US solar tracker manufacturer Array Technologies has published its financial results for the third quarter of this year, with revenue decreasing by 32% to US$350.4 million due to the decreased shipments.
In Q3, Array Technologies’ saw a reduction of 22% in the total number of MWs shipped and a decrease in the average selling price of 12% driven by lower input costs. Therefore, revenue decreased from US$515 million in Q3 2022 to US$350.4 million in Q3 2023. Quarterly, Array Technologies’ revenue dropped from US$507.7 million in Q2 2023 or by 31%.
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Gross profit increased by 14% to US$87.4 million compared to US$76.6 million in Q3 2022, driven by an increase in gross profit as a percent of revenue, partly offset by decreased volume. However, Q3 2023 gross profit dropped by 41.7% quarter-on-quarter.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased to US$57.4 million, compared to US$55.4 million for the prior-year period.
Looking ahead, the company expects that revenue will be in the range of US$1,525 million to US$1,575 million, and adjusted EBITDA will be in the range of US$280 million to US$290 million.
“We are seeing a steady increase in our domestic pipeline, which has more than doubled from the second quarter. This increase is a key early indicator of the expected momentum in our orderbook,” said Kevin Hostetler, CEO of Array Technologies.
He added: “We have continued to be impacted by short-term delays in project timing driven by customer pushouts, which has reduced our revenue outlook for the full year. However, despite these project timing challenges, we continue to be encouraged by our operational execution, in particular our efforts to expand our non-tracker offerings, which will drive better than anticipated margins for the second half of the year.”
Additionally, Array Technologies continued to expand its business as announced plans to build a second manufacturing plant in Albuquerque, New Mexico last week. Construction of the plant will begin in early 2024 with an investment of US$50 million from Array Technologies and its partners.
In July, the company also collaborated with Lock Joint Tube, a manufacturer of structural and mechanical-grade steel tubing in Texas, to procure steel tubing. The news follows the Internal Revenue Service’s guidance on the domestic content tax credits included under the Inflation Reduction Act (IRA), which offers a 10% bonus to renewables projects that meet its criteria for domestically-sourced components and material.
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