ARRAY Technologies, Inc. Reports Financial Results for the Fourth Quarter and Full Year 2024
Array Technologies (ARRY) reported Q4 2024 financial results with revenue of $275.2 million and gross margin of 28.5%. The company posted a Q4 net loss of $(141.2) million, including non-cash charges of $74.0 million for goodwill impairment and $91.9 million for intangible asset write-down.
Full-year 2024 highlights include revenue of $915.8 million, gross margin of 32.5%, and free cash flow of $135.4 million. The company's orderbook reached $2.0 billion, showing 10% year-over-year growth. Their OmniTrack™ product now represents over 20% of the orderbook.
Looking ahead, Array provided 2025 guidance with revenue projected between $1.05-1.15 billion and Adjusted EBITDA of $180-200 million. The company expects to achieve 100% domestic content solar trackers by H1 2025, despite ongoing challenges including permitting delays and component shortages.
Array Technologies (ARRY) ha riportato i risultati finanziari del Q4 2024 con un fatturato di 275,2 milioni di dollari e un margine lordo del 28,5%. L'azienda ha registrato una perdita netta nel Q4 di (141,2 milioni di dollari), inclusi oneri non monetari di 74,0 milioni di dollari per impairment di avviamento e 91,9 milioni di dollari per svalutazione di attività immateriali.
I punti salienti dell'intero anno 2024 includono un fatturato di 915,8 milioni di dollari, un margine lordo del 32,5% e un flusso di cassa libero di 135,4 milioni di dollari. Il portafoglio ordini dell'azienda ha raggiunto 2,0 miliardi di dollari, mostrando una crescita del 10% rispetto all'anno precedente. Il loro prodotto OmniTrack™ rappresenta ora oltre il 20% del portafoglio ordini.
Guardando al futuro, Array ha fornito previsioni per il 2025 con un fatturato previsto tra 1,05-1,15 miliardi di dollari e un EBITDA rettificato di 180-200 milioni di dollari. L'azienda si aspetta di raggiungere il 100% di contenuto domestico per i tracker solari entro il primo semestre del 2025, nonostante le sfide in corso, tra cui ritardi nei permessi e carenze di componenti.
Array Technologies (ARRY) reportó los resultados financieros del Q4 2024 con ingresos de 275,2 millones de dólares y un margen bruto del 28,5%. La compañía registró una pérdida neta en el Q4 de (141,2 millones de dólares), incluyendo cargos no monetarios de 74,0 millones de dólares por deterioro de goodwill y 91,9 millones de dólares por depreciación de activos intangibles.
Los aspectos destacados del año completo 2024 incluyen ingresos de 915,8 millones de dólares, un margen bruto del 32,5% y un flujo de caja libre de 135,4 millones de dólares. El libro de pedidos de la compañía alcanzó 2,0 mil millones de dólares, mostrando un crecimiento del 10% interanual. Su producto OmniTrack™ ahora representa más del 20% del libro de pedidos.
De cara al futuro, Array proporcionó orientación para 2025 con ingresos proyectados entre 1,05-1,15 mil millones de dólares y un EBITDA ajustado de 180-200 millones de dólares. La compañía espera lograr un contenido solar 100% nacional para los rastreadores solares para el primer semestre de 2025, a pesar de los desafíos en curso, incluidos los retrasos en los permisos y la escasez de componentes.
Array Technologies (ARRY)는 2024년 4분기 재무 결과를 발표하며 매출이 2억 7천 5백 20만 달러, 총 마진이 28.5%라고 보고했습니다. 회사는 4분기에 (1억 4천 1백 20만 달러)의 순손실을 기록했으며, 여기에는 7천 4백만 달러의 영업권 손상 및 9천 1백 90만 달러의 무형자산 감액에 대한 비현금 비용이 포함됩니다.
2024년 전체 주요 내용에는 9억 1천 5백 80만 달러의 매출, 32.5%의 총 마진, 1억 3천 5백 40만 달러의 자유 현금 흐름이 포함됩니다. 회사의 주문서는 20억 달러에 도달했으며, 전년 대비 10% 성장했습니다. 그들의 OmniTrack™ 제품은 이제 주문서의 20% 이상을 차지합니다.
앞으로 Array는 2025년 매출을 10억 5천-11억 5천만 달러로 예상하고 조정된 EBITDA는 1억 8천-2억 달러로 예상했습니다. 회사는 2025년 상반기까지 100% 국내 자재를 사용하는 태양광 추적기를 달성할 것으로 기대하고 있으며, 허가 지연 및 부품 부족과 같은 지속적인 도전 과제가 있음에도 불구하고 이를 목표로 하고 있습니다.
Array Technologies (ARRY) a annoncé les résultats financiers du T4 2024 avec un chiffre d'affaires de 275,2 millions de dollars et une marge brute de 28,5%. L'entreprise a enregistré une perte nette de (141,2 millions de dollars) au T4, y compris des charges non monétaires de 74,0 millions de dollars pour amortissement de goodwill et 91,9 millions de dollars pour amortissement d'actifs incorporels.
