Array Technologies, Inc. (ARRY)

Array Technologies makes the steel structures that turn rows of solar panels to follow the sun, and its newest results, filed on 5 August, cover the quarter ended 30 June 12. Revenue was $342.1 million, 6 percent less than a year earlier, and net income fell to $24.3 million from $43.3 million 2. Its orderbook, the contracts signed and orders awarded, reached a record $2.5 billion, up 37 percent 1.

The fall came from STI, the international business bought in 2022, whose revenue dropped 69 percent on about 60 percent less volume 2. The US business grew 10 percent, as average selling prices rose about 25 percent while volume fell 12 percent 2. Gross margin, the share of revenue left after production costs, rose to 29.1 percent from 26.8 percent 2.

The newest material event on file is the purchase of Affordable Wire Management, a maker of cable hangers and cable protection for solar and battery sites, completed on 31 August 56. Array paid about $165 million in cash at closing, with up to $50 million more through 2028 tied to staff staying and profit targets 53. The company says AWM had nearly $60 million of revenue in the twelve months before the deal 4.

The next test is the third quarter report, which the company will release after the market closes on 5 November 8. In August it guided third quarter revenue of $310 million to $330 million and full year revenue of $1.4 billion to $1.5 billion 1. Since 10 August, dividends on the preferred stock a Blackstone fund bought in 2021 can only be paid in cash, or they pile up at a higher rate 213.

Ron Corio founded Array Technologies in 1989 15. Its prospectus of 16 October 2020 offered 7,000,000 new shares and 40,500,000 from a selling stockholder, while funds of Oaktree and Corio held a majority through a holding company 15.

Revenue grew from $290.8 million in 2018 to $647.9 million in 2019 and $872.7 million in 2020 14. In 2020 the megawatts delivered rose about 32 percent on more projects, and net income reached $59.1 million 14.

In 2021 the megawatts delivered rose about 19 percent, yet revenue slipped 2 percent to $853.3 million 13. Gross margin fell from 23.2 to 9.7 percent, because steel and freight costs rose and the company did not fully pass them on to customers 13. It lost $50.4 million, and in August an investment vehicle of Blackstone funds bought 350,000 shares of a new Series A preferred stock 13.

In January 2022 Array bought STI Norland, a Spanish tracker maker with plants in Spain and Brazil 129. Revenue nearly doubled to $1.64 billion: STI added $369.7 million, and the US business grew 49 percent on 22 percent more megawatts and higher prices that passed costs through 12. Net income was a slim $4.4 million 12.

Revenue dipped 4 percent to $1.58 billion in 2023, as customers' project delays cut the megawatts the US business shipped 11. Lower input costs lifted gross margin to 26 percent from 13 percent, and net income reached $137.2 million 11.

Then came the slump: revenue fell 42 percent in 2024 to $915.8 million, as US volume shipped dropped about 39 percent and US prices about 8 percent 10. The 45X credit, a federal payment per US-made component that suppliers share with Array, reached $137.8 million and lifted the US gross margin to 41 percent from 27 percent 10. Writedowns at STI of $327.9 million left a net loss of $240.4 million 910.

Revenue recovered 40 percent in 2025 to $1.28 billion, as the US business grew 62 percent 9. Its gross margin fell to 28 percent from 41 percent, as cost per watt rose 22 percent, 13 points of it from higher tariffs 9. On 14 August 2025 Array bought APA Solar, an Ohio maker of racking and foundations, for initial cash of $166.1 million 92.

STI kept shrinking: a further $102.6 million goodwill writedown and a $29.5 million charge to phase out an older version of its H250 tracker left a 2025 net loss of $52.2 million 9. Brazil's revenue fell from $257.9 million in 2023 to $60.7 million in 2025 9.

Trackers: DuraTrack, OmniTrack and the dual-row line

A single-axis tracker is a long row of panels on a steel tube that motors turn from east to west through the day 9. The flagship DuraTrack HZ v3, launched in May 2015, uses a patented drive in which one motor turns several rows through linked driveline joints 9. The company says its largest competitor needs one motor for every row 9.

OmniTrack, introduced in September 2022, follows uneven ground so builders need to grade less 9. A next version announced this year copes with 2 degrees of slope change between neighbouring posts 1. The STI H250 is a dual-row design for irregular sites, and in May 2026 Array added DuraTrack D2S, a dual-row tracker for international markets 92.

