US Solar Tracker Manufacturer Reports Net Loss In Q1 2024

• Array's Q1/2024 revenues and adjusted EBITDA declined by 59% and 61% respectively 
• It added around $400 million of new bookings to its order book which now exceeds $2.1 billion 
• The management has reiterated annual guidance for 2024 but expects a bulk of its revenues to come in towards the end of the year 

Array Technologies, the leading US solar tracker manufacturer, closed Q1/2024 with a strong order book having added close to $400 million in the reporting period. The $2.1 billion order book comprises total executed contracts and awarded orders comprising $1.8 billion in cumulative bookings over the last 4 quarters. 

It counts utilities/independent power producers (IPP) developers and EPCs as customers in the order book, with more than 80% tier 1 names. 

However, the management expects soft H1/2024 revenues citing customer pushouts due to permitting and interconnection and supply chain delays on long lead time equipment. Time of financing also contributes to this forecast. 

During the reporting quarter, Array's revenues of $153.4 million dropped by over 59% annually, while adjusted EBITDA went down to $26.2 million, reflecting a YoY decline of around 61%. It also suffered a net loss of -$11.3 million after having achieved a net income of $13.6 million in Q1/2023 (see US Solar Tracker Maker Reports Higher Shipments).  

"Notably, we delivered record adjusted gross margin of 38.3% (1), which was a result of the realization of 45X benefits associated with our torque tube, a one-time $4.0 million benefit from a supplier settlement, and our structural cost enhancements," shared Array CEO Kevin Hostetler. "Excluding the one-time supplier settlement item and 45X benefits, our core adjusted gross margin was in the mid-twenties as a percent of sales, and consistent with our long-term targets." 

Guidance 

Expecting relatively flat volume on a full-year basis in 2024 with declining ASPs compared to 2023, Array anticipates the bulk of its revenues to come in in the back half of the year. It has reiterated the annual revenue and adjusted EBITDA guidance of $1.25 billion to $1.4 billion and $285 million to $315 million, respectively (see Array Technologies Exceeds 2023 Revenue Guidance). 

For Q2/2024, it guides for revenues within the range of $225 million to $235 million.  

During the call with analysts post financial results announcement, Array management touched upon the recent AD/CVD petition filed by some US solar manufacturers (see US Solar PV Manufacturers Launch AD/CVD Petitions). 

Array believes companies are formulating plans to mitigate any risks from the same. These may include prioritizing projects designed with models from manufacturers that could be subjected to potential tariffs before they are imposed.