Les points saillants de l'année entière 2024 incluent un chiffre d'affaires de 915,8 millions de dollars, une marge brute de 32,5% et un flux de trésorerie libre de 135,4 millions de dollars. Le carnet de commandes de l'entreprise a atteint 2,0 milliards de dollars, affichant une croissance de 10% par rapport à l'année précédente. Leur produit OmniTrack™ représente désormais plus de 20% du carnet de commandes.
En regardant vers l'avenir, Array a fourni des prévisions pour 2025 avec un chiffre d'affaires projeté entre 1,05-1,15 milliard de dollars et un EBITDA ajusté de 180-200 millions de dollars. L'entreprise s'attend à atteindre 100% de contenu domestique pour les suiveurs solaires d'ici le premier semestre 2025, malgré les défis en cours, notamment des retards de permis et des pénuries de composants.
Array Technologies (ARRY) berichtete über die finanziellen Ergebnisse des Q4 2024 mit einem Umsatz von 275,2 Millionen Dollar und einer Bruttomarge von 28,5%. Das Unternehmen verzeichnete im Q4 einen Nettoverlust von (141,2 Millionen Dollar), einschließlich nicht zahlungswirksamer Aufwendungen von 74,0 Millionen Dollar für die Wertminderung von Geschäfts- oder Firmenwerten und 91,9 Millionen Dollar für die Abschreibung von immateriellen Vermögenswerten.
Die Höhepunkte des gesamten Jahres 2024 umfassen einen Umsatz von 915,8 Millionen Dollar, eine Bruttomarge von 32,5% und einen freien Cashflow von 135,4 Millionen Dollar. Der Auftragsbestand des Unternehmens erreichte 2,0 Milliarden Dollar und zeigte ein Wachstum von 10% im Vergleich zum Vorjahr. Ihr Produkt OmniTrack™ macht jetzt über 20% des Auftragsbestands aus.
Für die Zukunft gab Array eine Prognose für 2025 ab, mit einem voraussichtlichen Umsatz zwischen 1,05-1,15 Milliarden Dollar und einem bereinigten EBITDA von 180-200 Millionen Dollar. Das Unternehmen erwartet, bis zum ersten Halbjahr 2025 100% inländische Inhalte für Solar-Tracker zu erreichen, trotz anhaltender Herausforderungen wie Genehmigungs Verzögerungen und Komponentenengpässen.
- Record full-year gross margin of 32.5%
- Strong free cash flow generation of $135.4 million in 2024
- Orderbook grew 10% YoY to $2.0 billion
- Projected 20% revenue growth for 2025
- OmniTrack product gaining market share, representing 20% of orderbook
- Q4 net loss of $141.2 million
- Full-year net loss of $296.1 million
- $74.0M goodwill impairment charge
- $91.9M intangible asset write-down
- Ongoing challenges with permitting delays and component shortages
- Brazil market headwinds including currency devaluation and new tariffs
Insights
Array Technologies delivered solid operational results for Q4 and full-year 2024 despite significant GAAP losses, showcasing the company's resilience in a challenging utility-scale solar market. Q4 revenue of
The headline net losses of
Array's robust free cash flow of
Two strategic developments warrant attention: First, Array's progress toward 100% domestic content solar trackers by H1 2025 positions them favorably under IRA incentives. Second, their OmniTrack product now represents
Array faces a mixed international outlook - modest growth expected in Europe contrasts with challenges in Brazil due to currency devaluation, interest rate volatility, and new solar component tariffs. Domestically, project timeline extensions due to permitting delays, component shortages, and labor constraints appear to be stabilizing, but remain significant headwinds.
The 2025 guidance of
Array Technologies' 2024 results demonstrate resilience amid sector-wide challenges, with their technology strategy emerging as a key differentiator in the competitive solar tracker market. The company's record gross margins of
The rapid adoption of Array's OmniTrack product, now representing
Array's strategic investment in Swap Robotics represents a forward-looking approach to the persistent labor challenges plaguing utility-scale solar. This automation technology could be transformative for the industry by addressing one of its most significant bottlenecks – installation labor costs and availability. By integrating robotics into their product ecosystem, Array is positioning itself at the intersection of hardware and automation technology, potentially creating a sustainable competitive advantage beyond their core tracking systems.
The company's progress toward 100% domestic content by H1 2025 isn't merely a compliance exercise – it's a strategic realignment of their supply chain that could yield significant advantages under the Inflation Reduction Act. This positions Array ahead of competitors still reliant on international components, potentially allowing them to offer customers enhanced tax credit eligibility that directly improves project economics.
While the
The stabilization of US market headwinds by year-end 2024 indicates that Array's flexible product architecture may be allowing them to adapt to the component shortages and permitting delays better than less agile competitors. Their international strategy faces mixed prospects, with Europe offering growth opportunities while Brazil presents challenges – suggesting they may need market-specific product adaptations to address regional requirements and economic conditions.