In July it announced a DuraTrack version that tilts to 60 degrees to shed hail, aimed at Texas and the Great Plains, with first deliveries planned for mid-2027, pv magazine reported 18. Array passed 100 gigawatts of trackers delivered since its founding during the second quarter 1.

Software and controls

SmarTrack is the software that moves rows to catch diffuse light on cloudy days and to stow them against hail and snow 9. SkyLink is a tracker whose controls run on the panels' own power, so it can still stow when the grid is down 9.

Foundations and racking: APA and Atlas

APA designs and makes solar racking, mounting and foundation systems, and it brought in $50.0 million of revenue from its purchase on 14 August 2025 to the end of that year 9. Atlas, launched in July, joins APA's foundations directly to Array's trackers without third-party adapters 192. pv magazine reports that its Atlas II version cuts the structural parts of an older design from about 60 to between 14 and 18 19.

Wire management: AWM

AWM sells wire hangers, trunk line clamps and cable protection that keep the wiring of a solar field organized, secured and protected 184. pv magazine reported it had recently won its first orders in battery storage and data center markets 18. Its results join the Array Legacy segment 4.

Where the revenue comes from

In 2025 the Array Legacy segment, mostly the US business with APA, brought in $1.07 billion, 83.4 percent of revenue, and STI $213.7 million 9. By where projects sit, the United States gave 81.1 percent, Spain 11.0 percent, Brazil 4.7 percent and Australia 1.9 percent 9. In the second quarter of 2026 Legacy was about 94 percent of revenue (computed) 2.

The buyers are solar developers, power producers, utilities and the firms that build the sites 9. In 2025 the two largest customers were 13.7 percent and 12.2 percent of revenue 9.

Rivals

The annual report names Nextpower, formerly Nextracker, PV Hardware and GameChange Solar as its main tracker rivals, and UNIRAC and Terrasmart in fixed mounts and foundations 9. Wood Mackenzie counts 134 gigawatts of trackers shipped worldwide in 2025, with Nextpower holding 30 percent of the world market 17. In the US, Nextpower held more than half, ahead of second-ranked Array and GameChange, and the three shared nearly 90 percent 17.

Plants and people

Array makes or assembles parts in a plant of about 283,000 square feet in Albuquerque, New Mexico, and buys steel tubing, motors and gearboxes from suppliers who ship them straight to job sites or warehouses 9. A second New Mexico plant in Bernalillo County adds about 176,000 square feet of manufacturing space 9. STI has about 67,000 square feet in Spain and 610,000 in Brazil 9.

At the end of 2025 Array had about 1,200 full-time employees, about 66 percent of them in the US 9. Kevin Hostetler has been chief executive since April 2022, Keith Jennings finance chief since January 2025, and Neil Manning president and chief operating officer since June 2024 25.

Problems and disputes

Sterling and Wilson Solar Solutions seeks damages in an arbitration over goods for a solar project in Bickleton, Washington, which the panel stayed on 12 May 2026 pending a related New York case 2. On 24 March 2026 an appeals court affirmed the dismissal of a 2021 shareholder class action, and two derivative suits were then dropped 2.

The quarterly report also sets out the policy changes facing its buyers: the solar investment credit ends for projects placed in service after 2027 unless building started before 4 July 2026 2. New rules also deny the credit to projects that get material help from a prohibited foreign entity, such as one controlled from China 2.

The umbrella, in words

The main brands are DuraTrack, OmniTrack, SkyLink, SmarTrack and Atlas, all trackers, foundations or their software 92. The subsidiaries exhibit lists significant subsidiaries only: APA Solar in Ohio, Array Tech in New Mexico, the STI companies in Spain and Brazil, and STINorland USA in California 16. Array owns all of APA, and STINorland USA bought all of AWM 93.

The large holders file Schedules 13G, the short form for holders reporting a passive stake 2021222324. As of 30 June 2026, Hill City Capital reported 8.4 percent, GMO 7.73 percent, First Trust 6.76 percent and T. Rowe Price 5.6 percent; BlackRock reported 8.2 percent as of 31 March 2021242223.

The Series A preferred stock, first sold to a Blackstone fund in 2021, carried a claim of $506.4 million at 30 June 2026, ahead of the common shares 213. Bilal Khan, a senior managing director at Blackstone, has sat on the board since 2021 25.

On 5 August the company guided 2026 revenue of $1.4 billion to $1.5 billion and adjusted EBITDA, a profit measure before interest, tax and depreciation, of $210 million to $230 million 1. It expects an adjusted gross margin of 27 to 28 percent for the year 1. It expects third quarter revenue of $310 million to $330 million, and reports on 5 November 18.

