Array Technologies achieved its revenue guidance for Q3 2024, even though it reported a net loss
Lower volumes and ASP decline were the major factors behind drop in revenues
Orders for its OmniTrack solution comprises over 20% of the company’s $2 billion order book
US-based solar tracker manufacturer Array Technologies managed to achieve its revenue guidance with $231.4 million, even though it represented a decline of around 34% year-on-year (YoY).
The management attributed the revenue drop to lower volumes and ASP declines. Lower revenues also led to the company’s adjusted EBITDA narrowing to $46.7 million, compared to $57.4 million in Q3 2023 (see Array Technologies’ Sales Volume Drops In Q3/2023).
It was in the red with a net loss of $155.4 million, compared to $10 million in net income last year. The net loss was a result of a $162 million goodwill impairment associated with its acquisition of STI in 2022, the management shared.
As of September 30, 2024, Array’s order book was strong at $2 billion, with orders for the OmniTrack solution comprising more than 20%. However, this composition of the order book has not changed from the end of June 2024 (see Array Beat Guidance To Report $256 Million In Revenues For Q2 2024).
Discussing the results with analysts on its earnings call, Array said that over 80% of the backlog is still currently scheduled to come online between now and year-end 2025. The management admitted that the Q3 orders were muted due to election uncertainty, but it is confident of strong double-digit growth YoY for the overall business next year, according to Roth MKM.
“While ARRY was “hopeful” that its clamps might qualify as structural fasteners, the company was not including this in its guidance and continues to recognize the torque tube credit under longitudinal purlins,” shared Philip Shen of ROTH MKM. “While the rules clarified that ARRY’s clamps do not qualify for the $2.28/kg structural fastener credit, the company is already realizing the 87c/kg torque tube credit.”
Guidance
Citing continued softness in the Brazil market and an expected drop in the US and international volumes due to declining ASPs, the management has further narrowed its annual guidance.
Against the original FY 2024 revenue guidance of $1.25 billion to $1.4 billion, Array had revised it downwards to a range of $900 million to $1,000 million. Now, it has narrowed it down further to $900 million to $920 million.
Adjusted EBITDA is forecast to be within $170 million to $180 million, while the adjusted gross margin is expected to be approximately 34%.
“While there are likely some persistent headwinds that will continue to impact the U.S. market, such as interconnection and permitting delays, shortages of long lead-time electrical equipment, and labor constraints, we also believe there are dynamics that will facilitate incremental improvement in 2025,” said Array CEO Kevin Hostetler. “These factors include the financing environment, clarity around AD/CVD tariffs for imported modules, and additional transparency on IRA incentives for utility-scale solar. As we assess these dynamics, we feel optimistic about strong double-digit top-line growth in 2025, but we will continue to do our due diligence within this environment.”
Array’s financials for the period between July and September this year are very different from its competitor and compatriot Nextracker as its revenues increased by 11% YoY with the US accounting for a 73% market share (see US Solar Tracker Maker Nextracker Posts Strong Q2 2025 Performance).