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Array Technologies (ARRY)
NASDAQ:ARRY

Array Technologies (ARRY) AI Stock Analysis

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Array Technologies

(NASDAQ:ARRY)

Rating:56Neutral
Price Target:
$7.00
▼(-10.14%Downside)
Array Technologies' overall score is impacted primarily by its financial performance challenges, including negative margins and high leverage. Positive aspects include robust earnings call insights and strategic corporate events, but valuation concerns weigh heavily on its attractiveness.
Positive Factors
Acquisition
The announced acquisition of APA Solar is expected to boost Array Technologies Inc's revenue and EBITDA margins.
Financial Performance
A significant portion of proceeds from the convertible notes is being used to pay down existing debt, improving the financial position.
Growth Opportunities
The APA Solar acquisition is considered positive as it adds $25M EBITDA in 2024, strengthens domestic content exposure, and opens new growth opportunities.
Negative Factors
Capital Discipline
The use of proceeds for debt repayment and repurchasing raises investor questions about capital discipline, diverging from prior expectations of using FCF to delever.
Stock Performance
The issuance of $300M convertible senior notes led to a 14% stock decline, likely due to hedge-related selling.
Stock Price
The DCF-derived price target remains unchanged, implying a downside to the current stock price.

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

Array Technologies Business Overview & Revenue Model

Company DescriptionArray Technologies, Inc. is a leading provider of solar tracking systems, primarily serving the utility-scale solar energy industry. The company is renowned for its high-quality, durable, and efficient solar tracking solutions, which help increase energy production by optimizing the positioning of solar panels throughout the day. Operating in the renewable energy sector, Array Technologies focuses on innovative technology to support the development and deployment of sustainable energy solutions globally.
How the Company Makes MoneyArray 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 Key Performance Indicators (KPIs)

Any
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:May 06, 2025
(Q1-2025)
|
% Change Since: 58.01%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Array Technologies demonstrated robust revenue and volume growth, with significant product innovation and a strong cash position. However, challenges such as gross margin compression, regulatory uncertainties, and international market difficulties present obstacles. While the highlights show promising growth and product adoption, the lowlights indicate significant external challenges.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Array Technologies reported a 97% increase in revenue to $302 million in Q1 2025 compared to the prior year, and a 10% increase sequentially from Q4 2024.
Significant Volume Growth
Volume growth of 143% over the prior year first quarter, marking the second-largest quarter of volume shipped since Q2 2023.
Resilient Order Book
Maintained a $2 billion order book with an 18% increase in new contracts compared to Q4 2024.
Innovative Product Launches
OmniTrack and SkyLink accounted for 15% of revenue in Q1 and 30% of new bookings, showcasing strong market adoption.
Strong Cash Position
The company ended the quarter with $348 million in cash and total liquidity of $510 million, including an undrawn revolver.
Negative Updates
Gross Margin Compression
Adjusted gross margin declined to 26.5% due to the roll-off of prior year benefits, a legacy volume commitment agreement, and a higher mix of international projects.
Tariff and Regulatory Uncertainty
Near-term policy-related headwinds, including tariffs and potential shifts in the Inflation Reduction Act, are causing customer hesitancy and project uncertainties.
Challenges in Brazil
Market growth in Brazil is significantly slowed by currency devaluation, interest rate volatility, and new tariffs on solar components.
Company Guidance
During Array Technologies' first quarter 2025 earnings call, the company provided robust financial guidance for the year, maintaining its full-year 2025 revenue outlook of $1.05 billion to $1.15 billion, despite market uncertainties. The first quarter saw significant achievements, including a 143% increase in volume growth compared to the prior year and revenue reaching $302 million, marking a 97% increase year-over-year. Adjusted gross margin was reported at 26.5%, with a strong cash position of $348 million at the end of the quarter. The company's order book remained resilient at $2 billion, with 40% of this to be delivered in the remaining quarters of 2025. Additionally, Array Technologies expects full-year adjusted EBITDA to be between $180 million and $200 million, with adjusted diluted earnings per share anticipated to range from $0.60 to $0.70. The company also highlighted ongoing discussions with customers about long-term volume commitment agreements (VCAs) and emphasized its strategic focus on product innovation and operational efficiency.

