Array records its largest quarter in revenue, due to strong organic growth and STI Norland’s acquisition


During Q3 2022, Array executed US$1.8 billion of contracts and awarded orders, up 77% from the same period in 2021. Image: Array Technologies.

US solar tracker supplier Array Technologies has continued to post strong financial results with Q3 revenue driven up by STI Norland’s acquisition and strong organic growth within its legacy business.

As it continues to bounce back from a difficult 2021, the tracker supplier’s revenue continued to increase from the previous quarter (Q2) and recorded its “single largest quarter” in the company’s history with revenue of US$515 million in Q3 2022, a 173% increase from the corresponding period in 2021.

Similar to the previous quarter, the increase in revenue during Q3 was primarily driven by the acquisition of STI Norland in January which contributed US$114.6 million in the revenue. The rest of the revenue jump, US$211.8 million, was driven by an increase in both the total number of megawatts shipped and an increase in average selling prices (ASP).

In Q3, Array executed US$1.8 billion of contracts and awarded orders in the third quarter of this year, up 77% on the same period last year.

A total of US$1.4 billion of this amount were from its Array Legacy Operations segment while US$0.4 billion came from STI Norland, which it acquired in January this year to help international expansion plans.

As with most of the solar industry in the US, Array Technologies CEO Kevin Hostetler said the passage of the Inflation Reduction Act (IRA) will have an “undeniable impact” on deployment in the coming 10 years, during a conference call to explain results, adding that the company was in talks with customers in terms of building out the framework for pricing agreements under the IRA.

“With our full suite of products and the strength of our domestic supply chain, we believe we are incredibly well positioned to take advantage of the secular growth that is on the horizon due, in part, to the passage of the Inflation Reduction Act,” said Hostetler.

Meanwhile, the company remains cautious about the impact of the Uyghur Forced Labor Prevention Act (UFLPA), despite not being affected directly and with the company raising its full year revenue outlook at the midpoint by US$150 million, according to Hostetler.

Array expects that the module delays in the US are caused by a lack of clarity surrounding the enforcement of the act that will provide a headwind on deliveries in Q4 and through Q1 2023.

Furthermore, adjusted EBITDA increased to US$55.4 million in Q3 2022, compared to a loss of US$3.9 million for the prior-year period, while adjusted net income was also in the green with US$28 million in Q3 2022, compared to a loss of US$11.8 million for Q3 2021.

Earlier this week, Array announced a supply agreement with EDF North America for a 750MW solar PV project in Ohio and will supply its DuraTrack trackers to over 1.4 million modules.

Conference call transcript from Seeking Alpha.

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