- Array Technologies swung to profit in 2023 with a net income of $85.5 million, but Q4/2023 revenues declined 15% annually
- It attributes structural enhancements to its business during the year for an improved margin profile
- Citing declining ASPs, driven by lower commodity input costs, the company has provided a conservative guidance for 2024
Array Technologies, the US-based solar tracker manufacturer, exited 2023 exceeding its guidance with revenues of $1,576 million. However, its 2024 revenue guidance is conservative as the management factors in declining ASPs driven by lower commodity input costs.
The annual revenues in 2023 dropped from $1.64 billion in 2022, even though Array’s adjusted EBITDA went up from $128.7 million in 2022 to $288.1 million last year.
After reporting a net loss of -$43.6 million in 2022, Array grew its net income to $85.5 million in 2023. CEO Kevin Hostetler attributed the growth to many structural enhancements to its business during the year that improved its margin profile and generated $215 million of free cash flow.
During Q4/2024, its revenues dropped 15% annually to $341.6 million in revenues due to an ASP decline on lower input costs. Adjusted gross margin of 25.7% improved from 20.5% from a year ago on the back of improved pricing, an increase in non-tracker sales and the recognition of 45X benefit.
Hostetler said, “We enter 2024 with strong momentum and meaningful additions to our U.S. pipeline which has tripled since the second quarter of 2023. Our global orderbook has increased to $1.8 billion fueled by $600 million in Q4/2023 bookings.”
Array counts its global capacity to have grown to nearly 50 GW, including over 30 GW within the US, capable of sourcing 85%+ domestic content at scale. In November 2023, Array announced a $50 million tracker manufacturing campus in Albuquerque (see US Solar Tracker Supplier’s New Fab In New Mexico).
Guidance
Array guides for revenues in 2024 to range from $1.25 billion to $1.40 billion. Adjusted EBITDA is guided within $285 million to $315 million.
Referring to the company’s ‘weak’ guidance, Jeffrey Osborne of TD Cowen opined that it is not growing relative to the industry. He explained, “The tracker space is becoming more competitive with Gamechange making a big push and smaller players such as Soltec, Nevados, Ideematic, PV Hardware and Nevados among others making a push.” However, he added, “4Q bookings are encouraging and the company may be turning the corner if H250 gains steam in 1H24 in our view.”
In February 2024, Array launched its STI H250 Series tracker systems with a new driverline transmission system (see Tracker Company Expands Dual-Row Solar Tracker System Portfolio).