Exceeds the mid-point of fourth quarter revenue guidance, achieves record gross margin on the full year, and delivers strong cash flow generation
Fourth Quarter 2024 Financial Highlights
- Revenue of
$275.2 million - Gross Margin of
28.5% - Adjusted gross margin(1) of
29.8% - Net loss to common shareholders of
$(141.2) million - Net loss to common shareholders inclusive of
$74.0 million non-cash goodwill impairment charge and$91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
- Net loss to common shareholders inclusive of
- Adjusted EBITDA(1) of
$45.2 million - Net loss per basic and diluted share of
$(0.93) - Adjusted net income per diluted share(1) of
$0.16
Full Year 2024 Financial Highlights
- Revenue of
$915.8 million - Gross Margin of
32.5% - Adjusted gross margin (1) of
34.1% - Net loss to common shareholders of
$(296.1) million - Net loss to common shareholders inclusive of
$236.0 million non-cash goodwill impairment charge and$91.9 million non-cash long-lived intangible asset write-down associated with the 2022 STI acquisition
- Net loss to common shareholders inclusive of
- Adjusted EBITDA(1) of
$173.6 million - Net loss per basic and diluted share of
$(1.95) - Adjusted net income per diluted share(1) of
$0.60 - Free cash flow(1) of
$135.4 million - Total executed contracts and awarded orders at December 31, 2024 were
$2.0 billion
ALBUQUERQUE, N.M., Feb. 27, 2025 (GLOBE NEWSWIRE) -- ARRAY Technologies (NASDAQ: ARRY) (“ARRAY” or the “Company”), a global leader in utility-scale solar tracking, today announced financial results for its fourth quarter and full year ended December 31, 2024.
“ARRAY delivered strong fourth quarter and full year 2024 results, we exceeded the mid-point of our fourth quarter revenue guidance and achieved record gross margin on the full year. Our ongoing focus on operational execution continues to translate into robust profitability and healthy cash flow. We finished 2024 with an orderbook of
Mr. Hostetler continued, “While persistent headwinds, including permitting and interconnection delays, shortages of high-voltage circuit breakers and transformers, and labor constraints—continue to impact project timelines in the United States, we experienced the market stabilizing by year-end, in contrast to the delays experienced in the middle of the year. In Europe, we anticipate modest growth in 2025 as we are well positioned to capture additional market share. However, in Brazil, macro factors such as currency devaluation, volatile interest rates, and newly introduced tariffs on solar components have impacted growth. For 2025, at the midpoint of our guidance, ARRAY expects to deliver over
First Quarter and Full Year 2025 Guidance
Given the uncertainty in the utility-scale solar energy market and headwinds we experienced during 2024 which pushed out project timelines, we are providing guidance for the first quarter of 2025. It is not our intention to provide quarterly guidance in the future. For the quarter ending March 31, 2025, the Company expects:
- Revenue to be in the range of
$260 million to$270 million - Adjusted EBITDA margin(2) to be in the range of
11% to13%
For the year ending December 31, 2025, the Company expects:
- Revenue to be in the range of
$1.05 billion to$1.15 billion - Adjusted EBITDA(2) to be in the range of
$180 million to$200 million - Adjusted net income per share(2) to be in the range of
$0.60 t o$0.70
Supplemental Presentation and Conference Call Information
ARRAY has posted a supplemental presentation to its website, which will be discussed during the conference call hosted by management today (February 27, 2025) at 5:00 p.m. (ET). The conference call can be accessed live over the phone by dialing (877)-869-3847 (domestic) or (201)-689-8261 (international) and entering the passcode 13750627 or via webcast of the live conference call by logging onto the Investor Relations sections of the Company’s website at http://ir.arraytechinc.com. A telephonic replay will be available approximately three hours after the call by dialing (877)-660-6853 (domestic), or (201)-612-7415 (international) with the passcode 13750627. The replay will be available until 11:59 p.m. (ET) on March 13, 2025. The online replay will be available for 30 days on the same website immediately following the call.
About ARRAY Technologies, Inc.
ARRAY Technologies (NASDAQ: ARRY) is a leading global provider of solar tracking technology to utility-scale and distributed generation customers, who construct, develop, and operate solar PV sites. With solutions engineered to withstand the harshest weather conditions, ARRAY’s high-quality solar trackers, software platforms and field services combine to maximize energy production and deliver value to our customers for the entire lifecycle of a project. Founded and headquartered in the United States, ARRAY is rooted in manufacturing and driven by technology - relying on its domestic manufacturing, diversified global supply chain, and customer-centric approach to design, deliver, commission, train, and support solar energy deployment around the world. For more news and information on ARRAY, please visit arraytechinc.com.
Investor Relations Contact:
Keith Jennings
505-437-0010
investors@arraytechinc.com
Media Contact:
Nicole Stewart
505-589-8257
Forward-Looking Statements
This press release contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Forward-looking statements include information concerning our possible or assumed future results of operations, business strategies, technology or product developments, financing and investment plans, dividend policy, competitive position, industry and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “anticipates,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would,” “designed to” or similar expressions and the negatives of those terms.
