- Array’s Q2/2023 revenues improved 21% YoY on the back of higher shipments and pass-through pricing to customers
- Executed contracts and awarded orders grew to $1.7 billion; meaningful increase in sequential bookings with close to $600 million during the period
- Annual revenue guidance for 2023 has been lowered to between $1.65 billion and $1.725 billion
US solar tracker manufacturer Array Technologies exited Q2/2023 with strong financials, having grown its revenues by 21% annually to $507.7 million, thanks to a 124% YoY improvement in the STI segment. However, the company has lowered its annual guidance citing current market uncertainties.
Array previously anticipated 2023 annual revenues in the range of $1.8 billion and $1.9 billion, which has now been lowered to between $1.65 billion and $1.725 billion. Within H1/2023, its revenues grew to $884.5 million. The company expects 2023 adjusted EBITDA to range between $280 million and $295 million.
Nonetheless, its total executed contracts and awarded orders grew to a total of $1.7 billion as of June 30, 2023, comprising $1.4 billion from Array Legacy Operations and $0.3 billion from STI Norland. The management said that there was meaningful increase in sequential bookings with close to $600 million locked in during the quarter.
It expects to ship a large number of these bookings in 2024 as projects get pushed into next year for which CEO Kevin Hostetler blamed ‘larger than anticipated pushouts due to module availability, further IRA clarity, and permitting issues.’.
During Q2/2023, Array’s revenue improvement was due to an increase in shipments and an improvement in ASP, as the company passed through price increases to the customers. Gross profit went up 276% to $150 million, while gross margin improved to 29.6% from 9.5% in Q2/2022.
Array turned profitable in the quarter with $52 million in net income, having reported a -$17.2 million net loss last year.
Hostetler added, “We will enter 2024 with strong bookings momentum, a much-improved balance sheet, a multi-product offering enabling us to expand our target market while delivering industry-leading gross margin, and a stronger operating system that will continue to improve shareholder returns.”
In July 2023, Array secured the supply of locally produced utility– scale steel tubes with Lock Joint Tube (see North America PV News Snippets).
Array separately announced the appointment of Aaron Gabelnick as its new chief strategy and technology officer (see US Tracker Maker Gets New Technology Lead).
