Breaking Down Array Technologies, Inc. (ARRY) Financial Health: Key Insights for Investors

You're looking at Array Technologies, Inc. (ARRY) right now and wondering if their recent turnaround has legs, so here's the quick answer: the financials suggest a strong, albeit risk-aware, path forward, driven by domestic solar demand. The company has significantly tightened its operational focus, leading to a raised full-year 2025 revenue guidance to a range of $1.25 billion to $1.28 billion, a clear signal of confidence in their utility-scale solar tracker business. This performance is backed by a substantial order backlog of approximately $1.9 billion, mostly from domestic projects, which gives them a solid revenue floor for the near-term; that's a massive pipeline.

Honestly, the real story is the margin improvement, with adjusted EBITDA forecasted to land between $185 million and $195 million for 2025, translating to an expected adjusted diluted earnings per share (EPS) of $0.64 to $0.70, a defintely impressive recovery from prior-year losses. What this estimate hides, though, are the persistent, complex risks like potential Section 232 tariffs on imports and the volatility of project timing, but the company's strategic move to capitalize on the massive load growth from AI data centers needing U.S. utility-scale solar is a powerful tailwind. We need to break down how they plan to convert that $1.9 billion backlog into clean profit.

Revenue Analysis

You want to know where Array Technologies, Inc. (ARRY) is actually making its money, and the short answer is solar trackers, mostly in the US, but the growth story is getting more complex. The company's full-year 2025 revenue guidance is strong, projecting a range of $1.25 billion to $1.28 billion, which is a significant jump from 2024's annual revenue of $915.81 million. That's a clear signal of market traction.

The core business is the sale of ground-mounting systems, specifically their single-axis solar trackers, which move solar panels to follow the sun and maximize energy production. This product line is the primary revenue driver, but the company is defintely diversifying its offerings, which is a smart move to mitigate single-product risk. The recent acquisition of APA Solar, a provider of foundations and fixed-tilt systems, is a key part of this strategy, contributing approximately $50 million to the full-year 2025 revenue guidance.

Here's the quick math on the near-term growth: Array Technologies reported Q3 2025 revenue of $393.5 million, an impressive 70% increase year-over-year. This surge was largely volume-driven, with a 56% increase in units shipped in the quarter. Looking at the broader picture, the trailing twelve-month (TTM) revenue as of September 30, 2025, hit $1.33 billion, which is up 35.75% year-over-year.

The revenue streams break down into two main operating segments, though the bulk of the sales comes from the legacy business:

• Array Legacy Operations: This segment, which includes the core single-axis tracker products, contributes the majority of the revenue.
• STI Operations: This segment, acquired previously, focuses on other solar mounting solutions.

What this estimate hides is the significant contribution from new product innovation. Products like OmniTrack, Skylink, and Hail XP are already gaining serious traction, accounting for nearly 40% of the current $1.9 billion order book. Also, the company's revenue is heavily concentrated in the US market, with over 95% of the firm's substantial order book coming from domestic business, though international markets like Latin America and Europe are showing growth.

To see how this revenue growth translates to the bottom line, you should check out the full post on Breaking Down Array Technologies, Inc. (ARRY) Financial Health: Key Insights for Investors.

Here is a snapshot of the key 2025 revenue data:

The key takeaway is that Array Technologies is successfully translating its strong order book into realized revenue, with new products and strategic acquisitions like APA Solar starting to meaningfully contribute to the top line. Finance: track the domestic vs. international revenue mix for Q4 by the next earnings call.

Profitability Metrics

You're looking at Array Technologies, Inc. (ARRY) because you need to know if the recent revenue surge is actually dropping to the bottom line. The short answer is yes, but the full picture requires looking past the GAAP numbers to the adjusted figures, which show a clear operational turnaround and margin expansion in 2025.

For the full fiscal year 2025, the company projects revenue between $1.25 billion and $1.28 billion, with an Adjusted Gross Margin (gross profit before certain non-cash items) targeted at a tight range of 27% to 28%. This is a defintely a strong signal of pricing power and cost control, especially given the persistent commodity and tariff headwinds in the solar sector. You want to see that gross profit growing faster than sales, and for Array Technologies, that's the trend.

