >20% growth in early-stage domestic project bids and multi-project/multi-gigawatt deal activity; 4 GW of orders from customers new to Array in 2025 (market share gains).
Operational Progress and Cost Discipline
Adjusted SG&A improved to $163 million (12.7% of revenue) from 15.4% prior year, moving toward 10% target; investments in supply chain (Asia center of excellence) and a new Albuquerque facility to support manufacturing and 45X capture.
Negative Updates
GAAP Net Loss and One-Time Charges
GAAP net loss attributable to common shareholders of $112 million in 2025 driven by a $103 million non-cash goodwill impairment and a $30 million one-time inventory valuation charge tied to the 2022 STI acquisition.
Adjusted Margin Compression vs Prior Year
Adjusted gross margin declined relative to prior year primarily due to the falloff of a prior-year 45X amortization benefit (~550 basis points) and tariff/ASP pressures (~80 basis points); adjusted EBITDA margin fell to 15% from 19% in 2024.
Free Cash Flow and Conversion Pressure
Free cash flow of $80 million in 2025, lower than 2024; adjusted EBITDA-to-free-cash conversion fell to roughly 43% in 2025 (management expects a similar ratio in 2026) versus historical levels around 70%–80%.
Inventory Valuation and Product Transition Charge
Took a one-time inventory valuation charge in Q4 as part of phasing out older non-SmartTrack compatible H250 configurations while consolidating toward a single global platform.
Margin and Pricing Headwinds
Ongoing pressure from rising commodity costs and a competitive pricing environment, plus APA was slightly dilutive to overall adjusted gross margin in 2025 (though EBITDA-accretive).
Seasonality and Near-Term Revenue Split
Regulatory uncertainty and market pause in 2025 shifted activity; 2026 expected to have an approximate 40/60 first-half/second-half revenue split with Q1 revenue ~ $200 million (sequentially down), reflecting near-term seasonality and delayed contract timing.
International Market Headwinds
Challenging macro and regulatory conditions in key international markets such as Brazil and Spain have slowed activity and led to selective holdbacks of certain international awards.
Company Guidance
Array guided 2026 revenue of $1.4–$1.5 billion with adjusted gross margin of 26–27% (midpoint roughly flat excluding prior‑year 45X amortization), adjusted G&A at ~12% of revenue, adjusted EBITDA of $200–$230 million and adjusted diluted EPS of $0.65–$0.75; free cash flow conversion as a percentage of adjusted EBITDA is expected to be similar to 2025. They expect Q1 2026 revenue of approximately $200 million (with adjusted EBITDA slightly down from Q4 2025) and an approximate 40/60 first‑half/second‑half revenue split for the year. That guidance is supported by a record $2.2 billion order book (including ~ $100 million from APA), strong 2025 results (FY revenue ~$1.3 billion, +40% YoY; tracker volume +35%; FY25 adjusted EBITDA $188M, 15% margin; adjusted net income per share $0.67) and a strengthened balance sheet with >$380M available liquidity (pro forma nearly $600M after upsizing the revolver to $370M) and net debt leverage of 2.3x trailing‑12‑month adjusted EBITDA.Array Technologies Financial Statement Overview
Summary
Fundamentals are mixed: profitability weakened sharply with sizable losses in 2024–2025 and 2025 still showing negative net margin, while cash generation deteriorated to zero in 2025 after healthier 2022–2024 levels. The key offset is a notably improved balance sheet in 2025 with materially lower leverage and stable assets, but execution must improve to restore earnings and cash flow.Income Statement
Revenue has been volatile, with recent declines (2024 and 2025) following stronger levels in 2022–2023. Profitability deteriorated sharply from solid earnings in 2023 to sizable losses in 2024, with 2025 still unprofitable (negative net margin) despite a better loss profile. Gross margin held in the low-to-mid 20%s recently, but the inability to translate gross profit into operating profit (negative operating results in 2024–2025) is the key weakness.38
Negative
Balance Sheet
Leverage improved materially: debt-to-equity fell from very elevated levels in 2021–2024 to a more moderate level in 2025, suggesting balance-sheet repair and/or debt reduction. Equity remains positive and assets are stable, which supports financial flexibility. However, returns on equity are negative in 2024–2025 due to net losses, and the company’s leverage history (high debt-to-equity in prior years) highlights ongoing risk if profitability does not recover.56
