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Array Technologies (ARRY)
NASDAQ:ARRY
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Array Technologies
(NASDAQ:ARRY)
49Neutral
Positive Factors
Market Demand
Global demand for solar tracking equipment is expected to remain strong through at least the end of the decade, driven by solar developers seeking to lower LCOEs from solar projects.
Order Book Growth
Array exited the year with a ~$2bn order book, with the domestic portion increasing >20% y/y. More than 50% of order book is expected to manifest as revenue in 2025.
Negative Factors
Currency and Economic Conditions
There are currency, tax, and tariff headwinds in Brazil affecting the company's performance.
Financial Performance
Array's guidance for 2025 came in weaker than consensus on top-line growth and EBITDA margin, mainly due to weakness in Brazil.
Market Share
Despite a compelling relative valuation, there are concerns that ARRY has been losing market share.
Array Technologies (ARRY) vs. S&P 500 (SPY)
Market Cap
$969.85M
Dividend YieldN/A
Average Volume (3M)5.72M
Price to Earnings (P/E)―
Beta (1Y)1.18
Revenue Growth-41.91%
EPS Growth-459.51%
CountryUS
Employees1,028
SectorTechnology
Sector Strength45
IndustryRenewable Energy Producers
Share Statistics
EPS (TTM)-1.95
Shares Outstanding152,013,760
10 Day Avg. Volume8,392,280
30 Day Avg. Volume5,719,697
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.02
Price to Cash Flow (P/CF)4.10
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.50Price Target Upside35.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
Array Technologies Business Overview & Revenue Model
Company DescriptionArray Technologies Inc manufacturers of ground-mounting systems used in solar energy projects. The company's product is an integrated system of steel supports, electric motors, gearboxes and electronic controllers referred to as a single-axis tracker that move solar panels throughout the day to maintain an optimal orientation to the sun, which increases their energy production. Its operations are in United States, Australia, and Rest of the World with United States deriving majority of the revenue.
How the Company Makes MoneyArray Technologies generates revenue through the sale of its solar tracking systems to utility-scale solar project developers and operators. The company's key revenue streams include the design, manufacturing, and sale of these tracking systems, as well as providing associated services such as installation, maintenance, and support. Significant partnerships with solar project developers and operators also contribute to its earnings, as these relationships often lead to long-term contracts and repeat business. Array Technologies may also engage in strategic collaborations to enhance its product offerings and expand its market reach.
Array Technologies Financial Statement Overview
Summary
Array Technologies faces challenges in revenue growth and profitability. The income statement shows negative trends in 2024, but there is improved liquidity on the balance sheet despite concerns about equity. Cash flow stability is a positive, with improved operating cash flow in 2024.Income Statement
Array Technologies has faced challenges with revenue growth and profitability. The company saw a significant revenue decline from 2023 to 2024, and profitability metrics such as EBIT and Net Income have turned negative in 2024. This indicates operational difficulties and shrinking margins. Historically, revenue growth was strong, but recent trends are concerning.42
Neutral
Balance Sheet
The balance sheet shows improved cash holdings and reduced debt levels in 2024, reflecting better liquidity. However, the company's equity has decreased substantially, leading to a higher debt-to-equity ratio over time. The negative stockholders' equity in 2020 was a significant weakness, although it has improved since then.55
Neutral
Cash Flow
Cash flow performance has been relatively stable, with positive free cash flow in recent years. The company improved its operating cash flow significantly in 2024 compared to previous periods, which is a positive sign. However, the overall growth rate of free cash flow has not been consistent.63
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 915.81M | 1.58B | 1.64B | 853.32M | 872.66M | Gross Profit |
| 297.68M | 415.55M | 227.28M | 82.86M | 202.80M | EBIT |
| -227.00M | 214.12M | -18.13M | -24.74M | 95.21M | EBITDA |
| -162.97M | 276.21M | 81.21M | 300.00K | 149.13M | Net Income Common Stockholders |
| -240.39M | 137.24M | 4.43M | -50.40M | 59.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 362.99M | 249.08M | 133.90M | 367.67M | 108.44M | Total Assets |
| 1.43B | 1.71B | 1.71B | 1.14B | 656.02M | Total Debt |
| 30.71M | 707.64M | 769.60M | 721.26M | 428.28M | Net Debt |
| -332.28M | 458.56M | 635.70M | 353.60M | 319.84M | Total Liabilities |
| 1.14B | 1.10B | 1.28B | 974.72M | 736.92M | Stockholders Equity |
| 288.83M | 610.51M | 423.85M | 168.26M | -80.90M |
| Cash Flow | Free Cash Flow | |||
| 146.68M | 214.97M | 130.87M | -266.54M | -123.54M | Operating Cash Flow |