Array Technologies Financial Statement Overview

Summary
Array Technologies faces significant challenges in profitability and growth. Negative margins and high leverage pose risks, though positive free cash flow provides some strength. Improvement in operational efficiency and debt reduction is needed.
Income Statement
45
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
55
Neutral
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
60
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.06B915.81M1.58B1.64B853.32M872.66M
Gross Profit310.14M297.68M415.55M227.28M82.86M202.80M
EBITDA-169.10M-162.97M276.21M81.21M300.00K149.13M
Net Income-225.81M-240.39M137.24M4.43M-50.40M59.07M
Balance Sheet
Total Assets1.43B1.43B1.71B1.71B1.14B656.02M
Cash, Cash Equivalents and Short-Term Investments348.32M362.99M249.08M133.90M367.67M108.44M
Total Debt678.99M692.58M707.64M769.60M721.26M428.28M
Total Liabilities1.10B1.14B1.10B1.28B974.72M736.92M
Stockholders Equity323.60M288.83M610.51M423.85M168.26M-80.90M
Cash Flow
Free Cash Flow74.88M146.68M214.97M130.87M-266.54M-123.54M
Operating Cash Flow93.42M153.98M231.96M141.49M-263.19M-122.20M
Investing Cash Flow-9.54M-9.57M-16.82M-384.44M-15.33M-1.34M
Financing Cash Flow-8.99M-11.84M-101.76M8.44M537.75M-129.27M

Array Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.79
Price Trends
50DMA
6.66
Positive
100DMA
6.11
Positive
200DMA
6.32
Positive
Market Momentum
MACD
<0.01
Positive
RSI
59.57
Neutral
STOCH
63.80
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 7.79 is above the 20-day moving average (MA) of 7.19, above the 50-day MA of 6.66, and above the 200-day MA of 6.32, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 59.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.80 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Neutral
$999.71M52.923.43%-18.10%-36.91%
63
Neutral
£566.00M24.41-6.00%2.49%3.52%-29.29%
JKJKS
60
Neutral
$1.22B118.10-9.49%5.45%-30.26%-156.69%
56
Neutral
$1.06B-49.11%-21.31%-593.57%
54
Neutral
$838.49M20.05-0.39%-19.06%-104.91%
53
Neutral
$1.39B-121.50%-57.89%-559.87%
46
Neutral
$65.05M307.38%-54.68%63.56%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
ARRY
Array Technologies
7.79
-1.91
-19.69%
CSIQ
Canadian Solar
12.52
-3.01
-19.38%
JKS
JinkoSolar
24.29
5.89
32.01%
SEDG
SolarEdge Technologies
27.54
0.17
0.62%
MAXN
Maxeon Solar Technologies
3.85
-23.15
-85.74%
SHLS
Shoals Technologies Group
5.98
-0.10
-1.64%

Array Technologies Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Array Technologies Closes $345M Convertible Notes Offering
Positive
Jun 27, 2025

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.

The most recent analyst rating on (ARRY) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.

Private Placements and Financing
Array Technologies Upsizes $300M Convertible Notes Offering
Positive
Jun 25, 2025

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.

The most recent analyst rating on (ARRY) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.

Private Placements and Financing
Array Technologies Announces $250M Convertible Notes Offering
Neutral
Jun 24, 2025

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.

The most recent analyst rating on (ARRY) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Array Technologies Acquires APA Solar for $179 Million
Positive
Jun 18, 2025

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.

The most recent analyst rating on (ARRY) stock is a Buy with a $14.00 price target. To see the full list of analyst forecasts on Array Technologies stock, see the ARRY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Array Technologies Faces Shareholder Concerns on Executive Pay
Negative
May 22, 2025

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.

The most recent analyst rating on (ARRY) stock is a Buy with a $14.00 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.Date of analysis: Jul 03, 2025