Array’s Order Book Till Dec 2022-End Was Worth $1.9 Billion

• Array's preliminary unaudited financials show the company expects to report between $1.62 billion and $1.64 billion annual revenues in 2022
• It has exceeded adjusted EBITDA guidance, now stating it between $126 million and $129 million
• For full year 2023, its annual revenue guidance is conservative as it does not factor in IRA benefits

NASDAQ listed solar tracker manufacturer Array Technologies expects to exceed its annual revenue guidance for 2022 to report between $1.62 billion to $1.64 billion claiming it represents organic growth of nearly 50%, and guides for 2023 revenues to further grow to within $1.8 billion to $1.95 billion.

According to the company's preliminary unaudited financial results, Array also believes it will exceed its adjusted EBITDA guidance to an eventual $126 million to $129 million and gross margin for 2022 will be within 13.5% to 14.0% range. However, the company also anticipates a net loss ranging between -$40 million to -$42 million.

Previously, it guided for adjusted EBITDA within $122 million to $132 million, and revenue guidance had been updated from $1.30 billion to $1.50 billion (see Array Reports $28.6 Million Net Income In Q3/2022).

TD Cowen's Jeffrey Osborne sees the company's $1.9 billion order book at the end of December 2022 comprising awarded and orders and executed contracts as an important factor. He says the company has delayed filing its financials officially since it needs times to review financial information related to its STI Norland acquisition (see World's Largest' Solar Tracker Company).

Final audited results are scheduled to be released on March 15, 2023, but the management has already provided its full year 2023 guidance expecting annual revenue growth of between 11% to 19%. Adjusted EBITDA is also set to improve to $240 million to $265 million.

Array has not factored in the anticipated benefits of the Inflation Reduction Act (IRA) in terms of domestic content provision and tracker manufacturing credits saying there are no clear enough guidelines on these critical aspects as yet.

Philip Shen of Roth MKM, previously Roth Capital Partners, says that management did not factor in potential upside from the domestic content adder or the torque tube tracker subsidy; both could be meaningful.

Array is also included in TaiyangNews latest Market Survey on Solar Trackers, which was published end of December 2022 and provides background on stakeholders and products. The report can be downloaded for free here.