Array Technologies reports revenue of US$507.7 million in Q2 2023

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Array Technologies’ ArrayHero tracker. Image: Array Technologies

US solar tracker manufacturer Array Technologies has published its financial results for the second quarter of this year, which include a revenue of US$507.7 million and a gross profit increase of 276% year-on-year.

The company’s latest results are impressive, with the most recent revenues figure showing an increase on the US$376.8 million posted in the first quarter of this year, and the US$419.9 million reported in the second quarter of 2022.

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Array Technologies’ gross profit also increased dramatically, from US$39.9 million in the second quarter of 2022 to US$150 million in the second quarter of this year, a 276% increase. This helped drive an increase in the company’s gross margins from 9.5% to 29.6% over the same period, and the latter figure is a record high for the company.

The company’s operating expenses, meanwhile, remained stable, only increasing slightly from US$53.3 million in the second quarter of 2022 to US$53.8 million in the second quarter of this year.

“Array delivered another strong performance in the second quarter as we exceeded expectations across the board,” said Array CEO Kevin Hostetler. “Revenue grew 21% from the prior year, anchored by 124% year-over-year growth in our science, technology and innovation segment.”

A statement from Array concluded that two factors were responsible for the company’s impressive financial performance: an increase in the total volume of solar trackers sold and an increase in the average sale price of these trackers due to “improved pass-through pricing to our customers”.

Delivering local production

The company has also invested considerably in localised tracker production and usage. In February, it announced plans to provide trackers for the 130MW Glenrowan solar farm in the Australian state of Victoria, with the trackers built in facilities in Victoria itself.

In July, Array acquired steel from a mill in the US state of Texas to build more trackers, sourcing materials from US manufacturers and qualifying for tax credits under in the Inflation Reduction Act (IRA).

As a result, Array is optimistic about its upcoming financial performance. The company now forecasts its total revenue to be between US$1.65-US$1.73 billion by the end of the year, and its adjusted earnings before inflation, taxes, depreciation and amortisation (EBITDA) to be as high as US$295 million.

However, Hostetler noted that delays in delivering some of the company’s trackers will negatively affect its financial results, with Array not to benefit from the installation of some trackers until 2024.

“We did see a larger proportion of these bookings represent 2024 deliveries than we had expected going into the quarter,” said Hostetler. “This fact, combined with larger than anticipated pushouts due to module availability, further IRA clarity and permitting issues, has negatively impacted anticipated revenue for 2023.

“However, it is important to note that despite a lower outlook for revenue, we are increasing our forecasted adjusted EBITDA and adjusted earnings per share as we have increased our full-year gross margin expectation.”

Alongside the financial results, Array announced the appointment of a new chief strategy and technology officer, Aaron Gabelnick, who will report directly to Hostetler. Gabelnick most recently worked as the vice president and chief strategy officer for the performance materials and technology business of US conglomerate Honeywell, and is joining a company optimistic about its upcoming performance.

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