Array Technologies (ARRY) AI Stock Analysis

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Array Technologies

(NASDAQ:ARRY)

Select Model

Neutral 64 (OpenAI - 4o)

Rating:64Neutral

Price Target:

$9.00

▲(10.16% Upside)

Array Technologies' overall stock score reflects a mix of strong earnings performance and strategic corporate actions, offset by financial instability and valuation concerns. The company's revenue growth and strategic acquisitions are promising, but high leverage and negative profitability pose significant risks. Technical indicators show bullish momentum, but valuation metrics are weak due to ongoing losses.

Positive Factors

Revenue Growth

Array Technologies' significant revenue growth reflects strong market demand and effective sales strategies, enhancing its competitive position in the renewable energy sector.

Product Innovation

The adoption of new products like OmniTrack and SkyLink indicates successful innovation and market acceptance, which can drive future growth and market share.

Strategic Acquisitions

The acquisition of APA Solar expands Array's product portfolio and market reach, enhancing its ability to serve diverse solar projects and strengthening its competitive edge.

Negative Factors

High Leverage

High leverage poses financial risks, limiting flexibility and increasing vulnerability to economic downturns, which could impact long-term stability.

Profitability Challenges

Ongoing profitability issues suggest challenges in cost management and pricing power, potentially hindering sustainable growth and shareholder returns.

Regulatory Uncertainties

Regulatory uncertainties can disrupt project timelines and order intake, affecting strategic planning and financial performance in the renewable energy sector.

Array Technologies (ARRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$1.22B

Dividend YieldN/A

Average Volume (3M)8.52M

Price to Earnings (P/E)―

Beta (1Y)1.26

Revenue Growth6.36%

EPS Growth-1683.09%

CountryUS

Employees1,021

SectorTechnology

Sector Strength88

IndustrySolar

Share Statistics

EPS (TTM)0.25

Shares Outstanding152,724,780

10 Day Avg. Volume7,281,468

30 Day Avg. Volume8,524,336

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.36

Enterprise Value/Revenue1.41

Enterprise Value/Gross Profit5.01

Enterprise Value/Ebitda-11.13

Forecast

1Y Price Target

$9.18

Price Target Upside12.36% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering18

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, which include both hardware and software components. The company earns money from the direct sale of its products to solar project developers and operators, as well as through installation services. Additionally, recurring revenue streams may come from long-term service agreements and performance guarantees associated with its products. Significant partnerships with major solar developers and utilities bolster its market presence and contribute to its earnings, allowing Array Technologies to capture a larger share of the growing solar energy market.

Array Technologies Key Performance Indicators (KPIs)

Any

Gross Margin by Segment

Gross Margin by Segment
Indicates the efficiency of each segment in generating profit from sales, helping investors assess operational effectiveness and competitive positioning.

Chart InsightsArray Technologies' gross margin for Legacy Operations has shown a strong upward trend since 2022, peaking in early 2024, but has recently declined. STI Operations, after initial growth, experienced fluctuations, with a notable dip at the end of 2024. Despite robust revenue and volume growth, the earnings call highlights margin compression due to legacy agreements and international project mix. The company is focusing on product innovation and operational efficiency to counteract regulatory and market challenges, aiming to sustain its financial momentum in 2025.

Data provided by:

Main Street Data

Array Technologies Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflects strong financial performance with significant revenue and volume growth, improved profitability, and successful capital restructuring. However, challenges such as tariff impacts, regulatory uncertainties, and international market pressures remain notable concerns.

Q2-2025 Updates

Positive Updates

Record-Breaking Volume Growth

Second quarter revenue of $362 million, representing a 42% increase from the prior year, and a 20% sequential increase. Volume growth was over 50% year-over-year, with first half 2025 volume up 84% year-over-year.

Net Income and EBITDA Surge

Net income to common shareholders was $28 million, a 138% increase compared to last year. Adjusted EBITDA was $64 million, outperforming expectations.

Strong Cash and Liquidity Position

Ended the quarter with $377 million in total cash on hand and total liquidity above $500 million, including availability under an undrawn revolver.

Successful Capital Structure Optimization

Issuance of $345 million of new convertible notes was used to repay existing debt, reducing annualized cash interest expense by $9 million and extending debt maturity.

Positive Market Share and New Product Adoption

OmniTrack and SkyLink products now constitute more than 35% of the order book, indicating strong market adoption.

Negative Updates

Tariff and Commodity Pressure

Incremental tariffs and commodity pressures impacted gross margins, with a projected drag of over 50 basis points on 2025 gross margins.

Regulatory and Policy Uncertainties

Challenges due to new solar tax credit requirements and potential changes in safe harbor rules, causing uncertainty in project timelines and order intake.

Interest Rate Impact in International Markets

High interest rates in Brazil, reaching 15%, are causing delays in project execution, despite not resulting in cancellations.