At 30 June it had $413.7 million of contracted work not yet delivered, and it expects to book 99 percent of it as revenue within twelve months 2. Its wider orderbook, which adds awarded orders, was $2.5 billion 1.

At an investor event on 20 August, the chief executive said Array is evolving beyond trackers into an energy infrastructure platform 7. The company listed five major product launches in 2026 and said it is pursuing disciplined strategic acquisitions while strengthening its capital structure 7.

The AWM sellers can earn up to $8 million on 2026 profit and up to $16 million for each of 2027 and 2028, plus $5 million on each of the deal's first two anniversaries 3. Array may pay in cash or shares 3. APA's sellers can earn up to 4,686,530 shares for results through 30 September 2028, and a deferred payment falls due on 31 December 2026 2.

Since 10 August 2026 the preferred dividends are payable only in cash; unpaid, they add to the preferred claim at the cash rate plus 2 percentage points 2. The cash rate began at 5.75 percent and rises by half a point on the fifth, sixth and seventh anniversaries of the 2021 sale 2.

Convertible notes of $321.5 million fall due on 1 December 2028, and notes of $336.3 million on 1 July 2031 2. The revolving credit line of $370.0 million runs to 18 February 2031, with $332.9 million unused at 30 June 2.

pv magazine reported that quotes for the 60 degree DuraTrack begin in 2026, with first deliveries planned for mid-2027 18. The annual report expected production at the Bernalillo County plant to start in the first half of 2026 9.

How it operates

Array makes the steel structures that hold solar panels in a field and turn them to follow the sun. Its main product is a single-axis tracker: motors and gears rotate each row of panels along a north-south axis so the row stays aligned with the sun through the day, which the company says raises the energy a site produces against fixed-tilt mounts, which are stationary. The flagship DuraTrack HZ v3, launched in May 2015, uses a patented single-bolt mounting system and few motors per megawatt. Two other trackers sit beside it: the Array STI H250, a dual-row design for sites with irregular or highly angled boundaries, and OmniTrack, introduced in September 2022 for uneven ground that would otherwise need grading. SkyLink adds a control system powered by the panels themselves that runs independently of the grid, and the SmarTrack software stows the rows against hail, snow and wind. 1920212223242526

It sells to the companies that build solar farms: solar developers, independent power producers, utilities, and the engineering, procurement and construction firms that put the sites together, usually under master supply agreements or multi-year procurement contracts. No single buyer dominates. In 2025 the two largest customers were 13.7% and 12.2% of revenue, and at the end of the year the largest owed 13.4% of the money customers owed the company, the five largest 29.8%. Four fifths of revenue, 81%, came from customers in the United States and the remaining 19% from the rest of the world. Since the company was founded it has shipped more than 96 gigawatts of trackers. 2728293031

Array runs a plant of about 283,000 square feet in Albuquerque, New Mexico, where it makes or assembles module clamps, center structures and motor controller assemblies; steel tubing and supports, drivelines, bearing assemblies, gearboxes, motors and electronic controllers are bought under outsourcing contracts and shipped by the suppliers straight to the job site. A second New Mexico plant in Bernalillo County, leased in May 2024, adds about 176,000 square feet of manufacturing and 40,000 of office and laboratory space; the company took control of it in the fourth quarter of 2025. Abroad, the STI business holds about 67,000 square feet in Spain and 610,000 in Brazil. The APA purchase brought leases in Ohio and Connecticut, five of them with parties owned by members of APA's own management team. 3233343536

The company reports in two segments: Array Legacy Operations, mostly the design and delivery of solar arrays in the United States, and STI Operations, mostly outside it, with APA counted inside the legacy segment. Measured instead by where the project sits, the United States brought in 1.0 billion dollars, 81.1% of 2025 revenue; Spain 141.0 million, 11.0%; Brazil 60.7 million, 4.7%; Australia 23.8 million, 1.9%; everywhere else 17.2 million, 1.3%. 373839

Most revenue is booked as the work progresses, measured by cost incurred against cost expected. Delivery on a contract runs from days to several months, and a contract can be worth anything from hundreds of thousands of dollars to tens of millions. At the end of 2025 the company had 593.7 million dollars of work under contract still to be delivered, and said it expects to recognize revenue on 87% of it within twelve months. Construction slows in cold weather, because setting foundations in frozen ground costs more, so the company says it usually sees higher revenue in the second and third quarters and lower in the first and fourth. 40414243