Neutral
Cash Flow
Cash generation weakened meaningfully: operating and free cash flow were healthy in 2022–2024, but dropped to zero in 2025 alongside a sharp decline in free cash flow growth. Earlier periods also showed volatility (negative operating/free cash flow in 2020–2021), indicating uneven cash conversion across cycles. The near-term concern is the loss of cash flow support while earnings are also negative.34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.28B | 915.81M | 1.58B | 1.64B | 853.32M |
| Gross Profit | 272.35M | 297.68M | 415.55M | 212.72M | 68.30M |
| EBITDA | 45.40M | -162.97M | 276.21M | 132.80M | 509.00K |
| Net Income | -52.23M | -240.39M | 137.24M | 4.43M | -50.40M |
Balance Sheet | |||||
| Total Assets | 1.45B | 1.43B | 1.71B | 1.71B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 244.39M | 362.99M | 249.08M | 133.90M | 367.67M |
| Total Debt | 107.53M | 692.58M | 707.64M | 779.45M | 721.26M |
| Total Liabilities | 1.19B | 1.14B | 1.10B | 1.28B | 974.72M |
| Stockholders Equity | 260.39M | 288.83M | 610.51M | 423.85M | 168.26M |
Cash Flow | |||||
| Free Cash Flow | 79.81M | 146.68M | 214.97M | 130.87M | -266.54M |
| Operating Cash Flow | 101.78M | 153.98M | 231.96M | 141.49M | -263.19M |
| Investing Cash Flow | -187.89M | -9.57M | -16.82M | -384.44M | -15.33M |
| Financing Cash Flow | -38.05M | -11.84M | -101.76M | 8.44M | 537.75M |
Array Technologies Technical Analysis
Negative
7.14
Price Trends
10.09
Negative
9.23
Negative
8.39
Negative
Market Momentum
-0.96
Positive
28.09
Positive
7.37
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARRY, the sentiment is Negative. The current price of 7.14 is below the 20-day moving average (MA) of 9.85, below the 50-day MA of 10.09, and below the 200-day MA of 8.39, indicating a bearish trend. The MACD of -0.96 indicates Positive momentum. The RSI at 28.09 is Positive, neither overbought nor oversold. The STOCH value of 7.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ARRY.
Array Technologies Risk Analysis
Array Technologies disclosed 60 risk factors in its most recent earnings report. Array Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Array Technologies Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $15.35B | 24.63 | 33.29% | ― | 20.37% | 3.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $2.13B | -4.26 | -74.68% | ― | -0.14% | 66.71% | |
58 Neutral | $979.58M | 42.34 | 5.80% | ― | 2.68% | 2.90% | |
52 Neutral | $1.09B | ― | -19.02% | ― | 35.75% | 37.97% | |
45 Neutral | $80.75M | -1.99 | -664.69% | ― | 39.53% | -7.16% | |
42 Neutral | $39.03M | -0.39 | ― | ― | -54.68% | 63.56% |
* Technology Sector Average
ARRY
Array Technologies
6.81
0.66
10.73%
SEDG
SolarEdge Technologies
33.41
16.56
98.28%
MAXN
Maxeon Solar Technologies
2.27
-1.19
-34.39%
SHLS
Shoals Technologies Group
5.71
2.89
102.48%
FTCI
FTC Solar
4.16
1.23
41.98%
NXT
Nextpower Inc
101.43
59.87
144.06%
Array Technologies Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Array Technologies Expands Revolving Credit Facility and Liquidity
Positive
Feb 18, 2026
On February 18, 2026, Array Tech, Inc., a wholly owned subsidiary of Array Technologies, amended its revolving credit facility, increasing total commitments from $166 million to $370 million and extending the maturity from October 14, 2028 to February 18, 2031. The amendment also removed the Term SOFR credit spread adjustment, expanded the number of eligible currencies for borrowings and letters of credit, and reserved up to $250 million for letters of credit, with Goldman Sachs Bank USA serving as administrative agent and several major banks joining as arrangers and lenders.
The larger, longer-dated facility bolsters Array’s liquidity profile and provides added flexibility to fund working capital, support operational execution, and pursue global growth initiatives, reinforcing management’s focus on strengthening the balance sheet and optimizing its capital structure. The expanded bank syndicate and increased capacity signal lender confidence in Array’s strategic direction and its competitive position in the utility-scale solar sector, with implications for improved financial resilience and execution of its growth plans.
The most recent analyst rating on (ARRY) stock is a Buy with a $15.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.