Array Technologies (ARRY) AI Stock Analysis

• Market Cap: $1.39B
• Dividend Yield: N/A
• Average Volume (3M): 8.23M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.31
• Revenue Growth: 6.36%
• EPS Growth: -1683.09%
• Country: US
• Employees: 1,021
• Sector: Technology
• Sector Strength: 83
• Industry: Solar
• EPS (TTM): 0.25
• Shares Outstanding: 152,724,780
• 10 Day Avg. Volume: 6,591,756
• 30 Day Avg. Volume: 8,234,666
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 1.41
• Enterprise Value/Gross Profit: 5.01
• Enterprise Value/Ebitda: -11.13
• 1Y Price Target: $9.18
• Price Target Upside: 2.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 64 Neutral
• Price Target: $9.00 ▲(0.33% 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

Acquisition Benefits

The announced acquisition of APA Solar is expected to boost Array Technologies Inc's revenue and EBITDA margins.

Debt Management

A significant portion of proceeds from the convertible notes is being used to pay down existing debt, improving the financial position.

Financial Performance

Array posted strong results and ticked up guidance on strong demand.

Negative Factors

Capital Discipline Concerns

The use of proceeds for debt repayment and repurchasing raises investor questions about capital discipline, diverging from prior expectations of using FCF to delever.

Price Target Implications

The unchanged DCF-derived price target implies a downside compared to the most recent closing price.

Stock Price Volatility

Array priced $300M of 2.875% convertible senior notes due 2031 with the stock falling 14% - likely on hedge-related selling ahead of pricing.

Array Technologies Business Overview & Revenue Model

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.

How the Company Makes Money

Array Technologies makes money primarily through the sale of its solar tracking systems to utility-scale solar energy projects. The company's revenue model is centered around the manufacturing and distribution of these tracking systems, which are crucial for maximizing the efficiency and output of solar panels by adjusting their position in response to the sun's movements. Key revenue streams include direct sales to solar project developers and operators, as well as partnerships with engineering, procurement, and construction (EPC) firms that integrate Array's technology into their solar installations. Additionally, Array Technologies may generate income from maintenance services and long-term contracts with clients, securing ongoing revenue from existing installations. The company's growth and earnings are significantly influenced by the increasing global demand for renewable energy solutions and the strategic partnerships it forms within the solar industry.

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

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

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

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 Price: 8.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 8.97 is above the 20-day moving average (MA) of 8.10, above the 50-day MA of 7.34, and above the 200-day MA of 6.50, indicating a bullish trend. The MACD of 0.61 indicates Negative momentum. The RSI at 60.64 is Neutral, neither overbought nor oversold. The STOCH value of 31.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ARRY.

Array Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHLS	67 Neutral	$1.20B	56.65	3.77%	―	-11.95%	-7.87%
ARRY	64 Neutral	$1.39B	―	-44.13%	―	6.36%	-1683.09%
Sector *	54 Neutral	$291.06M	3.16	-13.34%	2.78%	5.71%	-76.50%
JKS	53 Neutral	$1.22B	118.10	-9.49%	10.83%	-30.26%	-156.69%
SEDG	51 Neutral	$2.03B	―	-131.02%	―	-36.07%	-233.14%
CSIQ	49 Neutral	$669.05M	20.05	-0.25%	―	-9.11%	-118.62%
MAXN	41 Neutral	$61.84M	―	307.38%	―	-54.68%	63.56%

Array Technologies Corporate Events

Array Technologies Completes Acquisition of APA Solar

On August 14, 2025, Array Technologies completed its acquisition of APA Solar, a premier provider of solar racking and structural solutions. This strategic move is expected to strengthen Array’s position in the renewable energy sector by expanding its product portfolio and enhancing its ability to serve a broader range of utility-scale and commercial solar projects. The acquisition is anticipated to be accretive to Array’s earnings and offers significant opportunities for commercial synergies, further accelerating the deployment of solar energy solutions.

Array Technologies Closes $345M Convertible Notes Offering

On June 27, 2025, Array Technologies announced the successful closing of its $345 million upsized offering of 2.875% convertible senior notes due July 2031. This strategic financial move aims to strengthen the company’s capital structure by refinancing higher-cost debt and repurchasing a portion of its 2028 convertible notes at a discount. The transaction is expected to enhance financial flexibility, extend the maturity of its credit facility, and generate approximately $9 million in annual net interest expense savings, thereby delivering sustainable value and minimizing shareholder dilution.

Array Technologies Upsizes $300M Convertible Notes Offering

On June 24, 2025, Array Technologies announced the pricing of its upsized offering of $300 million in convertible senior notes due 2031, with an interest rate of 2.875% per annum. The proceeds will be used to repay existing debt, fund capped call transactions, and repurchase existing convertible notes, aiming to strengthen the company’s financial position and reduce potential stock dilution.

Array Technologies Announces $250M Convertible Notes Offering

On June 24, 2025, Array Technologies announced its intention to offer $250 million in convertible senior notes due 2031 in a private placement to qualified institutional buyers, subject to market conditions. The proceeds are intended to repay existing debt, fund capped call transactions, and support general corporate purposes. This move is expected to impact the company’s stock market activity and financial positioning, potentially affecting the market price of its common stock and the conversion dynamics of the notes.

Array Technologies Acquires APA Solar for $179 Million

On June 17, 2025, Array Technologies announced its acquisition of APA Solar, LLC, a company specializing in engineered foundation solutions and fixed-tilt mounting systems for solar projects. The acquisition, valued at approximately $179 million, aims to expand Array’s product portfolio and address challenging soil conditions with an integrated tracker and foundation system. This strategic move is expected to enhance Array’s market position by increasing its addressable market by nearly 40% and is anticipated to be accretive to Array’s adjusted EPS in the first year. The transaction is set to close in the third quarter of 2025, pending regulatory approval and customary closing conditions.

Array Technologies Faces Shareholder Concerns on Executive Pay

On May 20, 2025, Array Technologies held its 2025 Annual Meeting of Stockholders where two board members, Jayanthi Iyengar and Tracy Jokinen, were elected for three-year terms. Additionally, Deloitte & Touche LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. However, a non-binding advisory proposal regarding executive compensation did not receive majority support, indicating potential shareholder concerns over executive pay.