The specifics

One patent shapes the product. Array's core United States patent covers a linked-row, rotating gear drive system, which lets a single motor turn several rows through an articulating drive shaft, and it does not expire until February 5, 2030. The company says competitors must work around it with designs it believes are less efficient and less reliable, its largest competitor needing one motor for each row of panels. At the end of 2025 it held 74 issued United States patents, 174 issued elsewhere and 216 applications pending, plus 162 registered trademarks; the issued United States patents are scheduled to expire between 2030 and 2045. 444546

It names its rivals plainly: Nextpower, formerly Nextracker, PV Hardware and GameChange Solar in trackers, and UNIRAC and Terrasmart, a subsidiary of Gibraltar Industries, in fixed-tilt mounting systems and engineered foundations. Steel is the raw material that matters, and the company says it does not hedge it. Duties on steel and aluminum imports were raised to 25% across the board in February 2025, with the old exemptions and quotas swept away, and the company attributes 13 points of a 22% rise in its legacy segment's cost measure, which it calls CPW, to higher tariffs. 47484950

Public policy runs through the numbers. Under the Inflation Reduction Act, enacted in August 2022, buyers of American solar projects are generally entitled to an investment tax credit of 30%, raised to 40% where domestic content rules are met. On July 4, 2025 the One Big Beautiful Bill Act ended that credit for facilities placed in service after December 31, 2027, unless construction begins before July 4, 2026, and in August 2025 Treasury removed the safe harbor that let a project count as started once 5% of its cost was spent, leaving only a physical work test. A separate credit, section 45X, pays manufacturers per unit for clean energy components made and sold in the United States; Array has negotiated with key suppliers to share that benefit on torque tubes and structural fasteners, and 45X benefits realized came to 173.6 million dollars in 2025, against 137.8 million in 2024 and 9.3 million in 2023. 515253545556

Array has filed with the SEC since 2020, the year it listed on Nasdaq. In August 2021 it sold 400,000 shares of a redeemable perpetual preferred stock and 9,000,000 common shares for about 395.4 million dollars; that preferred accrues dividends at 6.25% a year, and accrued and unpaid dividends had reached 90.8 million by the end of 2025. It bought the Spanish tracker maker STI in January 2022, and APA, which designs and makes solar racking, mounting and foundation systems, on August 14, 2025 for about 185.4 million. In June 2025 it placed 345 million dollars of convertible notes due 2031, repaid its term loan in full and bought back 100.0 million dollars of its 2028 notes. A shareholder class action over the 2020 listing, filed in 2021, was dismissed with prejudice in 2023 and the dismissal is under appeal. Material weaknesses in financial reporting disclosed for 2023 were remediated, and none were found for 2025. 23575859606162636465666768

What drives growth, line by line

Revenue rose 40.2% in 2025 to 1.3 billion dollars, taking back the ground lost in 2024, when it fell 41.9% to 915.8 million. The recovery stopped above the bottom line: gross profit was flat at 298.6 million, while the operating loss narrowed to 29.0 million from 227.0 million and the net loss to 52.2 million from 240.4 million. 69

Array Legacy Operations. The bigger segment, and the one that grew: 1.1 billion dollars, 83.4% of revenue, up 61.8%. The company puts the rise almost entirely down to volume, about 62% more of it. APA sits inside this segment and added 50.0 million dollars of revenue and an operating loss of 6.3 million between August 14 and the end of the year. Gross profit rose 30.0 million dollars, or 11%, but the segment's gross margin fell to 28% from 41%: the cost measure the company calls CPW rose 22%, of which 13 points came from higher tariffs, 6 from a smaller 45X amortization benefit and 3 from inflationary cost pressures. 3970715072

STI Operations. The smaller segment shrank: 213.7 million dollars, 16.6% of revenue, down 15.9%. Volume fell about 20%, while what the filing calls ASP rose 5%. Gross margin went from 11% to minus 1%, after a one-off inventory charge of 29.5 million dollars taken when the company decided in the fourth quarter to phase out the version of the H250 tracker that does not work with its SmarTrack software. It also wrote off 102.6 million dollars of goodwill on the STI business, after 236.0 million the year before, and booked 1.2 million of severance for resizing parts of the international operations. 397374757677