ARRAY’s actual results and the timing of events could materially differ from those anticipated in such forward-looking statements as a result of certain risks, uncertainties and other factors, including without limitation: changes in growth or rate of growth in demand for solar energy projects; competitive pressures within our industry; factors affecting viability and demand for solar energy, including but not limited to, the retail price of electricity, availability of in-demand components like high voltage breakers, various policies related to the permitting and interconnection costs of solar plants, and the availability of incentives for solar energy and solar energy production systems, which makes it difficult to predict our future prospects; competition from conventional and renewable energy sources; a loss of one or more of our significant customers, their inability to perform under their contracts, or their default in payment; a drop in the price of electricity derived from the utility grid or from alternative energy sources; fluctuations in our results of operations across fiscal periods, which could make our future performance difficult to predict and could cause our results of operations for a particular period to fall below expectations; any increase in interest rates, or a reduction in the availability of tax equity or project debt capital in the global financial markets, which could make it difficult for customers to finance the cost of a solar energy system; existing electric utility industry policies and regulations, and any subsequent changes or new related policies and regulations, may present technical, regulatory and economic barriers to the purchase and use of solar energy systems, which may significantly reduce demand for our products or harm our ability to compete; the interruption of the flow of materials from international vendors, which could disrupt our supply chain, including as a result of the imposition of new and/or additional duties, tariffs and other charges or restrictions on imports and exports; changes in the global trade environment, including the imposition of import tariffs or other import restrictions; geopolitical, macroeconomic and other market conditions unrelated to our operating performance including but not limited to a pandemic, the Ukraine-Russia war, attacks on shipping in the Red Sea, conflict in the Middle East, and inflation and interest rates; our ability to convert our orders in backlog into revenue; the reduction, elimination or expiration, or our failure to optimize the benefits of government incentives for, or regulations mandating the use of, renewable energy and solar energy, particularly in relation to our competitors; failure to, or incurrence of significant costs in order to, obtain, maintain, protect, defend or enforce, our intellectual property and other proprietary right; delays in construction projects and any failure to manage our inventory; significant changes in the cost of raw materials; disruptions to transportation and logistics, including increases in shipping costs; defects or performance problems in our products, which could result in loss of customers, reputational damage and decreased revenue; delays, disruptions or quality control problems in our product development operations; our ability to retain our key personnel or failure to attract additional qualified personnel; additional business, financial, regulatory and competitive risks due to our continued planned expansion into new markets; cybersecurity or other data incidents, including unauthorized disclosure of personal or sensitive data or theft of confidential information; a failure to maintain an effective system of integrated internal controls over financial reporting; our substantial indebtedness, risks related to actual or threatened public health epidemics, pandemics, outbreaks or crises; changes to laws and regulations, including changes to tax laws and regulations, that are applied adversely to us or our customers, including our ability to optimize those changes brought about by the passage of the Inflation Reduction Act or any repeal thereof; and the other risks and uncertainties described in more detail in the Company’s most recent Annual Report on Form 10-K and other documents on file with the SEC, each of which can be found on our website, www.arraytechinc.com.
Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
Non-GAAP Financial Information
This press release includes certain financial measures that are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA, Adjusted net income, Adjusted net income per share, Adjusted general and administrative expense and Free cash flow.
We define Adjusted gross profit as gross profit plus (i) amortization of developed technology and (ii) other costs if applicable. We define Adjusted gross margin as Adjusted gross profit as a percentage of revenue. We define Adjusted EBITDA as net income (loss) plus (i) other expense, net, (ii) foreign currency (gain) loss, net, (iii) preferred dividends and accretion, (iv) interest expense, (v) income tax (benefit) expense, (vi) depreciation expense, (vii) amortization of intangibles, (viii) amortization of developed technology, (ix) equity-based compensation, (x) change in fair value of contingent consideration, (xi) impairment of long-lived assets, (xii) goodwill impairment, (xiii) certain legal expenses, and (xiv) other costs. We define Adjusted net income as net income (loss) to common shareholders plus (i) amortization of intangibles, (ii) amortization of developed technology, (iii) amortization of debt discount and issuance costs (iv) preferred accretion, (v) equity-based compensation, (vi) change in fair value of contingent consideration, (vii) impairment of long-lived assets, (viii) goodwill impairment, (ix) certain legal expenses, (x) other costs, and (xi) income tax (benefit) expense adjustments. We define Adjusted general and administrative expense as general and administrative expense less (i) equity based compensation, (ii) certain legal expenses, (iii) other costs and (iv) income tax expense adjustments. We define Free cash flow as Cash provided by (used in) operating activities less purchase of property, plant and equipment and cash payments for the acquisition of right-of-use assets.
A detailed reconciliation between GAAP results and results excluding special items (“non-GAAP”) is included within this presentation. We calculate net income (loss) per share as net income (loss) to common shareholders divided by the basic and diluted weighted average number of shares outstanding for the applicable period and we define Adjusted net income per share as Adjusted net income (as detailed above) divided by the basic and diluted weighted average number of shares outstanding for the applicable period.
We believe that these non-GAAP financial measures are provided to enhance the reader’s understanding of our past financial performance and our prospects for the future. Our management team uses these non-GAAP financial measures in assessing the Company’s performance, as well as in planning and forecasting future periods. The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly titled non-GAAP measures used by other companies.
Among other limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income do not reflect our cash expenditures, or future requirements, for capital expenditures or contractual commitments; do not reflect the impact of certain cash charges resulting from matters we consider not to be indicative of our ongoing operations; do not reflect income tax expense or benefit; and other companies in our industry may calculate Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income differently than we do, which limits their usefulness as comparative measures. Because of these limitations, Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP.
We compensate for these limitations by relying primarily on our GAAP results and using Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income on a supplemental basis.
You should review the reconciliation of gross profit to Adjusted gross profit and net income (loss) to Adjusted EBITDA and Adjusted net income below and not rely on any single financial measure to evaluate our business.