Here's the quick math on their Q3 2025 performance, which drives the full-year confidence:

• Gross Profit Margin: The Adjusted Gross Margin hit 28.1% in Q3 2025.
• Operating Profit Margin: Adjusted EBITDA (a good proxy for operating profit) was $72 million, resulting in an 18.3% margin for the quarter.
• Net Profit: GAAP Net Income was $18 million, but the Adjusted Net Income was $46 million.

Trends in Operational Efficiency and Margin Expansion

The profitability trend is the most compelling story here. Array Technologies has demonstrated sequential adjusted gross margin improvement, quarter-over-quarter, throughout 2025. What this tells me is that their operational moves-like integrating the APA Solar acquisition and shifting product mix-are working.

The acquisition of APA Solar, completed mid-quarter, contributed approximately $17 million to Q3 revenue and is expected to unlock powerful commercial synergies. Plus, the company has been proactively managing supply chain costs, negotiating tariff relief, and leveraging domestic sourcing to reduce its tariff exposure to less than 14%. That's smart cost management in a volatile environment.

The swing from a net loss in the prior year to a GAAP Net Income of $18 million in Q3 2025 is a massive improvement, showing that the core business is now generating real GAAP profit. This momentum leads to the full-year Adjusted EBITDA guidance of $185 million to $195 million.

Industry Comparison: A Clear Lead

When you stack Array Technologies up against its peers in the solar tracker and equipment space, their profitability ratios stand out. The solar industry is tough, and many competitors are still fighting for consistent positive margins.

For context, a key competitor, FTC Solar, reported a Non-GAAP gross margin of only 7.7% in Q3 2025, with an Adjusted EBITDA loss of $4 million. Array Technologies' Q3 Adjusted Gross Margin of 28.1% and Adjusted EBITDA margin of 18.3% puts them in a significantly stronger position.

Here is a snapshot of the key profitability metrics for Array Technologies (ARRY) based on 2025 guidance and Q3 actuals, compared to a peer:

The difference is stark. Array Technologies is generating substantial operational profit, while a competitor is still working to break even on an EBITDA basis. This market leadership in profitability is a key reason to Exploring Array Technologies, Inc. (ARRY) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for further margin pressure if commodity prices or tariffs spike unexpectedly, but the current strategic moves suggest they are well-positioned to pass through costs and maintain their margin advantage.

Debt vs. Equity Structure

You're looking at Array Technologies, Inc. (ARRY) and need to know if their growth is funded by a manageable mix of debt and shareholder capital. The short answer is Array Technologies, Inc. (ARRY) is using debt aggressively to fuel its expansion, but a recent, smart refinancing move in 2025 has significantly improved their debt profile. This is a capital-intensive business, so some leverage is expected, but the debt-to-equity ratio is still on the higher side compared to some industry peers.

As of the third quarter of 2025, Array Technologies, Inc. (ARRY)'s total debt stood at approximately $681 million, primarily composed of long-term obligations. Specifically, the company reported long-term debt and capital lease obligations of roughly $658 million, with short-term obligations being a much smaller $23 million. This structure shows management is focused on long-term financing to support large-scale solar projects, which is typical for a company with a significant order book like theirs.

Here's the quick math on Array Technologies, Inc. (ARRY)'s financial leverage:

• Total Debt (Q3 2025): $681 million
• Total Stockholders' Equity (Q3 2025): $405 million
• Debt-to-Equity Ratio: 1.68

A Debt-to-Equity (D/E) ratio of 1.68 means that Array Technologies, Inc. (ARRY) is using $1.68 of debt for every dollar of equity to finance its assets. For context, while some capital-light technology companies might target a D/E closer to 0.5, the solar equipment sector often operates with higher ratios due to the need for major capital investment. However, when you look at a peer like First Solar, which had a D/E of just 0.09 in 2024, Array Technologies, Inc. (ARRY)'s 1.68 signals a much higher reliance on debt financing. This is defintely a point to watch, as higher leverage increases financial risk during economic downturns.

The company made a critical move in June 2025 to manage this leverage, executing a strategic refinancing. They closed an upsized private offering of $345 million in 2.875% convertible senior notes due in July 2031. This was a smart way to address looming obligations and improve free cash flow.

