Array Technologies’ Profit Drops to $23 Million in Q3 as Solar Tracker Sales Decrease

The company’s revenue witnessed a 32% YoY drop to $350.4 million

November 8, 2023


Array Technologies, a utility-scale solar tracker company, reported a profit of $23.2 million for the third quarter (Q3) of 2023, a 42% drop from $40.6 million for the same period in 2022 due to a drop in revenue from the sale of trackers.

The company also attributed the big year-over-year (YoY) drop in profit to the $42.8 million legal settlement received by the company during Q3 of 2022.

Array reported revenue of $350.4 million in Q3, registering a 32% YoY decrease against $515.0 million. This was due to a 22% reduction in the total MW of trackers shipped and a 2% decrease in annual support price due to lower input costs.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) increased to $57.4 million, compared to $55.4 million for the same period in 2022.

The company’s operating expenses decreased from the corresponding year’s $59.4 million to $47.2 million in Q3. This was attributed to $12 million in lower amortization expense in 2023 compared to 2022, which had elevated amortization costs related to the Soluciones Tecnicas Integrales (STI) Norland acquisition.

The company executed contracts and awarded orders worth $1.6 billion as of September 30, 2023, with $1.4 billion from our Array Legacy Operations segment and $0.2 billion from STI Norland.

Kevin Hostetler, CEO at Array Technologies, said, “We already have multiple gigawatts of quoting activity on both the H250 and the OmniTrack. Also, we’re pleased to note that we have recently signed three long-term agreements, which collectively will represent multiple gigawatts in future projects. All of these agreements included deposits tied to dedicated capacity and represent programs that initiate in the second quarter of 2024 beyond. And finally, of the $320 million of IRA-related projects that were on hold at June 30th, we only saw $35 million convert to orders this quarter, which leaves almost $300 million still sitting on the sidelines. This means we have not yet unlocked anywhere near the full value of those projects into our order book.”

First Nine Months (9M) 2023

At the end of September 2023, the net profit surged to $114.15 million from the $9.68 million reported in 9M 2022.

The increase in net profit for the period could be attributed to the drop in the cost of products and services, which stood at $892.7 million, an 18% YoY drop from $1.08 billion.

The revenues for the January to September period remained unchanged at $1.234 billion.

The adjusted EBITDA for the period surged by 212% YoY to $240 million from $77.02 million.

In May 2023, Array Technologies reported a profit of $13.6 million for the first quarter of this year, mainly due to higher shipment of its products at a higher average selling due to improved pass-through pricing.