| 153.98M | 231.96M | 141.49M | -263.19M | -122.20M | Investing Cash Flow |
| -9.57M | -16.82M | -384.44M | -15.33M | -1.34M | Financing Cash Flow |
| -11.84M | -101.76M | 8.44M | 537.75M | -129.27M |
Array Technologies Technical Analysis
Neutral
6.27
Price Trends
6.63
Negative
6.49
Negative
7.86
Negative
Market Momentum
-0.23
Positive
48.98
Neutral
67.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ARRY, the sentiment is Neutral. The current price of 6.27 is below the 20-day moving average (MA) of 6.33, below the 50-day MA of 6.63, and below the 200-day MA of 7.86, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 48.98 is Neutral, neither overbought nor oversold. The STOCH value of 67.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $14.25B | 11.08 | 17.62% | ― | 26.75% | 55.24% | |
68 Neutral | $8.06B | 82.40 | 11.30% | ― | -41.92% | -76.24% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
53 Neutral | $635.94M | 701.46 | 0.03% | ― | -21.68% | -99.75% | |
49 Neutral | $969.85M | ― | -53.46% | ― | -41.91% | -459.51% | |
47 Neutral | $976.38M | ― | -116.01% | ― | -68.86% | -4917.87% | |
46 Neutral | $1.57B | ― | -73.12% | ― | -9.83% | -71.44% |
* Technology Sector Average
Performance Comparison
ARRY
Array Technologies
6.27
-5.71
-47.66%
CSIQ
Canadian Solar
9.61
-9.95
-50.87%
ENPH
Enphase Energy
60.83
-57.34
-48.52%
FSLR
First Solar
139.10
-18.94
-11.98%
SEDG
SolarEdge Technologies
16.05
-51.80
-76.34%
RUN
Sunrun
6.93
-3.04
-30.49%
Array Technologies Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: -4.27% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
Array Technologies demonstrated strong financial performance with significant margin improvements and cash flow generation in 2024. The company saw growth in its order book and introduced several innovative products. However, challenges such as revenue decline, impairment charges, and market difficulties in Brazil affected the overall results. The guidance for 2025 is promising, aiming for a 20% top-line growth, but past year challenges still linger.Highlights
Strong Financial Performance in 2024
Achieved $275 million of revenue in Q4 and $916 million for the full year 2024, exceeding the midpoint of guidance. Adjusted gross margin improved by 410 basis points in Q4 and 680 basis points for the full year compared to 2023.
Significant Cash Flow and Cash Balance
Generated $135 million of free cash flow and ended the year with a cash balance of $364 million.
Order Book Growth
Order book ended the year at $2 billion, up 10% compared to 2023 year-end, with 20% growth in the domestic order book.
Innovation and Product Development
Introduced new products like the OmniTrack terrain following tracker, which represents over 20% of the order book, and launched a reusable packaging initiative to enhance sustainability.
Guidance for 2025
Array expects to exceed market growth with a 20% top-line increase, forecasting revenue between $1.05 billion and $1.15 billion.
Lowlights
Revenue Decline
Q4 2024 revenue was down 19% from the prior year, largely due to commodity correlated ASP declines and project pushouts.
Goodwill and Asset Impairment
Recorded a $236 million non-cash goodwill impairment charge and a $91.9 million non-cash long-lived intangible asset write-down related to the 2022 STI acquisition.
Net Loss for 2024
Net loss attributable to common shareholders was $296.1 million compared to net income of $85.5 million in the prior year.
Challenges in Brazil
The devaluation of the Brazilian real, volatile interest rates, and new tariffs on solar components have significantly slowed market growth.
Company Guidance
During the Array Technologies Fourth Quarter and Full Year 2024 Earnings Call, the company provided detailed financial guidance for 2025. Array Technologies reported a revenue of $275 million for Q4 and $916 million for full year 2024, with adjusted gross margins of 29.8% and 34.1%, respectively. The company ended the year with $364 million in cash and a $2 billion order book, marking a 10% increase over 2023. For 2025, Array expects revenue between $1.05 billion and $1.15 billion, aiming for an adjusted EBITDA of $180 million to $200 million and adjusted EPS of $0.60 to $0.70. The guidance reflects a conservative approach with an anticipated 20% growth in top-line revenue, driven by strong project execution and expanding domestic content capabilities.Array Technologies Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Array Technologies Appoints New Chief Legal Officer
Positive
Jan 27, 2025
On January 27, 2025, ARRAY Technologies announced the appointment of Gina Gunning as its new chief legal officer and corporate secretary. With over 25 years of experience in legal and compliance roles, Gunning will provide strategic counsel to support ARRAY’s ambitious growth plans in the renewable energy sector. Her expertise in corporate law and risk management is expected to help align legal strategies with business objectives, positioning ARRAY to continue its leadership in renewable energy innovation.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.