The financing strategy was two-fold:

• Debt Reduction: They repaid $232.8 million of their existing term loan and repurchased $100 million in principal of their 1.00% Convertible Senior Notes due 2028 for only $78.3 million, effectively buying back debt at a 21.7% discount.
• Dilution Management: They used $35.1 million of the proceeds for capped call transactions, a derivative strategy designed to mitigate potential shareholder dilution if the stock price rises above the conversion price of the new notes.

The net effect of this refinancing is an expected annual savings of approximately $9 million in net interest expenses, which directly boosts future cash flow. Array Technologies, Inc. (ARRY) is balancing a high-growth, capital-intensive model with strategic debt management, opting for convertible notes to push out maturity dates and lower interest costs while still keeping a path open for equity conversion if the stock performs well. You can see how this aligns with their long-term goals by reviewing their Mission Statement, Vision, & Core Values of Array Technologies, Inc. (ARRY).

Here is a summary of the key capital structure components as of Q3 2025:

Liquidity and Solvency

You're looking at Array Technologies, Inc. (ARRY) and need to know if they have the cash to manage their short-term obligations while also funding their growth. The direct takeaway is that Array Technologies, Inc.'s liquidity position is strong, supported by healthy ratios and a solid cash reserve, but you must keep an eye on their elevated debt-to-equity ratio.

As of the third quarter of 2025, Array Technologies, Inc. shows a current ratio (Current Assets / Current Liabilities) of 2.22. This means the company has $2.22 in short-term assets for every dollar of short-term debt, which is defintely a comfortable buffer. The quick ratio (or acid-test ratio), which strips out inventory-the least liquid current asset-was 1.84. Both figures are well above the 1.0 benchmark, indicating the company can readily cover its immediate liabilities without having to sell off inventory under duress. That's a great sign of operational stability.

Working Capital and Cash Flow Trends

The company's working capital trends show a clear focus on cash generation and strategic investment. The improvement in working capital was a key driver for their free cash flow (FCF), which is the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Array Technologies, Inc. is guiding for a full-year 2025 Free Cash Flow between $115 million and $130 million [cite: 8 in previous step, 9 in previous step].

Here's the quick math on their recent cash flow activity for Q3 2025:

• Operating Cash Flow: Net cash generated from operations was $27 million.
• Investing Cash Flow: Net cash used was $170 million. This was primarily driven by the acquisition of APA Solar, a strategic move.
• Financing Cash Flow: This saw a net impact from the issuance of $345 million in new convertible notes, the full repayment of a term loan, and the repurchase of $100 million of 2028 convertible notes at a discount [cite: 9 in previous step].

This shows a business that is generating cash from its core operations and using its balance sheet flexibility to execute on growth strategies, like the APA acquisition. They are investing heavily in their future, including the new Albuquerque manufacturing facility.

Liquidity Concerns and Strengths

The company's liquidity is a clear strength. Array Technologies, Inc. ended Q3 2025 with $222 million in total cash on hand and total liquidity over $365 million, including their undrawn revolving credit facility. This ample liquidity provides a strong buffer against market volatility and allows for continued investment. However, a seasoned analyst must point out the solvency side of the equation: the debt-to-equity ratio stands at 1.9. This is a relatively high level of leverage that warrants monitoring, even with a strong cash position. Plus, a low Altman Z-Score of 1.21 in Q3 2025 places the company in the distress zone, a technical warning sign that demands attention, even if the strong cash flow counters the immediate risk.

The balance sheet is strong enough to manage short-term needs, but the long-term debt profile is where the risk lies. You need to understand the strategy behind that debt. For more on the company's long-term strategy, you can review their Mission Statement, Vision, & Core Values of Array Technologies, Inc. (ARRY).

Next Step: Finance should model the impact of a 15% revenue decline on the current ratio to stress-test the $365 million liquidity buffer by the end of the quarter.

Valuation Analysis

You're looking at Array Technologies, Inc. (ARRY) and asking the crucial question: Is this stock overvalued or undervalued right now? The short answer is nuanced: analysts see a clear upside, but traditional valuation metrics show a mixed picture, which is common in a high-growth, recently unprofitable sector like solar tracking.

As of November 2025, the stock is trading around the $8.18 to $8.64 range. It's been a volatile ride, with the stock price up approximately 21.36% for the year, a welcome rebound after significant drops in 2023 and 2024. That momentum is important, but we need to check the fundamentals.

