Array Technologies, Inc.
ARRY · NASDAQ-GM
ARRY · NASDAQ-GM
Reports Nov 5, 2026, after the close.
Consensus is $0.08 EPS for Sep 2026 across 7 estimates, ranging $0.02 to $0.12.
Array’s second quarter was a strong sequential rebound and a material earnings beat, although the year-over-year picture remained mixed. Revenue of $342.1 million was 53% above Q1’s $223.4 million but 6% below Q2 2025’s $362.2 million. Operating income rose to $34.8 million from $7.1 million in the prior quarter, while net income increased to $24.3 million from $2.0 million; both remained below the year-ago $46.4 million and $43.3 million, respectively. GAAP diluted EPS was $0.05 versus $0.19 a year ago and a loss of $0.09 in Q1, while adjusted diluted EPS was $0.24 versus $0.25 a year ago and $0.05 in Q1.
The print was defined by better mix and execution in Array’s legacy business, a sharp contraction in international STI operations, and unusually strong demand visibility. Consolidated gross margin expanded to 29.1% from 26.8% year over year, and adjusted EBITDA was nearly flat at $63.3 million despite lower revenue. The orderbook reached a record $2.5 billion, up 37%, supporting the increase in full-year adjusted EBITDA guidance to $210 million-$230 million. Cash generation was also notable, with $113.6 million of free cash flow, although the planned AWM acquisition adds up to $203 million of stated consideration before other adjustments.
Profitability improved sharply from the weak first quarter, with gross profit rising to $99.6 million from $62.6 million implied by Q1 results and operating income reaching $34.8 million. The year-over-year comparison was less favorable because Q2 2025 included a $14.2 million gain on extinguishment of debt and higher STI contribution. Adjusted gross margin nevertheless rose to 30.8% from 27.8%, while adjusted EBITDA was $63.3 million, compared with $63.6 million a year earlier.
Demand visibility was the quarter’s clearest positive. Executed contracts and awarded orders reached $2.5 billion for the third consecutive quarter, and new orders exceeded $500 million. The 1.5x trailing twelve-month book-to-bill ratio indicates bookings continued to outpace shipments, while remaining performance obligations totaled $413.7 million, 99% of which the company expects to recognize within twelve months.
The consolidated result concealed a sharp split between the U.S.-weighted legacy business and international STI operations. Array Legacy benefited from higher pricing and APA contributions, while STI experienced lower volumes and pricing. Management’s filing attributes the legacy margin improvement to a 25% increase in average selling prices, partly offset by a 21% increase in cost per watt; STI’s margin deterioration reflected a 26% ASP decline.
Array kept its revenue outlook intact but raised the lower end of its profitability expectations after the strong first half. The company is also broadening its offering from trackers toward a more integrated balance-of-system platform. DuraTrack D2S targets international markets, OmniTrack adds terrain flexibility, and the announced AWM acquisition would add cable-management and safety products.
Cash conversion was a major support for the quarter and helped offset the company’s acquisition and financing commitments. Operating cash flow benefited from working-capital movements as well as earnings, while the company repaid its remaining STI debt during the quarter. Array still carries substantial convertible debt and redeemable preferred stock, and preferred dividends and accretion reduced earnings available to common shareholders.