(1) A reconciliation of the most comparable GAAP measure to its Non-GAAP measure is included below.
(2) A reconciliation of projected Adjusted gross profit, Adjusted gross margin, Adjusted EBITDA and Adjusted net income per share, which are forward-looking measures that are not prepared in accordance with GAAP, to the most directly comparable GAAP financial measures, is not provided because we are unable to provide such reconciliation without unreasonable effort. The inability to provide a quantitative reconciliation is due to the uncertainty and inherent difficulty predicting the occurrence, the financial impact and the periods in which the components of the applicable GAAP measures and non-GAAP adjustments may be recognized. The GAAP measures may include the impact of such items as non-cash share-based compensation, revaluation of the fair-value of our contingent consideration, and the tax effect of such items, in addition to other items we have historically excluded from Adjusted EBITDA and Adjusted net income per share. We expect to continue to exclude these items in future disclosures of these non-GAAP measures and may also exclude other similar items that may arise in the future (collectively, “non-GAAP adjustments”). The decisions and events that typically lead to the recognition of non-GAAP adjustments are inherently unpredictable as to if or when they may occur. As such, for our 2025 outlook, we have not included estimates for these items and are unable to address the probable significance of the unavailable information, which could be material to future results.
| Array Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (unaudited) (in thousands, except per share and share amounts) | |||||||
| December 31, | |||||||
| 2024 | 2023 | ||||||
| ASSETS | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 362,992 | $ | 249,080 | |||
| Restricted cash | 1,149 | — | |||||
| Accounts receivable, net | 275,838 | 332,152 | |||||
| Inventories | 200,818 | 161,964 | |||||
| Prepaid expenses and other | 157,927 | 89,085 | |||||
| Total current assets | 998,724 | 832,281 | |||||
| Property, plant and equipment, net | 26,222 | 27,893 | |||||
| Goodwill | 160,189 | 435,591 | |||||
| Other intangible assets, net | 181,409 | 354,389 | |||||
| Deferred income tax assets | 17,754 | 15,870 | |||||
| Other assets | 41,701 | 40,717 | |||||
| Total assets | $ | 1,425,999 | $ | 1,706,741 | |||
| LIABILITIES, REDEEMABLE PERPETUAL PREFERRED STOCK AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 172,368 | $ | 119,498 | |||
| Accrued expenses and other | 91,183 | 70,211 | |||||
| Accrued warranty reserve | 2,063 | 2,790 | |||||
| Income tax payable | 5,227 | 5,754 | |||||
| Deferred revenue | 119,775 | 66,488 | |||||
| Current portion of contingent consideration | 1,193 | 1,427 | |||||
| Current portion of debt | 30,714 | 21,472 | |||||
| Other current liabilities | 15,291 | 48,051 | |||||
| Total current liabilities | 437,814 | 335,691 | |||||
| Deferred income tax liabilities | 21,398 | 66,858 | |||||
| Contingent consideration, net of current portion | 7,868 | 8,936 | |||||
| Other long-term liabilities | 18,684 | 20,428 | |||||
| Long-term warranty | 4,830 | 3,372 | |||||
| Long-term debt, net of current portion | 646,570 | 660,948 | |||||
| Total liabilities | 1,137,164 | 1,096,233 | |||||
| Commitments and contingencies (Note 16) | |||||||
| Series A Redeemable Perpetual Preferred Stock: | 406,931 | 351,260 | |||||
| Stockholders’ equity | |||||||
| Preferred stock | — | — | |||||
| Common stock | 151 | 151 | |||||
| Additional paid-in capital | 297,780 | 344,517 | |||||
| Accumulated deficit | (370,624 | ) | (130,230 | ) | |||
| Accumulated other comprehensive income (loss) | (45,403 | ) | 44,810 | ||||
| Total stockholders’ equity | (118,096 | ) | 259,248 | ||||
| Total liabilities, redeemable perpetual preferred stock and stockholders’ equity | $ | 1,425,999 | $ | 1,706,741 | |||
| Array Technologies, Inc. and Subsidiaries Consolidated Statements of Operations (unaudited) (in thousands, except per share amounts) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | $ | 275,232 | $ | 341,615 | $ | 915,807 | $ | 1,576,551 | |||||||
| Cost of revenue: | |||||||||||||||
| Cost of product and service revenue | 193,273 | 253,746 | 603,572 | 1,146,442 | |||||||||||
| Amortization of developed technology | 3,640 | 3,640 | 14,558 | 14,558 | |||||||||||