Key Valuation Multiples (2025 Fiscal Year)

To gauge its true value, we look at three core ratios. These help us compare Array Technologies, Inc. to its peers and its own historical performance. Here's the quick math on the latest figures:

• Price-to-Earnings (P/E) Ratio: The trailing twelve-month (TTM) P/E is negative, around -14.02, which simply means the company was not profitable over the last year. However, the forward P/E, based on 2025 earnings estimates, is a more palatable 13.86. This implies Wall Street expects a solid return to profitability.
• Price-to-Book (P/B) Ratio: Array Technologies, Inc.'s P/B ratio stands at 3.09. This is relatively high, suggesting the market values the company at more than three times its net asset value (Book Value), which is typical for a tech-driven growth company, not a mature utility.
• Enterprise Value-to-EBITDA (EV/EBITDA): This metric is a cleaner look at operational value, stripping out debt and taxes. Array Technologies, Inc.'s ratio is 9.52. For a growth company in the renewable energy space, this multiple is often considered reasonable, especially when one analyst firm is applying a 13x multiple to the 2025 EBITDA estimate to justify their price target.

The company does not pay a dividend; its TTM dividend yield is 0.00%. They are wisely reinvesting every dollar back into the business to fuel future growth, which is defintely the right move for a company focused on market share in a rapidly expanding industry.

Analyst Consensus and the Upside

The Wall Street consensus is a clear 'Moderate Buy' rating, based on the ratings of 25 to 28 analysts. This suggests that despite the recent volatility and the negative TTM P/E, the professional community sees more runway for the stock.

The average 12-month price target is between $10.07 and $11.39. Here's what that average target implies:

• Forecasted Upside: The average target of $10.07 represents a forecasted upside of about 23.12% from the current price. Some recent bullish ratings imply an even greater upside, up to 49.49%, based on a three-analyst average of $12.33.
• The Risk: What this estimate hides is the risk of project descoping and cancellations, plus exposure to steel prices, which can still influence near-term earnings predictability.

So, is it overvalued? Not according to the analysts projecting a significant return to profitability and volume growth, but one relative value model suggests it is overvalued by 45.2% compared to its intrinsic value. The market is pricing in the future growth potential, which makes the stock look expensive on historical earnings, but cheap on forward-looking estimates. For a deeper dive into the institutional interest driving this valuation, you should check out Exploring Array Technologies, Inc. (ARRY) Investor Profile: Who's Buying and Why?

Risk Factors

You need to see the full picture, not just the recent surge in Array Technologies, Inc. (ARRY) revenue. While the company is projecting strong full-year 2025 revenue between $1.38 billion and $1.48 billion, there are clear and present risks-both external and internal-that could easily derail that momentum. The solar tracker business is defintely not for the faint of heart; it's highly exposed to policy shifts and commodity price swings.

The biggest near-term headwinds are regulatory and operational, specifically around trade policy and project execution. Honestly, your investment thesis needs to account for a high degree of volatility, given Array Technologies, Inc.'s stock beta of 1.49, which signals higher risk than the broader market. One clean one-liner: Policy risk is the new steel price volatility.

External and Regulatory Pressures

The external risks center on tariffs and the complex dance of U.S. government incentives. The impending expiration of the U.S. solar tax credit at the end of 2025 is a massive catalyst for project pull-forward, but it also creates a cliff edge for demand in 2026. Plus, the ongoing tariff risks are a direct threat to margins.

• Tariff Drag: New import duties on components from India and Mexico are adding incremental costs. Management's initial fiscal year 2025 assumption was a 100 basis points drag on margins, but analysts warn the actual hit could be larger, making the gross margin target of 28% to 29% a tough climb.
• IRA Incentive Leakage: The benefits of the Inflation Reduction Act (IRA) are not fully retained by Array Technologies, Inc. Customers are retaining a portion of the tax credits, meaning the full economic benefit isn't flowing down to the company's bottom line.
• Competition: The market remains highly competitive, with key rival Nextracker gaining significant share. This pressure limits Array Technologies, Inc.'s pricing power, even with a strong order book.

Operational and Financial Risks

Despite a strong Q3 2025 performance-with net income of $18.35 million and Adjusted EBITDA of $72.19 million-the company's financial structure still shows signs of strain. The strategic risk of customer concentration is real, with two clients accounting for more than a quarter of total sales. If one of those projects gets canceled or delayed, it hits revenue hard.

