US solar tracker manufacturer Array Technologies expects that 100% of its trackers will be eligible for domestic content benefits n the first half of 2025.
Array announced this expectation during the publication of its 2024 financial results, and will be helped with the commissioning of the company’s manufacturing facility in Albuquerque, New Mexico, at which it began construction in April 2024.
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This manufacturing plant will be an important part of Array’s resiliency strategy, explained CEO, Kevin G. Hostetler, who also suggested that the recent executive orders by Donald Trump would not have an impact on the company.
“We do not believe the key tax credits for our industry, including the ITC, PTC, domestic content and 45X are affected by the recent Trump executive orders.
“Tax credits are considered mandatory spending and are not subject to appropriation. As such, they are outside the scope of this executive order,” said Hostetler.
US$2 billion orderbook boosted by domestic growth
Despite a year-on-year revenue drop from US$1.58 billion in 2023 to US$915.8 million in 2024, the company ended 2024 with a 10% orderbook growth to US$2 billion at the end of the year, boosted by a 20% domestic orderbook growth. The year-on-year revenue decline was primarily due to lower volumes and an average selling price (ASP) decline, according to Array.
In the fourth quarter of 2024, revenue saw a 19% sequential growth, driven by domestic performance while the rest of the world remained stable.
Hostetler said: “While persistent headwinds, including permitting and interconnection delays, shortages of high-voltage circuit breakers and transformers, and labour constraints continue to impact project timelines in the US, we experienced the market stabilising by year-end, in contrast to the delays experienced in the middle of the year.”
The strong contracting momentum in the US and Europe helped offset the slowed market growth in Brazil, which the company expects to continue for the upcoming three to four quarters. This is due to the devaluation of the currency (Brazilian Real), a volatile interest rate environment and the introduction of new tariffs on solar components, including a tax increase on solar modules from 9.6% to 25%.
“In Europe, we anticipate modest growth in 2025 as we are well positioned to capture additional market share,” said Hostetler, adding that the company was looking into new markets to expand globally, including the Middle East.
New products and investment in automation
During Q4 2024, the company invested in autonomous robotics company Swap Robotics with an initial investment of US$3 million with two additional investments of US$1 million each if Swap Robotics reaches milestones agreed between the companies.
“We believe the integration of Swap Robotics technology into our product portfolio will drive project efficiencies and cost savings for our customers,” said Hostetler.
Regarding its own products, the company aims to focus on extreme weather with the launch this year of a high-angle stow hail tracker, which mitigates risk from extreme hail damage. This would be the latest product from the company centred on responding to hail issues, as last year it launched a tracking software aimed at protecting solar assets from hail damage.
In its forward guidance, the company aims to reach a revenue between US$1.05 billion and US$1.15 billion, of which it expects US$260-US$270 million during Q1 2025. This would represent a 20% year-over-year revenue growth at the midpoint guidance. Meanwhile, its adjusted EBITDA will be in the range of US$180 million to US$200 million.
“We are optimistic about future demand growth for utility-scale solar energy both domestically and internationally and confident that our value proposition in the industry will continue to propel growth for years to come,” said Hostetler.
Earnings call transcript from Seeking Alpha.