| Total cost of revenue | 196,913 | 257,386 | 618,130 | 1,161,000 | |||||||||||
| Gross profit | 78,319 | 84,229 | 297,677 | 415,551 | |||||||||||
| Operating expenses: | |||||||||||||||
| General and administrative | 45,663 | 43,710 | 160,567 | 159,535 | |||||||||||
| Change in fair value of contingent consideration | 396 | 732 | 125 | 2,964 | |||||||||||
| Depreciation and amortization | 8,702 | 9,567 | 36,086 | 38,928 | |||||||||||
| Long-lived assets impairment | 91,904 | — | 91,904 | — | — | ||||||||||
| Goodwill impairment | 74,000 | — | 236,000 | — | |||||||||||
| Total operating expenses | 220,665 | 54,009 | 524,682 | 201,427 | |||||||||||
| (Loss) income from operations | (142,346 | ) | 30,220 | (227,005 | ) | 214,124 | |||||||||
| Other income (expense), net | 654 | (888 | ) | (1,008 | ) | (1,015 | ) | ||||||||
| Interest income | 4,092 | 2,206 | 16,777 | 8,330 | |||||||||||
| Foreign currency (loss) gain, net | (3,442 | ) | (326 | ) | (4,515 | ) | (53 | ) | |||||||
| Interest expense | (9,007 | ) | (8,857 | ) | (34,825 | ) | (44,229 | ) | |||||||
| Total other (expense) income | (7,703 | ) | (7,865 | ) | (23,571 | ) | (36,967 | ) | |||||||
| (Loss) income before income tax expense (benefit) | (150,049 | ) | 22,355 | (250,576 | ) | 177,157 | |||||||||
| Income tax (benefit) expense | (23,146 | ) | 3,013 | (10,182 | ) | 39,917 | |||||||||
| Net (loss) income | (126,903 | ) | 19,342 | (240,394 | ) | 137,240 | |||||||||
| Preferred dividends and accretion | 14,338 | 13,332 | 55,670 | 51,691 | |||||||||||
| Net (loss) income to common shareholders | $ | (141,241 | ) | $ | 6,010 | $ | (296,064 | ) | $ | 85,549 | |||||
| (Loss) income per common share | |||||||||||||||
| Basic | $ | (0.93 | ) | $ | 0.04 | $ | (1.95 | ) | $ | 0.57 | |||||
| Diluted | $ | (0.93 | ) | $ | 0.04 | $ | (1.95 | ) | $ | 0.56 | |||||
| Weighted average common shares outstanding | |||||||||||||||
| Basic | 151,944 | 151,175 | 151,754 | 150,942 | |||||||||||
| Diluted | 151,944 | 152,110 | 151,754 | 152,022 | |||||||||||
| Array Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited) (in thousands) | |||||||||||||||
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net income (loss) | $ | (126,903 | ) | $ | 19,342 | $ | (240,394 | ) | $ | 137,240 | |||||
| Adjustments to net income (loss): | |||||||||||||||
| Goodwill impairment | 74,000 | — | 236,000 | — | |||||||||||
| Impairment of long-lived assets | 91,904 | — | 91,904 | — | |||||||||||
| Provision for bad debts | (1,357 | ) | 2,644 | 2,058 | 2,527 | ||||||||||
| Deferred tax benefit | (30,371 | ) | (6,534 | ) | (37,650 | ) | (8,862 | ) | |||||||
| Depreciation and amortization | 9,206 | 9,950 | 38,221 | 40,268 | |||||||||||
| Amortization of developed technology | 3,640 | 3,640 | 14,558 | 14,558 | |||||||||||
| Amortization of debt discount and issuance costs | 1,435 | 1,447 | 6,087 | 10,570 | |||||||||||
| Gain on debt refinancing | — | (457 | ) | — | (457 | ) | |||||||||
| Equity-based compensation | 3,498 | 2,845 | 10,349 | 14,540 | |||||||||||
| Change in fair value of contingent consideration | 396 | 732 | 125 | 2,964 | |||||||||||
| Warranty provision | 3,127 | 1,075 | 3,163 | 4,666 | |||||||||||
| Write-down of inventories | 442 | 1,844 | 2,923 | 6,431 | |||||||||||
| Changes in operating assets and liabilities, net of business acquisition: | |||||||||||||||
| Accounts receivable | (442 | ) | 99,164 | 41,423 | 92,800 | ||||||||||
| Inventories | (14,823 | ) | 54,189 | (44,787 | ) | 66,743 | |||||||||
| Income tax receivables | 33 | (3,156 | ) | (4,112 | ) | 9 | |||||||||
| Prepaid expenses and other | (24,505 | ) | (8,700 | ) | (69,708 | ) | (10,840 | ) | |||||||
| Accounts payable | 24,475 | (52,097 | ) | 58,180 | (37,654 | ) | |||||||||
| Accrued expenses and other | 34,492 | (10,019 | ) | (436 | ) | 5,325 | |||||||||
| Income tax payable | 3,790 | 2,666 | (863 | ) | 1,936 | ||||||||||
| Lease liabilities | (2,894 | ) | 9,227 | (8,624 | ) | 1,177 | |||||||||
| Deferred revenue | 8,443 | (33,821 | ) | 55,563 | (111,986 | ) | |||||||||
| Net cash provided by operating activities | 57,586 | 93,981 | 153,980 | 231,955 | |||||||||||
| Investing activities | |||||||||||||||
| Purchase of property, plant and equipment | (1,701 | ) | (5,374 | ) | (7,305 | ) | (16,989 | ) | |||||||
| Retirement/disposal of property, plant and equipment | (4 | ) | 168 | 34 | 168 | ||||||||||
