ARRAY Technologies (ARRY, Financial) reported impressive first-quarter revenue of $302.4 million, significantly exceeding the market forecast of $264.36 million. The company experienced strong double-digit growth compared to the same period last year, marking the second-highest quarter for volume shipments since 2023. This growth underscores ARRAY's recovering market share and operational prowess.
ARRAY has also achieved a milestone by providing quotes for its fully domestic content trackers under the Inflation Reduction Act. This reflects the company's dedication to supply chain resilience amid global geopolitical challenges, including tariffs. As utility-scale solar energy remains the most economical and rapidly expanding energy source, ARRAY is seeing increased interest in Volume Commitment Agreements from domestic customers, enabling swift and efficient project deployment.
The company's order book is robust, with a notable 18% sequential growth in contracts, particularly gaining traction with Independent Power Producers across Europe, the Middle East, and Asia. Despite global economic uncertainties related to tariffs and potential IRA changes, ARRAY remains confident in its capacity to adapt. With strong liquidity, no immediate refinancing pressures, and a skilled team, ARRAY sustains its full-year 2025 guidance, focusing on creating long-term value and strengthening customer relationships.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for Array Technologies Inc (ARRY, Financial) is $7.95 with a high estimate of $13.00 and a low estimate of $5.00. The average target implies an upside of 61.26% from the current price of $4.93. More detailed estimate data can be found on the Array Technologies Inc (ARRY) Forecast page.
Based on the consensus recommendation from 27 brokerage firms, Array Technologies Inc's (ARRY, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Array Technologies Inc (ARRY, Financial) in one year is $12.01, suggesting a upside of 143.61% from the current price of $4.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Array Technologies Inc (ARRY) Summary page.
ARRY Key Business Developments
Release Date: February 27, 2025
- Fourth Quarter Revenue: $275 million.
- Full Year 2024 Revenue: $916 million.
- Fourth Quarter Adjusted Gross Margin: 29.8%, an improvement of 410 basis points year over year.
- Full Year 2024 Adjusted Gross Margin: 34.1%, an improvement of 680 basis points compared to 2023.
- Fourth Quarter Adjusted EBITDA: $45.2 million.
- Full Year 2024 Adjusted EBITDA: $173.6 million.
- Full Year Free Cash Flow: $135 million.
- Cash Balance at Year-End: $364 million.
- Order Book at Year-End: $2 billion, up 10% compared to 2023.
- Fourth Quarter Net Loss: $141.2 million.
- Fourth Quarter Adjusted Net Income: $25.1 million.
- Full Year 2024 Net Loss: $296.1 million.
- Full Year 2024 Adjusted Net Income: $91.2 million.
- 2025 Revenue Guidance: $1.05 to $1.15 billion.
- 2025 Adjusted EBITDA Guidance: $180 to $200 million.
- 2025 Free Cash Flow Guidance: $115 to $130 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Array Technologies Inc (ARRY, Financial) reported strong financial results for the fourth quarter and full year 2024, with revenue exceeding the midpoint of their guidance range.
- The company achieved a significant improvement in adjusted gross margin, reaching 29.8% in Q4 and 34.1% for the full year, reflecting a year-over-year increase.
- Array Technologies Inc (ARRY) ended 2024 with a robust order book of $2 billion, marking a 10% increase compared to the previous year.
- The company made strategic investments in innovation, including a new manufacturing facility in Albuquerque and a significant investment in Swap Robotics, enhancing their product and service offerings.
- Array Technologies Inc (ARRY) demonstrated strong cash flow generation, ending the year with $364 million in cash, an increase of $115 million from the previous year.
Negative Points
- Array Technologies Inc (ARRY) experienced a 42% decline in revenue for the full year 2024 compared to 2023, attributed to decreased volume and ASPs.
- The company reported a net loss attributable to common shareholders of $296.1 million for 2024, compared to a net income of $85.5 million in the prior year.
- Array Technologies Inc (ARRY) faced challenges in Brazil due to the devaluation of the Brazilian real, volatile interest rates, and newly introduced tariffs, impacting market growth.
- The company incurred a $236 million non-cash goodwill impairment charge and a $91.9 million non-cash long-lived intangible asset write-down related to the 2022 STI acquisition.
- Array Technologies Inc (ARRY) noted ongoing industry headwinds, including project timeline pushouts and pricing pressures from commodity price declines.
