Solar Tracker Firm Array Technologies’ Turnaround Continues in Q2 2023

The company posted a net profit of $64.81 million during the quarter


United States-based utility-scale solar tracker company Array Technologies recorded a net profit of $64.81 million during the second quarter (Q2) of the financial year (FY) 2023, a year-over-year (YoY) increase of 1,391%, compared to a loss of $5.02 million.

The company’s revenue came in at $507.73 million, a YoY increase of 21%.

This growth was driven by a rise in both the total capacity shipped and an increase in average selling price (ASP), attributed to better pass-through pricing to customers.

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) accounted for $115.57 million, a YoY increase of 453.4% compared to $20.88 million.

Operating expenses rose to $53.8 million from $53.3 million in the corresponding period of 2022. This rise is mainly due to increased census and professional fees, which was partly balanced by a decrease of $13.4 million in amortization expenses in 2023.

The company pointed out that in the quarter, it secured about $600 million in bookings, driven partly by favorable Inflation Reduction Act (IRA) domestic content guidance.

However, a higher portion of these bookings is now slated for 2024 delivery, along with delays due to module availability, IRA details, and permitting challenges.

In Q1, the company swung to a profit of $13.6 million from a loss of $37.5 million YoY, mainly on higher shipments of its products at a higher average selling price due to improved pass-through pricing.

Kevin Hostetler, Chief Executive Officer, said, “While we are disappointed in the progression of the elements we cannot control, we steadfastly remain focused on the execution of our strategy. That includes delivering a strong 2023 while positioning ourselves for success as the industry moves into its next phase of growth. We will enter 2024 with strong booking momentum, a much-improved balance sheet, a multi-product offering enabling us to expand our target market while delivering industry-leading gross margin, and a stronger operating system that will continue to improve shareholder returns.”

1H 2023

For the first half (1H) of FY 2023, the company recorded a net income of $90.94 million, a YoY improvement of 393% compared to a net loss of $30.96 million in 1H of 2022.

Array Technologies’s revenue during 1H amounted to $884.5 million, a YoY increase of 22.7%.

The company’s adjusted EBITDA was recorded at $182.56 million, a YoY increase of 744% compared to $21.61 million.

Executed contracts and awarded orders on June 30, 2023, totaled $1.7 billion.

In Q4 2022, the net loss of Array Technologies narrowed to $17.3 million from $32.1 million YoY, mainly driven by the additional revenue from the company’s acquisition of solar tracker manufacturer STI.