Here's the quick math on the financial stress signals:

What this estimate hides is the volatility in the order book, which is tied to project descoping and cancellations. Plus, transformer supply constraints-a bottleneck for the entire utility-scale solar industry-can delay project completion, pushing revenue out of the current fiscal year.

Mitigation Strategies and Clear Actions

Array Technologies, Inc. is not standing still; they are taking clear actions to mitigate these risks. Their strategy is focused on product innovation, supply chain control, and geographic diversification. This is about building a more resilient business model, not just chasing volume.

• Supply Chain Onshoring: The company's onshoring initiatives are expected to reduce exposure to India by about 50% by year-end 2025. This move is strategic because onshore components qualify for 45x IRA credits, which helps offset tariff costs and improves the value proposition for U.S. customers.
• Product Diversification: New product lines like OmniTrak, Skylink, and Hail XP are gaining traction, already accounting for nearly 40% of the order book. This reduces reliance on older, potentially lower-margin products.
• Strategic M&A: The acquisition of APA Solar is a smart move to diversify the product portfolio and capture synergies in the residential, commercial, and industrial solar segments.

To be fair, the company is executing well on its Mission Statement, Vision, & Core Values of Array Technologies, Inc. (ARRY)., but investors must remain vigilant on margin protection. Your next step is simple: Finance should model the impact of a 200 basis point tariff drag on the 2026 gross margin view by the end of the quarter.

Growth Opportunities

Array Technologies, Inc. (ARRY) is defintely poised for solid growth, driven by a record order book and the successful integration of a key acquisition. The company's updated full-year 2025 financial guidance reflects this momentum, showing management's confidence in sustained demand for their solar tracking technology.

The core takeaway is that the growth trajectory is now less about market recovery and more about market share gains and product mix. Honestly, the numbers speak for themselves, with the company raising its full-year revenue and earnings outlook based on strong Q3 performance that saw revenue hit $393 million, a 70% year-over-year increase.

Future Revenue and Earnings Estimates

We saw a significant bump in the 2025 fiscal year forecast in November 2025. This isn't a small adjustment; it signals a firming up of project pipelines and better-than-expected execution. Array Technologies, Inc. now projects full-year revenue to land between $1.25 billion and $1.28 billion. Here's the quick math on the expected profitability, which shows a healthy margin profile despite ongoing tariff and inflation pressures.

What this estimate hides is the sheer volume of future work: the total executed contracts and awarded orders, essentially the order book, stood at a robust $1.9 billion as of the end of the third quarter, which doesn't even include the backlog from their recent acquisition.

Key Growth Drivers and Strategic Moves

The growth isn't accidental; it's being fueled by smart strategic initiatives and product innovations. The acquisition of APA Solar, completed midway through the third quarter, is a great example. This move is expected to contribute approximately $50 million to the raised 2025 revenue guidance, plus it broadens their offerings to include engineered foundations and fixed-tilt systems.

Product innovation is also driving the top line. Array Technologies, Inc. has pushed new products that are gaining traction fast. These new solutions now account for nearly 40% of the company's total order book, up from just 7% earlier in the year. The key growth drivers are:

• New Products: Rapid adoption of OmniTrack, SkyLink, and Hail XP.
• Acquisition Synergy: Integration of APA Solar to diversify product offerings.
• Market Demand: Increasing need for utility-scale solar, especially from US-based AI datacenter growth.

Competitive Advantages and Positioning

Array Technologies, Inc. has a clear edge in the utility-scale solar tracker market. Their core competitive advantage is a combination of product design and supply chain flexibility. Their passive stow system, for instance, is a big deal because it generates more energy and allows for a better ground coverage ratio compared to competitors. This is what matters to independent power producers (IPPs) and developers: maximizing energy output.

Crucially, the company has positioned itself to capitalize on US government incentives. They are one of the few players who can offer 100% domestic content trackers, which is a significant advantage for customers looking to maximize tax credits under the Inflation Reduction Act (IRA). Also, they've proactively managed supply chain risks, reducing their tariff exposure to less than 14% by year-end. This operational agility keeps their costs competitive. For a deeper dive into who is buying into this story, you might want to check out Exploring Array Technologies, Inc. (ARRY) Investor Profile: Who's Buying and Why?

Next step: Dig into the specific project pipeline to assess the quality of that $1.9 billion order book.