Company Guidance

In the second quarter of 2025, Array Technologies reported strong financial performance with revenue reaching $362 million, marking a 42% year-over-year increase and a 20% sequential rise. The company saw its highest volume growth in two years, with over 50% year-over-year volume growth in the quarter and an impressive 84% increase in the first half of 2025. Gross profit margins improved quarter-over-quarter, despite the impacts of incremental tariffs. Net income to common shareholders soared by over 138% compared to the previous year, reaching $28 million. Adjusted EBITDA also exceeded expectations at $64 million. Array raised its full-year 2025 revenue guidance to a range of $1.18 billion to $1.215 billion, reflecting increased confidence in its booking momentum and operational execution. The order book stands at $1.8 billion, with $645 million of performance obligations, and the company projects adjusted gross margins between 28% and 29% for the year.

Array Technologies Financial Statement Overview

Summary

Array Technologies faces significant challenges in profitability and growth. The income statement shows declining revenue and profitability with negative margins, while the balance sheet indicates high leverage. Despite positive free cash flow, the financial health could be improved by enhancing operational efficiency and reducing debt levels.

Income Statement

Neutral

Array Technologies shows a challenging income statement with declining revenue and profitability. The TTM (Trailing-Twelve-Months) gross profit margin is approximately 29.13%, and the net profit margin is -21.21%, indicating that the company is struggling to translate revenue into profit. The revenue growth rate has been negative recently, and both EBIT and EBITDA margins are negative, which raises concerns about operational efficiency and cost management.

Balance Sheet

Negative

The balance sheet presents a mixed picture. The debt-to-equity ratio is quite high at approximately 2.10, suggesting significant leverage, which could be risky if not managed well. However, the equity ratio is 22.70%, indicating that the company maintains some equity buffer. Return on equity (ROE) is negative, reflecting net losses, which is a concern for investors looking for returns on equity.

Cash Flow

Neutral

Cash flow metrics show some positive signs with a reasonable operating cash flow to net income ratio of about -0.41. Free cash flow is positive, indicating that the company is generating cash after capital expenditures. However, the free cash flow to net income ratio is negative, reflecting challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.17B	915.81M	1.58B	1.64B	853.32M	872.66M
Gross Profit	330.19M	297.68M	415.55M	212.72M	68.30M	202.80M
EBITDA	-148.66M	-162.97M	276.21M	132.80M	300.00K	149.13M
Net Income	-208.25M	-240.39M	137.24M	4.43M	-50.40M	59.07M
Balance Sheet
Total Assets	1.54B	1.43B	1.71B	1.71B	1.14B	656.02M
Cash, Cash Equivalents and Short-Term Investments	377.27M	362.99M	249.08M	133.90M	367.67M	108.44M
Total Debt	693.85M	698.01M	707.64M	779.45M	726.62M	428.28M
Total Liabilities	1.18B	1.14B	1.10B	1.28B	974.72M	736.92M
Stockholders Equity	365.30M	288.83M	610.51M	423.85M	168.26M	-80.90M
Cash Flow
Free Cash Flow	110.27M	146.68M	214.97M	130.87M	-266.54M	-123.54M
Operating Cash Flow	133.30M	153.98M	231.96M	141.49M	-263.19M	-122.20M
Investing Cash Flow	-14.07M	-9.57M	-16.82M	-384.44M	-15.33M	-1.34M
Financing Cash Flow	-20.48M	-11.84M	-101.76M	8.44M	537.75M	-129.27M

Array Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.17

Price Trends

50DMA

7.58

Positive

100DMA

7.32

Positive

200DMA

6.60

Positive

Market Momentum

MACD

0.02

Positive

RSI

52.09

Neutral

STOCH

51.31

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARRY, the sentiment is Positive. The current price of 8.17 is below the 20-day moving average (MA) of 8.29, above the 50-day MA of 7.58, and above the 200-day MA of 6.60, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 52.09 is Neutral, neither overbought nor oversold. The STOCH value of 51.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NXT	78 Outperform	10.77B	20.03	31.27%	―	13.26%	3.08%
SHLS	67 Neutral	1.29B	60.02	4.26%	―	-11.95%	-7.87%
ARRY	64 Neutral	$1.22B	―	-44.13%	―	6.36%	-1683.09%
FTCI	55 Neutral	109.63M	-2.07	-255.34%	―	-17.53%	8.53%
SEDG	51 Neutral	2.22B	-1.27	-334.37%	―	-36.07%	-233.14%
MAXN	41 Neutral	64.38M	-0.02	209.06%	―	-54.68%	63.56%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

ARRY

Array Technologies

8.17

1.44

21.40%

SEDG

SolarEdge Technologies

37.90

14.78

63.93%

MAXN

Maxeon Solar Technologies

3.62

-5.38

-59.78%

SHLS

Shoals Technologies Group

7.58

1.75

30.02%

FTCI

FTC Solar

7.52

1.07

16.59%

NXT

NEXTracker, Inc. Class A

73.51

34.61

88.97%

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.Date of analysis: Aug 19, 2025