| Cash payments for the acquisition of right-of-use assets | (11,276 | ) | — | (11,276 | ) | — | |||||||||
| SAFE Investment | (3,000 | ) | — | (3,000 | ) | — | |||||||||
| Sale of equity investment | — | — | 11,975 | — | |||||||||||
| Net cash used in investing activities | (15,981 | ) | (5,206 | ) | (9,572 | ) | (16,821 | ) | |||||||
| Financing activities | |||||||||||||||
| Series A equity issuance costs | — | — | — | (1,509 | ) | ||||||||||
| Tax withholding related to vesting of equity-based compensation | (18 | ) | — | (1,752 | ) | — | |||||||||
| Proceeds from issuance of other debt | 74,035 | 2,795 | 93,059 | 63,311 | |||||||||||
| Principal payments on term loan facility | (1,075 | ) | (1,075 | ) | (4,300 | ) | (74,300 | ) | |||||||
| Principal payments on other debt | (72,545 | ) | (19,039 | ) | (97,424 | ) | (88,063 | ) | |||||||
| Contingent consideration payments | — | — | (1,427 | ) | (1,200 | ) | |||||||||
| Net cash used in financing activities | 397 | (17,319 | ) | (11,844 | ) | (101,761 | ) | ||||||||
| Effect of exchange rate changes on cash and cash equivalent balances | (10,233 | ) | 3,614 | (17,503 | ) | 1,806 | |||||||||
| Net change in cash and cash equivalents | 31,769 | 75,070 | 115,061 | 115,179 | |||||||||||
| Cash and cash equivalents and restricted cash, beginning of period | 332,372 | 174,010 | 249,080 | 133,901 | |||||||||||
| Cash and cash equivalents and restricted cash, end of period | $ | 364,141 | $ | 249,080 | $ | 364,141 | $ | 249,080 | |||||||
| Supplemental cash flow information | |||||||||||||||
| Cash paid for interest | $ | 8,989 | $ | 8,995 | $ | 38,655 | $ | 43,949 | |||||||
| Cash paid for income taxes (net of refunds) | $ | 2,746 | $ | 9,145 | $ | 27,966 | $ | 45,942 | |||||||
| Non-cash investing and financing | |||||||||||||||
| Dividends accrued on Series A | $ | (13,668 | ) | $ | 6,803 | $ | 7,246 | $ | 26,370 | ||||||
| Array Technologies, Inc. Adjusted Gross Profit, Adjusted EBITDA, Adjusted Net Income, General and Administrative Expense, and Free Cash Flow Reconciliation (unaudited) (in thousands, except per share amounts) |
The following table reconciles Gross profit to Adjusted gross profit:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Revenue | 275,232 | 341,615 | 915,807 | 1,576,551 | |||||||||||
| Cost of revenue | 196,913 | 257,386 | 618,130 | 1,161,000 | |||||||||||
| Gross profit | 78,319 | 84,229 | 297,677 | 415,551 | |||||||||||
| Gross margin | 28.5 | % | 24.7 | % | 32.5 | % | 26.4 | % | |||||||
| Amortization of developed technology | 3,640 | 3,640 | 14,558 | 14,558 | |||||||||||
| Adjusted gross profit | 81,959 | 87,869 | 312,235 | 430,109 | |||||||||||
| Adjusted gross margin | 29.8 | % | 25.7 | % | 34.1 | % | 27.3 | % | |||||||
The following table reconciles Net income to Adjusted EBITDA:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (126,903 | ) | $ | 19,342 | $ | (240,394 | ) | $ | 137,240 | |||||
| Preferred dividends and accretion | 14,338 | 13,332 | 55,670 | 51,691 | |||||||||||
| Net (loss) income to common shareholders | $ | (141,241 | ) | $ | 6,010 | $ | (296,064 | ) | $ | 85,549 | |||||
| Other expense, net | (4,746 | ) | (1,318 | ) | (15,769 | ) | (7,315 | ) | |||||||
| Foreign currency loss (gain), net | 3,442 | 326 | 4,515 | 53 | |||||||||||
| Preferred dividends and accretion | 14,338 | 13,332 | 55,670 | 51,691 | |||||||||||
| Interest expense | 9,007 | 8,857 | 34,825 | 44,229 | |||||||||||
| Income tax (benefit) expense | (23,146 | ) | 3,013 | (10,182 | ) | 39,917 | |||||||||
| Depreciation expense | 1,140 | 772 | 4,410 | 2,669 | |||||||||||
| Amortization of intangibles | 8,142 | 9,186 | 33,811 | 37,607 | |||||||||||
| Amortization of developed technology | 3,640 | 3,640 | 14,558 | 14,558 | |||||||||||
| Equity-based compensation | 3,498 | 2,648 | 10,349 | 14,578 | |||||||||||
| Change in fair value of contingent consideration | 396 | 732 | 125 | 2,964 | |||||||||||
| Long-lived assets impairment | 91,904 | — | 91,904 | — | |||||||||||
| Goodwill impairment | 74,000 | — | 236,000 | — | |||||||||||
| Certain legal expenses(a) | 2,240 | 244 | 6,773 | 898 | |||||||||||
| Other costs(b) | 2,586 | 736 | 2,628 | 736 | |||||||||||
| Adjusted EBITDA | $ | 45,200 | $ | 48,178 | $ | 173,553 | $ | 288,134 | |||||||
(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI, and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a regional tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.