Measured by where the projects are, the shift was sharper than the two segments show. The United States brought in 1.0 billion dollars, 81.1% of revenue, up 61.8%; Spain 141.0 million, 11.0%, up 68.4%; Australia 23.8 million, 1.9%, up 173.1%. Brazil went the other way: 60.7 million, 4.7% of revenue, down 55.1% from 135.1 million, and the countries grouped as the remainder fell 61.5% to 17.2 million. 3938

Below the gross line, general and administrative spending rose 24%, or 38.0 million dollars, mostly on 17.7 million more of total compensation and 16.9 million of costs tied to the APA purchase and deferred compensation. Interest expense fell 22% as the term loan went and convertible notes took its place, and retiring the repurchased 2028 notes produced a gain of about 20.1 million. Research and development spending, small for a company this size, was 9.9 million dollars against 6.7 million the year before. 69787980

What comes next, in the company's own words: 593.7 million dollars of work sits under contract, with 87% of it expected to be recognized as revenue within twelve months; construction of the Bernalillo County plant is expected to be completed in March 2026, with production there starting in the first half of the year; management intends to begin selling the flagship DuraTrack tracker through STI. In February 2026 the company more than doubled its revolving credit line and pushed its maturity out to 2031. It ended 2025 with a cash balance of 244.4 million dollars and says it believes operating cash flows will be sufficient to meet its liquidity needs in the next 12 months and beyond. 423481828384

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What the desk infers Inferred

1. Inferred

   Array's reported gross profit leans on a tax credit it largely does not earn itself: 173.6 million dollars of section 45X benefits sat inside product cost in 2025, beside 298.6 million dollars of gross profit for the whole company, and only 8.6 million of that benefit came from parts Array manufactures.

   Because

   • The segment tables say product cost includes 45X benefits realized of 173.6 million dollars in 2025, 137.8 million in 2024 and 9.3 million in 2023. 56
   • Consolidated gross profit was 298.6 million dollars in 2025 and 297.7 million in 2024. 69
   • Credits earned on components the company itself manufactured reduced cost of product and service revenue by only 8.6 million dollars in 2025 and 4.4 million in 2024. 85
   • The rest arrives as vendor rebates, agreements under which suppliers share a portion of the credit they earn on Array's purchases; those reduced cost of product and service revenue by about 165.0 million dollars in 2025. 8687
   Confidence 80 of 100Wrong if A year in which the 45X benefits realized inside product cost are small beside gross profit, or a disclosure showing the vendor rebate agreements are a minor part of them.
2. Inferred

   The STI business Array bought in 2022 is being folded into the parent's product line rather than run as its own franchise: the write-downs, the phase-out of the H250 version that cannot run SmarTrack, and the stated intent to sell DuraTrack through STI all point the same way.

   Because

   • Array bought the Spanish company STI in January 2022 and added its dual-row H250 tracker to the product range. 23
   • Goodwill on the STI business was written down by 102.6 million dollars in 2025 after 236.0 million in 2024. 75
   • A year earlier the same business took a 91.9 million dollar impairment of long-lived assets, including 83.0 million of customer relationships. 88
   • In the fourth quarter of 2025 the company approved a plan to phase out the H250 version that was not compatible with SmarTrack and wrote down 29.5 million dollars of that inventory. 76
   • The projections behind the 2025 write-down reflect management's intent to begin selling and distributing DuraTrack through STI. 81
   Confidence 70 of 100Wrong if A filing that reports the H250 growing as a separate product line, with no DuraTrack sold through STI and no further write-down of the STI business.
3. Inferred

   Assembling in New Mexico does not insulate Array from steel tariffs: enough of its steel and components still come from abroad that duties moved the cost of its main segment materially, and its protection lies in where it assembles rather than where it buys.

   Because

   • The company says the legacy segment's status as a United States company with domestic manufacturing reduces the potential impact of tariffs on goods made abroad and imported. 89
   • Even so, 13 points of the 22% rise in that segment's CPW came from higher tariffs, and gross margin fell to 28% from 41%. 5071
   • It buys steel tubing and supports, drivelines, bearing assemblies, gearboxes, motors and electronic controllers under outsourcing contracts, and says its suppliers are located across the globe. 3390
   • It warns that to the extent it continues to use overseas suppliers of steel and aluminum, the tariffs could interrupt supply and affect costs and gross margins. 91
   Confidence 70 of 100Wrong if A disclosure showing the parts behind the legacy segment's cost are sourced domestically, with the 2025 cost rise attributed to something other than tariffs.