The following table reconciles Net income to Adjusted net income:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net (loss) income | $ | (126,903 | ) | $ | 19,342 | $ | (240,394 | ) | $ | 137,240 | |||||
| Preferred dividends and accretion | 14,338 | 13,332 | 55,670 | 51,691 | |||||||||||
| Net (loss) income to common shareholders | $ | (141,241 | ) | $ | 6,010 | $ | (296,064 | ) | $ | 85,549 | |||||
| Amortization of intangibles | 8,142 | 9,187 | 33,811 | 37,607 | |||||||||||
| Amortization of developed technology | 3,640 | 3,640 | 14,558 | 14,558 | |||||||||||
| Amortization of debt discount and issuance costs | 1,547 | 1,447 | 6,199 | 10,570 | |||||||||||
| Preferred accretion | 7,093 | 6,528 | 27,510 | 25,320 | |||||||||||
| Equity based compensation | 3,498 | 2,648 | 10,349 | 14,578 | |||||||||||
| Change in fair value of contingent consideration | 396 | 732 | 125 | 2,964 | |||||||||||
| Impairment of long-lived assets | 91,904 | — | 91,904 | — | |||||||||||
| Goodwill impairment | 74,000 | — | 236,000 | — | |||||||||||
| Certain legal expenses(a) | 2,240 | 244 | 6,773 | 898 | |||||||||||
| Other costs(b) | 2,586 | 736 | 2,628 | 736 | |||||||||||
| Income tax expense adjustments(c) | (28,688 | ) | (4,757 | ) | (42,596 | ) | (20,863 | ) | |||||||
| Adjusted net income | $ | 25,117 | $ | 26,415 | $ | 91,197 | $ | 171,917 | |||||||
| (Loss) income per common share | |||||||||||||||
| Basic | $ | (0.93 | ) | $ | 0.04 | $ | (1.95 | ) | $ | 0.57 | |||||
| Diluted | $ | (0.93 | ) | $ | 0.04 | $ | (1.95 | ) | $ | 0.56 | |||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 151,944 | 151,175 | 151,754 | 150,942 | |||||||||||
| Diluted | 151,944 | 152,110 | 151,754 | 152,022 | |||||||||||
| Adjusted net income per common share | |||||||||||||||
| Basic | $ | 0.17 | $ | 0.17 | $ | 0.60 | $ | 1.14 | |||||||
| Diluted | $ | 0.16 | $ | 0.17 | $ | 0.60 | $ | 1.13 | |||||||
| Weighted average number of common shares outstanding | |||||||||||||||
| Basic | 151,944 | 151,175 | 151,754 | 150,942 | |||||||||||
| Diluted | 152,255 | 152,110 | 152,285 | 152,022 | |||||||||||
(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.
(c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.
The following table reconciles General and administrative expense to Adjusted general and administrative expense:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| General and administrative expense | 45,663 | 43,710 | 160,567 | 159,535 | |||||||||||
| Equity based compensation | 3,498 | 2,648 | 10,349 | 14,578 | |||||||||||
| Certain legal expenses(a) | 2,240 | 244 | 6,773 | 898 | |||||||||||
| Other costs(b) | 2,586 | 736 | 2,628 | 736 | |||||||||||
| Income tax expense adjustments(c) | (28,688 | ) | (4,757 | ) | (42,596 | ) | (20,863 | ) | |||||||
| Adjusted general and administrative expense | 25,299 | 42,581 | 137,721 | 154,884 | |||||||||||
(a) Represents certain legal fees and other related costs associated with (i) Actions filed against the company and certain officers and directors alleging violations of the Securities Exchange Acts of 1934 and 1933, which litigation was dismissed with prejudice by the Court on May 19, 2023 and subsequently appealed. The appeal has been fully briefed, argued, and the Company is awaiting a decision, and (ii) legal and success fees related to a regional tax dispute for a period prior to the acquisition of STI and (iii) other litigation and legal matters. We consider these costs not representative of legal costs that we will incur from time to time in the ordinary course of our business.
(b) For the three months ended December 31, 2024, other costs represent costs related to the settlement of a regional tax dispute for a period prior to the acquisition of STI. For the twelve months ended December 31, 2024, other costs also include costs related to Capped-Call accounting treatment evaluation and the settlement of a tax dispute. For the Three months ended December 31, 2023, other costs represent costs related to Capped-Call accounting treatment evaluation.
(c) Represents the estimated tax impact of all Adjusted Net Income add-backs, excluding those which represent permanent differences between book versus tax.
The following table reconciles new cash provided by operating activities to Free cash flow:
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Net cash provided by operating activities | 57,586 | 93,981 | 153,980 | 231,955 | |||||||||||
| Purchase of property, plant and equipment | (1,701 | ) | (5,374 | ) | (7,305 | ) | (16,989 | ) | |||||||
| Cash payments for the acquisition of right-of-use assets | (11,276 | ) | — | (11,276 | ) | — | |||||||||
| Free cash flow | 44,609 | 88,607 | 135,399 | 214,966 | |||||||||||
FAQ
What is Array Technologies (ARRY) revenue guidance for 2025?
What was Array Technologies (ARRY) orderbook value at the end of 2024?
What percentage of Array Technologies (ARRY) orderbook is represented by OmniTrack?
What were Array Technologies (ARRY) Q4 2024 financial results?
When will Array Technologies (ARRY) achieve 100% domestic content for solar trackers?
